A budding female entrepreneur says the best way to bust the gender pay gap is to overlook gender in the first place.

Alicia Stephenson, founder of Active Playgroup, told Tom Elliott pigeon-holing people into groups or sections only made the issue worse.

She is this year’s winner of Telstra’s Victorian Young Business Women’s award.

‘I think we really need to start looking at people, rather than gender,’ Ms Stephenson explained.

‘This gender pay gap definitely exists, but I think you need to start looking at the individuals without bias and without prejudice.’

Click PLAY to hear Alicia explain her views on business