Why women in leadership are a smart business investment.
By Neha Sampat | Neha Sampat is the CEO of Contentstack and Co-Owner of Austin Woman
As a founder and CEO of a scaling tech company, Contentstack, I’ve seen how the right leadership team can make or break a business. I’ve also seen how often women are underestimated, underfunded and underrepresented – despite overwhelming evidence that we deliver results where it counts.
Let’s be clear: investing in women isn’t just the right thing to do – it’s the smart thing to do. The data doesn’t lie. Companies with women in leadership outperform their peers across nearly every meaningful business metric: profitability, innovation, employee engagement and long-term value creation.
The Business Case for Women at the Top
A McKinsey & Company study found that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than those in the bottom quartile. That number has steadily increased over the past five years, showing that the correlation between gender diversity and performance is not only real—it’s growing stronger.
Similarly, a 2019 report by S&P Global Market Intelligence revealed that firms with female CEOs and CFOs produced superior stock price performance and profitability. Companies with female CFOs saw 6% higher profits and 8% better stock returns during their tenure.
Yet, women still hold just 10.4% of Fortune 500 CEO roles as of 2024, according to the Women Business Collaborative. The gap is even wider in venture-backed startups, where only 2% of VC funding goes to female-founded companies. This isn’t a pipeline problem – it’s a prioritization problem.
Women Build Stronger, More Resilient Companies
Women leaders often bring a collaborative, empathetic and inclusive leadership style – qualities that are increasingly essential in today’s fast-changing business environment. These traits aren’t just “soft skills” – they’re strategic advantages.
During the COVID-19 crisis, Harvard Business Review found that women leaders were rated more effective than their male counterparts in 13 out of 19 core leadership competencies, including taking initiative, driving results and building relationships.
At Contentstack we’ve built a culture that values diverse perspectives and empowers women at every level. Our leadership team includes women in key roles across product, marketing and operations. We’ve seen how this diversity leads to better decision-making, faster innovation and stronger customer relationships.
The Multiplier Effect of Women Entrepreneurs
Women entrepreneurs are a powerful economic engine. According to the Mayor’s Task Force on Austin Women Entrepreneurs, increasing investment in women-led businesses could create a multiplier effect – driving job creation, innovation and community impact.
Yet access to capital remains a major barrier. That’s why initiatives like Insight Partners’ ScaleUp CEO Pledge are so important. This collective commitment by Insight-backed CEOs focuses on three pillars:
- Representation: Increasing diversity across leadership teams, boards and employee bases.
- Recruitment and Retention: Building inclusive hiring practices and equitable career development pathways.
- Accountability: Tracking and reporting progress through quarterly metrics and shared best practices.
These aren’t just feel-good initiatives – they’re business accelerators. Companies that value diversity are more innovative, resilient and attractive to top talent. When women lead, they don’t just build companies – they build cultures of excellence.
What Small Business Owners Can Do
If you’re a small business owner or entrepreneur, you may be wondering: how can I tap into the ROI of She?
Start by looking at your leadership pipeline. Are you creating opportunities for women to grow into decision-making roles? Are you mentoring and sponsoring women in your network? Are you building a culture where diverse voices are heard and valued?
Next, consider your vendors, partners and investors. Are you supporting women-owned businesses? Are you advocating for more inclusive funding practices?
Finally, measure what matters. Track your metrics. Set goals. Hold yourself accountable. Because what gets measured gets managed – and what gets managed gets results.
She Means Business
The ROI of She is not a slogan – it’s a strategy. Women are not a risk; we are a return. We are not a checkbox; we are a catalyst. And when we lead, we lift.
As we build the next generation of companies, let’s build them better. Let’s build them with women at the helm. Because when women rise, so does everyone else.
