Factors hindering women entrepreneurs’ access to institutional finance- an empirical study

Ghosh, Pallabi; Ghosh, Sutap Kumar; Chowdhury, Sabrin

doi:10.1080/08276331.2017.1388952

Cited by 33 publications

(49 citation statements)

References 7 publications

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“…The financial institutions gave reasons such as lack of codified business strategy, proper costing and poor data systems about businesses and their owners as the main reasons for their reluctance in giving loans. This finding is in tandem with earlier findings of Ghosh et al (2017) and Karanja et al (2014) in a similar findings in Bangladesh and Kenya respectively. This is because they could not meet the strict requirements such as the provision of business documents and plan required by the bank.…”

Section: Discussionsupporting

confidence: 92%

“…Accessing finance has been proven to be the major constraint facing small and medium scale enterprises (SMEs) worldwide (Ghosh et al 2017;Bamfo and Asiedu-Appiah 2012;Lader 1996). Small businesses, particularly in developing countries have limited access to capital markets partly due to perception of higher cost of intermediation for small firms (Mohanty 2009;Biekpe 2004).…”

Section: Introductionmentioning

confidence: 99%

“…In furtherance, several studies have revealed that collateral dispute and lengthy process, suspiciousness, preconception and conservative attitude of the employees and complicacy in loan processing limit women entrepreneurs' access to institutional finance (Karanja et al 2014;Djankov et al 2007;Sharmina et al 2008). Whereas, collateral dispute with women entrepreneurs, high operating cost, misuse of disbursed loan, poor documentation and difficulty in assessing creditworthiness of the women entrepreneurs demotivate financial institutions to supply fund to women entrepreneurs (Ghosh et al 2017;Karanja et al 2014).…”

Section: Introductionmentioning

confidence: 99%

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Accessing finance among women-owned small businesses: evidence from lower Manya Krobo municipality, Ghana

Boateng¹,

Poku

2019

J Glob Entrepr Res

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The study examined the constraints to accessing finance among women-owned small businesses in the Lower Manya Krobo Municipality in the Eastern Region, Ghana. We employed largely qualitative methods using the case study approach. The purposive and simple random sampling techniques were used to select 50 respondents. In-depth interview guide and focused group discussion were used to gather data from participants. The data were thematically analysed. The study revealed that there are constraints of poor market demand and lack of capital and credit. In furtherance, although collaterals exist for small businesses, they are being discriminated against women micro-entrepreneurs due to the patrilineal inheritance system of the area. Again, it was found that the financial institutions generally considered giving loans as risky as a result of lack of codified business strategy and plan, proper costing of business and informational asymmetries about business owners and their businesses. The study, therefore, recommends that the activities of women micro businesses in the private sector of the economy should be urgently recognised within the lending models and structures as they constitute a valuable area of economic growth. The National Board for Small Scale Industries (NBSSI) through the Business Advisory Centre (BAC) should organise educational and training seminars regularly to educate women micro-entrepreneurs on business management to be able to negotiate effectively on the various landed properties in such a patriarchal system to reduce high start-up mortality of women micro businesses. The study further recommends to the National Identification Authority to take cogent action to fast-track the identification system of citizens as it remains one of the major factors to reduce loan risks and interest rates.

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Section: Discussionsupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Accessing finance among women-owned small businesses: evidence from lower Manya Krobo municipality, Ghana

Boateng¹,

Poku

2019

J Glob Entrepr Res

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“…Therefore, there has been a salient development of the economic outlook in the rural areas where 63% of the total population of the country are residing (Sattar, Dewri, & Annana, 2016;World Bank, 2019). However, it has been identified in many previous academic researches that financial support, particularly obtaining loans from government and private commercial banks, for female entrepreneurs, is challenging and difficult (Ghosh, Ghosh & Chowdhury, 2018). This scenario is common and is found in Bangladesh and other developing countries in Asia and Africa (Rosengard & Prasetyantoko, 2011;De Vita, Mari, & Poggesi, 2014;Baporikar, Nambira, & Gomxos, 2016;Boateng & Poku, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…This scenario is common and is found in Bangladesh and other developing countries in Asia and Africa (Rosengard & Prasetyantoko, 2011;De Vita, Mari, & Poggesi, 2014;Baporikar, Nambira, & Gomxos, 2016;Boateng & Poku, 2019). Ghosh et al, (2018) identified some challenges, such as lack of trust in women, gender biasness and so on. On the other hand, poor infrastructure, limited access to information and computer technology (ICT), a lack of power supply, regulatory barriers, and training and skills barriers were found to be the barriers for the SMEs in Bangladesh (Riyadh, Bunker & Rabhi, 2010;Scholtz, Koorsse & Loleka, 2017;Chowdhury & Alam, 2017).…”

Section: Introductionmentioning

confidence: 99%

Barriers Faced by Rural Female Entrepreneurs of SMEs in Accessing Financial Institutions for Loans in Bangladesh

2019

JIBM

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The purpose of this study is to explore the barriers faced by female entrepreneurs of small and medium sized enterprises (SMEs) in accessing the financial institutions for loans in Bangladesh. A qualitative approach using semi-structured interviews was applied in the study to collect the primary data. The study included ten female entrepreneurs from the rural areas of Bangladesh to recognise the barriers in accessing financial institutions, such as banks, micro-credit and other organisations. The study has identified that a complicated loan process, high interest rates, a lack of bank officer support, the biasness of officers, negative preconceptions about women and high bank account maintenance costs are the major barriers in accessing financial institutions in Bangladesh. The findings of the study will help facilitate Bangladesh and other developing countries to remove the barriers faced by female entrepreneurs and develop the business prospects set up by women. The study also discusses the limitations and the future directions of the research.

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Investigating the role of banks in promoting women‐owned micro and small businesses: Empirical evidence from an emerging economy

Khan,

Jilhajj

2024

Bus Strat Dev

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Women entrepreneurs of Bangladesh face strict terms and conditions, high interest rate, and collateral requirements while requesting access to bank finance. This paper investigates the role of banks in promoting micro and small businesses owned by women in Bangladesh in terms of access to bank finance and collateral requirement. Bangladeshi women entrepreneurs were chosen as there are surge in women entrepreneurs in the nation. The study used a close‐ended questionnaire to collect data based on stratified sampling and data health was ensured using the Harman's single factor indicating no presence of common method bias. The sample consists of 60 respondents of pilot study and 150 respondents surveyed by trained enumerators resulting a final sample size of 210. The data were collected based on primary sources from the entire Bangladesh represented by the eight divisions of the country namely Dhaka, Barishal, Chittagong, Khulna, Mymensingh, Rajshahi, Rangpur, and Sylhet. The data were analyzed based on the binary logistic regression model using the IBM SPSS Statistics. Empirical results indicate that women entrepreneurs can be granted bank finance only by the private commercial banks without pledging collateralized assets according to the rules of the central bank of Bangladesh provided they offer personal guarantee, social security and group guarantee and if they default on the loans, security will be used for loan repayment, and they will be deprived of further loan facilities. The findings of the study will help add value to the current literatures and the outcomes will be helpful to the concerned parties.

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Factors hindering women entrepreneurs’ access to institutional finance- an empirical study

Cited by 33 publications

References 7 publications

Accessing finance among women-owned small businesses: evidence from lower Manya Krobo municipality, Ghana

Accessing finance among women-owned small businesses: evidence from lower Manya Krobo municipality, Ghana

Barriers Faced by Rural Female Entrepreneurs of SMEs in Accessing Financial Institutions for Loans in Bangladesh

Investigating the role of banks in promoting women‐owned micro and small businesses: Empirical evidence from an emerging economy

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