Women entrepreneurs worst victims of corruption: Study
Although the government is promoting country's commercial sector, particularly trade and business, for the greater development of the nation, women entrepreneurs become the worst victims of corruption while expanding their business.
As women entrepreneurs are highly dependant on SME credit and have limited access to information and resources, low entrepreneurship skills and significant social barriers, they have to face different forms of corruption in continuing their businesses.
This was said in a study titled 'The impact of corruption on women entrepreneurs', conducted by Bangladesh Women's Chamber of Commerce and Industry (BWCCI) with financial assistance from USAID and Progati, an NGO.
The study was carried out in six divisions -- Dhaka, Chittagong, Khulna, Rajshahi, Barisal and Sylhet -- with the study team interviewing more than 300 women entrepreneurs this year.
The study said corruption is a common phenomenon here pervading all sectors and women entrepreneurs have also been badly affected due to corruption.
Bangladesh slid one step in the Transparency International's Corruption Perceptions Index (CPI), ranked 12th this year from last year's 13th.
Most of the women entrepreneurs fall victims of corruption as early as in getting trade licenses to start their business, the study said.
According to the study, about 37 percent women entrepreneurs have experienced corruption while applying for a trade licence, 60 percent were asked to pay a bribe and 10 percent paid to get the trade license.
The study pinpointed that trade license officers are often the sources of corruption. Micro entrepreneurs are the most vulnerable and submitting the application for trade license is the most problematic due to corruption, the study added.
The study says that the tax department is a major source of corruption.
Obtaining the Tax Identification Number (TIN) form is the greatest challenge for women entrepreneurs, it says.
About 30 percent entrepreneurs have become victims of corruption in obtaining the TIN with around 47 percent asked to pay bribe, it says.
For expanding their business, the women entrepreneurs need to get bank loan and a large number of enterprises experience the greatest difficulty in getting loans.
Loan officers and bank managers are the primary source of corruption, it alleged.
According to the study, some 20 percent women entrepreneurs become victims of corruption in applying for bank loans with 37 percent asked to pay bribes.
Of those with experience in applying for bank loans, over 68 percent reported delays in starting and expanding business while 65 percent spoke of being rejected due to non-payment of bribe.
The study also reveals that women entrepreneurs face various forms of challenges with payment of electricity bills being the most problematic for them.
More than 24 percent entrepreneurs reported having experienced corruption in utility payment as in most of cases they were required to pay more than the billed amount.
BWCCI President Selima Ahmed told the news agency that the study found out the “real scenario” on how the women entrepreneurs in the country have become victims of corruption.
The government should announce a 'Women Entrepreneurs Development Policy' to encourage women entrepreneurs, she said, adding that a specific budgetary allocation is needed for their development.
Selima stressed the need for setting up women-dedicated desks at all banks to avert any challenge and problem in getting bank loan and paying utility bills.
She said although the Bangladesh Bank issued a circular that earmarked Tk 120 crore to be disbursed as loan to the women entrepreneurs, only 35 percent of the amount has been released so far.
She urged the government to fully implement the circular of Bangladesh Bank to encourage the country's women entrepreneurs as well as in expanding their trade and business.
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