Less than one percent defaulter

In our country where the national average for default on loans is around 10 percent, women entrepreneurs default less than 1 percent. Yet, the odds are stacked against them. We find that women entrepreneurs begin with a very small capital base and progress steadily, whereas their male counterparts are into huge capital loans and default at much greater numbers. Despite these figures, national banking institutions, particularly the state-owned banks throw away thousands of crores of Taka every year to fund ventures led primarily by male entrepreneurs that never get off the ground. Although things are starting to change slowly, with some private sector banks coming up with special products designed for small and medium enterprises (SMEs) that are women-led, the progress remains painstakingly slow.

Bangladesh Bank data speak volumes about the quality of women entrepreneurship. Women constituted only 3 percent of the Tk 141,935 crore disbursed to SMEs. Now why is that, especially when bankers know that the default rate amongst women is so low? This lack of interest in providing loans to women has as much to do with societal outlook than anything else. It would seem that decision-makers in the banking sector are stuck in the past with archaic perceptions that women have nothing to contribute to the national economy. Yet, the biggest contributor to our export is readymade garments sector that is powered by women who constitute the bulk of the workforce. Is it not time the central bank stepped in to make the necessary changes so that women entrepreneurs get their share of the bank credit line? Women have proved themselves to be very good borrowers and it is time the banking sector recognised that fact and evolved.