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Economic necessity drive women into business

Economic necessity – need to earn livelihood, sustain a family, and to educate children – were reasons why most women got into entrepreneurship. This is according to research conducted by National Statistics Bureau.

Divorce, tendency to secure social and economic independence, martial breakdown, personal interest, and personal satisfaction were other reasons.

The quantitative data analysis was collected from 363 businesswomen from Mongar, Phuentsholing, Gelephu, and Thimphu. The sample size for the survey was determined by using target population of 6,837 businesswomen in the country.

Among many motivating factors, 47.9 percent of women cited personal interest as the reason for getting into business; 40.8 percent got into business because of unemployment.

About 38 percent of respondents said that got into business to supplement family income, followed by 33.1 percent who wanted to become independent; 27.6 percent had no other source of income, 25.6 percent to support children, 21. 3 percent owned business to support parents and families, and 2 percent was not happy with previous employment.

“However, if the factors such as unemployment, supplement the family income, many children to support, and need to support ageing parents, and relatives are categorized under the ‘economic necessity’, then it becomes the most crucial reason for starting business,” sates the report.

The research found that Bhutanese women were not fixated on their family role but were increasingly seeking to increase their engagement in business as a means for self-employment outside their homes.

In Thimphu, unemployment was the major motivating factor.

In Mongar 44.4 percent of respondents reported no other source of income as the main reason for starting the business.

In Samdrupjongkhar, Sarpang, and Phuentsholing, the businesswomen cited personal interest as the reason for undertaking business. Forty five percent of businesswomen in Samdrupjongkhar started business because of personal interest, 56.7 percent in Sarpang, and 54.6 percent in Phuentsholing.

About 38 percent of the businesswomen reported daily revenue of Nu 1,000-2,500 approximately and about 23 percent earns between Nu 4,500-6,500. About 11 percent earned less than Nu 1,000 per day and only about 1.1 percent earned Nu 80,000 in a day.

The analysis of the research was based on the perspective that economic empowerment of women is the key to promoting their social and economic status.

It aims to identify ways in which the government, donors, NGOs, and private sectors can improve the prospects for women in business and entrepreneurship in the country.

The research concluded that most businesswomen expect external support in accessing micro finance schemes- credit with low interest rates, right amount, less bureaucratic procedure, and non requirement of collateral.  

Nima

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