JOURNAL OF THE INSTITUTE OF BANKERS BANGLADESH-Vol 48, Published January-2001-June 2002

Published Online: June 1st, 2002 || Published in Print: June 1st, 2002

Abstract

Women Entrepreneurship Development (WED) is supposed to be same as entrepreneurship development in general in a country. One may argue that as such no special attention, no gender-sensitive or specifically tailored need assessment is necessary regarding women entrepreneurship development. But the aspects and dimensions of male and female entrepreneurs need to be differentiated specially in the context of developing countries where level playing field does not exist. Women contribute significantly in the economy all over the world, although many of their activities remain unremunerated. Moreover those who succeed in taking the entrepreneurial risk of running an enterprise are not treated impartially. Many natural, sociological barriers impede their activities in various stages. This is also true for them in getting institutional credit which is very important for operating business. Bank finance is not the only determinant of entrepreneurship development. Rather, it is an interactive process among different interdependent functions such as stimulatory, supporting & sustaining activities. Therefore, without establishing or ensuring other influencing factors, bank finance alone cannot ensure development of women entrepreneurs. To make the finance effective for the matter of women entrepreneurship development, banks may think of adopting a number of alternative approaches. One may be "Integrated Approach" where stimulatory, supportive and sustaining activities could be provided simultaneously and in a comprehensive and integrated manner by banks. In performing the said roles, the cost as well as risk would increase on the part of the banks. Therefore, while deciding about to provide such an integrated women entrepreneurship development service, banks should also be concerned with cost effectiveness and risk consciousness. Banks may also think of adopting a "Coordinating Approach" for the purpose of women entrepreneurship development. In this approach, banks as financial intermediaries are not only required to help the women entrepreneurs in obtaining financial resources and assistance but also help the entrepreneurs to sustain themselves against the challenges of actual operation. Many enterprises, starting well, met immature death subsequently because of lack of non-financial entrepreneurial development services. Banks need to coordinate with the organizations that are ready to help emergence of entrepreneurship in the society, to start entrepreneurial venture, develop potentiality and sustain to save these enterprises. The functions performed by the other agencies and their extent of involvement should be coordinated accordingly by the bank. In this approach banks may take the lead role. Another approach might be to assume the role what may be named as "Diffusing Approach" or "Wholesale Banking" where banks can give out their funds for on lending to the entrepreneurship promoting and assisting agents. One may argue that in this form of function banks become passive, as there is no relationship with entrepreneurship development as such by the banks. The banks may choose any of the three noted approaches such as integrating, coordinating, diffusing or linkage approach or a combination of approaches for developing the entrepreneurship among women on the basis of their own context such as branch network, previous experiences and skill, etc.