Over the past 40 years, Bangladesh’s ready-made garment (RMG) industry has contributed to social transformation by providing significant formal employment opportunities to women. The industry made women visible on the job market and empowered them in society. However, in recent years, the number of female workers in the industry has been declining. This is compounded by the fact that the industry has produced very few female entrepreneurs.
According to Research Gate, women no longer make up 80 per cent of the workforce in the industry. The most recent estimates show that women workers in the industry make up less than 55 per cent. Career progression of women workers in the RMG industry is extremely limited, according to a report jointly carried out by The Ethical Trading Initiative (ETI), GIZ and Brac University. An estimated 86 per cent of workers joined factories as helpers, while 66 per cent left as operators and 1 per cent as supervisors, the report maintained. The employment of women in Bangladesh’s ready-made garment sector opened up new opportunities for empowerment, says Sultana Kamal, a prominent lawyer and human rights activist, but more progress is still needed to ensure fair and ethical working conditions.
Across sectors, women labour force participation rate was 42.68 per cent in March 2023, which is significantly lower than men’s 82.4 per cent, according to a survey conducted by the Bangladesh Bureau of Statistics. Similarly, women’s representation in Bangladeshi politics remains low, with women accounting for less than 5 per cent of parliamentary candidates in recent elections. This is ironic given that prominent female leaders like Sheikh Hasina and Khaleda Zia have served as Prime Ministers for most of the period since 1991.
In entrepreneurship, the picture is rather gloomy. The Mastercard Index of Women Entrepreneurs (MIWE) placed Bangladesh at the bottom of the list amongst 65 countries in terms of entrepreneurship. The United States led the rankings in 2021 with a score of 69.6 index points, closely followed by New Zealand and Canada. Bangladesh received the lowest score of 32.5, even ranking below Egypt and Malawi. The assessment was based on women’s advancement outcomes, knowledge assets and financial access as well as entrepreneurial supporting conditions.
Only a small fraction of businesses in Bangladesh, specifically 7.2 per cent, are owned by women. Data from the Bangladesh Bureau of Statistics (BBS) reveals that in 2020, only 2.8 per cent of SMEs were female-owned. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reports that a mere 1 per cent of leadership positions in the RMG sector are held by women. Despite the dominance of women in boutique businesses and fashion houses, with 95 per cent being predominantly led by women, the participation of women in the garments and textiles sector remains significantly low, shares Samiha Azim, Director of Shinest Group.
Major barriers
Female leaders often encounter obstacles such as insufficient financial backing, gender prejudices, psychological barriers and the necessity for achieving a balance between work and personal life. A study conducted by Ecosystem Research reveals that 87.9 per cent of women identified lack of funding as the primary hindrance to operating their businesses. Women are still hindered by deeply ingrained socio-cultural, economic and financial limitations, including limited job prospects, lack of Governmental assistance and difficulties in obtaining funding and capital, as highlighted by MIWE. Samiha points out that childcare poses a significant challenge for female entrepreneurs. Due to the absence of a reliable childcare system, she explains, many women struggle to reach their full potential. In addition to overseeing a workforce of approximately 15,000 employees, she also manages household responsibilities and cares for her two children. Ara Neela Hosna, Chairman of Crony Group concurs, as female entrepreneurs, there were a lot of obstacles and challenges at the beginning and she had to maintain a balance between family and business.
Challenging gender-based issues in almost every step is part of daily routine, says Habiba Akter Shurovy, Founder and Head of Design, Shordindu. “This became more regular in my life when I started my business. A woman dealing in orders, big supplies, managing staff is kind of unusual to some local people like vendors or manufacturers.” Maisha Abdullah, Director, Mitali Group, states that navigating and overcoming challenges as a woman requires a strategic approach as well as resilience and hard work, no matter which industry you belong to.
Sultana argues that the underlying issue lies in the fundamental concept and cultural perception of women as subordinates or mere employees, rather than as equal partners. She emphasises that in order for women to progress, there needs to be a shift in societal mindset and the laws governing them. She points out that the personal laws in the country discriminate against women, resulting in their dependence on male family members. This limited autonomy restricts their ability to invest in sectors such as RMG, as they have fewer options and control over their own income. Sultana asserts that providing loans as SMEs is insufficient for women to become significant investors.
Government initiatives
The Government has taken several measures to support and empower female entrepreneurs. These include implementation of dedicated policies like National Women Development Policy (NWDP) and the National Women Entrepreneurs Development Policy (NWEDP). Additionally, specific initiatives such as the Women Entrepreneurs’ Loan Scheme and the Women Entrepreneur Development Project have been established to provide tailored financial assistance to female entrepreneurs, enabling them to overcome challenges and expand their businesses. In September of last year, the Government introduced WE-HELP, a comprehensive platform that offers a wide range of services to empower women entrepreneurs. These services include policy guidance, networking opportunities, market development support, marketing assistance, exhibitions, webinars and more.
“As my start-up got a huge public response within a very short period of time, vendors and manufacturers witnessed my growth. With time, they realised working with me can be beneficial for them. Their approach also changed. Most of our employees in the inventory team, customer care team, outlets or management team are women. I believe we need more women, especially those who are in charge.” Habiba Akter Shurovy Founder and Head of Design, Shordindu |
The way out
Sultana emphasises the importance of recognising factory workers as valuable partners in the industry, rather than mere producers of goods. She suggests that one way to achieve this is by ensuring factories comply with internationally recognised fair trade standards. By increasing wages, improving logistics and providing essential services such as health insurance, workers can maintain a decent standard of living. She criticises the insensitivity of setting the minimum wage at Taka 12,500, highlighting the employers’ disregard for the employees’ needs. She also holds international buyers accountable for not paying a fair price.
Women should be treated equally like men as per their competency, Ara asserts. She says it is her main motto and slogan. She says that sincerity, diversified thinking, fashion forecasting and long-term vision helped her and the never giving-up attitude worked well for her venture.
Habiba states that the challenges she encountered didn’t let them stop her from doing what she loved most. She never gave up, and if a door was closed, she looked for another. “As my start-up got a huge public response within a very short period of time, vendors and manufacturers witnessed my growth. With time they realised working with me can be beneficial for them. With time, their approach also changed. Most of our employees in the inventory team, customer care team, outlets or management team are women. I believe we need more women, especially those who are in charge.”
However, over time, once your role and contribution is established in an organisation, the acceptance and respect is bound to follow, Maisha agrees. Having a higher number of female leaders would lead to improved representation and diversity at the decision making level, offering distinct perspectives, experiences and insights. Research from McKinsey & Company indicates that companies with over 30 per cent female representation are significantly more likely to outperform financially compared to those with less than 30 per cent. This can also result in the implementation of more inclusive and balanced strategies and policies. Their increased involvement can lead to the establishment of policies and practices that can foster safe and inclusive work environments, equitable pay and opportunities for women’s career advancement in the industry. With global consumers increasingly demanding greater accountability, including empowerment of women, a sector that produces more female entrepreneurs can enhance its appeal as a sourcing hub that is both desirable and inspiring. “It’s time to put an end to this, where society decides what a woman should wear. Don’t let them say any further. No one should decide what a woman should wear except that woman. Let them be what they want to be,” Habiba asserts.