and other export sectors have transformed the economic landscapes of Bangladesh, Pakistan, Sri Lanka and those elsewhere in South Asia. As we bask in the glow of this "Asian economic miracle" let us not forget that the backbone of these industries is the thousands of female employees who comprise the greater part of this dynamic workforce.

Women also make a significant contribution as business operators and leaders, especially in Small and Medium Scale Enterprises (SMEs). Estimates of the number of SMEs in Bangladesh vary, but the role of SMEs in the economy is unquestionable. According to the 2003 National Private Sector Survey of Enterprises in Bangladesh, which was co-financed by US Agency for International Development (USAID), the MSME (micro, small and medium scale enterprises) employs more than 31 million people and contributes 25% to the Gross Domestic Product. However, Women's SME participation, excluding micro enterprises, is very small. One indirect indicator is the total percentage of women as employers. In Sri Lanka, 0.8 % of women workers are employers, and in Bangladesh the estimated percentage is 0.1%, according to the Bangladesh Bureau of Statistics data.

The good news is that solid progress has been made in a relatively short period of time to raise economic growth and broaden the participation of women. The bad news is that these gains by women-led SMEs remain very low relative to the overall SME sector.

Some often cited impediments include:
· lack of acceptable collateral for business loans;
· severely limited access to markets and technology;
· non-transparent regulations;
· poor access to training and business development services;
· gender-biased inheritance rules;
· restrictive social norms;
· lack of confidence on the part of the entrepreneur;

You notice that one of the constraints I mentioned was lack of confidence, a fear of failure on the part of the female entrepreneurs. Events such as this trade fair help dispel doubt and instill confidence that women can succeed in business. You all are remarkable women who have inspiring stories to tell of how, in spite of many obstacles, you exceeded expectations. This trade fair highlights bold women with bold ideas. For example, when Geeteara Safiya Chowdhury started her own ad agency in 1974 there were just six people and an investment of Taka 10,000. Today, Adcomm is one of the most successful advertising companies in the country.

The opportunities for SME development are as exciting as the challenges are daunting. Trade liberalization, a threat to some, presents new opportunities for those able to compete. Consequently, it is vital that female-led SMEs be strengthened and mainstreamed in order for Bangladesh, Pakistan or any country in the region to successfully compete in the world market. The growth of the SME sector and the creation of forward and backward linkages within value chains are essential steps in improving a country's competitive posture as are diversifying the range of products and assuring the highest standards of quality.

The Government of Bangladesh's Industrial Policy 2005 stipulates several useful goals to broaden the participation of women entrepreneurs, such as: providing pre-investment advice, ensuring the participation of women in policy making and establishing of a specialty bank to provide credit. Yet policy without enforcement or support can ring hollow.

The US Agency for International Development (USAID) and the Government of Bangladesh, at the end of this calendar year, will launch a new project called Poverty Reduction by Increasing the Competitiveness of Enterprises (PRICE). We know the trickle down theory to poverty reduction has holes; consequently, economic growth must be tempered with a focus on equity. The poor may end up poorer if development interventions overlook the role of women and youth. The premise of the PRICE project is to improve the integration of SMEs, including women SMEs, within select sectors and help businesses improve their performance in order to effectively compete in new markets. PRICE will establish innovative public-private sector alliances and strengthen the capacities of organizations which serve entrepreneurs, and leverage additional technical and financial resources that will ensure the ustainability of interventions.

The US Mission will continue its support of Bangladeshi women associations and chambers in the implementation of its current activities and will expand its outreach in future projects.

Information Communication Technology presents a remarkable tool to support SMEs. Through PRICE, Information Communication Technology will be used to upgrade the performance of businesses through workforce development training and total quality management.

The US Embassy's prior projects like JOBS (Jobs Opportunities and Business Support), MIDAS (Micro Industries Development Services), and ATDP (Agro-based Industries Technology Development) have become models for enterprise development in Bangladesh.

USAID's Greater Access to Trade Expansion (GATE) project has been instrumental in conducting gender-focused research and analysis in areas of trade, ICT and value chain development. This information will help make better decisions in the design on economic growth projects.

Be assured that the US Embassy in Bangladesh supports the efforts of government and private sector to find common ground that will lead to a more prosperous country and region.

Patricia A. Butenis is the US Ambassador to Bangladesh. The article is adapted from her speech at a seminar-where she participated as the Chief Guest-organized as part of the activities of the 3rd Asian Women Entrepreneur Eid Fair 2006.