It’s undeniable and truly exciting! A new wave of entrepreneurs is revolutionizing Bangladesh’s e-commerce scene, and they are doing it with flair. Women entrepreneurs in Bangladesh are stepping up and building their online empires, marking a significant economic shift benefiting everyone in the country.
Thanks to the booming e-commerce sector, these women are turning their business ideas into reality. Bangladesh’s thriving e-commerce market, expected to grow at a compound annual growth rate (CAGR) of 7.4% from 2023 to 2027, is projected to reach $9.48 billion by 2027. With this e-commerce revolution in full swing, the landscape for women entrepreneurs is undergoing a remarkable transformation.
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The COVID-19 pandemic impacted nearly everyone in Bangladesh, just as it did worldwide. However, for many entrepreneurs, especially women, it unexpectedly opened doors to becoming ‘e-bosses.’ With most things shut down and people confined to their homes, e-commerce saw a significant boom. This situation created new opportunities for women in Bangladesh, who began launching online businesses and selling a wide range of products, from homemade crafts to delicious foods.
Women Entrepreneurs Outpacing Traditional Business Ownership in Bangladesh
According to Meta, Bangladesh has over 52 million Facebook pages, with approximately 40% of them owned by women—translating to over 20 million pages. Meanwhile, the World Bank reports that women entrepreneurs represent just 7.2% of businesses in the country. Despite this, march last year saw a 70% share of women-owned businesses among those launched since the pandemic, with a notable 65% increase in Instagram businesses run by women.
Most women entrepreneurs in Bangladesh run micro-enterprises, which typically employ fewer than five people and generate less than $10,000 annually. These businesses are predominantly in the fashion, food and beverage, retail, garment, jute, and leather sectors.
The economic impact of women entrepreneurs is significant. In 2020, women-owned businesses contributed $12 billion to Bangladesh’s GDP, with projections estimating this contribution will reach $20 billion by 2025.
Women Entrepreneurs in Bangladesh
52 Million Facebook Pages in Bangladesh
- 40% Owned by Women (Over 20 Million Pages)
World Bank Report
- Women Entrepreneurs: 7.2% of Businesses
Recent Trends
- 70% of Businesses Launched Since Pandemic are Women-Owned
- 65% Increase in Instagram Businesses Run by Women
Typical Micro-Enterprises
- Sectors: Fashion, Food & Beverage, Retail, Garment, Jute, Leather
Economic Impact
2025 Projection: $20 Billion Contribution
2020: $12 Billion Contribution to GDP
Why Entrepreneurs Are Flocking Online?
In Bangladesh, e-commerce provides five major advantages over starting a traditional business:
- The initial investment in setting up an e-commerce business in Bangladesh can be significantly lower than that of a traditional brick-and-mortar store. For example, the cost of launching an e-commerce website can range from $1,000 to $5,000, while setting up a physical store may require more.
- Operating an e-commerce business involves lower ongoing costs compared to a traditional business. For instance, monthly expenses for running an e-commerce store, including website maintenance and digital marketing, might be around $200 to $500, while maintaining a physical store can cost $1,000 to $2,000 monthly in rent and utilities.
- E-commerce platforms in Bangladesh allow for precise targeting of marketing efforts. Online advertising can be highly cost-effective, with CPC (Cost Per Click) rates averaging $0.20 to $0.50. This contrasts with traditional marketing methods, where costs can range from $2,000 to $5,000 for a single TV or radio advertisement.
- E-commerce platforms provide access to a vast customer base. For example, Bangladesh’s internet user base stands at approximately 130 million, allowing businesses to reach a significant portion of the population through online channels at a fraction of traditional advertising costs.
- By leveraging the above benefits, e-commerce businesses in Bangladesh can see profit margins of around 20% to 30%, compared to traditional businesses where margins might be lower due to higher overhead and operational costs.
E-Commerce vs. Traditional Business in Bangladesh
- Initial Investment:
- E-Commerce Website: $1,000 to $5,000
- Physical Store: Higher than e-commerce
- Monthly Operating Costs:
- E-Commerce: $200 to $500
- Physical Store: $1,000 to $2,000
- Advertising Costs:
- E-Commerce CPC: $0.20 to $0.50
- Traditional Ad: $2,000 to $5,000
- Profit Margins:
- E-Commerce: 20% to 30%
E-commerce: The Key to Bridging Urban-Rural Shopping Divide
City dwellers might not realize it, but shopping in rural areas presents significant challenges compared to urban areas. A recent study reveals that 73% of rural residents travel to the city to access a broader range of goods, such as mobile phones, TVs, and motorcycles, covering an average distance of 20 kilometers.
Rural consumers face several issues, including the prevalence of counterfeit products, limited availability of branded items, and a lack of variety. This is exacerbated by the low density of vendors and infrequent distribution by major companies. However, these problems could be addressed through the use of data and predictive technologies.
Challenges of Shopping in Rural Areas vs. Urban Areas
- Average Distance Traveled: 20 km to access a broader range of products.
- Internet Usage:
- Rural Areas: 42.1%
- Urban Areas: 57.1%
- Women Internet Usage:
- Rural Areas: 35.9%
- Urban Areas: 51.9%
- Cost of Internet: 6.9 times higher in rural areas compared to the global average.
To extend the benefits of e-commerce to rural areas, integrating technology with supply chain management is crucial. In rural areas, reliable internet connectivity and access to comprehensive devices lag significantly behind expectations. These resources remain prohibitively expensive for rural residents, costing 6.9 times more than elsewhere in the world.
According to the Bangladesh Sample Vital Statistics (SVRS) 2023, only 42.1% of the rural population uses the internet, compared to 57.1% in urban areas. The digital divide is even more pronounced among women, with internet usage at 35.9% in rural areas versus 51.9% in urban areas.
Additionally, the dominance of middlemen remains a significant barrier to rural economic progress. For instance, a report from the Ministry of Agriculture highlights that farmers sell cabbage at an average price of Tk13.50, but in Dhaka city, the price can rise to Tk36.
Mentorship Revolution for Women in Business
The Bangladesh government has launched several initiatives to support female entrepreneurs, including the National Women Development Policy (NWDP) and the National Women Entrepreneurs Development Policy (NWEDP). These programs simplify company registration, provide financial incentives, and offer capacity-building efforts.
Access to finance, often a barrier for women, is addressed through microcredit programs from BRAC and ASA, which offer small loans, especially in rural areas. Additionally, the Women Entrepreneurs’ Loan Scheme and Women Entrepreneur Development Project provide tailored financial assistance.
Both government and non-government organizations also offer training programs, workshops, and mentorship to enhance entrepreneurial skills and support business growth.
To wrap up, it’s clear that women entrepreneurs are at the forefront of a digital renaissance. From urban centers to rural villages, these innovative ‘e-bosses’ are not just building businesses – they’re reshaping the economic landscape of an entire nation. With lower barriers to entry, targeted marketing, and vast customer reach, e-commerce is proving to be the great equalizer, empowering women to turn their dreams into thriving digital ventures. The revolution is here, and it’s just a click away!
