Long considered incompatible with investment, women are gradually taking their place in the financial world. However, two oxymorles still remain: women and investment. Why this delay? And above all, how to speed up change?
One observation: female investment still too low
Today women are fewer than men to dare to invest.
Recently the company BlackRock brought together the results of several studies carried out in Europe to analyze the women’s report to financial investments.
The maintenance emerges mainly a desire to invest (at 60% of Europeans), But a hesitation in taking the plunge (They are only 18% to place their money).
Europeans tend to be cautious and still prefer savings security. 79% of them, especially for fear of the future and will to keep money for their retirement on average lower than that of men.
They are also easily prey to doubts in the face of the choices they could make, their ability to understand this world. They consider that they do not have sufficient capital to start investing. Women who invest predominantly call on financial advisers (64% against 48% among men).
Overall, inequalities (means, information) explain the strong disparities that still exist between men and women in this area. Investment is an important component of financial autonomy and women must be encouraged to take off.
Two types of brakes can explain this situation:
- Brakes from women themselves And are of a psychological nature: education, culture, impostor syndrome, devaluation of their capacities, lack of confidence, risk aversion … They push women to ignorance and a disinterest in investment.
- Brakes from the investment funds themselves. SMEs & ETI companies led by women or with a satisfactory mix (in number and functions exercised by each genre) in their management bodies are still under represented within the portfolios of the investment funds. This situation seems to persist while the studies illustrate the benefits of a harmonious mix in the management bodies on the financial and extra-financial performance of companies.
To change the situation, what tracks?
The study of the aforementioned Blackrock company cites some Solutions to encourage female investment in Europe.
Online investment platforms are a tool that turns out to be useful since “ The number of women who register for a platform has been multiplied by 6 in a year ». Responsible investment is also an engine. Europeans are 72% concerned with the sustainable nature of the investment.
For its part, the Women Business Angels Network works.
Originally, the objective of this network was to bring together the ” rare Women present in the traditional financial world of business angels to promote the active role of women in the economy, and more specifically in entrepreneurship. The first female network in Europe, FBA brings together 170 women, aged 50 on average, who invest individually and support start-ups in start-up or development, carried by men or women. Their mission is “ To finance and support the creation and emergence of innovative and high potential start-ups, based on criteria combining economic performance profitability, mixed and impact “(Catherine SUBONNEN, vice-president of FBA).
The Windy First Forum for Female Investment.
From 2017, FBA created the first female investment forum: Winday. The objective is to encourage women to get involved in the real economy. On the occasion of the 3th Edition of the Forum in 2020, FBA presented its 1er White paper on investment and shareholding as the levers for the economic success of women, followed in 2022 by a 2ND White paper.
The 1er White Paper had been an opportunity to draw up several observations:
- Very few studies exist regarding female investment;
- Women are largely underrepresented in shareholding and investment;
- However, they constitute a real lever for entrepreneurial dynamism and could support the development of a more inclusive and lasting economy.
What contributions from the second white paper?
Released in November 2022, this second white paper reports a situation that is evolving more and more “ under the leadership of young generations ».
The network of investors is growing and diversifying thanks to a new generation of women who aspire to take all their place.
3 main areas of reflection have been identified:
The new dynamic of female investment
Women bear witness to an increasing interest in managing their money. According to a study by JP Morgan carried out for Europe, 3/4 of them save regularly. However, they remain less active than men in terms of investment. This inequality is nevertheless in the process of absorption.
Young generations have an increasing interest in the holding of financial assets (15-24 year olds represent 10% of shareholders). The development of cryptocurrencies also had its role to play to encourage women to invest and 20% of them have invested or thought of investing, against 14% of men.
In addition, thanks to the multiplication and accessibility of information sources, women learn more and become more and more familiar to financial subjects.
Women ” Game-Changers »Sustainable economy
According to a study by Coleman Parkes Research for Bny Mellon Investment Management in 2021, more than half of women, if they were investing, would like to invest in projects “ aligned with their personal values ». They would thus support companies with a positive societal and environmental impact. Women’s investment could therefore be essential to the development of investment ” impact ».
FBA members have already financed € 4.9M in 68 projects with impact projects since 2010. These projects are also intended to promote regional economic development in France.
The interest in responsible investments is correlated with the interest in the creation of impact funds which are also more feminized. Although women are more represented than in more conventional funds, their proportion always drops when the ranks of the hierarchy are set up.
To speed up the transition to diversity, several commitments have been made in recent years. In May 2022, the Parity Pact was signed by 69 companies, more than half of the NEXT40/French Tech 120. This pact allows you to make 5 important commitments ::
- Reach a minimum threshold of 20 % of women sitting on the company’s board by 2025 then 40 % by 2028,
- Train 100 % of managers on the challenges of diversity and the fight against discrimination and harassment by the end of 2022,
- Guarantee now that 100 % of the post sheets published by the company are aimed at both female and male profiles,
- Constitute a joint team of representatives led to speak on behalf of the company, internally and externally by the end of 2022,
- Set up specific support for each employee on the return from his parental leave by the end of 2022.
Companies are increasingly proactive to find ways to encourage women to move forward in their careers and invest. For example, the #Connecthers program set up by BNP Paribas in 2017 set up in order to support female entrepreneurship in France.
What public and private actions to support this female investment?
The lack of women investors slows down the dynamics of female entrepreneurship. Although in 2021 nearly a third of the companies created were created by women, they still face much greater financing difficulties than men. “” Overall, a man lifts 1.6 times more and a woman 3.4 times more by allying with a man rather than with a woman ».
Likewise on the 27 French unicorns, only one was created by a woman. This unequal dynamic is explained in particular by the difficulties encountered by women to access funding. Women who embark on entrepreneurship have ” 30% less chance Let the men get funding.
The Rixain Law created a ” BPI device Which conditions the granting of loans in loans or in equity funds for compliance with the publication of the index of professional equality. The law also creates a quota of 30% of women in the Bpifrance investment committees and the advertising of the members of the investment committees (articles 16 and 17).
These elements were evoked by the deputy Marie Pierre Rixain, during the closing of the 14th Promotion of Women Board Ready on October 20, 2022.
Several initiatives promote the investment and creation of women’s business ::
- The platforms of crowdfunding ;
- Investment and trading platforms;
- Dedicated media and podcasts;
- Consulting and training offers;
- The clubs of Business Angels.
The second white paper reports different tracks of reflection ::
- The introduction of an obligation to inform companies on their typology of shareholders.
- The creation of a female shareholding index in France.
- The development of awareness campaigns specifically intended for women to develop their financial culture (carried out by communities, financial institutions, associations, etc.).
- The packaging of public funds for companies with respect for diversity and mixing criteria by these companies.
- The improvement of the Madelin system (reduction in income tax thanks to the subscription of capital securities) by the introduction of new criteria for impact, mix and diversity.
If we believe the figures published in the second white paper the situation improves. In 2020, out of the 5,000 to 6000 natural persons who invest in France with their personal money, the percentage of women amounted to only 10%. This figure is increasing in 2022 since it is now 15% (white paper 2). It remains that in average, women have a heritage of 15% lower than that of men.
