With lower startup costs and a broader reach, a growing number of entrepreneurs in Bangladesh have recently turned to the online retail market. A large percentage of these entrepreneurs are female who operate their businesses through social media like Facebook. The previous study conducted by BRAC Institute of Governance and Development (BIGD), BRAC University, on these entrepreneurs revealed that though online sales of health products and daily essentials were booming—thanks to COVID-19, the ongoing pandemic took a heavy toll on the online retailers of fashion, cosmetics, and other imported products. Many were trying to reduce the loss of revenue by cancelling orders and selling off their stock while others were laying-off employees. In a follow-up survey conducted in May-June, the study tracked these female entrepreneurs to see how they fared against the crisis since the first round.
In a webinar titled “Knocked Down but Up Again: The Case of Female Online Entrepreneurs in Bangladesh”, the research findings were presented by Mehnaz Rabbani, Lead, Research for Policy and Governance (RPG), and the discussion was moderated by Maheen Sultan, Senior Fellow of Practice at BIGD.
Also present as discussants at the webinar were Selima Ahmed, Founder and President of Bangladesh Women Chamber of Commerce and Industry (BWCCI) and Member of Parliament, and Nasheeba Selim, Development Practitioner, among other researchers, policymakers, journalists who also participated in the webinar.
The study findings show that the percentage of entrepreneurs who are confident that their businesses will bounce back has increased from 15% in April to 21% in June.There has also been a decline in uncertainty with regard to overcoming this shock from 30% to 18%. With this overall increase in confidence level, nearly half of the entrepreneurs now believe that it will take them from six months to nearly a year to recover from the loss incurred. Furthermore, it found that within one month after the first round of survey, 121 employees were laid off. If things do not improve for these businesses, the study suggests that within the next seven months, nearly 550 more people’s jobs could be at stake.
