Factors hindering women entrepreneurs’ access to institutional finance- an empirical study

Abstract

This study has been designed to reveal the issues that are unfavorable to both women entrepreneurs as well as financial institutions and lessen fund flow from financial institutions to women entrepreneurs. Both qualitative and quantitative approaches have been used here. Responses from women entrepreneurs have been quantified by using four point likert scale and data have been collected through face-to-face interview. This study has revealed that collateral dispute and lengthy process, suspiciousness, preconception and conservative attitude of the employees and complicacy in loan processing limit women entrepreneurs’ access to institutional finance. Whereas, collateral dispute with women entrepreneurs, high operating cost, misuse of disbursed loan, lack of business experience and proper documents and difficulty in assessing creditworthiness of the women entrepreneurs demotivate financial institutions to supply fund to women entrepreneurs. The findings of this study will facilitate Bangladesh and other developing countries (having same nature) to set appropriate policies to enhance fund flow to women entrepreneurs with a view to encouraging women entrepreneurship and ensuring economic progress and women empowerment.