SME Sector in Bangladesh.pdf

8/10/2019 SME Sector in Bangladesh.pdf

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Woman Entrepreneurs in Manufacturing Sector

Dynamic Group

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1.1 Definition of SME

SME means Small and Medium Enterprises. There is no common acceptable definition

of SME that has been applied world wide. The definition of SME varies from one country to

another and even within the same country. So, there is a definitional ambiguity in cases ofSMEs in Bangladesh. Different organizations define it according to their objectives and

conveniences. However, the amount of capital investment and the number of workers

employed are the two major criteria of defining SME. More than 90% of the industrial

enterprises in Bangladesh are in the SME size-class, i.e. with up to 100 employees.

Generally, SMEs are labor intensive with relatively low capital intensity.

Small and Medium Enterprises (SMEs) have drawn a lot of interest among the policy

makers, academics, businessmen and people in general. There is a broad consensus that a

vibrant SME sector is one of the principal driving forces in the development of the economy

of Bangladesh. SMEs stimulate private ownership and entrepreneurial skills and can adaptquickly to changing market situation, generate employment, help diversifying economic

activities, and make a significant contribution to export and trade.

1.2 Introduction to Women Entrepreneurs

In the context of a developing country like Bangladesh, where SMEs are the engine of

growth, there has arisen a new class: SME women entrepreneurs. The urban and rural women

of Bangladesh are now turning the situation as a crucial progress in national development.

Though there has been substantial participation of women in the off-house activities of late,

women are yet to assume a dominant role in mainstream economic activities.

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2.1 Objective of the study

The present study focuses on the current scenario of woman entrepreneurs in manufacturing

sectors in SME and problems faced by them in Bangladesh as well as suggest some policies

and recommendations. The specific objectives of the study are to:

1. Primary Objecti ve:

Analyze the current status of woman entrepreneurs in Bangladesh;


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2.

Secondary Objecti ves:

Examine the role of SMEs in the economy of Bangladesh;

Review the situation regarding their access to finance by SMEs;

To identify the major financing constraints to woman entrepreneurs

development in Bangladesh

To understand & analyze their business activities;

To understand the problems of woman entrepreneurs;

Put forward some specific recommendations for future growth of women;

entrepreneurial activities contributing in SMEs in Bangladesh.

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SSMMEESSEECCTTOORRIINNBBAANNGGLLAADDEESSHH

6.1 Role of SME in the Economy of Bangladesh

In Bangladesh, SMEs including micro enterprises comprise over 99 per cent of all industrial

units, contributing over 85 per cent of industrial employment. Focusing on the 10+ units,

small units constitute 87.4 per cent, followed by medium and large units comprising 5.7 and

6.9 percent respectively. In other words, 81 thousand SMEs all together constitute more than

93 per cent of the total 10+ units. Again, focusing on the 10+ units, small units contribute to

35 per cent of the employment, followed by medium and large units comprising 8.8 and 56.0

percent respectively. In other words, SMEs employ 1.3 million people, constituting 44

percent of employment generated by 10+ units.

The recent available estimation obtained from two major micro surveys, International

Consulting Group (ICG) study and South Asia Enterprise Development Facility (SEDF)


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survey suggest the SME contribution to manufacturing value added to be in the range of 20

to 25 percent (Ahmed 2008; Bahar and Uddin 2007).

The micro, small and medium enterprises (MSMEs) together employ a total of 31 million

people, equivalent to about 40 per cent of the population of Bangladesh, aged 15 years and

above. More than three quarters of the household income in both urban and rural areas areprovided by the MSMEs (Rahman 2007).

6.2 Current Statistics of SMEs in Bangladesh

The National Report of BBS based on the nationwide census of all non-farm economic

activities in 2001 and 2003 presents data by employment size and category.

Table 01: Sectorial and rural/urban distribution of establishment of micro, SME and

large enterprises in Bangladesh-2001-2003

As regards manufacturing SMEs (10-99 workers), the Economic Census 2001 & 2003

indicate that there are nearly 28 thousand small and medium manufacturing establishments

employingsome 644 thousand persons? In the 10+ size group, manufacturing SMEs account

for nearly 88%of the manufacturing establishments while this is about 29% of manufacturing

employment.

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WWOOMMEENNEENNTTRREEPPRREENNEEUURRSSIINNBBAANNGGLLAADDEESSHH

The concept of women entrepreneurship is still not well accepted in society, particularly in

family circles. Business is considered a mans job. The Economic Census, 2001 -2003 data

reveals that women own only 2.83% of all enterprises.


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Rural women are involved in cattle and poultry rearing, rice husking, spice making, imitation

ornament trading, pickle making and other micro businesses. Urban women are mostly

involved in block printing and boutiques, bakery and fast food, doll making, tailoring, fabrics

paint, interior decoration, etc.

They are also owners of beauty parlors, computer training centers, leather goods, fish cultureetc. which are non-traditional activities for women. Women entrepreneurs prefer to start their

business in sectors where female employment is concentrated. The choice of the sector is

limited by various factors such as resource constraint, female aversion to risk-taking, etc.,

which forces them to engage in activities with low entry barriers and low financial risks such

as food processing and or clothing and textile sector. Hence female businesses have smaller

employment and sales than male business. Majority are micro and small enterprises,

employing less than 10 persons. Most of them are sole proprietors. Participation of women as

entrepreneurs has also improved their quality of life and their households. They serve as a

role model for young generation for self-employment opportunities.

Women enterprises are small in size. Short-term loans were more widely used than medium

term loans, which had an average size of Tk. 3 lakh. The average interest rate was 13%,

ranging from 10% to 14 %. Loan giving process discriminates against women. The average

time required for an SME to process loan was 57 days, while for women enterprises it took

145 days. Debt financing has yet to deeply penetrate womenled enterprises (Bangladesh

Bureau of Statistics, 2007).

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CCRREEDDIITTSSCCHHEEMMEESSFFOORRWWOOMMEENNEENNTTRREEPPRREENNEEUURRSS

Despite the negative image of women as entrepreneurs, institutional assistance with local and

international support resulted in projects and programs aimed at furthering women

entrepreneurship. Some of these are mentioned below.


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8.1 Women Entrepreneurship Development Project (WEDP):

WEDP was the only program in the industry sector which was directly related to women

entrepreneurship development. This was initiated by BSCIC in 1982 with the support from

USAID and was discontinued in 2004-05. It was the first program to support women with

larger amount than micro credit without collateral. The highest ceiling of the loan was Tk.60, 000. The activities were to provide pre-investment counseling, assisting in project

appraisal and feasibility studies, extending credit facilities, imparting training and providing

marketing and technical support.

8.2 Women Entrepreneurship Development (WED) Cell of MIDAS

To help promote women entrepreneurs MIDAS has one special program, which MIDAS

started from its very inception- the Women Entrepreneurship Development or WED Cell.

WED Cell is one of the best ways of empowering women and WED Paper17mainstreaming

them in the economic activities of the country, with the primary object to create

entrepreneurship among the women folk of the country.

8.3 Women to Women Support Program

Women to Women Support program is a new program introduced by the WED cell. MIDAS

analyses the practical requirement of the women entrepreneurs mostly prospective ones,

has undertaken it.

Objectives of Women to Women Support program are:

i. Through matchmaking process help new entrepreneurs establish a commercially

viable enterprise;

ii. Upgrade and improve the quality of existing products and diversify the product range

of existing small and micro enterprises run by women;

iii. Expand the existing market share and marketing network of women entrepreneurs;

iv. Creating a network among the existing and potential women entrepreneur groups, and

v. Maintaining an up-to-date data bank of potential and existing women entrepreneurs of

various sub-sectors.

The function of MIDAS, mediator between the two groups is to closely supervise and

monitor the two groups and provide them with necessary technical support, guidance&etc.


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8.4 Entrepreneurship Development for Women by JMS:

The Jatio Mohila Sangstha (JMS) initiated a project in 1998 in 64 districts for five years with

assistance from UNDP to support potential women to become entrepreneurs. The project

supported those who were graduates of various micro-credit programs of various agencies

like the Department of Womens Affairs, Department of Youth etc. The project also aims tolink the beneficiaries with institutional source of credit. Although the credit limit was from

Tk30000 to Tk. 150,000, the highest disbursement was Tk70,000. Before extending credit

management training was imparted to the entrepreneurs. Mainstreaming SME credit in the

last quarter of 1980s, Bangladesh Bank circular directed the commercial banks to lend at

least 15 percent of their lending capital for industrial sector. Five percent was supposed to be

spent for the Small and cottage industries.

Some public banks have women banking facilities but their role is to generate saving rather

than encourage investment. Though not legally required, banks and credit programs insist on

husbands or other male relatives consent as guarantee before providing loans.

Sonali Bank is the pioneer bank which opened a few women branches in the country to

promote saving habit of women. It initiated a project named Credit for Urban Women Micro

Enterprise Development which offered loan between Tk 50 thousand to two lakh without

collateral. To be eligible for loan, viability of the project, hypothecation and a personal

guarantee were the necessary requirements. The formalities were considered to be difficult

for women and the amount was too small to establish a small enterprise.

Janata Bank has good facilities in providing collateral free loans up to Tk 5 lakh, but these

are available only in Dhaka.

8.5 SME Foundation


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The SME Foundation is an independent center of excellence created and generously

capitalized by the Government of Bangladesh. SMEs are recognized as engine of economic

growth and employment generation for sustainable industrialization in both developed and

developing countries of the world. In context of Bangladesh, there is no alternative of small

and medium enterprises for rapid industrialization and national economic growth through

lower capital investment and employment generation.

The SME Foundation is playing its role in helping the SME entrepreneurs including the

women entrepreneurs by conducting various programs with an aim to develop the SMEs of

Bangladesh. One of the major aims of SMEF is to bring the grassroots entrepreneurs into the

main stream of economic development through employment generation, reduction of social

discrimination and poverty alleviat ion.

8.5.1 Contribution to the Women Entrepreneurship Development of SME

Foundation

Bring the women entrepreneur to main stream development process and facilitate them for

women empowerment is one of the prioritized activity of SME Foundation. Main activities

are: institutional capacity building of women chamber/ trade bodies, formulate gender action

plan, encourage bankers for finance to women entrepreneurs, conduct study on women

entrepreneurs, organize women entrepreneur conference, national SME women

entrepreneurship award, SME product fair for women entrepreneur etc.

6. WWOOMMEENNEENNTTRREEPPRREENNEEUURRSSIINNMMAANNUUFFAACCTTUURRIINNGGSSEECCTTOORR

Now, SMEs are regarded as an engine of economic development and creation of new

employment. In the context of Bangladesh there are no alternatives of SMEs for rapid

national economic growth.

Especially, women play an important role

in every countries economic development


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and they are highly represented in the SME sub sectors.

The objective of the study is to provide an overview of women entrepreneurs in Bangladesh.

The concept of women entrepreneurship is not well accepted in the society. Basically

business is considered as only mans job.

But more eagerness and strive to be successful in business is creating more women

entrepreneurs in SME sectors. Participation of women in SME sectors will improve the

economic conditions and thus for the country.

7. CCUURRRREENNTTSSCCEENNAARRIIOOOOFFSSMMEESSEECCTTOORRIINNBBAANNGGLLAADDEESSHH

The latest BSCIC estimates suggest that there are currently 55916 small industries and

511612 cottage industries excluding handlooms, including handlooms, the number of cottage

unites shoots up to 600000 units indicating numerical superabundance of the SCIs in

Bangladesh. Whatever the correct magnitude, the SMEs are undoubtedly quite predominant

in the industrial structure of Bangladesh comprising over 90% of all industrial units. This

numerical predominance of the SMEs in Bangladeshs industrial sector becomes visible in all

available sources of statistics on them. (Ahmed, M.U 2001)

The various categories of SMEs are reported to contribute between 80 to 85 percent of

industrial employment and 23 percent of total civilian employment (SEDF, 2003).

While the SMEs are characteristically highly diverse and heterogeneous, their traditional

dominance is in a few industrial sub-sectors such as food, textiles and light engineering and


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wood, care and bamboo products. According to SEDF, Sources quoted from ADB (2003),

food and textile units including garments account for over 60% of the registered SMEs.

Various recent studies(Ahmed, M.U 2001, ADB 2001, US-AID 2001) the SMEs have

undergone significant structural changes in terms of product composition, degree ofcapitalization and market perpetration in order to adjust to changes in technology, market

demand and market access brought by globalization and market liberalization.

8. AAIIMMSSAANNDDDDRREEAAMMSSOOFFWWOOMMEENNEENNTTRREEPPRREENNEEUURRSS

The highest aim or dream of 31.50% of the women was to become a successful women

entrepreneur, 19.17% aimed at expanding their existing business, 15.83% wanted to become

a self-dependent personality, 6% wanted to create employment for others.

The aims and dreams of the women entrepreneurs depicted their ultimate endeavors through

success in business. There was a time when society rebuffed them but after success today

society recognized their achievements. Their contribution towards the national economy was

through their income earning and providing employment to the skilled workers and also

providing support of various kinds to the disadvantaged. Through their efforts in uplifting the

status of the people and also the socio-economic development of the society they have

contributed and also prepared the path of success for the future generations of the country.

9. CCOONNTTRRIIBBUUTTIIOONNSSOOFFWWOOMMEENNEENNTTRREEPPRREENNEEUURRSS

12.1 Contributions of Women Entrepreneurs in Economy of Bangladesh

A revolutionary change is going to be occurs in economy for the development of SME.

Woman entrepreneurs are playing the vital role in SME sector. Women entrepreneurs are

contributing to develop the standard of living by producing more goods and creating new

markets and new opportunities. Entrepreneurs are self-sufficient because they are creating

new sectors for employment opportunities.

1. I ncreasing standard of li ving:


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Women entrepreneurs are playing a vital role in increasing standard of living. They

are earning more money by producing goods and services. For earning more extra

money the standard of living are increasing day by day.

2.

Creating sel f-rel i ance:

Nowadays women are engaged in difference field of work. They are doing official

work, engaging in a new business, creating new sectors for employment and so on.

As they are earning money by doing those types of business so they are now self-

reliance.

3. Ensur ing proper ut i l i zation of natural resource:

Most of the women entrepreneurs are using domestic natural resources. So, women

entrepreneurs are not dependent on foreign raw material. It ensures the proper

utilization of our natural resources.

4. Establ ishi ng local market:

At the time of global competition women entrepreneurs are creating new market with

new or improved products and services using domestic raw materials thats why they

are producing products and services at cheap rate. So they can easily compete with

other domestic and foreign competitors.

5. I ncreasing nati onal i ncome:

As women entrepreneurs are now not only engaged in their traditional non-financial

works like rearing children, washing clothes , Cooking food, washing utensils. They

are now doing a lot of commercial activities that increases the income of the woman.

Finally it increases the national income.

6. Creati ng employment opportuni ty:


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Women entrepreneurs are creating new sectors and business that requires more

employees to maintain business activities. So they are creating and facilitating huge

employment besides their self-sufficient.

12.2 Contribution of Women Entrepreneur in Society

Women entrepreneurs are the pioneer of changing the socio-economic conditions of women

in our country. They are the economic changing agent. They not only contribute to our

economy but also society. Some social contribution of women entrepreneurs are given below.

1. Creati ng part -time and ful l t ime job opportuni ty:

Women entrepreneurs are creating new sectors and business that requires moreemployees to maintain business activities. So they are creating and facilitating huge

part time and full time job opportunities being self-sufficient.

2. Reducing poverty:

Women entrepreneurs are creating new sectors for more earning. As they are earning

more and creating more job opportunities thats increase our national income. As a

result they are playing a vital role in reducing poverty.

3. Providing good quali ty product:

As the market is competitive and women entrepreneurs are the new comer in this

sectors. So the women entrepreneurs are always tries to provide good quality product

for their existence.

4. Providing traini ng faci li ti es for making ski l led labor:

Nowadays we are seeing thats women entrepreneurs are providing training facilities

to their workers. Because when the labors get training facilities they get skilled labors

as a result they have ability to create quality products and services.


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12.3 Contribution of Women Entrepreneur towards Family

The survey revealed that the women entrepreneurs contributed towards the family in various

ways. Of those the highest contributions

1.

Bearing Family and household expenditure

2. Bearing personal expenditure without burdening family

3. Bearing cost of Childrens Education

4. Reducing financial problem in business

5. Employment for family members

6. Assisted poor people,

7. Encouraged women in business,

8. Lessen family burden as women

9. Jointly assisting to social development

10.Enhancing the family prestige, as well as the family image and status in society,

These contribute towards family in crisis; earn social respect as member of an established

family through financial contribution, raise consciousness in family on womens

development and also providing assistance to marriage of destitute family memb


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AANNAALLYYSSIISSOOFFTTHHEESSTTUUDDYY

14.1 Ages of Women Entrepreneurs in Bangladesh

From the surveyed report, we can observe that most of the women entrepreneurs in

Bangladesh less than 35 and 35 to 45 years old. They are starting their own business when

they are students and before marriage. They continue their business after marriage with the

help of their own friends and family.

14.2 Educational Qualifications of Women Entrepreneurs in Bangladesh

From the study, we can observe that more than half of the women entrepreneurs are well

educated to perform their business. About 65% are graduates and 35% passed SSC and HSC

level to start up their business.

14.3 Types of Ownership

Most of the women entrepreneurs started their business as a sole proprietorship business.

They can not get help from other in early time of establishment. About 65% are sole

enterprise, 25% are partnership and 10% are in Joint Venture business.

14.3 Sources of Finance

About 50% are established with their own funds of entrepreneurs. 20% are from the

friends and family, 15% taken loan from NGOs and 15% on from banks.


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1144..44Number of Employee

Among the surveyed enterprise the 65% has less than 20 employees, 25% has 20 to 50

employees, 10% has 100 and above and 5% has 50 to 100 employees.

10.SSUUCCCCEESSSSFFUULLWWOOMMEENNEENNTTRREEPPRREENNEEUURRSSOOFFTTHHEEYYEEAARR

15.1 Tania Feroze:

Tania Feroze is the Winner of Best Woman Entrepreneur Award 2013 from Jatio

Mahila Shangstha. She is the owner of Grapes Crafts. She is a fashion designer and

working for creative design in handicrafts. She is doing her business for 14 years. She

started her business for supporting the woman in her village besides her personal

income. Now she has 300 working womenin her business. First she trains up her

employees for understanding new designs and then she provides the raw materials the

women and then they prepare it according to the design.Arong, Kay-kraft, Anjans and

some other brands in country are the loyal customer of Tania Feroze.

15.2 NahidaSharmin:

Nahida Shrmin the entrepreneur and proprietor of SholpikCrafts. She won of Best

Woman Entrepreneur Award 2009 from FBCCI. Her business in to design and

manufacture dress on Block, Print and Carchupi. Age of her business is 15 years. She

has completed her BFA and MFA from Fine Art, University of Dhaka. Now she is one

of the best designers in our country.

15.3 MS Hasina Begum:


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MS Hasina Begum is the entrepreneur of Sonar Bangla Mohila Songstha where she has

250 women who work for her. She is now 13 years in this business. She own CPDP

Prize in 2006, Best Woman Entrepreneur of 2004.

15.4 Hafiza Akter Zahan:

Hafiza Akhter Zahana graduate is the owner of Alimpon Crafts. She has worked for

16 years in a job. But after a certain time she realized the real prestige of being an

entrepreneur rather than employee.

Like these entrepreneurs we have meet with 20 women entrepreneurs and they have given us

necessary information about themselves and organizations. They are developing gradually

but they had to face some financial and social constraints that needed to be solved to run their

business well. Some of those can be solved by the initiative of Govt. and the others can be

solved by the awareness development of the people. We got some message for the concerned

department to get them facilitate to reach their product home and abroad.

11.PPRROOBBLLEEMMSSFFAACCEEDDBBYYWWOOMMEENNEENNTTRREEPPRREENNEEUURRSS

There are many problems faced by our women entrepreneurs in our country. Women

entrepreneurs face various problems in business including lack of capital, insufficient

experience, unavailability of raw materials, lack of marketing opportunities, difficulties

in attainment of skilled workers and problems of accounts keeping. But the most common

problems of the women entrepreneurs are presented below:

1. Discrimination:

Discrimination still exists regarding access to finance by women entrepreneurs.

Studies on the subject noted that women contribute around 26 per cent in total deposit

of the banking system but their access to credit is below 2 per cent of the total

outstanding loans. This is an unfortunate situation.

2. Access to f inance:


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Access to finance is one of the most critical constraints faced by women

entrepreneurs. Although most of the banks have SME banking, few women apply for

the bank loans as they need to submit a number of statements such as bank statement

of the enterprise, reference of guarantor etc. for collateral free loans. Problems were

more pronounced for women entrepreneurs in the informal sector. A recent study

noted that about 79 percent of women entrepreneurs in this sector had no access to

formal financial institutions and depended on own savings and family as source of

capital to start a business (Chowdhury, Farzana, 2008).

3. Unwi l l ingness of the Banks:

Banking system is not adequately focused on women-owned enterprises. Banksusually consider women entrepreneurs in SME to be high-risk borrowers. The kind of

collateral usually considered by banks as appropriate security is land and building.

4. Lack ownershi p of land:

Women usually lack ownership of land and hence the collateral requirement of land

and building is a constraint for them to access institutional finance. Lack of collateral

makes women entrepreneurs more risky for banks. Although women have proved

their repayment capacity with a repayment performance of 90 percent in the field of

micro credit, commercial banks perceive them to be of high risk.

5. Lack of credit hi story:


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Most of the small women entrepreneurs do not have a credit history, and so there is

no CIB report on them. These barriers induce female entrepreneurs to take recourse to

informal sources of finance, which has a negative impact on their growth potential.

6. Fami l y Problem:

Most of the family wants to keep their lady safe so they are not interested to let the

woman go outside for the business. After marriage the problem is being more

complex for the woman.

7. Lack of F inance and Worki ng Capi tal:

It goes without saying that access to finance particularly working capital finance and

investment finance to enable the woman entrepreneurs to expand their business is a

prime constraint facing the woman entrepreneurs. Banks in general do not consider

SME financing to the woman as profitable activity. SMEs are also regarded as high

risk borrowers because of their low capitalization, insufficient assets and high

mortality rates, and consequently banks are not keen to offer them credit at

comparable interest rates. Entrepreneurs in the export sector also face problems of

access to working capital.

8. Hi gh interest and tax rate:

High interest rate of Bank loan and high tax rate for SME products is a barrier to

expand the business of the woman entrepreneurs. For high interest rate and tax rate

the ultimate production cost is increased. As a result the value of products and

services are high and the customers lost their interest to buy domestic products and

services.

9. Marketing problem:

Most of the women entrepreneurs are non-business graduate and many of them are

educated under HSC thats why they have very few knowledge and opportunity for

proper marketing. As small and medium business they have very few budgets for the

marketing.


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10.

Complexi ty in loan condi ti on:

Govt. and non govt. organizations that are providing loan to the entrepreneurs

requires hundreds of documents with very tight condition thats why women

entrepreneurs are not interested in bank loan to reduce complexity and risk.

11.Problem in exporti ng products:

Entrepreneurs are not getting the govt. support to do a lot for export their product.

They have very few communications with the foreign buyer so they dont get the

support that could spread their product worldwide.

12.Social Securi ty:

Woman are facing big problem in business being a woman. They had to face different

unexpected situation in every time like walking on the road, meeting with a gents

who have bad intention, risky to return home at night etc.

13.Importi ng foreign products:

Govt. is emphasizing the import rather than produc tion. Thats harmful for our

domestic entrepreneurs. Because when government import more product from foreign

country the customers are easily move from domestics to foreign product. It is a main

problem for our women entrepreneurs.

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RREECCOOMMMMEENNDDAATTIIOONNSSAANNDDSSUUGGGGEESSTTIIOONNSS

SMEs will continue to be the major driving force for

income and employment generation in Bangladesh.

The future for entrepreneurship appears to be very

bright. We are living in the age of the entrepreneur,

with entrepreneurship endorsed by government,

business community, educational institutions,


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society, and corporations. Development of SMEs in Bangladesh is the need of the hour to

raise the standard of living of the people of our country. The modest suggestions and

recommendations are given below:

1.

Development of SME Inf rastructure:

Infrastructure development is a prerequisite to efficient development and financing of

SMEs Currently, the most severe constraint that hinder the development of SMEs is

the lack of infrastructure (e.g., roads, gas and electricity), limited access to market

opportunities, technology, expertise and business information and communication.

The government should provide appropriate infrastructure for women entrepreneurs.

2. Traini ng Faci li ti es for Women Entrepreneurs:

Women with or without higher education and skills are coming to the SME sectors as

an entrepreneur. Most of them dont have proper business knowledge. In this situation

the women entrepreneurs need training facilities for their development. Training

programs are needed for women entrepreneurs development. Most of the women

entrepreneurs use traditional technology-based manual skills in their business.

Technology can play a role in saving money, increasing productivity, and increasing

the quality of output. Training should be given to women entrepreneurs so that they

can use technology effectively.


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3. Providing suffi cient funds:

In our society women are always leg behind thats why they dont get sufficient fund

for their business. So the government should take proper steps to facilitate the women

entrepreneurs providing loan with easy loan conditions.

4. Reduce interest and tax rate:

The government should decrease the interest rate of Bank loan and reducetax rate for

SME.Forthe lower interest andtax rate the ultimate production cost is decreased. As

a result the value of products and services are lowthat will give them a competitive

advantage.

Besides these the women entrepreneurs expect some others facilities from the government.

these are given below.

5. Helps in marketing products.

6. Exporting products to foreign countries.

7. Providing subsidiary.

8. Improvements of location & transportation facilities.

9. Providing leasing facilities of fund.

10.

Taking care of the political instability.

11.Introducing popularity our domestic products.

12.Helps in participating international trade fair.

13.Providing training facilities.

1133..CCOONNCCLLUUSSIIOONN

The economic development of a country is not possible without proper participation ofwomen into the main stream of economic development. Now, it is the demand of time to

make the women as an economic change agent. Development programs could not bring

women in the main stream of economic development because they failed to include women

as an equal partner of men. Women fall in dilemma between their personal advancement and


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household works. Besides, ours society does not emphasize women participation in business.

Family members do not favor the womens participation in business. Women have the ability

of psychologically handle the pressure and more skilled in dealing with people. So

employment program and national policy of developing nations should emphasize self-

employment for women and enhance their access to education, training and self-funded

sustainable local credit schemes.

Women have to bear the burdens of their families, and cross the hurdles raised by the society

to achieve their socio-economic development. Many women are found to have overcome the

different barriers and emerge as successful women entrepreneurs of the country. Their

contribution towards their families and the society is a testimony to their inherent strength in

tackling any situations which may arise before them. They have paved the way for their

sisters to rise from the drudgeries of life and the bane of superstitious attitudes of the males.

Today a silver lining in the dark clouds is visible as women entrepreneurs are gradually

climbing the ladder of success through their socio-economic development. Nothing will push

them back again, for they have learnt how to face the challenges of life. They are not only

stronger and more courageous, but also more efficient, conscious, competent and well-

organized. Women entrepreneurs are making their contribution to the national economy and

it is they who will play their role in making Bangladesh a strong and prosperous nation.

SME Sector in Bangladesh.pdf

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