With the Southeast Asian startup ecosystem in flux, it stands at a pivotal moment where gender diversity is not merely an aspiration but a fundamental driver for innovation and sustainable growth. According to Innoven Capital’s Southeast Asia Startup Outlook Report, only 6 percent of surveyed startups are predominantly led by women, and a mere 25 percent have a workforce where women make up more than half. This glaring disparity underscores the urgent need for strategies to promote gender inclusivity, but what is hindering the progress and what more can be done?
Policies Driving Change
Government policies and advocacy play a crucial role in shaping gender diversity within startups. Countries with progressive stances on gender inclusivity, such as setting concrete targets for women’s representation at the board level, tend to see more significant advancements in diversity, equity, and inclusion (DEI). For instance, Malaysia’s government has been proactive in promoting gender diversity through targeted initiatives and incentives, which has spurred greater implementation of gender-inclusive policies in the startup ecosystem. In contrast, countries adopting a softer approach with voluntary guidelines often experience slower progress, highlighting the need for a firm governmental commitment to driving DEI practices. Multinational firms also play a vital role in promoting local adoption of these practices, as their adherence to global DEI standards set benchmarks that may inspire local startups and cultivate a culture of inclusivity.
Balancing Acts in Southeast Asia
Encouragingly, markets like Singapore and Malaysia are leading by example. In Malaysia, 83 percent of startups have implemented specific policies to foster inclusivity, while 72 percent of startups in Singapore have followed suit.
Despite the positive trends, significant challenges persist in achieving gender diversity in startups. Women-led startups often struggle to access funding compared to their male counterparts. This funding gap is a major barrier, preventing many promising women-led startups from scaling up and reaching their full potential.
Inherent gender biases in hiring, promotion, and investment decisions also further exacerbate the issue. Startups, traditionally dominated by male leadership, may unconsciously perpetuate these biases, making it harder for women to advance into leadership roles. Additionally, cultural and traditional expectations often discourage women from pursuing leadership positions, creating an environment where male dominance continues unchallenged.
Empowering Women in Leadership
Addressing the gender diversity gap requires a multi-faceted approach. One effective strategy is to improve female access to and participation in the startup ecosystem through mentorship, networking, and educational initiatives. Mentorship programs, where experienced female entrepreneurs guide new women founders, can provide invaluable support, insights, and connections, helping them navigate the unique challenges of a predominantly male-dominated industry.
In recent years, more venture capital firms are also seen incorporating DEI considerations into their due diligence processes, which can in turn influence startups to prioritise these practices, creating a ripple effect throughout the industry.
Additionally, promoting women to senior leadership roles within the workplace will foster inclusive environments and challenge entrenched biases. These leaders not only advocate for gender diversity but also serve as role models, inspiring other women to pursue leadership roles and nurturing cultures of ambition and achievement.
The Path Forward
Promoting gender diversity in startups is not only a moral imperative but also a critical business necessity. Diverse teams bring a spectrum of perspectives that drive innovation and yield business outcomes. With well-crafted policies, strengthened support systems, and cultural shifts, the startup landscape can be transformed into a vibrant hub of inclusivity and equal opportunity for all.
About the author
Dawn Yeo is the Associate Director Governance Risk and Compliance at Innoven Capital SEA. She works closely with the various business functions and is responsible for setting, implementing and ensuring compliance with Group-wide Governance, Risk and Compliance policies. Prior to joining Innoven Capital, Dawn was a manager with PwC where she spent over 5 years in the assurance practice, specialising in the financial services sector. In addition to external audit for clients in the banking and capital markets industry, she also conducted internal audits for various clients in the risk and assurance (governance, risk and controls) practice.
