Promoting Women's Entrepreneurship in Bangladesh. I. Basic Data

Transcription

1 1 Promoting Women's Entrepreneurship in Bangladesh I. Basic Data A. Subproject Officer(s) Francesco Tornieri, Social development specialist (SAOD); Ferdousi Sultana, Social Development and Gender Officer B. Executing Agency Finance Division of the Ministry of Finance C. Prioritized Areas Inclusive Growth D. Types of Outputs Innovative Intervention E. Coverage (Country/Regional) Bangladesh F. Amount Requested $500,000 G. Implementation Period September 2009-August 2012 II. Proposed Subproject A. Background and Rationale 1. Situation of Women Entrepreneurship in Bangladesh 1. Women in Bangladesh are a significant entrepreneurial force, contributing to the development of local, national and global economies. Women-run businesses mostly micro and small enterprises 2 are found in the production and marketing of agricultural and consumer goods, as well as the provision of services for local, national and multinational markets. The enterprises owned by women feature some interesting characteristics regarding ownership, management, sources of capital, technology, market orientation. More specifically: Ownership. Most of the enterprises are on individual proprietorship and some are partnerships. Partners are mainly from among family members and friends. Larger undertakings requiring capital from banks are formed into company mostly through the synergy of family members. Available sex-disaggregated data suggest that only a very small percentage of the total number of enterprises are owned by women entrepreneurs or jointly owned by men and women. Women s partnerships are often established in larger ventures to protect family property without having meaningful involvement or control over the assets. Very few companies have female board members. A small percentage of women borrowers take or access loans from a selected number of banks and that too jointly with husbands or fathers unless there is a specific program to lend to women for business purposes. In recent years, encouraging trends suggest women's increasing role as sole proprietors and their increasing access to institutional finance. Decision Making and Management. Decisions related to choice of enterprise and market, borrowings are mostly done by the owner. In many cases the decisions are taken by the male family members or according to their guidance. Two management styles are visible: (i) the owner is the manager and all the major decisions in all areas are taken by the owner; (ii) the owner is the manager but market and bank related activities are supported and influenced by male relatives. The owner-manager is the source of all information and skills including finance, market, and technology. For large undertakings, management and production technology may be hired externally. In recent years, encouraging trends suggest women's increasing involvement in market and bank related activities. 1 Adapted from: Women Entrepreneurs in SME: Bangladesh reality, by Ferdousi Sultana, unpublished, Dhaka: 2003: ii-iii. 2 For a detailed description of 'definitions' based on the (draft) Industrial Policy (2009) and the Bank of Bangladesh (Circular of 26 May 2008) see Appendix 4 below.

2 2 Market. Most of women-owned enterprises produce or provide services for domestic market directly to the consumers or retail sellers. Often the production and market are seasonal. Large enterprises sell to wholesalers and depending on the product aim for foreign markets. Export is mostly in the area of handicrafts and agro-based products (incl. processed food items, jute goods, glass wares and leather products). Quality and price of raw materials vary and due to small purchases the bargaining power is limited and prices are high. Imported items are purchased through importers and as such the importers get benefits of any incentive in the tariff structure or protection. Most of the enterprises do not have backward or forward linkages 3 or are not in any sub-contracting arrangements. 2. Women's entrepreneurship's contribution to poverty reduction. It is recognized that women s entrepreneurship can reduce women s income poverty and thus contribute to poverty reduction. As women engage in business activities, they face different constraints and opportunities compared to their male counterparts. In Bangladesh, recent consultations carried out by the Asian Development Bank in consultation with the Bangladesh Women Chamber of Commerce and Industry (BWCCI) the Women Entrepreneurs Association (WEA), and Micro Enterprise Development Assistance and Services (MIDAS) identified a set of barriers to women entrepreneurship development. In addition to persistent gender biases and genderbased discriminatory laws and regulations, the consultations identified three critical impediments to women entrepreneurship, which form the rationale for the proposed subproject. These relate to women entrepreneurs' limited access to skills and technology; financial resources and services; and market information and business services particularly backward and forward linkage opportunities. These circumstances are further affected by women organizations' limited ability to advocate for change. 3. Limited access to skills and technology. In Bangladesh due to gender biases and stereotypes, girls and women have low educational attainments and when access to higher education is granted- limited involvement in non-traditional disciplines such as science, technology and business administration. Women's business is still considered from a selfemployment rather than from an 'entrepreneurial' perspective. These factors combined with women's limited access to vocational training and technologies result in women entrepreneurs' limited ability to start and manage a business and the perception of being less likely to succeed. 4. Limited access to financial resources and services. SMEs, which contribute 40% of manufacturing output and about 80% of the industrial work force, are hampered by limited access to medium- to long-term credit. Banks and other financial institutions generally prefer large enterprise clients because of the lower transaction costs, and greater availability of collateral. SMEs also fall outside the reach of microfinance schemes, and are thus compelled to depend more on informal sources of funds at much higher interest rates. Access to credit for starting the business is a critical concern for women entrepreneurs and women-owned businesses, due to their limited access to collateral, banks' unwillingness to accept household assets as collaterals and the lack of positive attitude and confidence of loan officers to women entrepreneurs' managerial skills 4. Sometimes, credit may be available for women through several schemes but there are procedural bottlenecks and gaps, and the multiplicity of available schemes is often inadequately presented to women entrepreneurs. As a result of advocacy 3 Backward linkages are the interconnection of a sector to those sectors from which an SME purchases inputs and forward linkages indicate the interconnection of a sector to those sectors to which it sells output. 4 Start up capital is often obtained by women through family savings, gifts from husband/father or loans from other non-institutional sources. Project-based, collateral-free lending is the major source of capital outside the relative circle. It is difficult to ascertain fixed and working capital. Institutional credit is accessed for large ventures mostly guaranteed/supported by the family. Capital deficiency is a recurrent phenomenon.

3 3 initiatives, the Government of Bangladesh (Bangladesh Bank) has recently enacted an amendment to the Refinance Scheme for Women Entrepreneurs of SME, raising the minimum target for earmarked resources to women entrepreneurs from 10 to 15%, 40% of which will be dedicated to small women entrepreneurs 5. The content of this and other gender-sensitive laws and regulations are unknown by most of the commercial banks outside metropolitan Dhaka and Chittagong. 5. Limited access to market information and business services. The limited access to market information and business support services constitute a further impediment to women's access to existing opportunities. Some women-led enterprises have already reached export potential. Women-led enterprises export agricultural produce, processed foods, handicrafts, and other items, and some are looking to order more products from self-employed, owner-operated enterprises. These links have the potential to be strengthened to build a critical mass, but they require support. Many of the smaller producers are unaware of how to explore market potential for their products, the potential for value addition and the value chain as often they operate in isolation from markets and information. Programs run by and for women overcome these traditional attitudes more readily. Women who lack confidence often respond more quickly to ideas from women acting as role models. 6. Australia-ADB South Asia Development Partnership Facility. The proposed activities are lined to the primary objectives of the Australia-ADB South Asia Development Partnership Facility, inasmuch as they contribute to: (a) advancing policy reforms for greater access to financial resources by micro- and small-enterprises, mostly operated by women; (b) promoting broad-based and gender-inclusive economic growth by triggering the untapped potential of women entrepreneurship; (c) enhancing women entrepreneurs ability to address the challenges of the financial crisis by accessing dedicated credit lines for women entrepreneurs. 7. Linkage to ADB's policies and country partnership strategy. By addressing gender disparities in entrepreneurship, the subproject contributes to the implementation of the ADB GAD Policy, by engaging in policy dialogue on structural and practical impediments to women s contribution to private sector development. It also supports the scope of ADB s Private Sector Strategy by promoting women s involvement in rural enterprises that can improve their welfare. In addition, the proposed Subproject fits with the directions set out in the CPS Bangladesh, by recognizing the need to: support an enabling environment for private sector development, promote business development, mobilize private sector development, and advance women s participation in small and medium-sized rural enterprises and their access to financial/banking resources and services. 8. Challenging traditional attitudes toward women as entrepreneurs has proven to be successful with appropriate support. Women's potential as producers, employers, and entrepreneurs has been demonstrated in women s market corners in ADB s Third Rural Infrastructure Development Project (1997) and other rural development projects and more recently- in the Agribusiness Development Project (2005). The proposed activities build on approaches undertaken in the past by the ADB in Bangladesh through the SME Sector Development Program/Project (2004)- and its emphasis to the need to combine the allocation of earmarked credit lines to women's entrepreneurs with capacity development interventions targeting the specific needs and constraints faced by women entrepreneurs (see Footnote 8). 5 Interest rates are 10% [Source: BB's budget ].

4 4 B. Impact and Outcome 9. In this context, the impact of the proposed activities will be the development of women's micro- and small/medium-sized entrepreneurship in the subproject area. The outcome will be enhanced capacity of women entrepreneurs and associations to fully access the financial resources and services earmarked for women small- and medium-sized enterprises under the ADB Loan 6. More specifically, the Subproject will: (a) help assess constraints and opportunities to women's entrepreneurship effective access to the financial resources made available under the Loan; (b) support financial and legal literacy 7 of women's entrepreneurs and associations; (c) enhance women entrepreneurs managerial capacity, technical skills, productivity, and competitiveness; (d) promote networking among women entrepreneurs associations, forward and backward linkage industries and (e) develop the capacity of participating financial institutions (PFIs) to address the needs of women's entrepreneurs. The Subproject will be implemented in selected districts (zilla) identified at subproject onset based on a set of agreed criteria, outside Dhaka metropolitan and Chittagong metropolitan 8. C. Outputs 10. Output 1: Constraints and Opportunities to Women's Entrepreneurship identified. The subproject will collect relevant baseline information and data on the factors that enable women to, or constrain them from, becoming effective entrepreneurs in selected industries known for women s involvement. Information will be collected from existing literature in the subproject area and through consultation with government, civil society, existing male and female entrepreneurs and private sector stakeholders. This will involve gathering baseline and other information on: (i) women-led businesses (i.e. micro-, small- and medium enterprises, selfhelp groups, cooperatives, and NGOs); (ii) different needs and constraints faced by women entrepreneurs at different stages of enterprise evolution (i.e. start-up, survival and growth) and for different trades; (iii) barriers to women's access to skills and technology, market information, business services, networking, linkage and financial resources and services; (iv) innovative and diverse approaches adopted to overcome gender-related barriers to women s entrepreneurship in specific sectors 9. Training and capacity development needs assessment will be carried out in selected districts (6) to inform the advocacy, training and capacity development initiatives to be supported under Outputs 2 and 3 below. 6 Scheduled banks are enlisted by the Bangladesh Bank under the provisions of section 37 of the Bangladesh Bank Order They are bound to obey central bank instructions, rules and regulations especially, those relating to required capital and provisions, statutory liquidity reserves, and audited returns. Through scheduling, banks gain special status and enjoy some special facilities from the central bank such as re-discounting, participation in the money market, membership of the clearing house and deposit insurance scheme. 7 For the purpose of the TA, legal literacy indicates the knowledge of and ability to use existing norms, regulations, and administrative procedures which relate to the establishment, management and administration of an enterprise. 8 The SMESDP (2004) included TA Loan 2150, which had some budgetary allocations aimed at supporting the stock-taking of existing training programs targeting women entrepreneurs in Bangladesh which have not so far been implemented. SARD and BRM are committed to revitalize the gender activities under SMESDP and incorporate lessons learnt in the design of the gender-related training activities under the (proposed) Subproject. In this context, the SMESDP had no specific actions to promote women entrepreneurs' access to earmarked resources, which resulted in a less than satisfactory access of women entrepreneurs to earmarked resources (5% out of 10% earmarked resources). In this context, one of the critical lessons learnt reflected in the design of the Subproject- is the need to support dedicated capacity initiatives to promote women entrepreneurs' access to dedicated credit lines. Based on extensive consultations carried out by the ADB, the need to engage a professional association of women entrepreneurs was also identified as the best option to ensure a timely and effective mobilization of women entrepreneurs and increase their access to available earmarked resources. 9 Under component 6 of TA Loan 2150, a SME data base is under development, under the Ministry of Industry, BB though not directly involved- provided information on women entrepreneurs who availed the financing from Loan 2149, which as of 30 April, 2009 are 96 (with an amount of Tk134.4 million out of total disbursement of Tk2,916.0 million and 2,799 entrepreneurs). BB will be consulted to assess its interest in developing a sex-disaggregated baseline in at least three pilot subproject areas on a set of gender-relevant indicators, which include: (a) # of women-led micro/small enterprises; and (b) # of women accessing finance through PFIs as of 2009 and to monitor the progress toward its achievement during loan implementation.

5 5 11. Output 2: Advocacy initiatives for enforcement of gender-responsive regulations and policy reform implemented. i. Advocacy for the enforcement of gender-responsive regulations. In March 2008, the Central Bank of Bangladesh (Bangladesh Bank, hereafter BB) issued a circular to scheduled commercial banks to promote small- and medium-sized women entrepreneurs' access to institutional and financial facilities at easy terms and conditions. In this context, and limitedly to the subproject area, the subproject will: (a) identify and document current practices adopted by scheduled commercial banks and non-banking financial institutions identified by BB 10 to comply with its gender-responsive provisions set out by the Bangladesh Bank; and (b) support advocacy with selected banks and participating financial institutions (PFIs) to open women entrepreneurs' dedicated desks and orient officers; (c) develop a gender responsive training program in collaboration with the existing bankers' training institutes to strengthen participating banks officers' mind-set and skills to review proposals for funding eligibility; and (d) provide legal literacy and aid services to women entrepreneurs and associations to address regulatory and administrative impediments in accessing financial resources and services [i.e. land titling, collateral, business licensing, registration and taxation-related issues]. ii. Advocacy for gender-responsive policy reform. This will support ongoing efforts to engage with relevant Government entities and local government bodies [i.e. BB, the Board of Investments; the Board of Revenues, Ministry of Commerce, Ministry of Finance, Ministry of Industry, the Bangladesh Small and Cottage Industries Corporation (BSCIC), the SME Foundation and the city corporations and municipalities] and advocate for gender-responsive policy and legal/regulatory reforms to ensure women's greater representation in SME decision-making processes and structures and women entrepreneurs' equal access to financial resources, business opportunities, infrastructures and services Output 3: Technical Capacity of selected Women's Entrepreneurs and Associations strengthened. Women usually prefer to undertake new activities that challenge traditional attitudes in groups to overcome resistance together and to build their confidence with mentoring from women with greater public experience. In the selected districts, the Subproject will support two-year entrepreneurship development and business management training targeting the specific needs and constraints faced by women entrepreneurs' organizations and networks (see Output 1 above). Training and skills development initiatives will target the needs and constraints faced by women entrepreneurs in selected sub-sectors. They will include: (i) women entrepreneurship's development; (ii) micro- and small business planning (incl. demand, cost-benefit and risk analysis); business management (incl. book-keeping, accounting and financial management); and marketing planning and strategy; (iii) preparation of technical and financial proposals; (iv) access to market and product information (suppliers, export opportunities, pricing information, product styles, equipment and information technology value 10 Bangladesh Bank circular (March 2008) introduced a refinancing scheme in the SME sector for women entrepreneurs. It invited banks and financing institutions to take advantage of the scheme in supporting women entrepreneurship development and instructed them to: (i) establish dedicated women entrepreneurs' desks; (ii) arrange training programs; and (iii) ensure the adequate dissemination of information on these facilities in each institution. 11 These areas include: (a) Ministry of Industry: review of the industrial policy to reserve industrial parks for women entrepreneurs in all divisional towns, establish a separate bank for women entrepreneurs and ensure collateral-free loans for women entrepreneurs; (b) Ministry of Commerce: review the export policy to make it gender-friendly; ensure 25% quota for women entrepreneurs participation in international trade fairs, single exhibition of local products and other market promotion activities in foreign countries, and single country trade fair; (c) Ministry of Finance: remove or replace current guarantee requirements on commercial loans to women entrepreneurs; (d) Bangladesh Bank: (i) establish central and local monitoring bodies for financing of women entrepreneurs; (ii) restructure the boards of public sector banks to include at least 25% women representation; (iii) monitor and record lending operations on a sex-disaggregated basis; (d) implement the provision for collateral free access to finance from bank and other sources [Source: Women's National Business Agenda, BWCCI, 2009].

6 6 chain and product development cycle for selected trades); and (v) marketing techniques. Training evaluation assessments will be carried out by BWCCI at the end of relevant training sessions, and inform the subsequent development of the training program. Exposure visits and trade fairs will be encouraged. Support may be provided to operationalize and utilize the SME Help-Line in selected areas Output 4: Dissemination of findings and identification of follow-up initiatives. Findings and lessons learned from the supported initiatives targeting rural women will be presented at several meetings including a high-level national conference with the participation of Bangladesh Bank, the Federation of Chambers of Commerce and Industries (FBCCI), BWCCI, the Chittagong Women s Chamber and Industries (CWCCI), the Bangladesh Federation of Women Entrepreneurs (BFWE), the Women Entrepreneurs Association of Bangladesh (WEAB), WEA, the SME Foundation, BSCIC, representatives of public and private banks and financial institutions [incl. MIDAS] and the media. Relevant Subproject findings will be disseminated through Government, civil society and private sector networks 13. D. Activities with Milestones Output 1: Constraints and Opportunities to Women's Entrepreneurship identified a) Collect baseline information and data on women's entrepreneurship [Month 1-2] in selected area b) Carry out training and capacity development needs assessment [Month 3-4] c) Identify capacity needs and knowledge gaps [Month 5-6] Output 2: Advocacy Initiatives for Enforcement of Gender-responsive regulations and policy reform implemented 2.1: Advocacy for the enforcement of gender-responsive regulations a) Assess the current status of enforcement of gender-relevant provisions in Bangladesh Bank's regulatory frameworks [Month 6-8] b) Document practices adopted by scheduled commercial banks and non-banking financial institutions [Month 6-8] c) Design, develop and deliver orientation and training program of bank and PFI officials [Months 8-36] d) Provide legal aid and literacy services to women entrepreneurs and associations [Month 8-36] 2.2: Advocacy for gender-responsive policy reform Support ongoing efforts to engage with relevant Government entities, banks, PFIs, and local bodies and advocate for gender-responsive policy and legal/regulatory reforms and simplification of procedures [Month 6-36] Output 3: Technical Capacity of selected Women's Entrepreneurs and Associations strengthened a) Assess existing training institutes and programs targeting women entrepreneurs and associations [Month 7-8] b) Design Women's Entrepreneurship Development andbusiness Management training programs as per need [Month 9-10] c) Carry out training activities [Month 10-34] d) Organize exposure visits, trade fairs and lateral learning initiatives [Month 10-34] Output 4: Dissemination of findings and identification of follow-up initiatives a) Assess the results of the activities in Outputs 2 and 3 [Month 35] b) Disseminate findings and lessons learned from Subproject activities at an international conference in Dhaka [Month 36] c) Plan follow-up activities [Month 36] 12 SME Helpline Centers operate in 23 districts. In the 1 st phase under ADB's SME Sector Development Program (SMESDP) 28 (out of 32) SME Helpline Centers have been established, 23 of which are in BSCIC premises. In addition, SMESDP has also established 5 additional Helpline Centers in the following offices: BWCCI, CWCCI, FBCCI, the Small and Cottage Industry Training Institute (SCITI) and WEAB. 13 Initial discussions with women entrepreneurship (2009), suggest that (Quote) ADB could come up with a venture capital risk management fund in order to increase interest/eagerness of commercial banks to lend to women entrepreneurs (Unquote).

7 7 E. Implementation arrangements 14. The Bangladesh Women's Chamber of Commerce (BWCCI) will be engaged directly by ADB to undertake the consulting services under this subproject, based on single source selection, in accordance with ADB s Guidelines on the Use of Consultants (2007). ADB will participate in the selection of the Subproject implementation team to be fielded by BWCCI. More specifically, the South Asia Financial Sector, Public Management and Trade Division (SAFM) shall invite BWCCI to submit a bio-data technical and a financial proposal: the SAFM will review the technical proposal and the Consulting Unit (COSO) will review the financial proposal and handle the financial negotiations with BWCCI. 15. The ADB will release payments in accordance with the Advance Payment Facility on receipt of a request from BWCCI, and subject to measurements and quality acceptance. The ADB will make payments in three tranches: at the commencement of the project [advance payment in the amount of 10% of the Letter of Agreement (LOA) amount, upon signing of the LOA]; (b) satisfactory liquidation of the first advance; and (c) satisfactory liquidation of the second advance. All disbursements under the LOA will be carried out by money transfer order, issued in favor of BWCCI, based on the bank account information provided in the advance payment facility. 16. A detailed Action Plan will be finalized by BWCCI, cleared by the ADB and presented to relevant stakeholders -incl. the Ministry of Commerce and the Ministry of Women's and Children's Affairs- during a stakeholders' consultation meeting before Subproject commencement. This will ensure adherence of the Subproject-financed activities with the Government of Bangladesh's current or upcoming policies, strategies and activities directly or indirectly related to the promotion of women's entrepreneurship. 17. The Ministry of Finance (Finance Division) will be kept informed of the progress, and consulted by ADB, as appropriate during the implementation of the Subproject. F. Subproject Evaluation and Information Dissemination 18. The subproject will be implemented over 36 months, commencing in September 2009 with completion date expected in August A mid-term review will be held in Dhaka to assess the progress in the implementation of the proposed activities and adopt corrective actions as needed to ensure timely and effective implementation of the subproject activities and the effective targeting of women entrepreneurs. A final meeting will be held in Dhaka, to present subproject findings and recommendations and identify modalities to incorporate these into DMCs policies, strategies and programs and the ADB loan portfolio. Consultations at the district (zilla) and sub-district (upazila) level will be complemented by national workshops, divisional seminars and advocacy meetings at different stages of subproject implementation. 19. The Subproject outcomes will be monitored by ADB and MOF-FD through consultants reports, periodic consultations and review missions. The administrative (progress) reports to be submitted with attached draft technical reports- is based on the following schedule: Event Time Administrative Reports Technical Reports 1. Subproject Inception meeting Month 3 Inception report Baseline information and data in selected areas Training andcapacity development needs assessment

8 8 Event Time Administrative Reports Technical Reports 2. Subproject Mid-term review meeting 3. Subproject Completion meeting Month 9 Month 15 Semi-annual monitoring reports Month 21 Mid-term report Gender analysis of current legal/regulatory framework related to women entrepreneurship Month 27 Semi-annual Month 33 monitoring reports Month 35 Final report Findings and lessons learned from Subproject activities G. Scope of Replication/Use in other DMCs 20. The Subproject will contribute to increase the understanding within ADB and DMCs on how gender-based discriminatory practices affect women's ability to equally access the benefits, opportunities and resources made available by ADB projects. Based on a rigorous methodology and a set of gender-specific/relevant targets and indicators to be defined at subproject onset, the Subproject will aim to demonstrate the need for and value-added of incorporating training and skills development initiatives targeting women entrepreneurs to ensure their effective and timely access to earmarked resources (lines of credit) under ADB projects. The Subproject aims at further advancing ADB's understanding of the critical nexus between legal empowerment of women and poverty reduction, by assessing how women's knowledge on the legal/regulatory framework affecting their access to financial resources, services and business opportunities may indeed result in their more sustainable and profitable involvement in SME development, and their contribution to poverty reduction in the subproject area 14. It is expected that approaches adopted under the Subproject may be institutionalized in SARD portfolio related to SME and private sector development. H. Cost Estimates and Financing Plan 21. The total cost of the subproject is estimated at $500,000 for activities to be carried out in Bangladesh. It will be supported through regional TA 6337 [(Development Partnership Program for South Asia (DPPSA)], funded under the Australia-ADB South Asia Development Partnership Facility. The detailed cost estimates and financing plan are in Appendix 2. I. Proposed Subproject Management System 22. ADB will engage the Bangladesh Women's Chamber of Commerce (BWCCI) 15 to undertake the consulting services under this subproject in accordance with ADB s Guidelines on See Legal Empowerment for Women and Disadvantaged Groups, ADB, The Bangladesh Women Chamber of Commerce and Industry (BWCCI) was established in June 2001 with the aim of encouraging and strengthening women s participation in the private sector as entrepreneurs. Its membership has grown rapidly, and presently the chamber has 1,500 members in six different administrative districts, namely Barisal, Chittagong, Dhaka, Khulna, Rajshahi, and Sylhet. The members of BWCCI cover the entire range of the socioeconomic spectrum. Although members are predominantly engaged in traditional sectors of women's involvement such as food, beauty, fashion, health products, and handicrafts, membership is increasing among women entrepreneurs in various non-traditional businesses, such as IT, media, publications, and other services. Recognizing the potential of women entrepreneurs to play a more effective role in private sector development in Bangladesh, BWCCI was formed to act as a nucleus to assist, activate, inform, organize, and assimilate Bangladesh s women entrepreneurs. The chamber facilitates these goals through training programs, trade fairs, institutional support, guaranteeing loans, and advocacy. The rationale for the proposed single-source selection of BWCCI is based on the following justifications: (a) BWCCI's long-term track record and leadership in the area of capacity development targeting women entrepreneurs; (b) its proven track record of engagement with the GOB in supporting gender-responsive policy and legal/regulatory reforms; (c) its far-reaching and sector-wide coverage compared to other like-minded institutions; (d) its leadership in the implementation of gender-inclusive and women-targeted training programs, trade fairs, institutional support and advocacy targeting the specific needs and constraints faced by women's entrepreneurs; and (e) its recent adoption of the first Women's National Business Agenda in February 2009.

9 the Use of Consultants (2007 as amended from time to time), based on single source selection. ADB will participate in the selection of the implementation team to be fielded by BWCCI. The Team will be composed of: 192 person-months of national consultants. It will include: (a) Subproject Manager; (b) Training Coordinator; (c) Policy/Legal and Advocacy Coordinator; (d) Accounts Officer, and (e) support staff, on a continuous basis (36 person-months/each); and (a) M&E specialist and (b) Technical Advisor (6 person-months/each), on an intermittent basis. Equipment budgeted under the Subproject consists of computer and office equipment which BWCCI will retain after subproject completion. The outline terms of reference for the consultants are in Appendix 3. The Subproject will be implemented over 36 months, commencing in September 2009 with completion date 3 years later in

10 10 Attachments: 1. Design and Monitoring Framework 2. Cost Estimates and Financing Plan 3. Outline Terms of Reference 4. Definitions

11 11 Design Summary Impact Development of women's micro- and small/mediumsized entrepreneurship in the subproject area Outcome Enhanced capacity of women entrepreneurs and associations to fully access the financial resources and services earmarked for women small- and mediumsized enterprises under the ADB Loan Outputs Output 1: Constraints and opportunities to women's entrepreneurship identified (subproject area) Output 2: Advocacy initiatives for enforcement of genderresponsive regulations and policy reform implemented Output 3: Technical capacity of selected women's entrepreneurs and associations strengthened Output 4: Dissemination of findings and identification of followup initiatives APPENDIX 1: DESIGN AND MONITORING FRAMEWORK Performance Targets/Indicators Increased number of women and other disadvantaged groups (20% from baseline) represented in local governance. Incorporation of Subproject findings and recommendations into future ADB assistance. Number of successful applications by women entrepreneurs at scheduled commercial banks increased [20% year increase compared to baseline (2009)]. Data Sources/Reporting Mechanisms Government, donors and civil society reports. Decentralization policies, laws and intergovernmental fiscal frameworks. Information and data collected. Proceedings from regional consultations. Subproject final report. Baseline information and data Baseline collected in selected districts information and (6). data reports. Training and capacity Training and development needs Capacity Needs assessment (6) carried out in selected districts. Assessment reports. Advocacy for enforcement of gender-responsive regulations Gender practices adopted by Report from PFIs (15) documented. Bangladesh Bank. 12 advocacy sessions carried Reports from out. scheduled 35 dedicated women commercial banks entrepreneurs' desks open at and PFIs. PFIs. Government 6 training sessions carried out reports. 600 PFIs desk officers BWCCI and other trained. relevant partners' 36 legal literacy and aid qualitative and initiatives carried out. quantitative 360 women entrepreneurs documents. benefited from legal literacy/aid. Advocacy for gender-responsive policy reform Three gender-responsive Draft policy and policy and legal/regulatory legal reform reforms initiatives supported proposals 900 women entrepreneurs Capacity trained. development plan Exposure visits (5), trade fairs Impact (5) and lateral learning events assessment report (5) carried out. SME Help-Line (5) supported in selected districts. National workshops (2), divisional seminars (6), advocacy meetings (60) organized; exposure visits (3) and trade fairs (3) attended Subproject reports Regional consultations reports Assumptions and Risks Assumption Commitment of Bangladesh Bank, scheduled commercial banks and PFIs to implement genderresponsive regulations. Assumptions Effective and timely collaboration of relevant Government stakeholders, participating scheduled commercial banks and PFIs. Risks: Staff changes in key Government Agencies weaken coordination of Subproject activities.

12 12 Activities with Milestones Output 1: Constraints and Opportunities to Women's Entrepreneurship identified a) Collect baseline information and data on women's entrepreneurship [Month 1-2] in selected area b) Carry out training and capacity development needs assessment [Month 3-4] c) Identify capacity needs and knowledge gaps [Month 5-6] Output 2: Advocacy Initiatives for Enforcement of Gender-responsive regulations and policy reform implemented Inputs 192 person-months for national consultants ADB-administered financing: $500, : Advocacy for the enforcement of gender-responsive regulations a) Assess the current status of enforcement of gender-relevant provisions in Bangladesh Bank's regulatory frameworks [Month 6-8] b) Document practices adopted by scheduled commercial banks and non-banking financial institutions [Month 6-8] c) Design, develop and deliver orientation and training sessions to scheduled commercial banks and PFIs officials [Months 6-36] d) Provide legal aid and literacy services to women entrepreneurs and associations [Month 6-36] 2.2: Advocacy for gender-responsive policy reform a) Support ongoing efforts to engage with relevant Government entities, banks, PFIs, and local bodies and advocate for gender-responsive policy and legal/regulatory reforms and simplification of procedures [Month 6-36] Output 3: Technical Capacity of selected Women's Entrepreneurs and Associations strengthened (a) Assess existing training institutes and programs targeting women entrepreneurs and associations [Month 7-8] (b) Design Women's Entrepreneurship Development andbusiness Management training programs as per need [Month 9-10] (c) Carry out training activities [Month 10-34] (d) Organize exposure visits, trade fairs and lateral learning initiatives [Month 10-34] Output 4: Dissemination of findings and identification of follow-up initiatives a) Assess the results of the activities in Outputs 2 and 3 [Month 35] b) Disseminate findings and lessons learned from subproject activities at an international conference in Dhaka [Month 36] c) Plan follow-up activities [Month 36] ADB = Asian Development Bank, CPS = country partnership strategy, DMC = developing member country, GRB = genderresponsive budgeting, NGO = nongovernment organization.

13 13 APPENDIX 2: COST ESTIMATES AND FINANCING PLAN ($'000) Item Total Cost a A. Australia-ADB South Asia Development Partnership Facility Financing a 1. Consultants a. Remuneration and Per Diem National Consultants b b. Local Travel 47.0 c. Communications c Equipment Training, Seminars and Workshops a. Training Program b. Legal Literacy and Aid initiatives Surveys d Miscellaneous Administration and Support Costs a. Publication, Documentation and Material 10.0 Development b. Monitoring and Evaluation e Contingencies 35.0 Subtotal (A) B. Government Financing 1. Office Accommodation and Transportation Remuneration and Per Diem of Counterpart Staff Administrative Support 35.0 Subtotal (B) Total a b c d E Funded by the Government of Australia and administered by ADB. Total amount also includes ADB s administration fee, audit cost, bank charges, and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant by the Government of Australia. The item 'National Consultants' includes all costs related to the recruitment of national consultants: (a) Subproject Manager; (b) Training Coordinator; (c) Policy/Legal and Advocacy Coordinator; (d) Accounts Officer; (e) support staff (1); (f) M&E specialist and (g) Technical Advisor. Consultant services inputs (a) to (e) will be on a continuous basis; consultant services inputs (f) and (g) on an intermittent basis. The item 'Communications' will include contribution to phone, Fax and expenses The item 'Survey' includes printing and dissemination costs associated with the publication of all baseline surveys, training need assessment, assessment of regulatory framework, review of policies, assessment of existing training program. The item 'Monitoring and Evaluation' will include costs associated with: inception meeting, mid-term and final evaluation. Source: ADB estimates

14 14 APPENDIX 3: OUTLINE TERMS OF REFERENCE I. GENERAL II. Position No. of Positions Person Months 1. Technical Advisor Intermittent Subproject Manager (SPM) Training Coordinator (TC) Advocacy Coordinator (AC) Monitoring Consultant (MC) Intermittent Accounts Officer (SAO) Support Staff 1 36 Total SCOPE OF SERVICES A. Consultants a. Technical Advisor 1. The Technical Advisor will have a Master's degree and have 15 years of experience in business and women entrepreneurship development. The Advisor will (i) guide the overall direction of the Subproject team ensuring team integration in terms of expert inputs, outputs and quality control through quarterly meetings with team members and reporting to ADB; (ii) participate in high level national workshops, selected divisional seminars and advocacy meetings; (iii) identify policy and legal/regulatory reform issues and lead policy dialogue in this area; (iv) provide support in the arrangement of study visits, exposure visits and trade fairs; (v) advice on strengthening of helpline centers; (vi) ensure that Subproject activities are undertaken and outputs are delivered timely; (vii) ensure monitoring of the subproject activities and outcomes; and (viii) provide input to the finalization of all Subproject technical reports, as needed. b. Subproject Manager 2. The Subproject Manager (SPM) will have a Master's degree and have more that 10 years experience in subproject implementation and management. Work in the area of women entrepreneurship development will be an added advantage. The PM in collaboration with other consultants will be responsible for day-to-day work. He/she will: (i) prepare an inception report including methodology and detailed work plan for all activities to be undertaken by the Subproject consultants; (ii) prepare annual time-bound action plans for implementation of the Subproject, including terms of reference, training needs assessment and training delivery, advocacy, and linkages with other associated line agencies; (iii) lead the baseline survey including preparation of TORs, data collection, analysis and reporting; (iv) ensure required coordination with Subproject consultants and other stakeholders; (v) liaise with other chambers and associations, recommend clear measures for enhancing their roles in advancing women entrepreneurship and develop and implement networking activities; (vi) review the capacity development plan for entrepreneurs and PFI personnel and the advocacy plan, recommend possible refinements and support implementation; (vii) ensure monitoring, internalizing feedback and use of the management information system to better identify and react to the evolving needs; (viii) organize divisional seminars and advocacy meetings; (ix) organize orientation workshops on subproject action plan for relevant staff of the BWCCI; and (x) prepare and submit regular implementation monitoring and progress reports and a completion report at the end of the subproject.

15 15 c. Training Coordinator 3. The Training Coordinator will have a Master's degree and 5 years experience with at least five years in the area of training and capacity development. Knowledge of women entrepreneurship and gender equality will be required. The Coordinator will (i) prepare TOR, plan and carry-out an assessment of the existing training programs for women entrepreneurs and identify gaps; (ii) prepare TOR, plan and carry-out a training needs assessment; (iii) prepare a need-based training and capacity development plan for women entrepreneurs; (iv) identify institutions for collaboration in the areas of training; (v) prepare orientation and training plan for PFI officials; (v) collect, collate and prepare need based materials and modules for training and orientation; (vi) identify resource persons and institutions; (vii) develop, organize and deliver training and capacity development programs; (viii) undertake training evaluation and assessments; and (ix) prepare reports and contribute to the overall reporting of the subproject. d. Advocacy Coordinator 4. The Advocacy Coordinator will have a Masters degree and 5 years experience with at least five years in the area of advocacy. Knowledge of women entrepreneurship and gender equality will be required. The Coordinator will (i) prepare TOR, plan and carry-out an assessment of the existing opportunities under banks and PFIs for women entrepreneurs and identify gaps; (ii) prepare an advocacy plan including policy advocacy agenda addressing various stakeholders including banks, chambers, associations, PFIs, other institutions for women entrepreneurs; (iii) identify resource persons and institutions for collaboration in the areas of advocacy; (iv) collect and collate information, and prepare advocacy agenda, prepare advocacy materials; (v) undertake advocacy program addressing various groups; (vi) undertake assessments of results; and (vii) prepare reports and contribute to the overall reporting of the subproject. e. Monitoring Consultant 5. The Monitoring Consultant will have a Master's degree in Social Sciences with experience in monitoring of gender and women's development and will have at least 15 years of work experience. The Consultant will (i) propose progress, performance and impact monitoring plans by incorporating a reasonable number of appropriate indicators for specific activities; (ii) guide management of information on subproject beneficiaries and activities including computerizing baseline data; (iii) guide analysis and reporting on progress with subproject implementation and delivery; (iv) guide the baseline survey, training needs assessment and other studies to ensure quality; and (vi) record changes in institutional and socioeconomic status and impacts and prepare case studies as per need. f. Accounts Officer 6. The Accounts Officer will have a Master's in Commerce with accounts background and at least 5 years' experience in relevant field. The SAO will: (i) keep the books of financial and procurement records regular and up to date as per accepted standard; (ii) produce monthly accounts of administrative and subproject budget expenditures of the subproject; (iii) assist in procurement of goods and services; (iv) support BWCCI external audit team to audit the subproject accounts; (iv) maintain inventory of goods procured under the subproject; (v) prepare reimbursement and withdrawal documents for subproject funds; (vi) ensure reconciliation of accounts with banks and ADB; (vii) prepare quality quarterly reports for submission to ADB; and (viii) prepare final subproject accounts statements at the end of the subproject for submission to ADB and GOB.

16 APPENDIX 4: DEFINITIONS The (draft) Industrial Policy (2009) and the Bank of Bangladesh (Circular of 26 May 2008) provide useful information on the definitions of large, medium, small and micro-enterprises, as follows: Category Industrial Policy 2009 (Draft) Remarks Large Industry - Manufacturing Large Industry -Non manufacturing Medium Industry - Manufacturing Medium Industry - Non-manufacturing Small Industry - Manufacturing Small Industry - Nonmanufacturing Micro Industry Cottage Industry In case of manufacturing activity, large industry will mean those industrial enterprises having value fixed assets (replacement cost), excluding land and building, in excess of Tk. 300 million or industrial enterprises having more than 250 workers. In case of non manufacturing industrial activities, large industry will mean industrial enterprises with either the value of fixed assets (replacement cost) excluding land building in excess of Tk 150 million or industrial enterprises having more than 100 workers. Medium industry will mean industrial enterprises with either the value (replacement cost) of fixed assets, excluding land and building, in excess of Tk100 million but less than Tk 300 million or industrial enterprises having workers between In the case of non-manufacturing industrial activity, medium industry will mean industrial enterprises with either the value (replacement cost) of fixed assets, excluding land and building, in the range of Tk 10 million to Tk 150 million or industrial enterprises having workers between 50 to 100. Small industry will mean enterprises with either the value (replacement cost) of fixed assets, excluding land and building, in the range of Tk 5 million to Tk 100 million or enterprises having between workers. In the case of non-manufacturing industrial activity, small industry will include enterprises with either the value (replacement cost) of fixed assets excluding land and building in the range of Tk 0.5 million to Tk 10 million or enterprises having between 10 and 25 workers. Micro industry will include industrial enterprises with either the value (replacement cost) of fixed assets excluding land and building of up to Tk 0.5 million or enterprises having 10 to 24 workers. Cottage Industry will mean such industries with predominance of family members having fixed assets, excluding land and building, less than Tk 0.5 million and workforce, including family members will be not more than 10. If one criterion puts an activity in the medium category while the other criterion puts it in the large category, the activity will be considered to belong to the large category. If one criterion puts an activity in the small category while other criterion puts it in the medium category, the activity will be considered to belong to the medium category. If one criterion puts an activity in the Micro category while other criterion puts it in the small category, the activity will be considered to belong to the small category. If one criterion puts an activity in the Cottage Industry category while other criterion puts it in the Micro Industry, the activity will be considered to belong to the Micro category. Category Bangladesh Bank (circular dated 26 May, 2008) Service Sector Business Industrial sector ( Manufacturing) The value of the total fixed assets, except The value of the total fixed assets, except Land and Building, will be between Land and Building, will be between Tk.50,000 to Tk.5 million and engaged Tk.50,000 to Tk.5 million and engaged workers not more than 25. workers not more than 25. workers not more than 50. Small Enterprise will mean ideally not limited company and would fulfill the following criteria Medium Enterprise will mean ideally not a limited company and would fulfill the following criteria The value of the total fixed assets, except Land and Building, will be between Tk.5m to Tk.100 million and engaged workers not more than 50. The value of the total fixed assets, except Land and Building, will be between Tk.5 million to Tk.100 million and engaged workers not more than 50. The value of the total fixed assets, except Land and Building, will be between Tk.50,000 to Tk.15 million and engaged The value of the total fixed assets, except Land and Building, will be between Tk.150 million to Tk.200 million and engaged workers not more than 150.