RURAL women in Bangladesh play a crucial role in the economy by running small businesses that do tailoring, poultry farming, dairy production and handicrafts. However, one of their biggest challenges is a lack of financial literacy — many struggle with managing money, securing loans, and making wise investment decisions. They often struggle to grow their businesses and achieve long-term stability without basic financial knowledge. Financial literacy — understanding how to save, budget, invest, and access financial services — can help rural women make better business decisions and improve their economic security.
Women entrepreneurs in villages often rely on informal money management methods, such as keeping cash at home or borrowing from friends and family. Without financial literacy, they may struggle with everyday business challenges such as setting the right product price, keeping track of earnings and expenses or knowing where to get a small business loan. When women understand how to manage money effectively, they gain confidence in growing their businesses and improving their family’s financial future. Learning to calculate costs, set fair prices and track profits helps them run their businesses more efficiently. Understanding loan terms and banking procedures makes it easier for them to secure funding from banks or microfinance institutions. Additionally, financial literacy enables women to develop substantial savings and investment habits, ensuring economic security and allowing them to reinvest in their businesses. With proper financial knowledge, they can also price their products better, reduce unnecessary costs and expand to new markets.
Despite its importance, financial education remains out of reach for rural women due to several challenges. Many village women have limited schooling, making financial concepts difficult to grasp. Many rural women do not have bank accounts, making it harder for them to save money or apply for loans. Traditional gender roles often restrict women’s involvement in financial decision-making, leaving them dependent on male family members. Furthermore, most financial literacy programs are designed for urban entrepreneurs and do not address the specific needs of rural women. These barriers prevent rural women from gaining the financial skills to manage and grow their businesses effectively.
To make financial literacy more accessible and valuable for rural women, simple and practical approaches can be taken. Organising training sessions at local community centres, mosques or women’s groups can help women learn financial basics in a comfortable setting. These sessions should be conducted in simple language, using real-life examples from their daily lives. Encouraging rural women to form small savings groups can teach them the habit of saving and allow them to lend to each other in need. These groups also serve as support networks for learning about financial management. Since many rural women already use mobile phones, teaching them how to use mobile banking services like bKash and Nagad can help them save, transfer money and make payments securely. Simple video tutorials or community demonstrations can make digital transactions easy to understand. NGOs, microfinance institutions and government agencies can provide financial literacy training as part of their women’s empowerment programs. Microfinance lenders should also offer financial education alongside loans to ensure women understand how to manage debt.
Since many rural women do not have access to formal education, financial education programs can be shared through community radio, short TV segments, or storytelling formats in their local language. Teaching young girls basic money management skills in schools can prepare future generations to handle finances better. Simple lessons on saving and budgeting can help develop good habits early on.
Helping rural women in Bangladesh develop financial literacy is one of the most effective ways to strengthen their businesses and improve their families’ financial well-being. They can make better financial decisions and grow their enterprises by learning simple skills such as budgeting, saving, and loan management. Financial literacy does not have to be complicated — practical, hands-on training using community-based learning, mobile banking, and peer support can make a significant difference. Collaboration between the government, NGOs, and financial institutions is key to ensuring that financial education reaches more rural women in a way that is easy to understand and apply in their daily lives. With the proper support, rural women entrepreneurs can become more financially independent, contributing to stronger communities and a more resilient economy.
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Dr Mohammad Shahidul Islam is an associate professor at BRAC Business School, BRAC University. Barsat Kabir is a BBA student at BRAC University.
