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Impact of Entrepreneurship Development on Household Income and Expenditure: an Mpirical Study on Tribal Women in Sylhet Region of Bangladesh

Romaza Khanum
Associate Professor, Department of Agricultural Economics & Policy, Sylhet Agricultural University, Sylhet-3100

M. Serajul Islam
Professor, Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202.

Md. Saidur Rahman
Professor, Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh-2202

Abstract/ Executive Summary:

Bangladesh poses an important role to promote livelihood status for tribal community. This empirical research arises from the perceived need to get better understanding about tribal women’s income through entrepreneurship development and contribution to their family. The study was to analyze the impact of entrepreneurship development on household income and expenditure for tribal women using multistage sampling technique. It employed primary data collected from 360 tribal women, of them 180 for entrepreneurs and remaining 180 for non entrepreneurs in two districts namely, Sylhet and Moulvibazar in Sylhet region of Bangladesh. For examining women’s contributions, the present research studied four enterprises (i.e. pig farming, shop keeping, handloom weaving, and bamboo handicrafts) for four tribal communities such as Garo, Khasia, Monipuri, and Patro. Propensity Score Matching (PSM) method and Regression analysis were used to determine the impact of entrepreneurship development. The research findings revealed that entrepreneurship development had positive and significant impacts on enterprise income, total expenditure and income in household level. It is recommended that enterprises should be local, cultural, and social based with more financial and technical support from GO and NGOs. Government should give emphasis on developing sufficient road, bridge, water supplying facilities and developing specific marketing channel as well.

Keywords: Entrepreneurship, Women’s contribution, Enterprise income, Household expenditure.

Location: Sylhet sadar upazila

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Impact

Objectives:

The study is carried out to assess the impact of entrepreneurship development on household income and expenditure for entrepreneur tribal women and compare with non-entrepreneurs who are not involved in entrepreneurial activities in Sylhet region of Bangladesh.

Methodology:

Sylhet is the area of origin for the largest ethnic minority groups. Tribal people are considered generally family oriented, follow and support community based culture. Besides formal administrative structure, the living areas of each ethnic/tribal community are traditionally divided into different para/punji. Each of the para/punji is headed by a para/punji chief, traditionally known as headman. They are empowered to solve conflicts and ensure justice in tribal courts in accordance with the customary laws of the indigenous peoples. A multistage sampling technique is used to ensure that the survey is representative of targeted tribal women. For the study, two districts were selected purposively from Sylhet region; Sylhet and Moulvibazar as tribal women’s involvement with entrepreneurial activities is quite new and well over there. Two upazilas from each district, namely Gowainghat and Sylhet sadar were selected from Sylhet and Sreemangal and Kulura were from Moulvibazar. Two unions were also selected randomly from each upazila, namely Khadim Nagar and Tultigor unions of Sylhet sadar upazila and, Fatehpur and Jaflong of Gowainghat upazila. From Sreemangal upazila, Rajghat and Kalighat, and Kulaura and Kadirpur unions of Kulaura upazila were also randomly selected for the study. In addition, two tribal women groups were also selected purposively for the purpose of this research. Based on involvement of tribal women in income generating activities, all tribal women in each upazila were classified into two categories: tribal women a) who involved in entrepreneurial activities called entrepreneur tribal women and b) who are not involved in entrepreneurial activities called non-entrepreneur tribal women. Both are basically involved in agriculture and non-agriculture related income generating activities for their livelihoods. For the selection of tribal women entrepreneur, only four enterprises out of eleven, were considered purposively, in which the selected two enterprises as pig farming and bamboo handicraft are agricultural enterprises. In Sylhet district, 175 tribal women were selected randomly from 585 in which 77 women were entrepreneur and ninety eight were non entrepreneurs. In Moulvibazar district, 185 of tribal women from 617 were randomly selected who are living under 4 unions in which 82 of tribal women were non-entrepreneur. Thus, the sample size stood at 360. For this study, the easy statistical tool of percentage as 30% was applied for the selection of entrepreneurs and non-entrepreneurs tribal women. Both structured and semi-structured interview schedule were used to collect primary data. The following statistical techniques were used to identify and determine the impact of entrepreneurship development on household income and expenditure of tribal women, one of the major objectives of the study. In order to examine the impact of entrepreneurship development on household income and expenditure. Propensity Score Matching (PSM) Modeling Propensity score matching (PSM) is widely used to estimate treatment effects when all treatment confounders are measured (Abadie and Imbens, 2009; Ravallion, 2005; Cobb clark and Crossley, 2003; Heckman et al., 1998). Rosenbaum and Rubin (1983) defined the propensity score “pscore” as the conditional probability of assignment to a treatment given a vector of covariates including the values of all treatment confounders”. The basic assumption when using a counterfactual is that the untreated samples approximate the treated samples if they had not been treated, i.e. E(Yoi/I = 1) (Heckman et al., 1998). The assumption of Conditional Independence (CIA) must hold true for a matching method to be valid. The CIA argues that enterprise outcomes were independent of entrepreneurs conditional on a set of observables (X), which can be written as: (Y₁,Y₀) 1/X…………..(1)

Source of Information: Bangladesh J. Agric. Econs. XXXVII, 1&2 (2014, 2015) 89-102

Article Link (Online Journal):

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

The setting of tribal society is different from mainstream in many aspects as culture, language, food habit and life style, where the role of tribal women still evaluated by the code of customary beliefs in their society. Traditionally, they are doing household works, going outside for shopping, selling their labour or working in field with male counterparts, and looking after family members. With the help of GOs and NGOs, their rising level of awareness and understanding influenced them to adapt some income generating activities as small enterprises, not stopping their household activities, rather doing some income generating activities in extra or in idle time. Entrepreneurship development is an essential elements for their socioeconomic progress. Their participation in small enterprise activities also influenced them personally, socially and economically in increasing their access to and control over livelihood capitals also. It is critical not only for their own benefits but also for the development of their whole society. Entrepreneurship development of tribal women made some positive impacts on increasing total family income and family expense, buying their necessary personal items like cloths, household furniture, ornaments etc., and saving from their income. However, it could not ensure livelihoods security for tribal women, but adopting new idea of enterprises to improve household income and expenditure and also directly improved their livelihood status. Based on some constraints, the present study is recommended that no single policy could be prescribed for improving livelihood; rather mixed policies have to be followed for the entrepreneurship development. Government might be emphasis on local, cultural and their social based enterprises with the establishment of local market. Sufficient infrastructure development (such as road, bridge, and water supplying facilities etc.) was another important issue followed by adequate training facilities, and providing financial support at low rate of interest in time. Therefore, in the implementation of holistic strategies of financial credit (short-term, mid-term and long-term) for the development of enterprises, the responsible agencies such as GOs and NGOs could include the above mention suggestions during the program planning.

Knowledge Management: Journal