The Present State

Women braving new frontiers

Rokia Afzal Rahman

Much has been written about women entrepreneurs in Bangladesh. Yet, so much remains to be said on the topic.

Before I entered the business world and the Women Entrepreneurs' Association of Bangladesh (WEA) got formed in 1994, women entrepreneurs initiated through Grameen Bank's microcredit programmes had proved themselves successful in business, were well-established, achieved a high record of 99 percent repayment, and emerged as empowered, confident decision-makers in the family.

Rokia Afzal Rahman

Today as we rejoice in our association WEA and its members having received recognition and awards aplenty, including myself as president, we go back in time to applaud and pay tribute to the ground-breakers, the path finders - the rural women entrepreneurs.

Grameen Bank, BRAC, ASA and other NGO micro-credit and enterprise development initiatives allow for 15 million women to be involved directly in their programmes. On an average if five people in a family have their lot improved through one woman's business activity, then 75 million people are directly or indirectly benefiting from the efforts of women in micro enterprises. A national private sector survey, funded by DFID, USAID, SIDA, SDC, on micro and small and medium enterprises in Bangladesh was conducted in 2003. The findings show that these micro and small and medium enterprises contribute 20-25% to the GDP of the country. This is a significant finding as past studies have bypassed the contribution of microcredit to national GDP.

Some case studies are given below in support of the contention:

• Shamima Khatun from Shatkira, a recipient of an award, started her business of trading in vegetables with very little capital. As her business expanded, she invested in the purchase of trucks thereby saving money on transportation costs. Today she is the owner of a fairly large business employing over a hundred men and women.
• Another example is Jhorna from Rajshahi who started her business using the waste jute from a nearby jute mill. She now employs 125 women to make jute string and sells her produce in different domestic markets.
• A third example is that of Rabeya Khatun in Gazipur, who started her business with a small handloom. With money in her hands she moved to using power looms and is now employing 150 men and women producing terry towels and hopes to export her goods in the near future.

Last week I visited a BRAC microcredit programme in Manikganj and, after speaking to the women there, I was impressed to learn of their broad business knowledge -- of profit, risk and marketing as well as the need to diversify their projects in order to manage the risks that they face. One such woman was Jahanara Begum, who began with the purchase of 200 day-old chicks. With her knowledge of the poultry business, she was able to calculate the return on her investments, when she sold the broilers 6 weeks later.

Jorina Khatun presents another example. She started her business by buying a calf at TK 7000, and today has eight cows. Mumtaz Begum another entrepreneur initially invested in layers, and now besides poultry also has a business project in fish cultivation.

These women are working behind the scenes, turning the wheels which are pushing the Bangladesh economy forward, and making the global image of the nation a much more positive one. There are woman entrepreneurs like these in every village all over Bangladesh working hard to bring a change in their own lives and those of the people around them.

These women do not realise that they bring with them a silent wave of empowerment, nor the impact their contribution is making the economy of Bangladesh as a whole.

They stand out

Women Entrepreneurs' Association, Bangladesh (WEA) has a membership of women business owners and women business owner organisations throughout Bangladesh. It was founded a little more than a decade ago out of the energy and enthusiasm generated by 150 women entrepreneurs participating in a workshop on “Women in Business” funded jointly by Norad and ILO. It was organised by the Bangladesh Employers' Association. This workshop held on the 18th and 19th December, 1993 was inaugurated by the then Prime Minister Begum Khaleda Zia while the chief guest at the closing session was the Leader of the Opposition Sheikh Hasina.

WEA aims at the identification and evaluation of national measures related to start-ups, information, advice, facilitating access to credit, mentoring and networking concerning the promotion of female entrepreneurship.

Counselling is designed for both groups and individuals..
Group-based counselling give women a chance to make contacts, to network and to learn from the experience of others. Individual based counselling allows women to receive highly effective advice directly related to the problem they face Measures supporting enterprise start-ups are focused on sectors that can provide women with an adequate income, thereby increasing women's financial self-sufficiency.

Women are supported to move into higher value markets in traditional or new sectors.

Some common interests emerge when women entrepreneurs are asked what they need to grow their businesses.

Ø Access to information, including training, technical assistance and technology.
Ø Access to capital.
Ø Access to markets, both domestic and international.
Ø Access to networks, both in the form of women's business association and broader industry and trade bodies.
Ø Recognition being taken seriously and being recognised as a valid credential of entrepreneurs as leaders.

Women's business networks
Business organisations are a vital element of enterprise development. Organisation such as WEA plays an important role in promoting the development of women-owned enterprises.

Access to capital
One of the critical elements for ensuring the growth of small enterprises is the availability of capital. There are several organisations that are involved in providing access to capital for micro enterprises. Rural credit is provided by several well known organisations such as Grameen Bank, BRAC, ASA. Access to capital for urban women entrepreneurs is provided by MIDAS, BRAC Bank, Janata Bank and Mercantile Bank, among others. Collateral free loan of Tk eight lakh is provided by BRAC Bank, Midas Financing Ltd. gives collateral free loans upto Tk 7.5 lakh and Janata Bank upto Tk 5 lakh.

Skilled hands at work

Access to market
Providing equal access for women business owners to market opportunities is also an important element of ensuring the growth and development of women-owned businesses.

In the first five years WEA built a strong base for its members in Dhaka to be able to facilitate some of the activities undertaken by the organisation.
Women to women support programme: An existing women entrepreneur becomes a mentor for a potential one and holds her hand for one year after which the new person is referred to a financial institution and she is launched into her new business.

• A chain of marketing outlets: WEA supported its members who owned and managed marketing outlets financed by MIDAS.
• Awards were given annually to a rural woman, an urban woman, and an institution supporting women entrepreneurship.
• Training: Training programmes were organised for members. Members of WEA become trainers for women in start-up workshops for women interested in business.
• Five years later WEA jointly organised training, both management and skill, all over Bangladesh with its affiliates Chittagong WE, Khulna WE, Bachte Sekha in Jessore, TMSS in Bogra. Thus women in secondary towns and those at the grassroots were addressed. Greater recognition for women in business is without a doubt the key objective that WEA will be pursuing.

Founded in 1996 Women In Small Enterprises WISE is again

Women's contribution

another organisation of women entrepreneurs, formed as a need and in response to a demand from borrowers of collateral-free loan given by MIDAS. Their businesses were rising and expanding as was their loan facilities increasing. These women needed to network and wanted to help other women to join the business world.

The members of WISE are an active vibrant group that makes linkages between their members and other bigger organisations like super markets and other buying houses. WISE has worked jointly with the Bangladesh Girls Guide Association to give startup training and skilled training to young potential women entrepreneurs from various districts of Bangladesh. WISE has worked with the government on advocacy to facilitate micro-credit for women.

Some of the priorities that WISE has as its objectives include:

• Membership development to create a more active empowered membership
• Networking to expand women's businesses and the reach of their organisation.
• Training instructions for managing and developing businesses.
• Sharing information regarding banks giving loans to women, access to capital, and working capital.
• Product development for product improvement and product development.
• Facilitating marketing by holding trade fairs.

WISE also carries out surveys to find the difficulties that women face in doing business. The findings show that some of the problems women have are:
Ø type of education,
Ø lack of role models in entrepreneurship,
Ø gendering of entrepreneurship,
Ø weak social status,
Ø competing demands on time, and
Ø access to finance.

The survey also shows women entrepreneurs are found to have an important impact on the economy, both in their ability to create work for themselves and to create jobs for others.

A few members of WISE have opened a marketing outlet along the Bailey Road called Wise Corner.

Illustration: Sabyasachi Misrty

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The author is President, Women Entrepreneurs' Association (WEA).