Women entrepreneurs must get adequate loans they need

A SURVEY report said over 60.2 percent of women SME entrepreneurs are struggling to get loans for business from non-bank financial institutions (NBFIs), as many of them are reluctant to make lending to women run business on safety ground. This trend is not business supportive for women as they are failing to meet funding demand of their business to keep their growth potentials restraint. There is no doubt such outlook will make women entrepreneurs’ condition more vulnerable when they have to fight against many other challenges as well as underprivileged people far behind men. It is undoubtedly a discriminatory approach when we have the avowed policy to bring about entrepreneurial development of our female population along with men.

Such critical finding came to the fore in the survey carried out by International Finance Corporation (IFC), an arm of the World Bank Group. The survey among 500 women SME entrepreneurs in 12 districts, including seven Divisional Headquarters revealed that the unmet demand for funding stood at Tk 6,007 crore for fiscal 2014-15. Only 31 percent of women SME entrepreneurs were able to finance most of their entire capital requirement for business. It raises question about the NBFIs outlook toward women’s entrepreneurial development. Economists believe women-owned businesses as new economic agents of change in Bangladesh must get all financial and other technical support, their limited access to finance and socio-cultural barriers are making their struggle very difficult.

In this situation we believe any unfavourable outlook in lending to women-run businesses is not only self-defeating but also contradicting with our national strategy for development. The disclosure is highly frustrating. We know that Bangladesh Bank is already offering loan funds for women entrepreneurial development at lower interest rates while encouraging other banks and NBFIs to offer generous loans to women entrances. But some bitter truth is that many such organizations including NGOs are not implementing the SME loan programmes for women while thieves are stealing bank money in bulk and laundering it outside the country. Lending to women is more safe than holding money in bank for big people to launder it.

In our view, the government leaders must bring pressure on the NBFIs and NGOs to make adequate loans to women entrepreneurs and must make it sure by administrative action. Women business chambers at various levels must also take up the issue to remove the setbacks on way to financing business run by women. They have already proved their worth as entrepreneurs setting up business and running mills and factories. Women are equal to men in creativity given the financial support. They are already on the move. Since IFC has raised the issue based on its survey, it must also take up other steps to remove all such bottlenecks.