Barriers Faced by Rural Female Entrepreneurs of SMEs in Accessing Financial Institutions for Loans in Bangladesh

Abstract

The purpose of this study is to explore the barriers faced by female entrepreneurs of small and medium sized enterprises (SMEs) in accessing the financial institutions for loans in Bangladesh. A qualitative approach using semi-structured interviews was applied in the study to collect the primary data. The study included ten female entrepreneurs from the rural areas of Bangladesh to recognise the barriers in accessing financial institutions, such as banks, micro-credit and other organisations. The study has identified that a complicated loan process, high interest rates, a lack of bank officer support, the biasness of officers, negative preconceptions about women and high bank account maintenance costs are the major barriers in accessing financial institutions in Bangladesh. The findings of the study will help facilitate Bangladesh and other developing countries to remove the barriers faced by female entrepreneurs and develop the business prospects set up by women. The study also discusses the limitations and the future directions of the research.