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Response on COVID-19 crisis: Women Entrepreneur Association of Bangladesh (WEAB)

Background:

In Bangladesh, Small and Medium Enterprises (SMEs) Particularly Women entrepreneur are facing a big loss because of this pandemic effect. 84% SME entrepreneur’s shutdown their businesses, rest 16% are in very much vulnerable state. Since the Covid-19 pandemic has disrupted the supply chain, about 76% produced goods of Small and Medium Enterprises (SMEs) valued at Tk 6.75 lakh each revenue has dropped by 67% in 2020 compared to the previous year. However, the average reduction of revenue for all SMEs is 66% in 2020 compared to 2019. 84% goods produced by the Small and Medium Enterprises (SMEs) entrepreneurs remain unsold and the value of unsold goods is around Tk7 lakh each. While only 16% of SMEs were open.

It was 38.24% in cases of handicrafts and rural SMEs were opened by 11.40%, the report showed. On an economically viable optimal length of lockdown from SME point of view, enterprises can sustain about a month paying all bills, while most of the workers are not sure if they will be paid after one month of shutdown. 230 SME respondents from all over Bangladesh covering industries involving Trading & Production (48.4%) that includes Perishable & Grains, Poultry, Dairy, Fisheries, Jute Diversified Products, and Retail Store; and Service Industry (51.6%) that includes food catering, electrician services, laundry, beauty salon, MFS agent, and restaurants, 28% SMEs have seen revenue drop by at least 50%, while 52% SMEs have locks hung over their businesses generating no revenue at all.

Bangladesh Government declared ‘Stimulus Grant Package’ of 20,000 CR. BDT for helping the SME Sector to survive this pandemic situation.

Response on COVID-19 crisis by Women Entrepreneur Association of Bangladesh (WEAB)

1. WEAB has conducted a baseline survey to highlight the Challenges/Crisis of mSME/SME Women Entrepreneur & Self Employment Business owners in the different districts of Bangladesh

Medium of survey: In this context of survey, WEAB has conducted Online Video Calling and Telephonic discussions with women entrepreneur to find out the actual picture of suffering occurred by COVID-19

Outcomes:

• Around 80% Business enterprises are shut down
• 20% business enterprises are in survival state

Reason:

• No sales due to lockdown
• Loss of investment
• Damage of inventory goods
• Breaking of supply chain
• Lack of knowledge & facilities on Online Marketing

Consequence:

• Financial Crisis
• Job Insecurity & Job Less
• Huge amount of dues to reimburse (Loan/Mortgage/Installment)

South Asian Women Development Forum (SAWDF), Women Entrepreneur Association of Bangladesh (WEAB) in partnership with ICIMOD has conducted a Regional Survey on Impact Assessment of COVID-19 on Women Entrepreneurs in all SAARC Countries

Medium of survey: In this context of survey, WEAB has conducted an online survey in Bangladesh particularly in Agro, Tourism, and Handicrafts sectors. In total 100 women entrepreneur has attended the same survey from WEAB network in Bangladesh.

Outcomes:

• Around 75% Business enterprises are shut down
• 25% business enterprises are in survival state

• Reason:
• No sales due to lockdown
• Damage of inventory goods
• Breaking of supply chain
• Lack of knowledge & facilities on Online Marketing
• No shipment
• Loss of buyers
• Loss of investment

Consequence:

• Shut down of businesses
• Changes of Marketing strategies
• Less hour of business activities
• Financial Crisis
• Job Insecurity & Job Less
• Huge amount of dues to reimburse (Loan/Mortgage/Installment)

3. WEAB has supported the minorities (Hill Tracts women entrepreneur - Small Business Owners and their families respectively in Bandarban, Khagrachori, Lalmatia) by providing relief foods and cash

4. WEAB has supported the vulnerable groups of women entrepreneur in Bangladesh by providing relief food, cash, and materials respectively in Gazipur, Tongi, Narayanganj, Narshingdi, Sylhet, Rajshahi, Rongpur, Chittagong, Cumilla, Dhaka, Sherpur, Dinajpur, Cox’s Bazar, Noakhali, Khulna, and Jashor

5. WEAB is trying to incorporate vulnerable women entrepreneur with Bangladesh Bank/Private Banks/Financial institute in accessing to finance by including in the Grant Scheme which has declared by the Government of Bangladesh to support mSME/SME/Cottage sector in Bangladesh.

6. WEAB has introduced COVID-19 Help Desk to support women entrepreneur in such tough time by liaison with government officials/Banks in access to finance and other facilities. Through this Help Desk already 10 women entrepreneur in Rajshahi Division already access the Grant Scheme Support loan from Shonali Bank and EBL others are in process. The access amount of loan is minimum 3 LAC BDT to 15 LAC BDT

7. WEAB is promoting and sells the products of affected women from remote areas through SHEUTI in the capital city of Dhaka with an objective to sustain their business

8. WEAB is providing online counseling on Health awareness issues to ensure a protective working environment for women entrepreneur

9. WEAB is trying to incorporate affected Women Entrepreneur to sell their products in different Online Marketing Portal such as Linkus

10. WEAB is arranging online meeting/workshop to create awareness building among vulnerable groups of women entrepreneur

a. Most Common Challenges faced by MSME/SME Women Entrepreneur in Bangladesh by the outbreak of COVID-19

Relief packages by Women Entrepreneur Association of Bangladesh (WEAB):

The Outbreak of COVID-19 affects sturdily to the CMSME Sector in Bangladesh. Around 80% CMSME women owned businesses got shut down and rest are in very vulnerable state. In the response of COVID-19 crisis, Women Entrepreneur Association of Bangladesh (WEAB) is supporting women and women CMSME sector in Bangladesh by given Food Relief, Financial aid and Sewing Machine to the vulnerable women entrepreneurs.

Caption: Donation of Sewing Machine to the CMSME Women Entrepreneur respective in Sherpur, Jessore, Rajshahi, Narayangonj, Dinajpur, Jamalpur, Cox’s Bazar, Rongpur, Joypurhat, Mymensingh