Workforce Diversity in Startups Higher than in Corporations: Report


According to a survey released on Monday by the non-profit philanthropy platform ACT and knowledge partner McKinsey, which focused on women in the Indian startup ecosystem, women make up 35% of the workforce in startups, compared to 19% in corporate settings. The survey highlighted the increasing proportion of women in startups by pointing out that whereas only 5% of women occupy CEO or founder positions in corporations, women make up 18% of startup CEOs and founders. More than 200 businesses, including Urban Company, Meesho, and Zomato, with 111 founders, 117 CHROs, and 755 startup workers, participated in the report.

With 2 million (20 lakh) new jobs anticipated for women by 2030, the percentage of women in startup employment is predicted to climb to 50% by 2030. This represents an overall increase in startup employment from 860k (8.6 lakh) in 2022 (with 3 lakh women employees) to 4.8 million (40.8 lakh) by 2030.

According to the survey, people in startups express a higher sense of autonomy at work than those in large corporations, and they also grow more quickly. Becoming a leader in a startup takes half the time it does in a corporate setting.

Moreover, potential is given more weight in startups than job experience when it comes to merit; the average age of startup employees is half that of their corporate counterparts.

Furthermore, since “it has been difficult for experienced women in corporates to advance their careers and break the glass ceiling, they want to do so in startups.” It has come to be recognized as the most significant element for 72% of them.

Notably, it was discovered that the percentage of women serving as founders or CEOs in startups is 18%, compared to just 5% in corporate settings.

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