JATIYA KABI KAZI NAZRUL ISLAM UNIVERSITY

TRISHAL, MYMENSING

Course Tittle: Introduction to Business

Course Code: MGT-2102
Date: 02/11/2021

ASSIGNMENT ON:
Problems and prospects of women entrepreneurship:
Bangladesh perspective

Submitted to:
MOHAMMAD TORIQUL ISLAM JONY,
Assistant professor, Department of management

Submitted by:
MD MAHIN ABDULLAH
Roll number: 20134145
Registration number: 9633
Session: 2019-2020
Department of management
Women entrepreneurship has been recognized as an important source of
economic growth, creating new jobs for themselves and others and providing
society with different solutions for management, organization and business
problems. They still represent a minority of all entrepreneurs, facing gender-based
barriers to starting and growing their businesses, such as discriminatory property,
matrimonial and inheritance laws and cultural practices; lack of access to formal
finance mechanisms; limited mobility and access to information and networks, etc.
Women's entrepreneurship can make a particularly strong contribution to the
economic well-being of the family and communities, poverty reduction and
women's empowerment. Bangladesh is a developing country, and the women of
Bangladesh are deprived and discriminated for many reasons. 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.

Facts and aspects of women entrepreneurship in Bangladesh in SME:

1.Becoming an entrepreneur is a big challenge for women.
2.Women in Bangladesh have progressed notably in terms of their participation in
the labor force, from 15.8 percent in 1995-96 to 35.6 percent in 2016.
3.Among them only around 12 percent has emerged as entrepreneurs.
4.According to the Economic Census of 2013, there are 7.8 million enterprises
(economic activities) in Bangladesh
5.Of which 7.3 million are male-headed and only 0.6 million are female-headed.
Thus only 7.2% of the total enterprises are female headed.
6.It was 2.80% (0.10 million) in 2001 & 03. It implies that more female is getting
into the business as the head of establishments.

In Bangladesh women entrepreneurs commonly face many obstacles when

building a business. Three common obstacles identified as the most challenging
are: overcoming bureaucracy, hiring talent and acquiring financing.

In present pandemic situation women entrepreneurs are facing much difficulty.

Different factors have increased women’s stress and anxiety in recent time.

Some of the problems faced by women entrepreneurs are as follows:

1. Problem of Finance:
Finance is regarded as “life-blood” for any enterprise, be it big or small. However,
women entrepreneurs suffer from shortage of finance on two counts.
Firstly, women do not generally have property on their names to use them as
collateral for obtaining funds from external sources. Thus, their access to the
external sources of funds is limited. Secondly, the banks also consider women less
credit-worthy and discourage women borrowers on the belief that they can at any
time leave their business. Given such situation, women entrepreneurs are bound
to rely on their own savings, if any and loans from friends and relatives who are
expectedly meager and negligible. Thus, women enterprises fail due to the
shortage of finance.
2. Scarcity of Raw Material:
Most of the women enterprises are plagued by the scarcity of raw material and
necessary inputs. Added to this are the high prices of raw material, on the one
hand, and getting raw material at the minimum of discount, on the other.
3. Stiff Competition:
Women entrepreneurs do not have organizational set-up to pump in a lot of money
for canvassing and advertisement. Thus, they have to face a stiff competition for
marketing their products with both organized sector and their male counterparts.
Such a competition ultimately results in the liquidation of women enterprises.
4. Limited Mobility:
Unlike men, women mobility in Bangladesh is highly limited due to various reasons.
A single woman asking for room is still looked upon suspicion. Cumbersome
exercise involved in starting an enterprise coupled with the officials humiliating
attitude towards women compels them to give up idea of starting an enterprise.
5. Family Ties:
In Bangladesh, it is mainly a women’s duty to look after the children and other
members of the family. Man plays a secondary role only. In case of married women,
she has to strike a fine balance between her business and family. Her total
involvement in family leaves little or no energy and time to devote for business.
Support and approval of husbands seem necessary condition for women’s entry
into business. Accordingly, the educational level and family background of
husbands positively influence women’s entry into business activities.
6. Lack of Education:
In Bangladesh, around 55% of women are still illiterate. Illiteracy is the root cause
of socio-economic problems. Due to the lack of education and that too qualitative
education, women are not aware of business, technology and market knowledge.
Also, lack of education causes low achievement motivation among women. Thus,
lack of education creates one type or other problems for women in the setting up
and running of business enterprises.
7. Male-Dominated Society:
Male chauvinism is still the order of the day in Bangladesh. The Constitution of
Bangladesh speaks of equality between sexes. But, in practice, women are looked
upon as able, i.e., weak in all respects. Women suffer from male reservations about
a women’s role, ability and capacity and are treated accordingly. In nutshell, in the
male-dominated Bangladeshi society, women are not treated equal to men. This,
in turn, serves as a barrier to women entry into business.
8. Low Risk-Bearing Ability:
Women in Bangladesh lead a protected life. They are less educated and
economically not self-dependent. All these reduce their ability to bear risk involved
in running an enterprise. Risk-bearing is an essential requisite of a successful
entrepreneur.

In addition to above problems, inadequate infrastructural facilities, shortage of

power, high cost of production, social attitude, low need for achievement and
socio-economic constraints also hold the women back from entering into business.
Government and private sector interventions have generally accelerated income-
generating activities of women both in the urban and rural areas. Such kind of
support services, policies and strategies have helped change the scenario in
Bangladesh, especially for the women who gathered the courage to break barriers
and enter the formal working force as entrepreneurs and workers. Although more
women are becoming entrepreneurs, they often face a set of challenges not
typically shared by their male counterparts. Some of the key challenges faced are
Defying social expectations, Limited access to funding, owning your
accomplishments, Building a support network, Balancing business and family life,
Coping with a fear of failure etc.

To promote women entrepreneurship the following steps should be taken:

1. Government should come forward at first followed by NGOs; SMEF to meet
financing need of women entrepreneurship since financing is their major
problem. The government should take steps to provide more financing to
them through different state-owned banks at a lower interest rate. Special
packages may be introduced for women entrepreneurs both in urban and
rural areas. NGOs, MIDAS, SMEF should also strengthen their existing
activities in solving the financing needs of women entrepreneurs. They
should take more effective steps in disbursing loans and advances to them
at a lower rate and flexible terms. Private commercial banks may also come
forward to meet the financing needs of women entrepreneurs. They also can
 provide special packages at lower interest rate only for them. If this can be
ensured the financing problem may be solved.
2. Lengthy formalities in securing loans should be reduced and simplified
because it sometimes it discourages women entrepreneurs especially new
ones. So, financial institutions both under government and private sector,
micro-credit, MIDAS, SMEF should make loan disbursement procedure
flexible.
3. Most of the women entrepreneurship is in SME sector. Since development is
a persuasive tool for stimulating the economic growth of a nation, many
developed and developing countries are taking some initiatives to encourage
the development of potential for susceptible women entrepreneurs.
Feminine entrepreneurial ability has not been fruitfully elevated to the
required level despite women being traditionally involved with various SMEs
by different government and non-government organizations (NGOs) in
Bangladesh.
4. The government and NGOs from time-to-time issue different policy
guidelines relating to women entrepreneurship development. These
guidelines will promote the growth of these enterprises whether it is micro,
SMEs or large enterprise.
5. Courses should be introduced on Entrepreneurship in both formal and
informal educational institutions in Bangladesh. This will induce unprivileged
women to picture to potentials of job creator instead of job seekers. It will
increase their entrepreneurship skills, enhance their knowledge and
encourage them to become entrepreneurs.
6. Arrangement should be made under private sector and NGOs for increasing
knowledge about business management, environment. Assessing risk among
entrepreneurship theoretically and practically. This will help them to become
more educated operating their business efficiently. Educated entrepreneurs
can efficiently release the entrepreneurial accountability. Without difficulty
they can take more risk and have access to information about
entrepreneurial activities.
7. More practical and need oriented training program should be designed for
entrepreneurs so that they can learn and use their practical knowledge in
their businesses.
8. SMEF, BWCCI, who are already playing their role in women entrepreneurship
should also arrange for different types of practical oriented training facilities
that will help in expanding their business.
9. Since skilled manpower in a barrier, NGOs, SMEF and the government should
take necessary steps to build skilled and experienced manpower that will
support the expansion of women entrepreneurship development.
10.It should be from the side of the government to ensure the supply of gas,
electricity, utility and infrastructural facility to flourish women
entrepreneurship development since these create a hurdle in their
development.
11.Products produced by women entrepreneurs need to marketed which is also
a barrier. They should be provided different marketing strategy related
knowledge. Private and NGOs can play an important role here by acting as
an intermediary. They can purchase their products in large quantities and sell
them in large market at different parts of the country. Trade fairs can be
organized for display and sales of their products if this can be ensured,
women entrepreneurs will be relieved of marketing their products.
12.Sufficient information should be made available to them regarding
international markets, marketing opportunities, economic conditions,
marketing information that will help them predicting the market for their
products.
13.In today’s business world use of latest and upgraded technology is also an
important factor. Women entrepreneurs must possess sound knowledge
about the technological advancements and how they will apply these in their
business within their ability. For example, they can use computers and
internet to search new markets and buyers in different parts of the world. It
is an important tool for expansion their business beyond the boundaries.
14.Government fiscal, industrial and monetary policy affects the business
directly. If the government is changing industrial, taxing policy frequently it
becomes a problem for the women entrepreneurs. The government should
formulate policies keeping in mind that it will not hamper the growth and
expansion of women entrepreneurship.
15.The National Board of Revenue (NBR) can extend tax-holiday facility for
women entrepreneurs. Special incentives may be offered for them like tax-
rebate, initial tax-exemption for newly established business
16.Product quality is an important factor in today’s competitive business. To
improve quality of their products and development of new products women
entrepreneurs need to conduct more research and development (R&D). The
more research and development will be carried on more their product
quality will increase. It will also be possible to develop new products.

Women genuinely love their work, are willing to put in those extra hours to
make the business succeed, and research ways to make the business better.
There is no such thing as a typical entrepreneur. Some entrepreneurs are
quiet and hard-working, while others are more outgoing and flamboyant.
The key to being a successful entrepreneur lies in the ability to take an idea
and, through the process of innovation, develop it in such a way that it
becomes a marketable product or service. Both government organizations
and the private sector have a major responsibility to promote
entrepreneurship development for women. Without that, the advancement
of women will remain a distant reality.