Women take on leadership roles in medium-sized businesses

One in four medium-sized companies has at least one woman on the management board. According to a study by Creditreform, young companies and service providers in particular have a high proportion of women on management levels.

This article is part of the special feature on women in the trades.

Nearly one in four medium-sized companies (22,9 percent) has at least one woman in its management. This is shown by a study from Creditreform Economic Research.

Photo: © Creditreform

The "female quota" in medium-sized companies is therefore almost at the same level as in large companies, where 23,3 percent of management positions are held by women.

 "Women are increasingly taking on leadership roles in small and medium-sized enterprises," explains Patrik-Ludwig Hantzsch, Head of Creditreform Economic Research. "The proportion of female managers is growing, particularly in sectors where women are already frequently self-employed," Hantzsch adds.

In the "Education and Teaching" sector, the proportion is 37,9 percent, while in the health and social services sector, 51,8 percent of businesses are already run by women. In the "Arts, Entertainment, and Recreation" sector, 30,1 percent of businesses are also female-owned.  

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The situation is quite different in the construction industry, where only 7,3 percent of companies have a female boss. The figure is the same in the manufacturing sector, with 14,9 percent. 

One in four craft businesses is run by a woman: There is room for improvement

According to the German Confederation of Skilled Crafts (ZDH), roughly one in four craft businesses is headed by a woman (24,6 percent in 2023) – slightly more than the average for small and medium-sized enterprises (SMEs). They are primarily self-employed in creative and service-oriented trades.

Furthermore, over 74,3 percent of skilled trades businesses are family businesses, managed jointly by a married couple. The development potential of women is therefore far from exhausted. The ZDH, together with the chambers of commerce, is therefore promoting the promotion of more women—including those who have dropped out of university, those who have changed careers, and those with academic degrees—to launch their careers in the skilled trades.

The startup scene is becoming more female

Photo: © Creditreform

According to the Creditreform survey, young companies in particular (zero to two years old) have an above-average proportion of women in management positions (26,5 percent).

In older companies, the proportion of female managers is declining somewhat. "The startup scene is becoming increasingly female," says Hantzsch.

Women are also, on average, somewhat younger than their male colleagues in leadership positions. In medium-sized companies, 42,0 percent of female managers are under 50 years old, compared to 38,5 percent of male managers.

"Where women are represented in leadership positions, there is often a somewhat more favorable age structure at the top management level," says Hantzsch.

"The proportion of women in medium-sized businesses remains above average in the eastern German states and in Berlin. Industry-specific differences are likely also responsible for this – for example, the service sector is more strongly represented," says Creditreform spokesperson Hantzsch. The proportion of women is lowest in Bavaria, Bremen, and Baden-Württemberg.

For the analysis, Creditreform examined the owners, managing directors, shareholders or managers of 2,88 million small and medium-sized enterprises. 

Sources: Creditreform; ZDH

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