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Some 65 per cent women entrepreneurs surveyed had no income while 58 per cent women working in the informal sectors had no jobs in the pandemic, said a new study on Thursday.
They mainly faced challenges between February and June during the government imposed holidays to tackle the onslaught of COVID-19 pandemic, according to the study of BRAC released at a virtual event.
Women entrepreneurs and informal sector workers suffered 67 per cent and 66 per cent decline respectively in their personal income, and subsequently, these women (90 per cent entrepreneurs and 84 per cent informal sector workers) faced social, economic and mental challenges, including domestic violence, lowered buying capacity and stress during the pandemic, it added.
A total of 1,589 respondents (589 entrepreneurs and 1,000 workers) in 174 upazilas of 28 districts covering all the administrative divisions participated the survey that was conducted from July 08 to 24 this year.
Of them, 32 per cent are from rural and 68 per cent from urban areas.
The study was titled "Situation of women CMSME entrepreneurs and informal sector workers: A rapid assessment and quest for recovery from losses induced by COVID-19 pandemic".
CMSME refers to cottage, micro, small and medium enterprise.
BRAC Director Nobonita Chowdhury moderated the event joined by KM Abdus Salam, secretary to the Ministry of Labour and Employment as the chief guest.
The study found one-third (33 per cent) of the entrepreneurs had to shut their businesses and 41 per cent had to lay off their workers during the pandemic.
While 86 per cent entrepreneurs mentioned that they could not take any measure for coping with their business-related challenges, 39 per cent informal sector workers mentioned that they had to borrow money from friends and relatives to survive.
During this period, 46 per cent of entrepreneurs and 72 per cent workers reported problems in their households and majority of them said they suffered acute mental stress.
The study also found the entrepreneurs each had an income loss of Tk 2,89,605 in their businesses on an average while the surveyed women were not aware of the government announced stimulus package for SMEs.
The social safety net coverage for the informal sector workers (having zero income between February and June) also found to be inadequate as 72 per cent workers in rural and 49 per cent in urban areas reported that they received no assistance from government, NGOs or private donors.
However, these women showed resilience to fight back and recuperate from the losses they suffered.
Addressing the discussion, chief guest KM Abdus Salam said the government is bringing about strategic changes in forming different policies.
“Agriculture, industries and other sectors are receiving massive stimulus packages. Karmasangsthan Bank and some other banks are now disbursing loans. We expect the real picture of poverty will be changed by December and we will be able to fight back again,” Secretary Salam added.
Economist Nazneen Ahmed appreciated that the survey prioritised cottage, micro and small enterprises and workers involved in these sectors.
“Specific household surveys on entrepreneurs and workers will obviously bring out the actual scenario. If needed, NGOs can be brought in to distribute the stimulus package among those who actually need assistance to tackle the crisis,” she said.