Financing female entrepreneurs in cottage, micro, small, and medium enterprises: Evidence from the financial sector in Bangladesh 2010–2018

Abstract

This article examines the challenges and obstacles faced by female entrepreneurs in the cottage, micro, small, and medium enterprise (CMSME) sector in Bangladesh and shows that a combination of legislatory and regulatory reform can mitigate many of the issues that prevent women gaining from, and contributing to, this vital economic sector. Access to finance is found to be the greatest challenge faced by women in starting and operating CMSMEs in Bangladesh. This article explores the significant gender gap in access to formal credit, a gap that impacts negatively on the sector's growth and development. The article uses liberal feminist theory as a framework for analysis of the reforms. Analysis of data collected from banks and financial institutions on CMSME loans (2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018) shows that female entrepreneurs are treated significantly differently from men by financial institutions in Bangladesh. K E Y W O R D Sbank and financial institutions, cottage, micro, small, and medium enterprise, female entrepreneurs, gender gap, liberal feminism

Female rural–urban migrants and online marketplaces in emerging economies: Evidence from Thailand and Vietnam

“…This is understandable as wealthier people have better access to ICT and the internet than poorer ones. Our finding is also in line with Shoma (2019), who reports that female entrepreneurs in Bangladesh face many obstacles, and a combination of legislative and regulatory reforms can mitigate many of the issues that prevent women contributing to and gaining from economic growth.…”

Female Rural–Urban Migrants and Online Marketplaces in Emerging Economies: Evidence from Thailand and Viet Nam

“…This is understandable as wealthier people have better access to ICT and the internet than poorer ones. Our finding is also in line with Shoma (2019) who report that there are many obstacles faced by female entrepreneurs in Bangladesh, and that a combination of legislatory and regulatory reform can mitigate many of the issues that prevent women gaining from and contributing to economic growth.…”

Gender-Based Entrepreneurial Access to Bank Credit: Myth or Reality

“…In the emerging markets of Africa, women entrepreneurs face greater social-cultural barriers than their counterparts in the western world (Etim & Iwu, 2019;Nsegimana et al, 2018). According to Chowdhury (2019), the following factors inhibit access to credit by women entrepreneurs in Bangladesh: lack of a personal guarantee, lack of experience in preparing loan proposals, lack of legal documentation, lack of managerial capacity and technological education, lack of collateral and high-interest rates, societal factors, laws, and policies (the absence of gender rights). According to Sanusi (2012), women entrepreneurs are confronted with the following challenges: cultural norms and family responsibilities, property rights & control over assets, lack of collateral and startup capital, the biased attitude of banks, formal employment, lack of awareness of finance, financial market imperfections.…”