Women's entrepreneurship on the rise, but market access remains a challenge

While women's entrepreneurship in the small and medium enterprises (SME) sector has gained momentum in the country, market access for their products remains a significant challenge.

Due to limited capital investment, women entrepreneurs primarily rely on selling their products at festival-oriented fairs. Constrained financial resources often prevent them from reaching a wider customer base through traditional shops or outlets.

Consequently, these women entrepreneurs have turned to social media platforms as a means of selling their products. They sell their products to big corporate organisations or await the opportunity to participate in fairs where they can showcase and sell their products.

However, the arrangement of fairs has significantly declined since the onset of the Covid-19 pandemic. Typically, fairs for entrepreneurs are organised by the SME Foundation, the Bangladesh Small and Cottage Industries Corporation (BSCIC), or various government ministries.

Presently, a growing number of women entrepreneurs are entering the business world with limited capital investments and employing one or two individuals. The majority of these women are active in the fashion and home textile sectors.

Entrepreneurs acknowledge that while there are challenges in accessing capital, the situation has improved to some extent due to the government's and various organisations' increased support and recognition of women in business.

However, many women entrepreneurs still face difficulties in obtaining loans because they struggle with the process of submitting the necessary documents required for easy and low-interest loans. Those who are able to navigate the process successfully are able to secure loans.

According to the SME Foundation, women's involvement in business has been steadily increasing since the beginning of the pandemic, despite previously low rates of entrepreneurship.

Recently, many women are now interested in entrepreneurship seeing the active participation of other women in various training programmes, fairs, and entrepreneurship development initiatives organised by the foundation.

The SME Foundation is taking special care of women entrepreneurs. So far, the foundation has provided various services to about 50,000 women entrepreneurs. Among them, 15,000 women entrepreneurs were trained in trade through 500 specialised trainings, free-lance training was given to 3,000 women and buyer-seller meetings were organised for 500 women entrepreneurs.

The foundation has distributed 30% of the government's incentive of Tk300 crore to women entrepreneurs. Meanwhile, according to Bangladesh Bank's guidelines, about 15% of SME loans have been allocated for women entrepreneurs.

The SME Foundation is actively prioritising the support of women entrepreneurs, offering a range of services to around 50,000 women in this sector. Out of this group, 15,000 women entrepreneurs have received specialised training through 500 dedicated training sessions.

Additionally, 3,000 women have benefited from freelance training opportunities, while 500 women entrepreneurs have participated in buyer-seller conferences.

Moreover, the foundation has ensured that 30% of the government's Tk300 crore incentive has been distributed to women entrepreneurs. According to the guidelines set by the Bangladesh Bank, around 15% of SME loans have been specifically allocated to support the women entrepreneurs.

According to the 2013 economic census, the total number of the industrial unit in the country is 78,18,565 and out of which, 68,42,884 are cottage enterprises, 1,04,007 micro, 8,59,318 are small, 7,106 medium and only 5,250 are large.

Of them, 5,63,368 are female-led enterprises and 37,349 are female-led SMEs. Another economic census will be conducted in 2023 and it is expected that the number of industrial units will be much more now.

The contribution of SMEs to GDP is over 25% (total industrial contribution is about 36%) and the total employment in SMEs is about 80% of total industrial employment (24 million).

Maryam Nargis embarked on her entrepreneurial journey 12 years ago when she founded Twinkle Craft, a small business specialising in the production and sale of Nakshi Kantha (embroidered quilt), with an initial investment of Tk5,000.

Over time, her business has expanded, now employing nine permanent staff members and involving a total investment of around Tk60 lakhs. With the help of women from her village, she creates Nakshi Kanthas and sells them.

She told The Business Standard, "Although we manufacture products, we face challenges in finding adequate sales outlets. Previously, our products were primarily sold at fairs. Unfortunately, the decline in fair activities has resulted in reduced sales opportunities."

As the president of the Jashore Nakshi Kantha Association, Maryam Nargis reveals that the association comprises around 10,000 women entrepreneurs, many of whom have recently started their businesses.

"While the number of businesses and entrepreneurs is growing, the lack of a viable market to sell their products remains a significant hurdle for these women," she said.

She also emphasises the untapped market potential for Nakshi Kantha abroad, which unfortunately remains beyond their reach.

She highlights that when they participate in international fairs with their products, they receive positive responses. However, attracting foreign buyers to Bangladesh poses a challenge, and she believes that the government and other institutions need to provide support in this regard.

Maryam Nargis sheds light on one of the biggest barriers faced by women when they venture into entrepreneurship—the social barrier.

She explains that many women encounter resistance and criticism when they decide to start their own businesses. However, she personally overcame such obstacles by carefully considering all aspects before taking the leap, and now her business is thriving.

She further emphasises that the experiences of women in becoming entrepreneurs are often similar, as societal acceptance is not easily granted.

"Nonetheless, an increasing number of women are defying societal norms and embracing entrepreneurship, which is making a notable contribution to the country's economy," she said.

Muhammad Masudur Rahman, assistant general manager of the women development wing at the SME Foundation, explains their efforts to address the challenges faced by women entrepreneurs.

"We are focusing on providing training programmes aimed at enhancing the quality of products produced by women," he said.

He also acknowledges that women encounter certain complexities when seeking loans, and to mitigate these challenges, the foundation maintains regular monitoring and collaboration with banks to find effective solutions.