Women's Economic Empowerment through Strengthening Market Systems

In December 2021, the Women's Economic Empowerment through Strengthening Market Systems (WEESMS) project reached the end of its implementation cycle. The Final report submitted to the Embassy of Sweden in Bangladesh on behalf of the partners iDE and TAF, explains the context, synthesizes its key impact and achievements, gives an overview of the financing of the project including total expenditures, and provides key strategic recommendations. This Conclusion of Performance (CoP) covers the intended results achieved during the last activity period from January 2021 to December 2021 following the theory of change and the cost extension proposal approved on 23 March 2021. This update has been prepared based on the final progress report submitted on 14 April 2022, final evaluation report of the project dated 29 November 2021, by the Embassy of Sweden in Dhaka, and carried out by NIRAS Sweden AB, End-line survey report conducted by Consiegliri Pvt Ltd., and final audit report submitted on 31 March 2022. The WEESMS project, an initiative solely funded by the Embassy of Sweden, was designed to increase womens participation in the labor market in rural and peri-urban Bangladesh, with a significant focus on reducing gender inequality in the country's entrepreneurship ecosystem. The project was implemented through a partnership of iDE Bangladesh and The Asia Foundation across nine upazilas in six districts under the Khulna and Rangpur divisions of Bangladesh. The WEESMS project worked with both women-led/owned and women-oriented SMEs using the technical approaches of Women Economic Empowerment (WEE) and inclusive business -M4P. The project was designed for a period of five years with a start date of 01 July 2016 to 30 June 2021. As the project implementation was significantly impacted by the countrywide COVID-19 lockdowns in 2020 and 2021, the project was further approved for a No-Cost Extension for additional six months i.e., till December 31st, 2021. The final evaluation reports that most of the SMEs changed their business practices, marketing strategy, business goals, optional practices, financial management to some extent due to the learnings from the capacity building trainings facilitated by the project. As a result, now they can keep track of their costs, payables, and revenues, and determine whether they are making profits or losses. Around two-third of the SMEs set up new product price, developed negotiation and networking skills, and improved marketing strategies. As the SMEs became more capable in business and financial management skills, they utilized the updated information, knowledge, and skills in their regular business practices. Improved business and financial management practices led SMEs to better sales and reduced cost. One of the biggest wins for the WEESMS has been the establishment of the standalone e-commerce platform. The number of SMEs currently use e-commerce and online platforms regularly. They have been selling their products on several e-commerce platforms simultaneously. 83 percent of women oriented and 67 percent of women led SMEs benefitted due to the linkage with e-commerce platforms which was 68 percent of total SMEs in 2021. The capacity building trainings and the marketing templates helped the SMEs to market their product and business in better ways to acquire more customers and markets and gradually grow their business. 85 percent women led, and 100 percent of women-oriented SMEs were found to use promotional tools for business. 99 percent SMEs agreed that the promotional tools are useful for the business. They have been also trying to identify new marketing channels. In addition, according to them, their negotiation skill and client/ customer management and handling skills have also significantly improved. In the last few years after WEESMS inception, SMEs have launched 50 new diversified and new products. Most of the SMEs have stated that they are now capable of developing more diversified and quality products. 91 percent of SMEs reported increased income due to product diversification to some extent. The survey findings revealed changes in the input sourcing pattern of the SMEs. More than 90 percent of the SMEs (both women led and oriented) sourced raw materials from local sources/input suppliers in 2021. There were no SMEs sourcing raw materials from online sources before the project. But in 2021, online input sourcing (outside local regions mostly) increased among SMEs. 66 percent of SMEs reported that they are availing better quality inputs from project promoted input hubs. 76 percent of SMEs reported availing low-price inputs from project promoted input hubs. Around 90 percent of women led, and women-oriented SMEs reported that they availed different variety of inputs from project promoted input hubs. The business relationships with input suppliers increased significantly as reported by 86 percent SMEs. 84 percent SMEs stated that their access to inputs increased significantly due to the project engagement. Almost all of the SMEs reported changes in their business practices with potential to facilitate business growth and expansion. 88 percent of women-oriented SMEs and 92 percent of women led SMEs reported their business relationship with output buyers increased from pre-project time. As a result of the linkage to new buyers, 91 percent SMEs reported to earn additional income through these new buyers. The B2B buyers linked to the SMEs were Daraz, KRISTI by Bagdoom, ChawaPawa, Prakriti, BANGLACRAFT, and ECOTA Fair Trade Forum. The highest sales in 2021 were through Daraz for both types of SMEs. Besides, the trade fairs facilitated by the project had a significant impact on SMEs' business, they gained many new buyers (both wholesale and retail) which helped them to increase cash sales and network with entrepreneurs from other regions. 94 percent SMEs increased their output market linkage through participation in fairs. SMEs learned about services such as bank account information, emergency line of credits, and relevant banking services through WEESMS. Among the SMEs who had trade license, 97 percent received the trade license through the linkages with City Corporation/ Pourachava offices arranged by the project. Among the SMEs having business bank account, 76 percent created the account after engaging with the WEESMS project. 40 percent of the SMEs were linked to any regional FSPs for improved access to finance through the WEESMS project. 33 percent SMEs availed business development services offered by FSPs. It was also found that 42 percent women led SMEs and 45 percent women-oriented SMEs reported improvement in business and financial management practices resulting from availing business development services from FSPs. 303 SMEs or 46 percent of total SMEs applied for loans to expand business operations. The SMEs received loan of BDT 723,712 on an average in 2021. For economic shock, 61 percent of the SMEs availed emergency credit. Better access to business development services, developed capacity to design new and innovative products improve forward and backward market linkage, improved financial access and support in emergency led the SMEs to better economic performances. In case of workforce, 4 new employees were added per SME to the existing employee base. The increase in employee base was higher for the women-oriented SMEs as they added 14 new employees in 2021 per SME. In total 1,161 new jobs were created in 2021 among the respondent SMEs. 69 percent SMEs reported that they could retain workforce after the post Covid situation. The annual investment per SME also increases in last one year by BDT 49,192. These SMEs increased their investment in skilled labor, sourcing raw materials, workplace environment, and infrastructure to some extent. 54 percent of SMEs reported that their annual sales increased from last year. And 56 percent of SMEs reported that their net profit increased from last year. 67 percent of SMEs (66 percent women led and 76 percent women oriented) reported that they improved their negotiation and networking skill due to the training facilitated by the project. 84 percent SMEs reported that their geographical area of business increased than previous years. 47 percent of employees (training recipient) from women-oriented SMEs reported than their salary increased due to better working skills after training facilitated by the project. The average amount of increased salary due to better working skill was BDT 1,012. Moreover, 35 percent of employees reported that their opportunity of self-employment increased due to the training. SMEs implemented many practices of decent work. It was found that all (100 percent) SMEs reported implementation of decent work practices in their enterprises. The regulatory actors also described that the enterprises had separate toilets, uniforms for workers, and childcare areas. The hygiene and cleanliness were prioritized in the enterprise level. It was also reported that the attitude of the SMEs owners changed towards the employees significantly. They were more understanding and supportive to their workers. The implementation of a decent workplace has been appreciated by all employees. Almost all (98 percent) of the employees from both women led (98 percent) and oriented SMEs (100 percent) reported that their employers work practices were decent and conducive. This was a major achievement of the project. 81 percent of employees from women led SMEs reported that they felt adequate job security at workplace while 76 percent employees from women-oriented SMEs reported the same. Employee interactions with SMEs were found to be improving. As a market system development project, WEESMS intended to play a facilitative role. However, the context of the project called for a more hands-on approach. This led to a blended facilitation approach that can be justified in the local context. Nevertheless, the findings indicated that there was manifestation of systemic change most significantly in relation to the adoption and adaptation of the model integrating rural women businesses in retail e-commerce platform and input hubs. The most significant change for target SMEs pertains to improved capacities in business management, access to markets and access to loan information. The adopted upgrades introduced by WEESMS were institutionalized into the operations of the relevant partners with some SMEs having adapted some business skills and maintained forward market relations even though a key barrier relates to payment schedules and legal rights. However, many SMEs still lack the capacity to independently adapt the different practices introduced by the project.

The overall objective of the programme is to increase productive work opportunities for women in the labour market in targeted sectors. During 2019, WEESMS worked towards following three Enterprise Performance Outcomes that it conceptualised as important to achieving the programmes ultimate Impact Goal Outcome 1: Increased number of women entrepreneurs and growth of women-oriented/led businesses (SMEs) in target sectors, Outcome 2: Improved womens access to formal and informal productive and employment opportunities in target sectors, and Outcome 3: Increased retention rates of women in labour market in target sectors. The WEESMS programme is using the syntax women-led/owned to refer to women entrepreneurs who own, manage and are the primary decision-makers in the business. The WEESMS programme refers to women oriented businesses as business owners (men or women) who employ more than 50 percent of their workforce as women.