Between Trust and Tradition: Women Entrepreneurs and Informal Networks in Dhaka, Bangladesh

Abstract

This paper explores how social capital supports women entrepreneurs in Dhaka’s informal economy. In recent years, many women in Bangladesh have entered informal sectors - such as home-based tailoring, running small roadside stalls, or selling goods online within their neighbourhoods - as a means of earning income and achieving independence. However, these women face several challenges, including limited access to bank loans, restrictions on mobility, and persistent social expectations regarding women’s roles. In this context, informal networks - such as support from family members, neighbours, local customers, and other women - become essential sources of help and resilience. Drawing on 25 qualitative interviews with women entrepreneurs across Dhaka, this study examines how these networks of trust and relationships - what we refer to as social capital - help women manage and grow their businesses. The findings show that women rely on these connections for many types of support, including small loans, advice, childcare, market information, and emotional encouragement. However, gender shapes how these networks operate, as women must often navigate community expectations, family control, and social stigma when seeking support or making independent decisions. While social capital is a powerful resource, it is not equally accessible to all; it functions within a gendered social structure where women frequently have to earn trust in ways men may not. Yet, despite these constraints, women continue to adapt and negotiate, using whatever support they can gather to sustain their livelihoods. This research contributes to broader discussions on gender, informal economies, and social support in South Asia, highlighting the need for policy attention to informal systems of assistance that are already working for women - often quietly, but effectively.