Australia’s top female entrepreneurs for 2011

There’s a strong argument that the past year has been a landmark one for Australia’s female leaders. 

There’s a woman (Julia Gillard) in the Prime Minister’s office. A woman (Gina Rinehart) has become Australia’s richest person. Two women (Kristina Keneally and Lara Giddings) have become State Premiers, a female chief executive (Westpac’s Gail Kelly) was named the eighth most powerful woman in the world and the number of woman on ASX 200 boards is finally ticking up, to 10.6% at last count.

And the 40 women on SmartCompany’s second annual list of Australia’s Top Female Entrepreneurs now control companies with annual revenue of $4.1 billion, up from $3.1 billion last year. (To go to the full list, click here.)

It’s an impressive list of achievements, but the question remains: Will 2009-10 be remembered as the year that cements the rise of the female entrepreneur?

Certainly Australia’s emerging female business leaders have a brilliant set of role models in the members of SmartCompany’s top female entrepreneurs.

The list, which is ranked according to revenue in 2009-10, is led by Tasmanian retail veteran Jan Cameron, owner of the Retail Adventures empire that includes three chains of discount stores.

She’s just ahead of two women behind Australia’s best-known brands: Leslie Gillespie, co-founder of iconic bakery chain Baker’s Delight and Naomi Milgrom, head of the Sussan’s women fashion group.

Maxine Horne, joint chief executive of phone retailer Vita Group and Gina Rinehart from Hancock Prospecting round out the top five.

While most of these women keep relatively low public profiles, they remain inspiring figures for many female entrepreneurs.

In the last 12 months for example, the women on the list have had to prove they can manage their businesses through the business cycle.

With many of these leaders working in consumer-facing sectors – including retail, fashion, cosmetics and franchising – the last 18 months have been difficult. However, most have managed to keep sales steady or increasing.

The average growth rate on the list is just over 30%, although this was skewed by a few spectacular results, including the five-fold increase in sales at Amber Fergusson’s Carbon Management Solutions.

There are also some brilliant growth stories among the younger female entrepreneurs on the list.

Job Capital chief Jo Burston saw revenue leap more than 90% last year to $9.1 million, while sales at Francesca Webster’s beauty franchise Brazilian Beauty jumped 20% to $7.2 million.

Both women started their businesses less than five years ago, which shows just how quickly a good idea can be turned into a great company.

Surely these successes, combined with the great examples of female leadership in political and wealth circles, show that the glass ceiling is a thing of the past?

Not so fast, says Diann Rodgers-Healey, executive director of the Australian Centre for Leadership for Women.

“When you look at the females who have made it and say yes, it’s been a great year, we tend to forget about the pipeline of female leaders coming through,” she says. “And it’s just not there.”

The statistics aren’t great.

For every male dollar earned, females earn 82c.

Males retire with an average of $136,000, while females have just $63,000.

Progress towards increasing the number of female members of corporate boards has also been painfully slow. According to statistics from Women on Boards, the proportion of female directors at ASX 200 companies has increased from 8.9% at the end of 2009 to 10.1% in late 2010.

However, 95% of ASX 200 boards still do not have a female member, and outside the ASX has been described as a “no-go area”.

Australia clearly has a long way to before reaching the Women on Board target of 25% female board membership, and the Federal Government’s aspirational target of 40%.

“The disparities are still there. I think we still need to look at the full picture,” Rodgers-Healey says.

While she agrees that there is a strong crop of female leaders in the business world, Australia still struggles with policies that will ensure female leaders thrive.

Making flexible work practices a permanent and accepted part of workplace culture, giving working women appropriate childcare services and a national pay equity strategy are three important changes to focus on, Rodgers-Healy argues.

And while women like those on SmartCompany’s Top Female Entrepreneur list do have a role to play in advocating on behalf of female leaders – as the vast majority of them already do – Rodgers-Healy says driving change may actually require something more.

“It’s not just by being there that the change will happen. I think it takes more. I think it takes policy reform and legislation in some areas,” she says.

“[But] they are providing the role models for women coming through.”