Women ‘miserably’ under-represented in Asia-Pacific businesses, though they excel at fundraising: JPMorgan survey

Just 848, or 5.7 per cent, of 15,000 private businesses surveyed across multiple sectors were founded or led by women
Those female-led companies, however, excelled at fundraising, the study found

Banking & finance

Peggy Sito

Published: 8:00am, 8 Mar 2023

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Women are hugely under-represented in high-growth businesses including start-ups across Asia-Pacific, according to a survey by JPMorgan Private Bank in Asia.

The study found that companies led by female executives outperformed when it comes to fundraising.

Just 848, or 5.7 per cent, of 15,000 private businesses surveyed in sectors such as technology, consumer and healthcare were founded, led or managed by women at the end of 2021.

“This is a miserable number, the low single digit number surprises us,” said chief executive Kam Shing Kwang, who is also the vice-chairman of investment banking for Greater China.

“And it really shows that we all have an important role to play to make further progress and to get closer to gender parity,” she said in an interview.

Kam Shing Kwang, CEO of JP Morgan Private Bank Asia, described the amount of companies headed by women in the region as a ‘miserable number’. Photo: SCMP Pictures

The bank surveyed 12 Asia-Pacific markets including Australia, China, Hong Kong, Malaysia and South Korea for its report, titled Top 100 Women-Powered, High-Growth Businesses in Asia-Pacific, released on the International Women’s Day, March 8.

Companies under the leadership of female executives tended to perform well, particularly when it came to raising funds.

The 848 enterprises powered by women had collectively raised US$37 billion in funding as of April 2022. They raised US$12 billion in 2021 alone, accounting for about a third of the total.

This shows that when women have an opportunity, they tend to deliver, according to Kwang.

The report aims to provide insight into how women tackle some of the systemic challenges they face and to examine how they can be better supported and enabled to lead the future of high growth businesses in the region, according to Kwang.

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Its scope encompassed private businesses that raised funds any time up to April 2022. Qualitative interviews were done throughout last year.

Advancing women’s equality could add US$4.5 trillion to Asia-Pacific’s collective annual gross domestic product (GDP) by 2025, representing a 12 per cent increase over the business-as-usual trajectory, according a report by consultant McKinsey & Company.

“It is very significant,” said Kwang. “So, I think it’s just the right thing to do. But more importantly, it will be a very smart thing to do.”

Kwang said JPMorgan is “ committed to playing our part in addressing gender equality – beginning with the tone from the top.”

The Private Bank leadership team in the region has equal representation, she said.

One of the firm’s gender diversity initiatives, called Women On The Move, which has over 17,000 members across the region, provides access to tools that enable the successful development, advancement, and retention of female staff at all levels, she said.

But it will take time to close the gender gap, she said.

“This is an alarmingly big gap, so this is not something that one party can fix by themselves,” she said. “I think we need both the public and private sectors to make a change collectively.”

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