PROMOTING WOMEN'S PARTICIPATION IN GREEN AND CLEAN TECH BUSINESSES

 Written by Prerna Sharma

ABSTRACT

The study leverages the data on promoting women's participation in green and clean Tech businesses from the Global Outlook as well in India and the state of Mizoram. Data from US provider Pitchbook shows that private equity (PE) investment globally into cleantech businesses founded by men was $10bn in 2021, dwarfing the $26.1m raised by businesses with female founders in the same year.. India’s 15.7 million women-owned enterprises and start-up ecosystem are driving female entrepreneurship, with a 90 percent growth forecast. However, challenges like gender bias, funding, and support still test their determination. The government has made many programs and incentives to help women who start their own businesses and work on climate change. But there are also big opportunities in the growing green technology industry and in promoting diversity and inclusion in business.

INTRODUCTION

By 2030, there will be 139 million jobs in the energy industry worldwide, according to IRENA’s World Energy Transitions Outlook 2022 report. Out of all the jobs, 38. 2 million will be in green energy and 74. 2 million in other industries that are changing how they use energy. This gives people the opportunity to learn new skills and improve existing ones as they switch to different jobs. Getting women involved in making changes can help speed up the transition to cleaner energy. The green technology industry is growing quickly because more people care about the environment, governments are making rules to protect it, and there is a demand for solutions that can last a long time without causing harm. This growth gives lots of chances for entrepreneurs, including women, to come up with new and long-lasting technologies and solutions. A lot of women start green-tech businesses because they want to help the environment and society. Women usually care a lot about society and being in the green-tech industry lets them follow their values while doing business.

People are starting to realize that having different types of people in a business is important. Also, more and more investors want to help businesses that are led by women. Women business owners in the environmental sector can use this trend to get money and chances to invest. Many groups and networks help women in technology and starting businesses. These groups provide help for women who want to start and grow a green-tech business by offering support, advice, and connections.

GLOBAL PERSPECTIVE 

A report by consulting firm BCG says female entrepreneurs find it harder to attract funding in the clean tech space than in the market more generally. While 20% of non-climate-related venture capital (VC) funding went to start-ups with at least one female founder in 2019, just 15% of climate-related VC funding did, BCG says. BCG says women risk being excluded from the green energy transition and that access to funding remains a key hurdle for women in the sector. It calls for action to expand access to capital for women entrepreneurs in the green economy.A look at both data and anecdotal evidence points to a more complicated picture. Some VC and angel investors told Capital Monitor the systemic funding imbalance and bias against female entrepreneurs is no worse in the green economy than elsewhere. In the broader global PE market all female-founded businesses received just 5% of the PE funding their male-led counterparts received in 2021.

MIZORAM : A DRIVER OF GROWTH 

Without organizing any movement or protest women have many things in their account in Mizoram. Women empowerment is a silent revolution like development in Mizoram. From reservation in civic bodies to rights of inheritance, property and family are such achievements narrated to the silent revolution of women empowerment in this state. Pushed by civil society, the state government passed a couple of legislations for women empowerment. Women empowerment in areas of economic and social development are more remarkable than political in this state. The role of civil society in women empowerment is significant in the case of Mizoram. Women are masters not only of household activities but outdoor economic activities. Most of the shops in streets and on the roadside are run by women in Mizoram. Except for taxi-driving, women have been involved in all activities related to livelihood in Mizo society. From community services to Church programs women’s participation is more than their counterparts. Gender equality is the key of women empowerment and that was very well recognized by the Christen missionaries. The Christen missionaries led religious reform and community welfare activities laid the foundation of women empowerment in Mizo society as long ago. During 1920s-1940s the political and social transformations took place in Mizo society, the traditional social and political power institutions converted in modern forms according to the need of the time. There is a trend of establishing a women wing of civil society groups and political organizations and parties are also following this trend. The participation of women is to bring them equal to men in all spheres of life. The study in the paper will highlight the silent revolution of women empowerment in Mizoram. It will explain the role of civil society and the state in women empowerment. The study will project Mizoram as a role model of women empowerment.

1. Upskilling and reskilling women can be a win-win arrangement: 

2.Tapping the gifts of ladies appears like an arrangement with negligible tradeoffs – ladies can pick up cleantech business, with positive knock-on impacts for communities. 

3. Emanations can be diminished, whereas versatile capacity is reinforced; businesses can accomplish money related and competitive picks up, whereas more successfully overseeing climate dangers; and abilities deficiencies can be tended to, whereas engaging impeded bunches. To realize these openings, speculations in upskilling and reskilling ladies in green divisions and supporting the STEM school-to-work move must be prioritised. At the same time, managers must decrease boundaries by reexamining contracting and maintenance homes, advertising comprehensive child care administrations, tending to oblivious predispositions, and anticipating working environment sexual badgering.

4. Connecting existing networks: Working with the finance community to improve gender parity in the companies receiving financing.

5. Strengthening the existing ecosystem, amplifying activity and developing best practice.

6.Cohesive, strategic and targeted communications to inspire the next wave of female cleantech entrepreneurs.

7.Working with schools and education institutes to encourage girls and young women into the field.

8. Addressing unconscious biases and giving women the tools and skills to succeed in cleantech entrepreneurship.

THE CHALLENGES FACING FEMALE PARTICIPATION

One of the biggest barriers to female leadership in these sectors is that venture capital and finance remain male dominated. Only 3% of venture capital partners are women and only 14% of start-up investors (also known as Business Angels) are women. Research shows that start-ups led by men received over 16 times more funding than those led by women. Survey data suggests that men and women calibrate risk differently, with women providing a more balanced assessment of risk, which is more likely to lead to longer-term stability. However, research shows that venture capitalists prefer pitches with more overt confidence, which is more typical of male approaches.

Research also shows that venture capitalists tend to frame questions differently based on the gender of the pitcher. For example, men are more likely to get asked promotion questions that focus on potential gains, whereas women are more likely to get asked prevention questions, which focus on potential losses. Venture capitalists tend to direct more technical questions to men than women, irrespective of their level of expertise. This can impact on women’s confidence and indeed, 43% of women surveyed cited lack of confidence as a barrier to success in cleantech; 32% felt it was difficult to be heard in their organisations and 30% felt that investors did not take them seriously. Women also often felt excluded from male-dominated networking events, which tended not to be family-friendly and oriented around perceived male interests, like sports.

Companies with a more gender-diverse workforce and authority do way better on hazard administration, development, and problem-solving – characteristics basic in combating the climate crisis.'The London Sustainable Development Commission’s (LSDC) Cleantech and Innovation work is designed to support the Mayor of London’s commitment to grow the city’s green economy and reduce its carbon emissions to zero by 2050. It is advising on ways to make London a world-leading location for low-carbon, cleantech innovation businesses. Investing in women would benefit businesses, climate action, and gender equality. There are opportunities to advance inclusive, green transitions while also achieving business gains – and compelling reasons to do so. Companies with a more gender-diverse workforce and leadership do better on risk management, innovation, and problem-solving – characteristics critical in combating the climate crisis. Recent evidence suggests that female employees and leaders are more willing to act on climate and more effective when given the opportunity to do so . Following the Paris Agreement, companies with more gender diversity reduced their CO2 emissions by 5% more than those with more men in management, while firms with improvements in women’s share of board membership were more likely to reduce energy consumption, GHG emissions, and water use.

REFERENCES: 

https://blogs.worldbank.org/climatechange/green-jobs-women-can-combat-climate-crisis-and-boost-equality 

https://www.c40.org/women4climate/resources/womens-leadership-in-cleantech-a-case-study-on-londons-action-plan/ 

https://www.un.org/en/chronicle/article/sustainable-energy-all-empowering-women 

https://capitalmonitor.ai/asset-class/equity/clean-tech-females-green-economy/ 

https://www.irena.org/News/articles/2023/Mar/Women-in-Renewables-Can-Be-Agents-of-Change 

https://www.opportunityindia.com/article/opportunities-and-incentives-for-women-entrepreneurs-in-green-economy-35447#:~:text=motivation%20for%20others.-,To%20further%20promote%20the%20growth%20of%20women%20entrepreneurs%20in%20the,to%20kick%2Dstart%20their%20ventures.

Women Empowerment in Mizoram: From Indoor to Outdoor Activities

December 2019. In book: Governance and Development in Northeast India: A Mizoram Chapter (pp.251-256) Publisher: Kandena Publications:Hyderabad. Authors: Suwalal Jangu (Mizoram University)