Women in Leadership: 5 Reasons Small Companies Are Winning the Gender Diversity Battle

Where Women Lead: Small Companies Outpace Giants in Executive Roles

Women in Leadership: How Small Companies Are Beating Giants in Gender Diversity

India’s corporate boardrooms are slowly evolving, but smaller firms are taking the lead in gender diversity. While large corporations struggle with representation, smaller companies are making significant strides in appointing women executive directors.

A Mint analysis of NSE-listed firms shows that smaller companies (bottom quartile by market capitalization) have the highest share of women executive directors at 15%, while corporate giants (top 25%) lag behind at just 8%.

Overall progress is evident—women’s share in executive directorship across NSE-listed firms has grown from 8.4% in 2019 to 11.1% in 2025.

Smaller firms prioritize diverse leadership, often due to family-owned structures, agility, and compliance with regulatory norms, making them more flexible in adopting gender-inclusive policies.

Women in Leadership: 5 Reasons Small Companies Are Winning the Gender Diversity Battle

Why Smaller Firms Have More Women in Leadership

1. Retaining Family Control & Compliance

Smaller companies often appoint female relatives to executive positions to comply with regulations and retain ownership. While this may not always stem from an active push for diversity, it creates opportunities for women to step into leadership roles.

2. Diverse Leadership Enhances Business Performance

Companies with women in executive roles benefit from diverse perspectives, improving decision-making and innovation. Research consistently links higher gender diversity to stronger financial performance and better governance.

3. Agility & Adaptability in Smaller Firms

Unlike large corporations with rigid hierarchies, smaller firms are more agile and adaptable to market changes. Many women entrepreneurs and founders lead these businesses, contributing to a higher proportion of women in executive positions.

Why Large Corporations Lag Behind in Women’s Representation

Despite efforts, large corporations struggle to close the gender gap due to several factors:

1. Established Board Compositions & Slow Change

Large corporations have stable, long-standing boards, making diversity changes slower. These firms prioritize experienced industry leaders, and the pool of women candidates remains smaller.

2. The ‘Mommy Penalty’ & Career Breaks

Women are more likely to take career breaks for caregiving, limiting their rise to top executive positions. Many drop out at mid-managerial levels, shrinking the pipeline of female candidates for leadership roles.

3. Gender Bias in Hiring & Promotions

Large corporations often prioritize in-house candidates with proven track records. Systemic biases mean that fewer women are considered for high-stakes leadership roles.

Public sector enterprises (PSEs) and government organizations, however, show better gender representation due to structured inclusion policies.

Women’s Leadership Growth by Industry: Key Sectors

Sector-wise Breakdown of Women in Executive Roles (2024 vs 2025)

Sector	Women’s Executive Representation in 2024 (%)	Women’s Executive Representation in 2025 (%)	Growth Rate (%)
Consumer Durables	12%	18%	+6%
Metals & Mining	7%	10%	+3%
Capital Goods	9%	12%	+3%
Infrastructure & Engineering	6%	9%	+3%
BFSI (Banking & Financial Services)	10%	11%	+1%
Pharma & Healthcare	8%	9%	+1%

Consumer Durables Leads in Gender Diversity The consumer durables sector has seen the biggest jump in women executives. Women leaders bring valuable insights into product innovation, branding, and consumer engagement, aligning business strategies with female purchasing decisions.

Manufacturing & Engineering Sectors Show Steady Progress Metals, mining, and infrastructure are experiencing gradual inclusivity. Traditionally male-dominated industries are embracing ESG and sustainability concerns, driving diversity.

BFSI & Pharma Sectors Lag Behind Financial services and healthcare see slow progress, as mid-management dropout rates remain high. Lack of mentorship and rigid leadership structures make climbing the corporate ladder challenging for women.

How Can India Inc. Improve Women’s Leadership Representation?

1. Breaking the Glass Ceiling Encouraging women in STEM and executive training programs to build a stronger leadership pipeline. Mentorship and sponsorship initiatives for mid-career women to help them advance.

2. Addressing the ‘Mommy Penalty’ Implementing better maternity benefits, flexible work policies, and re-entry programs. Encouraging equal parental leave to ensure shared caregiving responsibilities.

3. Strengthening ESG & Diversity Policies Companies should set measurable gender diversity goals and track their progress. Strong ESG compliance and diversity reporting encourage investors to support inclusive businesses.

Conclusion: Small Firms Are Leading, But India Needs Systemic Change

Women in leadership aren’t just a diversity goal—it’s a business imperative. While small companies are making faster progress, large corporations must actively address biases, invest in mentorship programs, and create inclusive career paths.

Women’s leadership in executive roles is not just about representation—it’s about driving innovation, decision-making, and business success.

The path forward demands bold action from India Inc. Let’s build boardrooms that truly reflect the talent and potential of women leaders.

Disclaimer—Estabizz Fintech Private Limited

At Estabizz Fintech Private Limited, we provide insights into corporate governance, leadership trends, and gender diversity in business. However, this article is for informational purposes only and should not be considered investment, business, or legal advice.

Readers should consult HR experts, corporate advisors, or financial analysts before making decisions regarding leadership policies and corporate diversity strategies.

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