Business should look past gender

Despite loud proclamations of women's empowerment in the country, the statistics paint a depressing picture. According to the Labour Force Survey 2022, in Bangladesh, only 35 percent of the formal labour force consists of women. Female entrepreneurs account for only 7.2 percent of overall business owners. This latent wellspring of talent represents a missed opportunity for economic growth. But the impact is not confined to economic figures. Women-led businesses are more than just profit-generating entities; they are catalysts for social progress. They reinvest more profits into their communities, fostering education, healthcare, and entrepreneurship among other women, thus contributing to social development.

Evidence from Bangladesh's Southeast Asian neighbours paints a vivid picture. In Vietnam, a study revealed that for every dollar earned by a woman entrepreneur, her family's income increased by $0.70, showcasing the direct impact on household well-being. Similarly, in Indonesia, research found that villages with higher rates of female business ownership had significantly lower child mortality rates, demonstrating the link between women's economic empowerment and improved healthcare outcomes for the next generation. In Bangladesh, similar stories abound. Programmes enabling micro-loans for women have led to a dramatic decrease in poverty and a surge in children's school enrolment.

The path to empowering women entrepreneurs, however, is not paved with good intentions alone. It is fraught with challenges that act as invisible barriers: access to finance remains a major hurdle with traditional banks often hesitant to lend to women-owned businesses. Cultural norms and societal expectations can also limit their mobility and access to networks. Lack of training and mentorship further hinders their ability to navigate the complexities of the business world.

Entrepreneurship, therefore, offers women opportunities for economic independence, autonomy, and control over resources. By engaging in entrepreneurial activities, women can challenge societal norms and traditional gender roles, contributing to their own empowerment and the overall development of the country.

The path to empowering women entrepreneurs, however, is not paved with good intentions alone. It is fraught with challenges that act as invisible barriers: access to finance remains a major hurdle with traditional banks often hesitant to lend to women-owned businesses. Cultural norms and societal expectations can also limit their mobility and access to networks. Lack of training and mentorship further hinders their ability to navigate the complexities of the business world. Tackling these hurdles requires a multi-pronged approach.

Firstly, the financial gates must be unlocked. While microfinance has served as a valuable stepping stone, it is like a watering can, good for keeping a small plant alive. But for women's businesses to truly grow and thrive, a whole irrigation system is needed. Thus, if doors to formal banking, venture capital, and angel investors are opened, these financial instruments will act as oxygen that will fuel women's businesses beyond micro-enterprises, propelling them into the realm of medium- and large-scale ventures that can truly drive economic growth.

Secondly, these women need to be equipped with the necessary skills and knowledge. Training programmes in business management, digital literacy, and marketing can act as tuning forks, ensuring their businesses resonate with the demands of the modern marketplace. Peer-to-peer learning networks and mentorship programmes can provide invaluable guidance and support, acting as experienced conductors and guiding them through the complexities of the economic landscape.

Thirdly, cultural barriers that limit women's mobility and access to opportunities must be dismantled. Targeted social awareness campaigns can play a crucial role in challenging these norms. By openly discussing and questioning traditional gender roles, these campaigns can encourage families and communities to actively support women's entrepreneurial ambitions.

The benefits of prioritising Bangladeshi women's entrepreneurship resonate far beyond national borders. By nurturing innovation, diversity, and ethical practices, Bangladesh can become a beacon of sustainable and inclusive economic development, attracting foreign investment and inspiring other developing nations. This is not just a social checkbox to tick. It's about unleashing a tidal wave of prosperity that lifts everyone.

This generation has a historic opportunity—to unleash the untapped potential of Bangladeshi women in business. Let us be the wave of change, the rising tide that lifts all boats. By empowering women entrepreneurs, we empower not just individuals but families, communities, and the entire nation.

Imagine Bangladesh riding the crest of this economic wave, propelled by its women's ingenuity and hard work. Imagine a future where equal opportunity thrives, where women's success sparks widespread prosperity, and where Bangladesh shines as a beacon of hope for other nations seeking the transformative power of gender equality.

Nahian Rahman is research associate at Bangladesh Institute of Governance and Management (BIGM).

Views expressed in this article are the author's own. 

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