Breaking Barriers: Addressing Gender-Specific Investment Challenges for Women Entrepreneurs in Bangladesh

Advancing Inclusive Economic Growth by Removing Barriers for Women-Led Enterprises

December 10, 2025
Five women panelists on stage during a policy discussion; banner behind them.

Women leaders share insights on overcoming gender-specific investment barriers during the High-Level Policy Dialogue held on 9 December 2025 in Dhaka, organised by UNDP with support from FCDO.

©UNDP Bangladesh

Women entrepreneurs are playing a growing role in Bangladesh’s economy. Today, around 2.8 million small and medium enterprises (SMEs) are led by women, accounting for nearly 25% of all SMEs in the country (Source). These businesses employ an estimated 8.4 million people, contributing to both job creation and economic inclusion. Yet despite this progress, women own only 7.2% of all registered businesses, and many operate as micro-enterprises with limited access to finance and formal support systems. This imbalance reflects persistent, gender-specific investment barriers that continue to restrict women’s full participation in the economy.

These challenges were the focus of a High-Level Policy Dialogue held on 9 December 2025 in Dhaka, organised by the United Nations Development Programme (UNDP) under its Transformative Economic Policy Programme (TEPP), supported by the UK Foreign, Commonwealth & Development Office (FCDO). The event brought together women entrepreneurs, government agencies, private sector actors, financial institutions, and development partners to explore actionable reforms for a more enabling business environment.

©UNDP Bangladesh

During the event, findings from a recent Focus Group Discussion (FGD) with 12 women business owners in the leather, IT, handicrafts, and e-commerce sectors were shared, where participants described difficulties related to:

  • Complex regulatory processes and licensing

  • Limited access to business credit and collateral requirements

  • Inconsistent government services across agencies

  • Insufficient access to market and business information

These constraints reflect broader national trends. Although women’s labour participation has grown to 42.7%, most women-owned enterprises remain small and informal, which restricts growth opportunities and access to institutional financing.

Speakers also highlighted the importance of connecting women entrepreneurs to knowledge and support networks. Afroza Parveen, Board Director of BWCCI, noted that mentorship and networks can transform businesses, sometimes more than financial resources. She emphasized that strong networks open employment opportunities, strengthen digital capacities, and support a more inclusive, knowledge-driven economy where women can thrive.

Echoing this, Naaz Farhana Ahmed, President of DWCCI, stated that Bangladesh’s entrepreneurial potential and vibrant youth population can be better harnessed through gender-neutral policies, stronger partnerships, and capacity-building initiatives that encourage women to scale their businesses.

A presentation by Akmam Binte Arif, Research Analyst at TEPP, detailed six major barriers hindering women-led businesses. Participants then joined Solution Labs to generate recommendations for immediate and long-term reforms. Key proposals included:

  • Simplifying registration and licensing procedures

  • Strengthening digital services and single-window systems

  • Expanding targeted mentorship programmes

  • Improving financial literacy and tailored loan products

A panel discussion moderated by Sarah Sabin Khan, Head of Solutions Mapping at UNDP Bangladesh, brought together representatives from the National Board of Revenue (NBR), Women Entrepreneur Network for Development (WEND), Eastern Bank Limited, and the private sector. Panellists emphasised improving financial access through women-friendly products, enhancing cultural awareness in public services, and adopting technology to reduce bureaucratic barriers.

Priti Chakraborty (CIP), Director of FBCCI and BWCCI, reminded participants that women entrepreneurs represent the backbone of Bangladesh’s economic future. As the country approaches its graduation from Least Developed Country (LDC) status, she stressed the need to prioritize sustainable, knowledge-based innovation and eliminate structural constraints that hinder women-led enterprises.

The Policy Dialogue reinforced that advancing women’s entrepreneurship is not a symbolic gesture, it is a strategic economic priority. Strengthening collaboration among government agencies, banks, private sector institutions, and development partners will help unlock the potential of millions of women entrepreneurs. By removing gender-specific investment barriers, Bangladesh can accelerate growth, deliver more equitable opportunities, and build a dynamic, resilient economy driven by innovation and inclusion.