Women Entrepreneurship & Empowerment in Bangladesh
Bangladesh, as a rapidly developing nation, stands to gain the most from the inclusion of women in the
business world. Women's economic participation and their ownership and control of productive assets
speed up development, help overcome poverty, reduce inequalities, and improve children's nutrition,
health, and school attendance. Women are more likely to devote more of their earnings back into their
families and communities than their male counterparts, feeding money back into their local communities.
In recent years, the rate of new business formation by women has significantly risen in Bangladesh.
However, women still own and manage significantly fewer businesses than men. According to the
Economic Census 2013, the number of female headed establishments is 0.56 million (7.21 per cent) while
it was 0.10 million (2.80 per cent) in 2001 and 2003. The explanation for this rising rate and the behaviour
of female entrepreneurs in terms of traits, motivations, success rates, and their gender-related
distinctiveness are, however, complex and multifaceted.
Historically, the fewer numbers of women entrepreneurs than men are due to the fact that fewer women
than men start businesses to begin with. Evidence suggests that a variety of reasons contribute to
explaining the observed differences in entrepreneurial behaviour across gender, and that such differences
have significant implications at the macroeconomic level. In addition, the propensity of women to start a
business differs from that of men for cultural reasons such as discrimination.
Recent evidence shows that the prevalence rates of female entrepreneurship tend to rise in developing
countries like Bangladesh due to the fact that women face higher barriers to entry in the formal labour
market and have to resort to entrepreneurship as a way out of unemployment and, often, out of poverty.
Research on female entrepreneurship shows that, in many cases, opportunities and incentives are
unfavourable for women to begin businesses, even when they have the abilities and knowledge.
Larger gender gaps in start-up activities are found in relatively better-off regions, whereas they tend to be
narrower in poorer regions probably because many women are forced to start businesses out of necessity
in poor areas. Moreover, women in poorer regions tend to be more self-confident about their abilities
(skills and knowledge) to become entrepreneurs and less afraid of failure compared with women in better-
off regions-notwithstanding subjective and possibly biased perceptions about self-confidence, fear of
failure, and existence of opportunities or significant and systematically associated determinants of the
gender gap.
The entry of women into entrepreneurship is the outcome of a complex mix of constraints and
opportunities, as well as external impulses and aspirations. The main sector preferred and attractive to
women entrepreneurs is the services for a number of reasons, such as women have better knowledge of
and experience in the services sector; lack of specific technical skills tends to keep many women away
from starting businesses in the manufacturing and high tech sectors; and women choose low capital
activities, like those in the services sector, because of difficulties in obtaining financial resources.
Women rely more than men on extended families which, in many rural areas, are often their only or major
social network. This is often constraining since women's marriage status, and the assets and incomes
1|Page
brought to their marriages, emerge as important determinants of their entrepreneurial decisions. Married
women with young children are more likely to enter entrepreneurship than waged labour, and are more
likely to be entrepreneurs than non-married women-although they are also more likely to quit a business
voluntarily.
As far as female entrepreneurs' firm performance is concerned, women tend to have lower growth
expectations and their firms tend to grow slower in both sales and employment than those of men. Some
evidence suggests that women's primary concern is not with growth but rather with survival. This may be
a reason for the finding that habitual female entrepreneurs tend to be portfolio rather than serial
entrepreneurs, as they attempt to diversify income sources and survival chances.
Female entrepreneurs do not come from one homogeneous group but they come from different
background, have different ideas about growth, and have all sizes of enterprises. Women use their
knowledge and the resources available to them to start a new business. In order to start up a new
enterprise, an entrepreneur must have access to key resources like capital and assets. Women are more
likely to use their own money and borrowing from friends and family members. They value networking
and feel that it is one of their key success factors.
Female entrepreneurs often have different management styles. They tend to manage by what is called the
relational theory. They become successful by adapting to a style of management that is more suited to
their needs rather than follow traditional male role models. The women have different types of
relationships with their employees and clients. Women tend to combine the public and private areas of
their lives. Their self-worth is gained by their ability to develop and build relationships. In their decision
making process, they use influence to get people motivated. Communication becomes an essential part
of their organisational success. This change in the way business is conducted helps women to be more
competitive.
Obviously, access to adequate capital is a big obstacle for the female entrepreneurs. Many women start
their businesses with limited capital and working capital is one of the biggest issues for start-up
businesses which may also affect their growth and survival rates. Further, female entrepreneurs have to
bear more responsibility for their families than their male counterparts. Often, the greater need of women
to balance work and family commitments makes entrepreneurship more appealing than salary generating
work to some women. Even though self-employment often requires long workdays, it can also offer the
possibility for greater flexibility in structuring the day.
The traditional view of what women's roles in society are, is an obstacle to them for becoming successful
entrepreneurs. Women in business also have to struggle with well-established male networks including
customers, suppliers and creditors. They also face discrimination that can hinder their ability to succeed.
These and many other social perceptions regarding women make it difficult for women to manage their
businesses.
The right motivation is important in making a decision to start up a new enterprise by a female
entrepreneur. There are both 'push' and 'pull' factors that influence the women entrepreneurs' decision
to start a new business. Push factors are negative forces and may include losing a job, unemployment,
and not being able to fulfill aspirations in the working world. Women may also want to have flexibility in
their work schedule and the ability to spend time with their families. Pull factors are positive forces and
may include the desire for independence and flexibility, being the boss, achieving personal dreams, using
2|Page
creative skills, being more fulfilled, and the desire for wealth and power. Many women also want to make
a contribution to society and make a difference in society.
Research indicates that women start their own businesses for three personal reasons: to have autonomy
and freedom in the workplace; for more security; and more satisfaction with work. Women who are
looking to find more freedom may do so because they have been discriminated in the workplace and have
not been paid equally as men. Owning a business can provide a woman a sense of security after having
experienced redundancy, divorce or other mishaps. They also like the economic security that owning a
business can provide. Those women looking for satisfaction from business ownership want to take the
challenge of improving their lots and become more productive.
So how does one assist the growth of female entrepreneurship? No differently than one does
entrepreneurship as a whole. While one may want to focus on gender-related issues that prohibit women
in business, without solving the overarching financial inclusion problems, the policy may basically be
putting the cart before the horse. The primary need is to address the main issues plaguing the financially
excluded women along with moving on to the more specific gender challenges.
The fact remains that women in Bangladesh have less access than men to finance, productive resources,
services and opportunities, putting them at a disadvantage in participating in and contributing to
socioeconomic development. While Bangladeshi women are choosing to become entrepreneurs in larger
numbers, they find it harder to set up and expand their enterprises because they operate largely in the
informal sector. Further, women-owned micro, small and medium-sized enterprises (MSMEs) face
difficulties in getting access to finance and land, have poor managerial skills, and limited opportunities
for business development training and networking.
The restricted movement of women due to the assignment of the reproductive role to women alone, high
workload and unpaid labour, lack of decision-making in the household and subordination has kept most
women trapped in disadvantaged situations. Economic empowerment of women plays a pivotal role in
ensuring their right to equality and to an adequate standard of living, and it should be the prime agenda
in every development discourse. Creating micro and small enterprise agencies to support and enhance
entrepreneurship and production capacity of these enterprises will benefit women who often start their
businesses on a small scale.
Discrimination is a possible source of gender gap in entrepreneurship and this is significant in Bangladesh.
Discrimination against women is often the result of gender beliefs inherent in the country's culture and
society. This probably has the effect of not only reducing women's likelihood of
becoming entrepreneurs and their earnings as entrepreneurs, but may also have reduced the non-
pecuniary benefits that women could receive from entrepreneurship. Women in Bangladesh are
tremendous forces of change in households and communities. Women entrepreneurs make a difference -
- whenever they are given opportunities. For realising amore significant contribution of female
entrepreneurship in development, women will have to win the race for equality and fairness.
3|Page
Women Entrepreneurship & Empowerment in Bangladesh
According to the definition given in the Industrial Policy 2016, The Bangladesh Bank (BB)
also follows the same dentition. "A female is an entrepreneur if she is the owner or proprietor
of a privately-run business, organization or owns at least 51% share in a joint venture or
company listed with the Registrar of Joint Stock Companies and Firms." Women
entrepreneurship in Bangladesh is a source of income generation for a woman and a way of
achieving economic independence.
Women empowerment refers to the state of being empowered in regards to political, social
and economic aspects. The term was created by women's rights activists who believed that
gender equality would only be reached if women got equal access to resources and
opportunities as men. One of the most important steps toward achieving gender equality is
giving women more control over their reproductive choices, but this can be difficult because
government policies often make these services inaccessible or unaffordable.
The number of working women increased to 18.6 million in 2016-17 from 16.2 million in
2010. Bangladesh secured the 47th position among 144 countries in 2017 as per The Global
Gender Gap Report, whereas India, Sri Lanka, Nepal, Bhutan and Pakistan remain at 108,109,
111, 124 and 143 positions respectively.
Bangladesh is a densely populated country with limited resources and higher social
stratification. According to WED (2001) based on gender, class and location economic,
political and social recognition are resolved. The urban areas have better prospects for business
growth expansion while rural areas lag behind. Nearly half of the populations are women (sex
ratio 106). Since few women participate in the mainstream of economic activities the
enormous potentiality of the population is unutilized. For instance, only 16% of women are
self-employed out of 66% self-employed citizen (based on entrepreneurship status).
Encouragingly, there is a rising of a new class in rural Bangladesh, they are the women
entrepreneurs who have accepted the challenges of life and have emerged as leaders in the
socioeconomic development, thus earning for themselves and for their families and
contributing towards the socio-political upliftment of women. Consequently, entrepreneurship
has become an important profession among women in both rural and urban areas. Women in
urban areas are engaged in different small and medium business enterprises e.g. handicrafts,
fashion house, parlor, home textile, food, cooperatives, chain shops, ICT even to large business
to some extent. Rural areas are being self-employed through the agricultural and
nonagricultural sector, as entrepreneurs. These activities are cropping, rearing livestock and
poultry, fish farming, nursery and tree planting, tool making, handcrafting, food processing,
tailoring, rice processing, etc. But it is not so easy to operate these businesses as they are
4|Page
engulfed with numerous problems that act as barriers to the growth and expansion of women
entrepreneurship.
Problems and prospects
• Becoming an entrepreneur is a big challenge for women.
• Women in Bangladesh have progressed notably in terms of their participation in the labor
force, from 15.8% in 1995-% to 35.6% in 2016,
• Among them only around 12 percent have emerged as entrepreneurs.
• According to the Economic Census of 2013, there are 7.8 million enterprises (economic
activities) in Bangladesh.
• Of which 7.3 million are male-headed and only 0.6 million are female-headed Thus only 72%
of the total enterprises are female-headed.
• It was 2.8% (0.10 million) in 2001 & 03. It implies that more female is getting into the
business as the head of establishments.
Challenges
• Feeling the pressure of risk of business
• Suffering from uncertain future steaming out of price volatility of raw materials and final
products.
• Fluctuation in income creating uncertainty.
• Unfair treatment from people in business connections.
• Social and familial obstacles.
• Dual responsibility of work and family.
Recommendations
Provide access to finance: Encourage financial institutions to provide loans with flexible
terms and lower interest rates to women entrepreneurs. Additionally, create financial literacy
programs to help women understand how to manage their finances and access funding.
Offer training and education: Provide training programs and mentorship opportunities for I
women entrepreneurs to team about business planning, marketing, and other important skills.
Access to technology' and digital literacy' should also be a priority
Create networking opportunities: Ovate opportunities for women entrepreneurs to
connect with each other, industry experts, and potential customers. This can be done through
local events, business fairs, and online communities.
5|Page
Address cultural and societal barriers: Address societal and cultural barriers mat can
prevent women from starting businesses or accessing resources. This can include changing
attitudes and beliefs about gender roles and supporting women's empowerment.
Collaborate with fecal and international organizations: Collaborate with local and
international organizations' to bring attention to women entrepreneurs and provide them
with support Government agencies, non-profits, and corporate partners can all play an
important role in supporting women entrepreneurs. By implementing these
recommendations, it is possible to create a supportive ecosystem for women entrepreneurs
m Bangladesh and help them to grow their businesses and contribute to the country’s
economic growth.
Examples
• Bibi Rusell: After graduating from London College of Fashion Bibi Rusell worked as
a fashion model for a few years. She founded her fashion house Bibi Productions in the year
1995 in Bangladesh.
• Shima Rozario: Founder of K K Enterprise.
• Ivy Huq Rusell: She founded maya.com.bd mat provides an opportunity to improve lives
of women in Bangladesh.
• Taslima Miji: She established Techmania in June, 2008, which provides hardware and
related services.
• Monowara Ali Khan: A social entrepreneur, loves challenges. She founded her first
business in tourism, Intraco Tours and Travels, in the year 1978, which was a huge success.
But she did not stop mere. She has also established CNG and Solar businesses.
• Rokia Afzal Rahman: The first woman bank manager of Bangladesh, observed the
potential of agriculture in this country. She founded ICR CM borage limited' in the year
1980, supporting 15000 fanners with capital. She has served in different positions in
prestigious organizations.
6|Page
Policies and Programmes
Successive governments have continued to make gender responsiveness an essential dement
in long-term national development schemes. Women's issues were were mainstreamed into
key development strategies, such as the Five-Year Plans, Vision-2021 and Vision-2041. In
the aftermath of the historic Beijing conference, the government formulated me National
Women's Development Policy and the National Plan of Action, keeping with the spirit of the
Beijing Declaration and Platform for Action. The policy and plan were both subsequently
enriched, reflecting on the outcomes of the Fourth World Conference on Women, the
Twenty-Third Special Session of the General Assembly, the 2030 Agenda for Development
and SDG 5. Consistent with these strategies and policies, the government also strove to
tackles challenges like child marriage, violence against women, trafficking and other -rimes
by enacting appropriate laws. Apart from enacting and enforcing laws, the government, in
partnership with the civil society, has worked to generate social awareness about these vices.
Despite steady improvement in women's empowerment, Bangladesh still has a long way to
go. Only 36% of the working-age women participate in the labor force. The unemployment
rate among women is double the rate of men, and most women work in vulnerable, informal
occupations. Bangladeshi women need more holistic, intensive support, in addition to access
to finance, to break the persistent norms that hinder their progress. Women’s empowerment
can only be achieved when we include men and boys. Men are often those who define and
keep women within their boundaries. But when we engage with them they realize that their
wives’ empowerment benefits the whole family.
7|Page
