<p data-start="78" data-end="816">The World Bank’s Development Economics Enterprise Analysis team, supported by the EU Directorate-General for Regional and Urban Policy (DG REGIO), has conducted an in-depth study examining gender disparities in private sector employment, leadership, and firm ownership across the 27 European Union (EU-27) countries. Utilizing data from the World Bank Enterprise Surveys, the research reveals entrenched inequalities that persist in the business landscape, with women consistently underrepresented as workers, top managers, and business owners. The findings challenge the assumption that economic development alone fosters gender equality, instead highlighting structural barriers that hinder women’s participation in high-income regions.</p><p data-start="818" data-end="1538">Across the EU-27, women make up only 35.3% of the workforce in private firms, a significant gap that is even more pronounced in leadership roles. Merely 18.1% of businesses are led by female top managers, and only 39.9% of firms have at least one woman as an owner. On average, women’s ownership share in firms stands at a modest 22%. These figures reflect a persistent gender imbalance across all firm sizes, industries, and income levels. Notably, the retail sector is an exception, where women’s employment rates surpass those of men, and women-owned businesses are as common as male-owned ones. However, in other industries, particularly in high-productivity sectors, men dominate leadership and ownership positions.</p><h3 data-start="1540" data-end="1604">A Surprising Trend: Gender Gaps Widen in Wealthier Regions</h3><p data-start="1606" data-end="2492">One of the study’s most striking findings is the counterintuitive trend that gender disparities are more pronounced in wealthier regions. In the EU’s Nomenclature of Territorial Units for Statistics (NUTS2) regions—subdivisions with populations ranging from 800,000 to 3 million—women’s participation in the workforce and business ownership declines as regional income levels rise. The research contradicts the widely held belief that economic development automatically leads to greater gender equality in business. In the most developed NUTS2 regions, women are significantly less likely to be employed, hold managerial positions, or own firms compared to their counterparts in less developed areas. In contrast, in the least developed regions, women’s employment and managerial presence are relatively higher, indicating that economic growth alone does not bridge the gender gap.</p><p data-start="2494" data-end="3296">Labor productivity is another crucial aspect where gender disparities persist. The study finds that firms run by women or with higher female ownership tend to have significantly lower labor productivity than those led by men. The gap is most pronounced at lower income levels, suggesting the presence of “sticky floors,” where women face systemic disadvantages at the lower end of the business hierarchy. While much of the gender gap discourse focuses on “glass ceilings” that prevent women from advancing to top positions, this research emphasizes the foundational challenges women face in accessing high-quality jobs and profitable business opportunities. The productivity disparity remains substantial even after adjusting for firm characteristics such as industry type, size, and foreign ownership.</p><h3 data-start="3298" data-end="3350">Why Women-Led Firms Struggle with Productivity</h3><p data-start="3352" data-end="4152">Several factors contribute to the lower productivity of women-run firms. Regulatory burdens disproportionately impact women-led businesses, with female managers spending more time on compliance-related issues. Additionally, men-led firms are significantly more likely to engage in exporting and obtain quality certifications, both of which enhance firm performance. While financial constraints are often cited as a major barrier for female entrepreneurs, the study finds no significant systematic difference in access to finance between men-run and women-run firms at the firm level. However, at the regional level, NUTS2 regions with a higher share of women’s ownership tend to have lower access to credit, indicating broader structural economic disparities rather than firm-specific discrimination.</p><p data-start="4154" data-end="5014">The presence of female leadership has a clear impact on workplace gender composition. Firms with women as top managers employ a significantly higher share of female workers, but this effect is most pronounced in businesses that already have a substantial female workforce. This suggests that while female leaders can help bridge gender employment gaps, their influence is stronger in environments where women are already well-represented. Furthermore, the study examines the role of exports in promoting female employment. While exporting is generally linked to increased female workforce participation in manufacturing firms, the effect is weak in the retail and service sectors. The impact is also greater in firms with a moderate initial share of female workers rather than in businesses where women are either a small minority or the overwhelming majority.</p><h3 data-start="5016" data-end="5081">Barriers to Growth: How Women-Run Firms Perceive Challenges</h3><p data-start="5083" data-end="5587">The study reveals that firms with higher female ownership tend to exhibit lower labor productivity. This correlation is particularly strong in businesses at the lower end of the productivity spectrum. Firms with majority female ownership, for instance, register 17.3% lower productivity than those with majority male ownership. The effect weakens at higher productivity levels, suggesting that women-led firms at the top are less constrained by the structural barriers that hinder those at the lower end.</p><p data-start="5589" data-end="6185">A significant finding is that men-led firms outperform women-led businesses in key performance indicators such as employment growth, R&D investment, exporting status, and firm size. While there is no significant difference in overall management quality between men-run and women-run firms, male-led enterprises are more likely to adopt efficiency-enhancing strategies such as automation, international market expansion, and regulatory streamlining. These factors contribute to the observed productivity gap and suggest that gender-based structural barriers impact firm growth and competitiveness.</p><p data-start="6187" data-end="6810">The study further explores how male- and female-led firms perceive obstacles in the business environment. While both groups report similar concerns regarding tax rates, crime, and political instability, women-run firms are significantly more likely to cite issues such as competition from informal firms, difficulties in obtaining business licenses, transport inefficiencies, and inadequate worker skills as major barriers. These challenges contribute to the disproportionate concentration of women workers in low-wage and low-productivity firms, perpetuating income disparities between men and women in the private sector.</p><h3 data-start="6812" data-end="6876">The Path Forward: Policies for Gender Equality in Business</h3><p data-start="6878" data-end="7616">Ultimately, the research underscores the urgent need for targeted interventions to improve women’s economic participation across the EU-27. Policymakers must not only focus on increasing women’s employment but also ensure that these jobs offer competitive wages and high productivity. Addressing regulatory inefficiencies, promoting gender-inclusive business policies, and facilitating access to quality certification and international markets for women-led firms are crucial steps toward narrowing the persistent gender gap. Economic growth alone is insufficient to achieve gender parity; a more comprehensive approach is required to dismantle the structural barriers that continue to limit women’s opportunities in the business sector.</p><p data-start="7618" data-end="8163" data-is-last-node="" data-is-only-node="">These findings highlight the complex nature of gender inequality in business and emphasize that tackling disparities requires a multifaceted strategy. Encouraging mentorship programs for female entrepreneurs, expanding access to business networks, and incentivizing R&D investment in women-led firms can provide the necessary support to bridge the gender gap. With focused policies and institutional support, the EU-27 can move closer to achieving a more equitable and dynamic business environment where women have equal opportunities to thrive.</p>
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