An assessment of the factors affecting performance of women entrepreneurs in SMEs of Bangladesh

Abstract

The study was a cross sectional research on the factors affecting performances of women entrepreneurs in SMEs (Small and Medium Enterprises) of Bangladesh. These factors were segregated as i. general and ii. environmental factors. The general factors were related to the demographic and business characteristics of the women entrepreneurs and the environmental factors were related to the seven key dimensions of the environment as - political, economic, social, technological, legal and local resources. The objective of the study was to assess the factors to identify business profile, financial and ICT accessibilities and environmental facilities for their sustainable participation. Hence, the performances of the women entrepreneurs were determined in terms of capital invested, revenue earned, expense incurred, profit made and employment growth of their businesses. To collect primary data and information, a comprehensive questionnaire was developed on the basis of research questions, assumptions and objectives. The study population was formed from the available lists of women entrepreneurs in SME foundation, BB, WED, MIDAS, BRAC etc. Data were collected from 375 samples of the purposively made divisional and district stratums (since women were found to be working on a diverse business sectors like in electronics and electrical, software development, light engineering, agro processing, leather goods, knitwear and garments, plastics, healthcare, education, fashion-rich personal effects, pharmaceuticals etc.). The data collection methods were to visit and observe the business units, disseminate questionnaire, and/or take a comprehensive interview (face to face and telephonic conversations) randomly and at convenient. Moreover, 125 women entrepreneurs were assessed in a 5 point Likert Rating Scale to assess the environmental factors. The research findings revealed that the women entrepreneurs were found to be mostly younger, literate and married housewives with one or hardly two decades of experienced. They had asymmetric demographic characteristics with low business profiles, least experiences, insignificant inheritances and poor family supports. They were involved mostly in sole proprietorship of small trades and services rather manufactures. Though most of them had easy access to the ICT, they lacked skilled manpower of the same for their businesses. The sole proprietors small traders of the women entrepreneurs had been suffering from starter capital, access to capital market, collateral financing, theoretical knowledge and education, prior experiences, and organizational supports. However, most of the environmental factors had adverse impact on the performances of the women entrepreneurs, they were mostly dismayed over political situation, legislation and taxation for their business environment. The women entrepreneurs were found to be playing significant role for reducing poverty and unemployment of the country. Unlike the men counterparts, they were in a sense struggling for balancing their business, social and personal lives. Therefore, women should be studied in the whole life context rather the isolated business life only. The further research and study of the factors affecting performances will surely have a planning and policy implications for the women entrepreneurs in SMEs of Bangladesh.