The limitations of microcredit for promoting microenterprises in Bangladesh
Microcredit is regarded as a tool for poverty alleviation. A stereotyped delivery system is designed and used for promoting and serving survival- and subsistence-level economic activities, particularly for poor female clients. In Bangladesh its success has raised social expectations as to its pot...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics, Belgrade
2012-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2012/0013-32641292041A.pdf |
| _version_ | 1818043257862488064 |
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| author | Alam Mahmudul Molla Islam Rafiqul |
| author_facet | Alam Mahmudul Molla Islam Rafiqul |
| author_sort | Alam Mahmudul |
| collection | DOAJ |
| description | Microcredit is regarded as a tool for poverty alleviation. A stereotyped delivery system is designed and used for promoting and serving survival- and subsistence-level economic activities, particularly for poor female clients. In Bangladesh its success has raised social expectations as to its potential as also a promoter of microenterprises, which are growth-yielding small businesses beyond subsistence-level economic activity. The field survey shows that about 11.7% of the microcredit borrowers are this kind of potential or growing microentrepreneur. It also shows that microcredit’s standardised delivery system, particularly in respect of gender preference, loan size, loan disbursement, and repayment schedules, is a strong limiting factor in effectively serving the microenterprises, which require a more flexible credit package. Therefore a methodological modification is necessary to accommodate flexibility in the microcredit delivery system. |
| first_indexed | 2024-12-10T08:59:21Z |
| format | Article |
| id | doaj.art-356da6de85ac4c8fbd1c1857a8344ffe |
| institution | Directory Open Access Journal |
| issn | 0013-3264 |
| language | English |
| last_indexed | 2024-12-10T08:59:21Z |
| publishDate | 2012-01-01 |
| publisher | Faculty of Economics, Belgrade |
| record_format | Article |
| series | Ekonomski Anali |
| spelling | doaj.art-356da6de85ac4c8fbd1c1857a8344ffe2022-12-22T01:55:20ZengFaculty of Economics, BelgradeEkonomski Anali0013-32642012-01-0157192415310.2298/EKA1292041AThe limitations of microcredit for promoting microenterprises in BangladeshAlam MahmudulMolla Islam RafiqulMicrocredit is regarded as a tool for poverty alleviation. A stereotyped delivery system is designed and used for promoting and serving survival- and subsistence-level economic activities, particularly for poor female clients. In Bangladesh its success has raised social expectations as to its potential as also a promoter of microenterprises, which are growth-yielding small businesses beyond subsistence-level economic activity. The field survey shows that about 11.7% of the microcredit borrowers are this kind of potential or growing microentrepreneur. It also shows that microcredit’s standardised delivery system, particularly in respect of gender preference, loan size, loan disbursement, and repayment schedules, is a strong limiting factor in effectively serving the microenterprises, which require a more flexible credit package. Therefore a methodological modification is necessary to accommodate flexibility in the microcredit delivery system.http://www.doiserbia.nb.rs/img/doi/0013-3264/2012/0013-32641292041A.pdfGrameen Bankmicrocreditmicroenterprisesubsistencepoverty alleviationstereotype |
| spellingShingle | Alam Mahmudul Molla Islam Rafiqul The limitations of microcredit for promoting microenterprises in Bangladesh Ekonomski Anali Grameen Bank microcredit microenterprise subsistence poverty alleviation stereotype |
| title | The limitations of microcredit for promoting microenterprises in Bangladesh |
| title_full | The limitations of microcredit for promoting microenterprises in Bangladesh |
| title_fullStr | The limitations of microcredit for promoting microenterprises in Bangladesh |
| title_full_unstemmed | The limitations of microcredit for promoting microenterprises in Bangladesh |
| title_short | The limitations of microcredit for promoting microenterprises in Bangladesh |
| title_sort | limitations of microcredit for promoting microenterprises in bangladesh |
| topic | Grameen Bank microcredit microenterprise subsistence poverty alleviation stereotype |
| url | http://www.doiserbia.nb.rs/img/doi/0013-3264/2012/0013-32641292041A.pdf |
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