Supporting women-owned sustainable businesses is the key to Australia’s green future

Australian consumers are affirming their commitment to sustainability like never before. A Monash Business School survey found that more than 50% of shoppers are ready to pay more for sustainable choices such as locally-made and repairable goods. Another study found that more than 75% of Australian consumers want to see more companies support sustainability.

Here’s another well-researched finding: Businesses with women at the helm invest more in corporate environmental initiatives. These companies not only show a higher level of environmental and social orientation, but they also deliver higher financial returns.?

Put all these facts and data together, and you’ll agree that women entrepreneurs hold the key to a greener, more prosperous, and more resilient Australia. As a woman and CEO of a sustainable packaging business leading the circular economy, here are my thoughts on this crucial topic.?

The intersection of gender equality and sustainable growth

In countries where women are as educated and qualified as men, it’s folly not to put their skills to use. Yet, the gender employment gap is costing the European Union a staggering €370 billion every year. It’s the same story in other parts of the world. Despite representing only one-third of small business owners, women in Australia contribute over $430 billion to the economy yearly. In the U.S., women-owned companies are outperforming others, growing at double the rate and contributing $3 trillion and 23 million in job creation.?

Despite this, women find it challenging to raise funds. A survey revealed that 75% of women founders in Australia think their gender gets in the way of raising capital. This is unjust– especially when research shows that women entrepreneurs generate higher revenues while prioritising sustainability.That’s not all. They also exhibit higher collaboration tendencies and are more driven to contribute to society. All these traits make women entrepreneurs the key to driving sustainability and inclusive economic gains.?

If your thoughts echo mine on this topic, please find the time to read EY’s report on “The Value of Advancing Women-Owned Enterprises in Australia.” The report throws light on how gender biases and structural barriers make it difficult for women to reach their full labour market potential. Addressing them and supporting women-owned firms through policies and initiatives can lead to significant macroeconomic gains.

The benefits of supporting women-owned businesses

Investing in women-owned businesses will not only help dismantle gender stereotypes but also help create tangible and intangible benefits, such as:

Turbocharge local economy: Despite the odds stacked against them, women-owned businesses continue to contribute significantly to job creation, spark innovation, and build safer and thriving communities. For example, in the U.S., Black and African-American women-owned companies generate about $98 billion in revenue while employing half a million workers. With better access to capital, resources, and federal contracts, this cohort can add another $1.5 trillion in revenue to the economy.

Spark innovation: An EU-based study found that higher management scores and better employee training opportunities are the reasons why diverse, women-led firms tend to be more innovative. They are more likely to quickly adapt and introduce new products and services in response to changing consumer preferences. The drive for innovation also helps deliver superior financial performance, where profit margins were found to be at least ten percentage points higher than those of less diverse companies.

Forge a sustainable future: There is enough data to show that women-owned businesses are better bets when it comes to balancing profits with environmental and social objectives. That’s why the UN is pinning its hopes on women entrepreneurs to implement the SDGs. Their research shows that women business owners tend to lean towards the green sector. For example, women’s participation in the renewable energy sector workforce is 32% compared to 22% in fossil fuel industries.

Enhance diversity: It’s tough out there for women in business, which is also why women-led firms happen to employ more women. Tejidos Peruanos is an excellent case in point. This Peru-based company makes apparel from eco-friendly alpaca and cotton. It’s based out of a disadvantaged neighbourhood specifically to encourage local women to step out of their homes and work in a comfortable environment, complete with childcare facilities.

Overcoming challenges: my journey

Before I started Planet Protector in 2016, I was an outsourcing partner for Australia’s largest meal kit provider - an industry that relied heavily on ultra-toxic polystyrene. I knew there had to be a way to grow my business without hurting the planet. That sowed the seeds of Woolpack - a sustainable waste wool-based alternative to polystyrene. Today, WOOLPACK technology has helped eliminate over 8 million polystyrene boxes from supply chains and kept 4,000 tons of waste wool from landfills.

Women face more hurdles in the business world, and so did I. But if you chase something with passion, authenticity, and creativity, you’ll see recognition soon enough. Whether it is becoming Australia’s first-ever laureate of the Cartier Women’s Initiative or winning gold at the Australian Sustainability Awards, this journey has been extremely rewarding.?

My advice to fellow women business owners is to never give up. Being an entrepreneur is a challenge, and more so if you are a woman. Gender biases might often put you in unsavoury situations, such as seeing your creative solutions face resistance from investors and stakeholders. You’ll often be able to break an impasse by sharing the long-term vision and quantifying how sustainable innovation will drive top-line growth, lower costs, and give your company an edge over the competition.?

Remember, it’s a journey full of ups and downs. Some days will be smooth, others not so much. It’s important to stay resilient, and you will soon be able to strike a balance between profits and purpose and inspire others along the way.?

The future of a green economy is inclusive

The message is clear. Supporting women-owned firms and businesses is essential not just for gender equality but also for forging a climate-resilient future for Australia. Women have shown time and again that they can do a lot with little. Imagine what better access to capital, resources, and business opportunities can do to global prosperity and sustainability goals. You can do your part by actively seeking out and supporting such brands, whether as investors, consumers, or business partners.