Why Asian Female Entrepreneurs are the Ones to Watch in 2023?

At the turn of 2021 and 2022, the wealth held by Asian female billionaires has outpaced the fortune owned by Western European counterparts. The number of women billionaires in Asia is higher than in Europe. Yet, the majority of the labour market indicators for Asia point to a higher pay gap, lower women's labour force participation rate and higher percentage of women working in the informal sector compared to Western Europe. Moreover, women tend to work more unpaid hours than men during the day, and in many cases, their access to education is restricted. 

Year after year, women in Asia have been getting richer by $2tn since 2019. The analysis of the entire population of billionaires shows that in Asia, 36% of billionaires are self-made, and 25% of them were born into low-income families, compared to Europe, where 17% are self-made, and 6% suffered poverty. With specific consideration of female billionaires, in Asia, more than 50% of them are self-made, while in Europe, it is only 10%. This accomplishment is substantial, especially given that gender inequality is an issue more prevalent in Asia. Women's labour income share in Western Europe is, on average, 38%, while in Asia, it varies quite dramatically from country to country. In China, it is 33% and is decreasing; in India 18% with a steady trend; in Afghanistan, it is only 10%, while in Pakistan, it is even lower – 7.4%. In general, only 11 Asian countries have a female labour income share higher than 30%. Moreover, according to the Financial Times, "75% of women in the region work in the informal sector." This figure has yet to increase due to post-Covid economic consequences. Additionally, there is a wide gender gap in hours of unpaid work. For example, in Bangladesh, "women spend as much as 6 hours on unpaid work [per day], while men spend less than an hour." Women in India and Pakistan face similar inequality.

Low female labour force participation in many Asian countries is a consequence of various sociopolitical factors such as religion, culture, or governmental policies. For example, in India, due to the caste system, women face many obstacles when wanting to join the labour force. Although the caste system was outlawed in 1950, its persistence in society still puts women who would be born Dalit (at the bottom of the social hierarchy) at a disadvantage without the possibility of climbing the social ladder. Moreover, according to Franzke et al., due to the social norms in many Asian countries, the role of the head of the house is fulfilled by men who have to approve their wives' decisions regarding their career paths. The Global Gender Gap Report 2020 indicates a lower literacy rate in Asia and lower enrolment in educational institutions compared to Western Europe. "Women in India (35.4%), Pakistan (32.7%), Yemen (27.3%), Syria (24.9%), and Iraq (22.7%) especially have extremely limited work opportunities." All those cultural, religious, and historical factors negatively impact female labour income share and labour force participation; however, many labour market indicators slowly improve for most Asian countries.

Regarding female billionaires, China deserves special attention. According to the Financial Times, "China is now home to two-thirds of the world's "self-made" women billionaires," who are wealth creators mainly in the sector of real estate and retail. Although the number of Chinese female billionaires has increased quickly, the female labour income share has decreased since the 1990s. Because of a dramatic drop in the fertility rate, a consequence of the one-child policy, China started to attempt to reshape gender roles in the country so that women would be more focused on taking care of the household. That, in turn, led to a continuous increase in gender inequality. Their lack of progress in recent years can be seen via a demotion on The Global Gender Gap Index, which in 2006 placed China 63rd out of 115, and in 2020 placed the country 102nd out of 146. Also, in Europe, the financial market regulations tend to be very tight, while in China, they frequently change, allowing for "more flexibility" for entrepreneurs. Despite significant obstacles and decreasing female labour income share due to the government's policies, women's contribution to the country's economic growth is undeniable. According to Forbes, "China's enviable advancements on the world stage, they say, is a direct result of women's economic empowerment."

It should be mentioned that female entrepreneurs differ significantly in Europe and Asia, but a similar difference is also pronounced between countries in Asia. In Asia, the level of education varies greatly. In developing countries, female entrepreneurs often have a lower level of education; their companies follow risk-averse strategies and, consequently, generate lower profits. On the other hand, in Asia's developed countries, female entrepreneurs usually have higher education. They are more prone to take strategic and calculated risks, which, in turn, leads their companies to succeed and have higher profits. 

The question remains as to why the wealth held by Asian female billionaires exceeds that of Western European female billionaires. Such a disparity might stem from the greater ease with which women advance their careers to managerial positions in Europe. As this is disproportionately harder in Asia, women start their own companies to access leadership roles. According to Franzke et al., women in Asia are highly motivated to start their own businesses due to the wide gender gap, inequality, and lack of perspectives for career advancements. In many developing countries, women see entrepreneurship as "a survival strategy." As a result, the percentage of women entrepreneurs is relatively high and varies from country to country – in China it is 9.3%; in South Korea, 12.2% and in Malaysia, as much as 20.1%. 

2021/2022 was the first period during which wealth held by Asian female billionaires surpassed the fortune owned by Western European female billionaires. Although an unprecedented occurrence, this is likely the beginning of a long-term positive trend. The gap between Europe and Asia will only widen, growing to as much as $6tn by 2026. Asian female entrepreneurs are highly motivated to challenge the stereotypes regarding gender roles while achieving great success and inspiring other young women to fight for their dreams. Such a drive makes them a cohort to watch as they shape the world of tomorrow.