Crucial Insight: Male‑Run Firms Face More Risk of Going Bust
The latest buzz from Creditsafe reveals that companies helmed by men had a higher chance of hitting the insolvency red light in 2023—yes, you read that right. Let’s break down the numbers and see what’s really going on.
Numbers Don’t Lie
- Male‑dominated boards: 5.10% insolvency rate.
- Female‑led or mixed boards: 3.67% insolvency rate.
- That means a 39% higher likelihood for male‑only setups to wrangle with bankruptcy.
Women in Whirlwind Leadership
2023 saw a 7% rise in firms having at least one female director compared to 2019. That’s a tangible shift toward more balanced boards, but a tiny dip in 2023 hints at market turbulence, policy changes, or just the wild nature of business seasons.
What the Numbers Say
- Male‑only boards increased by 3% from 2019.
- Female directors are still catching up—lower numbers but higher stability.
- In 2023, 30,199 UK companies faced some form of insolvency, a staggering 52% jump from 2021.
Expert Take‑Home
Drew Fahiya, Creditsafe’s data director, says it might not be “male vs. female competence” but rather the types of businesses men tend to run that are more exposed to risk. “It’s not about better leadership from women, but a pattern emerging that female‑guided firms are steadier,” he notes.
Bottom line: while we can’t declare women as the sole saviors of business, the evidence suggests that female involvement on the board can boost profitability and lower failure chances.
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