Micro Credit

MICRO-CREDIT ON

WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA:

A CASE STUDY OF SOME WOMEN ENTREPRENEURS. *****************By

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MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

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MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

II

Praise is to Allah, the creator or sustainer who has given me the strength and opportunity to complete my report on the topic of “Micro Credit on Women Entrepreneurship development of ASA: A Case study of some women entrepreneurs ", which reveals not only read but also realize the subject deeply and knowledge has value. So it is very necessary to achieve practical knowledge and clear concept about the subject the practical experience also helps the learners to gather new idea and techniques.

To full these criteria, I had to work in the branch office, at Kushtia, Bangladesh. In this study and observation about two months, I have gathered knowledge on "Micro Credit on Women Entrepreneurship Development by ASA:"

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MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

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At first, I express my deep gratefulness to the Almighty Allah for giving every assistance in the way of life. No report can be prepared with the help of some people and work of others. While preparing this report some people have cooperated sincerely and cordially. I express my deep gratitude to them. It is with deep sense of reverence that I express my indent ness to D.M. ASA, Head Office at Kushtia of Bangladesh who guided and assigned me to prepare this report. His valuable advice and guidance not only enable me to develop a better insight into the subject matter into the report but also inspire me to the meticulous and analytical in my task. It is mentioned specially that with his help it is not possible for me to prepare this report. A large number of official of ASA have given their valuable time to supply necessary information, document and reports, which is thankfully acknowledge. I gratefully acknowledge the invaluable help and co-operation extended to me by the staff of Islamic University Central Library & Seminar of Accounting & Information Systems Department and the computer operator of PCC. I am grateful to all my teachers for their guidance and advice during courses and for the rest of life.

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MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

IV

PARTICULARS

Page No

DECLARATION

II

SUBMISSION LETTER

III

PREFACE

IV

ACKNOWLEDGEMENT

V

CONTENTS

VI-VIII

LIST OF TABLE

IX

Chapter- One : Introduction

1-9

Introduction

1

1.1 Statement of the problem

1

1.2 Rational of the study

2

1.3 Objectives of the study

3

1.4 Methodology of the study

4

1.4.1 Conceptual framework

4

1.4.2 Research design

5

1.4.3 Sample design

6

1.4.4 Methods of data collection

7

1.5 Limitations of the study

8

Chapter-Two: Review of Related Literature

10-12

2. Review of Related Literature

10

2.1 A brief review of some related literature.

10

Chapter-Three: Importance of Entrepreneurship Development

13-15

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

V

Importance of entrepreneurship development. Chapter-Four: ASA :An Overview

13 16-37

ASA IN BREIF

16

4.1 Background’ growth & development of ASA

16

4.2 Objectives of ASA

17

4.3 ASA at a glance

18

4.4 ASA oregano-gram

21

4.5 ASA recently development program

21

4.5.1 The road ahead: ASA in 2004

22

4.5.2 Targeting the hard core poor

22

4.5.3 Graduating clients to encourage economic development:

23

4.5.4 Building the foundation for economic empowerment:

24

4.5.5 Envisioning the future: ASA concept development national sanitation plan.

25

4.5.6 Tailoring loan products to disaster-prone areas: Haor and Monga consumption loans.

26

4.5.7 Tailoring loan to SIDR affected area

26

4.5.8 Small NGO partnership program

27

4.5.9 Student Internship program:

28

4.6 ASA’s saving and credit program

28

4.6.1 Micro credit:

28

4.6.2 Small loan program:

29

4.6.3 Small business loan program

29

4.6.4 Small entrepreneurs leading program (SEL)

30

4.6.5 Micro savings

31

4.7 Information on ASA’s success

32

4.8 ASA’s future plan

36

Chapter- Five: Profile of Entrepreneur Development

38-50

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VI

5.1 Basic characteristics of entrepreneurs 5.1.1 Age of the entrepreneurs 5.1.2 Educational background of entrepreneurs 5.1.3 Occupation of the entrepreneurs 5.1.4 Husbands occupation of the entrepreneurs 5.1.5 Marital status of ASA entrepreneurs 5.1.6 Inspiration to be a member of ASA 5.1.7 Income earners of the entrepreneurs 5.1.8 Families’ monthly income of the entrepreneurs 5.1.9 Residential status. 5.2 Development of entrepreneurship. 5.2.1 Income earners of the entrepreneurs 5.2.2 Occupation of the entrepreneurs 5.2.3 Nature of dwelling. 5.2.4 Husbands occupation of the entrepreneurs 5.2.5 Family’s monthly income of the entrepreneurs Chapter-Six: Problem of Entrepreneurs Development Problem of Entrepreneurship Development. 6.1 problem faced by Entrepreneurs 6.2 problems faced by ASA personnel Chapter-Seven: Summary and Recommendation

38 38 39 39 40 41 42 42 43 44 45 45 46 47 48 49 51-53 51 51 52 54-56

7.1 Summary of the Study

54

7.2 Recommendation

56 BIBLIOGRAPHY

57

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

VII

LIST OF TABLES

Sl. No.

Particulars

Page.

Table- 1: Table- 2:

Types of respondents Age of the entrepreneurs

6 38

Table –3: Table –4:

Educational backgrounds of entrepreneurs Occupation of the entrepreneurs.

39 40

Table –5:

Husband's occupation of the entrepreneurs

40

Table- 6:

Marital status of ASA entrepreneurs

40

Table –7:

Inspiration to be a member of ASA

42

Table-8:

Income earners of the entrepreneurs.

42

Table-9:

Families monthly income of the entrepreneurs.

43

Table-10:

Residential status of entrepreneurs

44

Table –11: Income earners of the entrepreneurs before and after joining ASA.

45

Table-12:

Occupation of the entrepreneurs before & after joining ASA 46

Table-13:

Nature of the dwelling after joining ASA.

Table-14:

Husbands occupation of the entrepreneurs before & joining ASA. 48

Table-15:

Family's monthly income of the entrepreneurs before & after ASA finance.

47

50

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

VIII

CHAPTER -ONE

1.1 Statement of the problem. Bangladesh

is

mainly

an

agricultural

country.

About 75 percent of its population lives in village and 63 percent of them are dependent on agriculture, which contributed more than half of the GDP (fifth five year plan 1997- 2002, p-13). Average annual per capita income is $ 407 and almost out an existence below poverty

line

with

very

little

access

to

the

basis

pleasantness of life fifth five year plan (FFYP 19972002, p-1). The under developed ness of the rural economy

of

Bangladesh

is

reflected

in

the

low

productivity, high population pressure, unemployment, lack of working opportunities outside agriculture, and the resultant deteriorating living condition of the rural poor. Rural illiteracy and ignorance is very high. About 29 percent of the household did not own any land, other households and 50 percent owned less than 50 percent decimate of cultivable land. The people of its does not want to change their occupation, which he has got from inheritance. SO they live their life depending on old profession agriculture. The above poverty scenario, women in Bangladesh suffer more because they are generally subordinate to male members of the family. These

subordinates

lead

to

various

discrimination

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

IX

deprivations, which make for quality of life for women. Women take part little in decision making process within

households

including

decisions

about

inter

household resource allocation. As a consequence they suffer more than men in terms of hunger, malnutrition and ill health. Many NGOs in Bangladesh like ASA to alleviate

poverty

in

Bangladesh.

Bangladesh

is

a

developing country; people need different assistance for their growth and development. From this point of view ASA, motivate women to do various type of work. This study is conducted to evaluate and analyze the financing by ASA for entrepreneurship development specially women entrepreneurs.

1.2 Rational of the study. Bangladesh is one of the poorest countries of the world. Her socioeconomic development dependents on rural development, 85 percent of its total population being dispersed in 86500 village, and about 50 percent living

below

poverty

line

defined

by

minimum

nutritional requirement fifth five years plan

(1997-

2002). The literacy level in the country is very low, consequently the technical skill of the labor forces is also low, being poor people, their purchasing power is very low. As a result, large- scale industries cannot be established depending upon initial demand. At present different selected

foreign NGOs

countries for

provide

poverty

funds

to

some

alleviation

and

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

X

entrepreneurship development of third world countries. ASA is one of them. ASA provide loan and other systematic development assistance and influence to the marginal farmers wife, landless women, day laborers, sharecroppers, destitute women, neglected mothers and other disadvantaged section of the society. It motivates women to create awareness about dowry, prejudice etc.

1.3 Objectives of the study. The fundamental objective of the study is to evaluate the role of ASA for the economic development of the rural poor women in Bangladesh. The specific objectives of this study are expressed. I)

To

acquire

both

theoretical

and

practical

knowledge on credit pro0gram; II)

To make an over view of ASA;

III) To study the socioeconomic backgrounds and other characteristics of rural women entrepreneurs in Bangladesh; IV) To identify the problems faced by the rural women entrepreneurs in conducting their business; and V)

To give some recommendations for solving their problems faced by the entrepreneurs and ASA personnel.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

XI

1.4 Methodology of the study 1.4.1 Conceptual framework. In this study different terms are stated below: Entrepreneurs: The word entrepreneurs have come from French word ‘Entreprender`. It means to undertake 16th century it was used to mean personnel who were engaged in military expeditions

(Cochran,

1965).

After

17th

century,

however its meaning of extended to other types of adventure mainly civil engineering activities like the construction of road, bridge, harbors and buildings (Cochran, defined

1968).

Oxford

entrepreneurs

enterprise

especially

English

dictionary

as

one

who

a

contractor

(1993)

undertakes active

as

an a

intermediary between capital and labor. McClelland, a psychologist, defined entrepreneur as a person, who is psychologically motivated by a high need encourage him to take risky ventures and makes him to hard working to achieve the goal. Finally it is said that entrepreneurs is the process of creating something different with value by devoting the necessary time and effort’ assuming the accompanying financial’ psychological’ and social risks and receiving the resulting the rewards of monetary and personal satisfaction.

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XII

ENTREPRENEURSHIP DEVELOPMENT: 1.4.2 Research design: A research design is simply a framework or a plan for study that may be used as a guide as collecting and analyzing data. The research work in social science branch perhaps requires a well-defined approach. But that approach may even differ in different cases. In this section we would try to follow the appropriate methodology to obtain the primary and secondary data and the analysis of them in the light of the desired objectives of the study.

SOURCE OF DATA: Primary data: Asking some questions to the respondents including regional manager’ unit manager and field organizers has collected the primary data. Secondary data: The secondary data have been collected from various sources. These sources include annual report of ASA’ brief of ASA’ monthly ADP program’ Nirjash’ RDP basic’ magazine’ articles etc.

Publication of the ASA: The data relating to the entrepreneurship development program

of

ASA

activities

undertaken

for

women

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

XIII

entrepreneurship development’ report’ circular issued etc. have been obtained from the regional office for the purpose of the study.

1.4.3 Sample design: Selection of respondents: Selections of respondents are two categories: ASA personnel

and

loonees

entrepreneurs.

All

the

two

manager's officials and one regional manager and a total of 50 entrepreneurs (taking 25 from each branch) who have taken financial assistance from ASA have been interviewed. The entrepreneurs who have been selected are holding the post of chairman of the group. All the selected interviewees are female. Table- 1:Types of respondents Serial no.

Types of respondents

Number

1.a

Agricultural forestry

20

1.b

Trading

10

1.c

Livestock & fisheries

10

1.d

Shop keeping

06

1.e

Processing & manufacturing

04

Sub total of women entrepreneurs

50

2.a

District manager

01

2.b

District officer

04

2.c

Branch manager

01

2.d

Field organizer

04

Sub total of ASA personnel

10

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XIV

1.4.4 Methods of data collection: We have selected the three methods of data collection for the study.

a)The library work method: The work has been primarily confined to studies relating to various aspects of ASA finance and entrepreneurship development. I have gone throw different journals, periodicals, books and government publication and have obtained necessary data for the purpose. b) The interview method: As usually an interview is always considered pseudo conversational by nature. So it is called an oral exchange of information. It is an important matter for obtaining facts that may help us supplement personal information. c) The observation method: Observation method is considered as one of the most important method for collecting necessary information by the observer. The success of this matter depends largely

upon

the

experience

and

capacity

of

the

observer. Therefore the researcher is expected to record the relevant data as soon as those come to his notice. For this purpose we have maintained a dairy from the very beginning of the study. Information related through observation has been noted down in the diary. Farther for having an overall knowledge about the character, behavior, aptitude etc. Of the loonees in rural areas. We

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

XV

have visited many villages to meet the prospective persons who have taken loan from various branches of ASA.

1.5 Limitations of the study: Majority good aspects are existed in this study but it has also some limitations. These are given below: 1. The fieldwork was limited only two to branches under Jhenidah district. The study could not cover the other areas due to lack of time and researches constraint. 2. The sample respondents are most illiterate. So due to their illiteracy proper and adequate answer did not come out against questionnaire. 3. The roads of the village are so bad and I have fallen

in

problems

to

go

to

the

village

for

conducting with members. 4. To prepare an analytical report need financial assistance.

The

financial

aid

department

is

insufficient.

provide

Lack

of

by

the

sufficient

money various types of analysis did not possible. 5. Due to limited time it was not possible to prepare the report properly. 6. Some

times

researcher

failed

to

collect

the

necessary data for their restriction. As a non- govt. organization

they

do

not

disclose

all

the

information. 7. After all lack of efficiency and experience of the researcher was also a limitation. 8. Published document were not available.

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XVI

CHAPTER - TWO

2.1 A brief review of some related literature. Ahmeds. (1987) Disagreed with the commercial bank that had been put forward in the posts by some corners that Bangladeshis were neither innovators nor risk takers there were quite a good number of person with risk taking attitude. He argued that it had not been able to attract the people with right attitude to come forward to take up entrepreneurial activities. He wondered how much of the financial assistance for the development of entrepreneurship in Bangladesh had reached the hands of person with right entrepreneurial attitudes. He mentioned that due to lack of social status of businessmen and industrialists in Bangladesh,

entrepreneurship

development

was

hindered. Last of all he emphasized training as an essential tool for entrepreneurship development.

Rah man, it is an article (1996) emphasized on micro enterprises

development

entrepreneurship

in

for

Bangladesh.

He

programming suggested

for

providing three types of assistance such as stimulatory, support, and sanitation activities for

running these

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XVII

enterprise

successfully.

development enterprises

of

the

after

He

recommended

training

assign

program

for

the

for

for

the

micro

training

needs.

Government should provide top most priority for the formulating pragmatic entrepreneurship policy and to establish

an

entrepreneurship

development

Institute

(EDT).

Farouk

(1987)

observed

that

lack

of

infrastructure

facilities, non availability of raw materials, absence of proper industrial policy, trade union of tyranny, lack of definite

policy

to

encourage

market

economy

and

competition, Political patronization and licensing of key elements were major reasons behind unhealthy industrial and entrepreneurship development of Bangladesh. He suggested that necessary steps should be taken in: a) Formulating clear- cut govt. policy for creating competition

and

protection

of

market

mechanism. b) Training the entrepreneurs. c) In providing necessary financial assistance. d) In

maintaining

infrastructure

low

and

order

development

for

situation

and

accelerating

industrial and entrepreneurship development in Bangladesh.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XVIII

Mc McClelland (1976) has shifted the focus from the socioeconomic factors to psychological factors. He has concluded that ‘achievement motivation’ is the most distinguished features of an entrepreneurial personality. Kilby (1969) has mentioned that the socio- cultural factors constrained the development of entrepreneurial. Gaik Wad and Tripathy (1970) have attempted to bring out the pre requisites for successful entrepreneurship and found

that

the

entrepreneurs

are

the

persons

with

initiative drive. They are also hard working by nature. In their opinion the problems of the industrialists are manifold. They think that industrialist enjoy better status than the traders.

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XIX

CHAPTER-THREE

Entrepreneurship lies at the center of the process of economic development. A country may be rich in natural resources yet poor in terms of living standard until its people are able and willing to exploit its natural wealth. Bangladesh

is

an

example

in

this

line.

Here

entrepreneurship is not widespread as it should be. Entrepreneurs are men of vision; drive and talent who spot out opportunities and promptly seize them for exploitation. Thus entrepreneurship is the critical factor in the economic development. This factor is societies most single productive force and the chief instrument of economic progress. The shortage of entrepreneurs is probably the most potent limiting factor in the economic development

of

developing

countries.

Actually

entrepreneurship is the leverage, which activates the rate of economic progress. It is the sprite of enterprise among people that leads to the development of a particular society. Underdeveloped

countries

remain

backward

mainly

because they suffer from great shortage of innovative entrepreneurs. As the dynamic agent of change this entrepreneurs transfer resources into input. Lack of enterprise results in underutilization of resources thus

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XX

retaining the general level of poverty stagnation. Thus entrepreneurship is essential ingredient of economic growth. Entrepreneurs initiate, increase and sustain the process of economic development in the following ways: 1. Capital formation: Entrepreneurs mobilize the idle savings of public through the issue of industrial securities.

Role

of

capital

formation

increases

which is essential for rapid economic growth. 2. Important

in

per

capita

income:

Entrepreneurs

locate and exploit opportunities. They convert the latent and idle resources like land, labor and capital into national income and wealth in the form of goods and services. They help to increase net national product and per capita income in the country, which is the yardstick

for

measuring

economic growth. 3. Generation of employment: Entrepreneurs generate employment both directly and indirectly. Through this

way

entrepreneurship

helps

to

reduce

the

unemployment problem in the country. 4. Balanced regional development: Entrepreneurs in the public and private sectors help to remove regional disparities in economic development. They set up industries in backward areas to avail of the

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

XXI

various concessions and subsidies offered by the government. 5. Improvement in living standard: Entrepreneurs set up industries, which remove scarcity of essential commodities and introduce new products. At present, there is a global emphasis on the rural development

through

multidimensional

rural

financing scheme. The government of Bangladesh has also recognized the importance of rural development. It is widely recognized that most of the problems facing

the

economy

of

Bangladesh

are

underemployment of the people. The most abundant resources of the country is estimated that almost 50 percent of the population live below poverty line and the most proximate cause of poverty is high incidence unemployment

and

Entrepreneurship

underemployment.

development

as

a

strategy

for

overall economic development of a country is well recognized. A country may have abundant resources but the problem with it lies in putting those resources the

production

process.

This

can

only

be

made

possible through initiative taken by some persons who may be known on entrepreneurs. Entrepreneurship has produced

the

forces

of

change,

used

them

and

eventually has become the human generation that has accelerated the pace of development throughout the world.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXII

CHAPTER– FOUR

4.1 Background’ growth & development of ASA ASA is a non-governmental micro finance institution that provides financial services to the poor. Throughout its history, ASA has been constantly evolving, passing through establishment, reformative, and specialization phases. Frustrated with the bureaucratic structure of both government and traditional NGOs, in 1978 the founder of ASA established an organization that would have a grass-roots focus and develop consciousness raising and training programs. By the early 1990s ASA had begun to focus on micro finance programs’ recognizing that access to credit can empower the poor and allow them to take charge of their economic futures. Throughout the next decade, ASA specialized in the provision

of

operational delivery

micro

structure

method.

finance and

ASA

services,

developing

focused

on

refining its

its

low–cost

becoming

self-

reliant, sustainable and independent of donor funds, achieving this goal in 2001. Financial self reliance has given, ASA the capability to expand its product range and target new segments of the population. This report details the advancement that ASA has made in the past year, and outlines ASA’s vision for the future. In a sense ASA has now come full

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XXIII

circle, returning to its roots, reaching out to the poorest members of society, and entering a new reformative phase. ASA program cover the main aspects of the life of the people with home it works. The three core areas are rural development, education and health. In addition ASA in recent years has started urban programs. ASA’s rural

development

programs

focus

on

the

socio-

economic development of underprivileged rural woman through access to credit, capacity development, saving mobilization,

institution

building

and

awareness

creation. The non formal primary education program provide education for the children of these children of these women, whole the health and population program is aimed at addressing the health and nutrition status of women and children at the community and national level. Efforts are made to ensure that these programs are complementing each other.

4.2 Objectives of ASA 1)

To provide credit support to help the poor in increasing their income through generating self-employment opportunity.

2)

To

help

to

increase

social

consciousness

among the unconscious people. 3)

To increase the literacy rate through providing literacy

and

functional

education

to

the

illiterate target people. 4)

To promote planned families and reducing maternal and child mortality rate.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XXIV

5)

To mobilize and organize the helpless people around groups for the improvement of their living standard

6)

To

make people aware on

sanitation and

ensuring safe drinking water and hygienic latrines. 7)

To develop a capable human resources through human and skill development training.

8)

To promote a clean and sustainable disaster.

9)

To generate own income of the organization.

4.3 ASA at a glance Up to December 2004 1. 2.

3.

Amount in million taka.

Year of starting the micro-credit program Total No. Of branch office

1991 Rural

1733

Urban

232

1965

Total No. Of staff (Central office100, field 11307)

11407

4.

Total No. Of villages

54229

5.

Total No. Of unions/ wards

6.

Total No. Of Thanas (Sub districts)

7.

Total No. Of Districts

8.

Total No. Of groups

9.

Total No. Of Active member

7860 509 64 Small

129230

Small business

6607

HP

1254

Small

137091

2867121

Small business

89119

SEL

10038

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXV

HC poor BDS

10. Total no. Borrowers

Small Small business SEL HC poor Education BDS

11.

Saving Balance

Small Small business

(With service charge)

401

2996660

2650075 81132 10038 29981

2772719

1092 401 2552.58 274.36

HP

1.28

BDS

0.02

12. Members life insurance (Security Fund) 13. Total loans

29981

2828.24

1438.35 Disbursed

109983

(cumulative)

96207

Realized

13776

(cumulative) Outstanding 14. Rate of recovery

99.88%

15. Operational self-sufficiency (OSS)-2004

245%

16. Financial self-sufficiency (FSS)

159%

17. Cost for money lent on loan disbursement

0.037

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4.4 ASA oregano-gram General Body

Governing Body

Managing Director

GM-SEL (one)

GM-Operation (one)

GM-Alternative Initiative (one)

Head finance& MIS

Director (Program) Deputy Director (DD)

Head Information

IT, MIS & RLF

GM-Audit (one)

Head-Accounts & Admin

Director (R&P)

General Audit Team Field Auditor

Asst. Director (AD) Program Manager (PM)

Direct Administrator-DA/ Direct manager-DM/ Team leader-TL/ District Officer-DO

Accounts & HRD

Logistics

Supports staffs Driver, peon, Guard Cleaner

Branch manager – BM Manager SEL Loan officer Support staff

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXVII

4.5 ASA RECENTLY DEVELOPMENT PROGRAM 4.5.1 The road ahead: ASA in 2004 ASA

now

has

both

the

financial

and

operational

capability to expand its product ranges to develop new initiatives and target new segment of the population. ASA is developing new product to target the hard-core poor

and

victims

governance (GGCAP)

of

and will

seasonal

community strengthen

disasters. assistance

communities

The

good

program while

the

sanitation loan program will contribute to improving the health of community members.

4.5.2 Targeting the head core poor By combining flexible product design with practical business development service ASA has recognized that the

hard-core

poor

have

specific

needs

and

have

designed a low risk, appealing product that facilitates their

transition

to

the

formal

economy.

ASA

will

introduce its flexible product in January 2004. ASA’s flexible product is attractive to risk-averse clients as both the term and the repayment schedule of the flexible loan are tailored to suit the specific project undertaken by the client. The term of flexible loan ranges

from

one

to

six

months

while

repayment

schedules may bi-monthly, or a one-time repayment at the end of the term. Initial loan size is smaller than ASA s’ small loan product, and ranges from tk. 1000 to 2000

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXVIII

with subsequent loan increases of tk.500 to 1000. The service charge on this product is 1% monthly on the total principal, calculated at the time of loan disbursement. The savings component of

the flexible

product is

designed to facilitate even small amount of savings with a mandatory monthly requirement of only tk. 10. ASA's loan insurance and security fund protect the clients family in the event of the clients untimely death further reducing the risk associated with the product. In addition to integrating the flexible product in to all existing branches by the end of 2005. ASA will establish 1000 ASA mini-branches in remote locations. Local staff responsible for flexible product delivery and collection will be based out of these outposts.

4.5.3

Graduating

clients

to

encourage

economic

development: ASA believes that small to medium sized enterprises have the potential to general positive economic spin-off, creating employment opportunities for the hard-core poor. ASA is making an active report to identify core product

clients

with

existing

enterprises

that

have

expansion potential graduating them to the SEL program and providing them with Business Development Service (BDS). ASA s’ goal is to graduate one woman from each of its members groups an effort that could result in the creation of 100000 new jobs for the hard-core poor.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XXIX

4.5.4

Building

the

foundation

for

economic

empowerment: ASA's micro finance products allow the poor to take control of their economic futures. Micro finance services however do not exist in a vacuum. The framework within

which

the

individual

operate

limits

the

effectiveness of the financial tools and an individual’s ability to benefit from them. ASA’s good governance program

will

provide

impartial

and

unpartisan

monitoring of local government and quasi-governmental services and programs, encouraging accountability and stability in Thana/upozila level operations. ASA head office will produce a newsletter outlining the finding and activities of this program. ASA is establishing a GGCA committee in each of Bangladesh’s 480 Thanas/upozila. ASA understands that micro-finance is most effective in strong communities with effective social services and structures. With these in mind ASA is launching its community assistance initiative, which will provide financial support for local, community based local services. ASA will set aside 2% of it income to fund these initiatives. These funds will be used to provide grants to help disabled persons and acid-burn victims, provide grants for legal assistance for oppressed or divorced women, provide educational assistance for very poor school children. Strengthen primary education by providing funds for tutoring and private teachers to the children of uneducated parents provide grants to hard-

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXX

core poor community members to cover the cost of a sanitary latrine, and plan and promote a community sanitation campaign, developing and implementing a waste collection service that will operate on a cost recovery basis. A maximum of 10% of the funds given to each GGCAC may be spent on administration and salaries, leaving 90% of the funds provided to go directly

to

the

community,

helping

to

build

the

infrastructure needed to effectively exploit the potential of micro finance.

4.5.5 Envisioning the future: ASA concept development national sanitation plan. October 2003 was nation sanitation plan. At this time ASA joined government and other NGOs’ in committing to significantly improve sanitation conditions both in Dhaka and around the country. ASA goal is to financing 5000 sanitary latrines in Dhaka by March 2004. ASA is currently researching this issue and plans to introduce a zero- interest sanitary latrine loan program this year.

4.5.6 Tailoring loan products to disaster-prone areas: Haor and Monga consumption loans. Several resigns of Bangladesh are subject to yearly disasters. Five districts in the north experience yearly

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XXXI

famine or monga while several districts in the east are subject to catastrophic flooding, or Haor. To help residents of these regions cope with these seasonal disaster, ASA is exploring the idea of introducing a loan specifically tailored to their needs. These products will likely be offered in specific regions on a seasonal basis, and will help poor residents smooth their consumption in times of hardship.

4.5.7

Small NGO partnership program.

In1995,

ASA

implemented

its

NGO

partnership

program. ASA's small NGO partners operate in remote areas in Bangladesh, and serve a client population that ASA itself currently does not reach. The object of this program is to help small MF/NGOs become more efficient by providing them with skilled manpower, technical support and loan funds. Since the programs’ inception, more than 125 NGOs have received training from ASA. ASA is able to use its experience to channel soft loan funds from major donors to its partner NGOs. ASA currently has 24 partners throughout the country who are involved in this program. At the end of 2003 they had received loan funds of Tk. 127 million. Total active members of the partner NGOs were 125, 496 and their saving balance was tk. 134 million. The total number of active borrowers was 94610 and loans outstanding mount them was 358 million.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXXII

4.5.8 Student Internship program: ASA's student internship program was developed in cooperation

with

universities

and

four

of

colleges.

Bangladesh’s

Established

in

leading 1998

the

program uses a participatory approach and places BSS and MSS students in ASA branches for a period of 60 days. ASA offers this program free of cost. During their placements students receive a general orientation on micro finance followed by practical training on effective implementation of micro finance programs. As part of their internship student must submit a written report to their academic Institution. In 2003, ASA hosted interns: from

Dhaka

Bhawal

university,

Badere

Alam

Borhanuddin college.

Lalmatia Govt.

Mohhila

College

college,

and

Shekh

ASA's internship program also

attracts international participants. In 2003 ASA research cell hosted one intern from Canada.

4.6 ASA’s saving and credit program 4.6.1 Micro credit: All

ASA

loans

are

made

to

individuals,

with

no

collateral or group liability component. The service charge is calculated flat on the principle of the loan. Four weeks after members pay a small admission fee, they are eligible to receive their first loan. Repayment begins 15 days after disbursement. Loan application and payment

processes

are

standardized,

making

them

simple to understand to transparent to clients. MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXXIII

4.6.2 Small loan program: ASA basic loan program offers small loan to women whose monthly income does not exceed tk. 3000 and who own less than .5 acres of cultivable land. The aim of the program is to provide poor women with capital so that their households can engage in small income generating

activities

(IGAs).

Typical

IGAs

include

paddy husking, livestock rearing, handicraft manufacture and

rickshaw

pulling.

Women

benefit

from

these

activities in 12 ways: the income generated by these activities will supplement household income and women gain increased bargaining power as they are able to make a larger financial contribution to the household. Initial loan values range from tk.6000 to 20000 in urban areas and tk. 4000 to 6000 in rural areas. The term of the small loan is 1 year in which clients make 46 payments with 6 weeks grace period. The service charge is 15% flat on the principal. Subsequent loan increased by increments of tk.1000 to 5000. Women attend weekly meetings of 20 – 30 members where payments are made and savings collected.

4.6.3 Small business loan program ASA small business program offers loans to men and women

who

have

demonstrated

a

competence

in

business, but lack of capital necessary for expansion. This product is aimed at established business people

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXXIV

with medium sized enterprises. Initial loan size is 15000 – 20000 with subsequent loan increasing in increment of 5000-8000. Like the small loan program the term of the small business loan is 1 year with a service charge of 15% flat on the principal. At the end of 2003 ASA had 80862 clients in the small business program. Total loans disbursed were tk 7949 million, with tk. 7061 million realized

and

tk

888

million

with

service

charge

outstanding. The recovery rate for the small business program was 99.88%.

4.6.4 Small entrepreneurs leading program (SEL) ASA's SEL program is aimed at enterprises that are larger than those targeted by the small business program that

have

the

potential

to

create

employment

opportunities. Initial loans range in volume from 30000 to 150000. Three-payment schedule are possible with term of 1 year, 1.5 years or 2 years. SEL loan recipients provide ASA with cheques for their payments, which gives ASA legal collection and enforcement mechanisms that are not present in ASA's other loan products. At the end of 2003 ASA had 2839 clients in the SEL program. Total loans disbursed were tk. 246 million, with tk. 37 million realized and tk.209 million outstanding with service charge.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXXV

4.6.5 Micro savings The poor can and want to save. ASA was among the first NGOs to understand that savings are of no use to clients if they are locked bin by MFI. In 1997 ASA proposed a bold new policy that would allow members to withdraw their savings as needed. Members with small and small business loans must keep 10% of the loans principal in their accounts but have free access to the remainder of their

savings.

Since

1997

ASA

has

offered

both

mandatory and voluntary savings programs to its clients. Savings benefit both ASA and its clients, as mobilized savings are capitalized and added to the revolving loan fund (RLF). Mandatory: Member with small loans are required to save tk. 10 weekly. Clients in the small business program are required to save tk. 20 weekly. There is no mandatory savings requirement for SEL clients. Voluntary: In addition to their mandatory saving contribution, ASA member can save as much as they like in. Group members may withdraw up to 1000 (urban) and 500 (rural) at their weekly group meetings. Members who wish to withdraw more than this amount can do so simply by going to the ASA branch. Total savings deposits from July 1992 to December 31, 2003 were tk.13349 million and balance at the end of December 31,2003 was tk. 2805 million.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXXVI

4.7 Information on ASA’s success 01. Specialization achievement. Indicators

Achievements

1. Disbursement cost per tk. 100

Tk. 3

(lowest in the world)

2. Recovery rate

99.88%

3. Loan default

0.12%

(lowest in the world)

4. Financial sustainability (FSS)

159%

(Highest in the world)

5. Repaid expansion in 12 years Reached 3 million (1992-2004) 6.

Impact

members on

the

life

of

poor

people

7.

ASA

model

Bangladesh

self-reliant

Increase of women’s’ empowerment and decision making • Increase of school going children and prevention of drop out • Nutrition development and increase of health Consciousness • Decrease of strife and divorce • Increase of taking nomination as a candidate of local government election. • Increase of participation in nation at election

in Totally from

self-reliant/free foreign

donor

since 2001 8. Overhead cost

Minimum in the world

9. Return on equity

Around 20%

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXXVII

02. ASA’s services 1. Classified division of loan ceiling and borrowers. 2. Category of loan service as per classification of borrowers

3. Loan for males

4. Assistance during disaster periods

5. Savings management

6. Mini insurance for women members

7. Mini insurance for male members

8. Program for health service, medical assistance

Determining loan sizes as per capability of the borrowers Small loan, small business loan, small entrepreneur lending (SEL), hard core poor loan and education loan Loan on agriculture and production oriented activities twice a year Interest- free loan, 100% savings withdrawal, frees medicine distribution, suspending installment for the time being and re-scheduling. Deposit at least tk.10 per week, withdrawal facilities, and no savings deduction in the field, no group savings, no forced savings. Term for 8 years (400) weeks) tk. 10 as weekly premium, return 6 times of deposited amount in case of death, return with interest if alive. Term for 4 years (200) weeks) tk. 10 as weekly premium return of deposit 3 times in case of death, return with interest if alive. 1. Yearly sanction tk. 2.50 core. Health assistance centers have been established in Dhaka and Rangpur 2. A grand worth maximum tk 2 lakh for the members for fatal disease, free medicine distribution. Less interest and flexible loan service.

9. Loans for noneasy accessible remote areas and hard core poor 10. Special services for the Business development service badly suffered (BDS) oriented loans.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXXVIII

03. Behind the organization and achievement. Events

Steps

1. Branch structure

Very simple office with one room,

minimum staff,

level

structure

mid-

without

secretariat. 2. Central Office

Only 100 officials

3. Power of decision

Highest

level

decentralization

of

and

rapid

decision-making. 4. Specialty

of

the Free from foreign grant, Only

organization

financial service, and health service from surplus.

5. Regular management

Written

working

strong

monitoring

manual, and

supervision. Playing promotionnal role in all stages, transparency & accountability. 6. Family in the jurisdiction 30 lakh families (10%of the of service

total

population

in

the

country) 7. Accounts Record

keeping/ Simple & transparent. keeping

(Reporting system) 8. Loan disbursement and One week for first loan & 12 its processing period

hours for next ones.

9. No of group members

Minimum 10 & maximum 30.

10. Liability

No

group

guarantee,

no

penalty to anybody for others default. 11. Appointment orientation/ Training

& No extra cost, appointment/ orientation from the field.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XXXIX

04 ASA home and abroad

Technical assistance on ASA ASA model is followed in the model outside Bangladesh

Philippines/

Nigeria

through

UNDP, Yemen through SFD/ world bank, Indonesia through CORDAID & India through SIDBI. In Bangladesh directly 30 NGOs & indirectly 100 NGOs follow this model.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

XL

4.8 ASA’s future plan 1. 2. 3. 4. 5. 6. 7. 8. 9.

10. 11. 12.

13.

14.

15.

Extension of branches (Including minibranch) Total branches (End year) New thana Total thana (End year) New village Total villege (End year) No. Of group increase Total group (End year) Total number of active clients (members) Small Small business SEL Hard core poor Savings increase (Net) taka. In million Total savings (End year balance) taka. In million Total number of active borrowers Small Small business SEL Hard core poor Total loan disbursement (During the year) taka. In million. Small Small business SEL Hard core poor Total loan disbursement charge) taka. In million. Small Small business SEL Hard core poor

(cuml.with

912 2200 20 510 7500 43046 50000 152639 3350000 2920000 85000 25000 320000 200 3000 3200000 2794000 83000 23000 300000 30376 23489 4757 1250 880

s.

Total loan portfolio (end year principal) taka. In million. Small Small business SEL Hard core poor

117293 101195 13420 1684 994 15204 13759 1171 264 10

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

XLI

CHAPTER- FIVE

5.1 Basic characteristics of entrepreneurs 5.1.1 Age of the entrepreneurs Entrepreneur

must

be

hard

working,

decided

and

committed persons. If they are to succeed in their ventures. The age of an individual entrepreneur is perhaps an important factor for motivating his / her accepting

a

new

and

challenging

venture

like

entrepreneurship. The picture of age -wise distribution of entrepreneur is given in table to symbolize the extent of participation of entrepreneurship. Table 2: age of the entrepreneurs Age (in year)

No. Of

Percentage

entrepreneurs 21-30

25

50

31-40

21

42

41-50

03

06

51-60

01

02

Total-

50

100

5.1.2 Educational background of entrepreneurs Following table exhibits the Educational background of the entrepreneurs it can be seen from the table out of 100

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XLII

entrepreneurs interviewed, about two-thirds (60%) were illiterate

and

one

third

of

the

entrepreneurs

had

educational background of primary level and about below secondary school certificate. Table –3: Educational backgrounds of entrepreneurs Level of education

No. Of

Percentage

entrepreneurs Illiterate

30

60

Primary level

17

34

Junior high

02

04

Secondary level

01

02

Total

50

100

5.1.3 Occupation of the entrepreneurs The results in the following table indicate the occupation of the entrepreneurs before joining the ASA. It can be observed from the table that out of 50 respondents 64% was

unemployed

employed,

which

housewife. accounts

The for

next

20%

come followed

selfby

employed 16% before the use of loan from ASA. Table –4: Occupation of the entrepreneurs. Occupation

No Of

Percentage

entrepreneurs Housewife

32

64

Self employed

10

20

8

16

50

100

Employed Total

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XLIII

5.1.4 Husbands occupation of the entrepreneurs The result in the following table reveals the husband, s occupation of the entrepreneurs before joining the ASA. It is observed from the table that 36% of respondents husband were day laborers 36% were engaged in small business. 20% in agriculture.04% in transport service, 04% were engaged in or associated with other activities. Table –5: Husband's occupation of the entrepreneurs

Occupation

No Of

Percent

entrepreneurs Day labor

18

36

Small business

18

36

Agriculture

10

20

Transport

02

04

Other

02

04

Total

50

100

service

5.1.5 Marital status of ASA entrepreneurs Table-6: Marital status of ASA entrepreneurs Marital status

No of loanees

Percent

Married

40

80

Unmarried

05

10

Divorce

05

10

Total

50

100

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XLIV

ASA delivers loan to the destitute class people. The destitute class people may be married, unmarried, widow or divorce. The collected data disclose that 80% of the total respondents were married taken loan from ASA. 10% of the respondents were unmarried, they received loan for the sake of self-reliant and to assist their large family along side of other earner / earners of the family. In the death of their husband nobody was able to earn in their family. As a result widow stands at the door of ASA for taking loan. 10% of their respondents were divorce. The divorce female face financial crisis in absence of their husband in the male ruled society.

5.1.6 Inspiration to be a member of ASA Table –7: Inspiration to be a member of ASA Inspiration by

No. of loanees

Percentage of

whom

respondents

loanees/ respondents

Husband

9

18

ASA employees

10

20

Self motivated

17

34

Neighbors

12

24

Others

02

04

Total

50

100

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XLV

5.1.7 Income earners of the entrepreneurs The following table shows the income earners of the entrepreneurs. It is observed from the table before joining ASA the income earners of a family were 1 member, who were 40% 2 members 50% 3 members 06% and 4 members and above were 04% respectively. Table-8: Income earners of the entrepreneurs. Income earners

No. of

Percent

entrepreneurs 1

20

40

2

25

50

3

03

06

4

02

04

Total-

50

100

5.1.8 Families’ monthly income of the entrepreneurs Obviously the successful utilization of loan money is expected to make a positive Impact on the income of an entrepreneur. The analysis of data testifies to this fact following table shows the family’s monthly income before using loans. From the table it is found that the average monthly income of the simple entrepreneurs before joining the association as calculated from data was TK1640. It can be observed from TK. 1000-2001. The also reveals that about one fifth of the total respondents earned TK 2001 and above.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XLVI

Table-9: Families monthly income of the entrepreneurs. Income

No of entrepreneurs

Percent

Below-1000

09

18

1000-2001

30

60

2001-3000

06

12

3001-4000

04

08

4001-above

01

02

Total

50

100

5.1.9 Residential status. Table-10: Residential status of entrepreneurs Residential status

No of loanees

Percentage

08

16%

5

10%

Own

30

60%

Rental

07

14%

Total

50

100

Father in law Relatives

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XLVII

5.2 Development of entrepreneurship. 5.2.1 Income earners of the entrepreneurs The following table shows the income earners of the entrepreneurs. It is observed from the table before joining ASA. The income earners of a family were 1 members were 40%, 2members 50%, 3 members 06% and 4 members and above were 04% respectively. However after coming in to the ASA this position has been changed it is seen from the table that the income earners 1 declined from 40%- 14%. On the other hand the income earners two of a family increase from 50%52% an above increase from 10 to 34.

Table –11: Income earners of the entrepreneurs before and after joining ASA. Income

Before no of

earners

entrepreneurs

Percent

After no of

Percent

entrepreneurs

1

20

40

07

14

2

25

50

26

52

3

03

06

12

24

4

02

04

05

10

Total-

50

100

50

100

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. XLVIII

5.2.2 Occupation of the entrepreneurs The results in the following table indicate the occupation of the entrepreneurs before and after joining the ASA. It can

be

observed

from

the

table

that

out

of

50

respondents 64% was unemployed housewife. The next come self-employed. Which accounts for 20% following by employed 16% before of the loan from ASA. However the involvement with ASA the occupational structure has undergone significant changes. It is evident from the data in table shows that self employed (like poultry

farming

occupation

small

which

trading

account

for

etc) 64%

is

the

major

following

by

unemployed housewife 2% of the total about one third of them are exclusively engaged in house hold affairs. They are not contributors to their family income. Therefore it can be said that change in occupation is significant after ASA financing. Table-12: Occupation of the entrepreneurs before & after joining ASA Occupation Before no of

Percent

entrepreneurs Housewife

After no of

Percent

entrepreneurs

32

64

17

34

employed

10

20

32

64

Employed

08

16

01

02

Total

50

100

50

100

Self

.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.XLIX

5.2.3 Nature of dwelling. Table-13: Nature of the dwelling after joining ASA. Nature of

Before no

the house

of loanees

No of

Percent

After no of

Percentage

loanees

6

12

0

0

29

58

14

28

15

30

36

72

50

100

50

100

house House made by straw House made by tin Total

Table shows that 10% to total loanees before joining ASA. They used to live in rental house or relative house. 58% to total loanees had straw shading house, 30% had tin shading house before joining ASA. After joining ASA, the loanees those has no house before joining ASA, are belonged to a house now. 30% of the loanees have made their house by tin those had straw shading house. That means no, of straw shading house has decreased by 30% - 72% to total loanees are possessed of tin shading house. It was 30% before joining ASA. That means 42% loanees have been made tin shade house by taking loan. So it is obviously clear that, the impact of ASA loan in changing the dwelling house of the loonees are significant

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

L

5.2.4 Husbands occupation of the entrepreneurs The result in the following table reveals the husbands occupation of the entrepreneurs. Before & after joining the ASA. It is observed from the table that 36% of respondents were day laborers 36% were engaged in small business, 20% in agriculture 04% were engaged in or

associated

with

other

activities.

However,

after

involvement of ASA in credit operation an occupational transition

was

found

to

take

place

among

the

entrepreneurs husband. It is evident from the data in the table- that the occupation of day laborer has declined from

36% to

12%

and transportation

service

also

decreased from 8% to 4% on the other hand small business, and other activities have increased from 36% to 42% and 4 %to18% respectively. So it can be said that change in occupation is significant after ASA financing.

Table-14: Husbands occupation of the entrepreneurs before & joining ASA. Before no of entrepreneurs

Percent

After no of entrepreneurs

Percent

Day labor

18

36

06

12

Small business

18

36

21

42

Agriculture

10

20

10

20

Transport service

02

04

04

08

Other

02

04

09

18

Total

50

100

50

100

Occupation

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

LI

5.2.7

Family’s

monthly

income

of

the

entrepreneurs Obviously, the successful utilization of loan money is expected to make appositive impact on the income of an entrepreneur. The analysis of data testifies to this fact. Following table shows the families’ monthly income before and after using loans. From the table it is found that

the

average

entrepreneurs

monthly

before

income

joining

the

of

the

simple

association

as

calculated from data was Tk.1640. It can be observed from table 79% of the loanees’ entrepreneurs belong to an income bracket of up to TK2000. The highest number of loanees’ entrepreneurs falls income bracket ranging from TK1001-2000. The table also reveals that one fifth of the total respondents earned TK 2001and above. However after using ASA loans this position has been significantly changed. The monthly income is post loans stand at TK3470. Which accounts for a sharp increase of 122% is comparison with per loan situation. Post loan situation indicates that the income distribution pattern of the entrepreneurs experience significant improvement. The

table

reveals

that

highest

number

of

loanees

concentrated in the income bracket aboveTK3470. It also reveals that 29% fall in income group below TK3001 per month as compared to per loan situation of 90%. So it can be said that income scenario reveals acceleration in after loan situation.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

LII

Table-15: Family's monthly income of the entrepreneurs before & after ASA finance. Income

Before no of

Percent

entrepreneurs Below -

After no of

Percent

entrepreneurs

09

18

Nil

Nil

30

60

04

08

06

12

11

22

04

08

19

38

50

100

50

100

1000 10012000 20013000 30014000 4001 above

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

LIII

CHAPTER-SIX

6.1 Problem faced by entrepreneurs 1) Most of the villager’s are illiterate. So they do not have proper knowledge about the entrepreneurs. 2) The beneficiaries from ASA are most illiterate. They are encompassed with local culture and speak in local dialect. So difficulties come in sight communication between loanees, and field workers, owing to difference of language. 3) The technological facility is very little for rural people. So an entrepreneur cannot proper use new production technique. 4) Entrepreneurship development depends mainly on the

innovative

qualities

but

maximum

entrepreneurs have no innovation power to create a new venture. 5) Lack of sufficient funds which is deeded for creation employment facilities. 6) Lack of proper training for any business certainty. 7) Social restriction is treated as main problem for the development of women entrepreneurs. 8) A bad concept is prevailing in our society about NGO’s activities. Still now most women contain this miss conception. They think that NGO’s are

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

LIV

involved in unendeavor action. So nobody should be involved in NGO’s program they think.

6.2 Problems faced by ASA personnel 1) Social customs and religions convention are the main barriers for the personnel of ASA. Who are directly involved with women entrepreneurship. 2) The women entrepreneurs do not understand the proper business transaction for their illiteracy. 3) Lack of their production and illiteracy. 4) Some loanees provide the amount of loan to other, which have taken in the name of her. In that case the employees fall in chaotic situation in the time of loan recovery. Since the loanees are not user of loan so see to depend on the person whom he has given the amount of loan. As a result some times field workers failed to recovery of loan money in due dates. 5) Some loanees use the amount of loan in other sector not using for which sector they have taken loan from ASA. As a result some times the employees are to fail in intricate situation in time of loan recovery. 6) 99%

members

of

ASA

are

women.

But

the

maximum field workers are male. Because of social culture and religious barriers, the male employees

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

LV

cannot discuss with female loanees directly at the time of service providing. Similarly they face same kinds of problems during the time of loan recovery. 7) About 2%- 6% of ASA members are dropped out every year. The main cause of dropping out not to provide loan installment in a regular weekly basis, influence of other NGO’s transfer of ASA officers illness of the members etc. These offer goods at lower costs and increase variety in consumption and help to improve the standard of life of a common man. 8) Economic

independence:

Entrepreneurship

is

essential for national self-reliance. Mass industries help

to

manufacture

indigenous

substitute

of

imported products there by reducing dependence on foreign countries and also export promotion help to ensure the economic independence of the country. 9) New

technologies,

products

&

service:

Entrepreneurship plays a vital role in promoting innovative technologies products and services.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

LVI

CHAPTER – SEVEN

7.1. Summary of the study. Bangladesh is mainly an agricultural country. About 75% of her population lives in village and about 63% of them are dependent on agriculture. Average per capita income is very low. The under development of the rural economy of the country is reflected in low productivity, high population pressure, underemployment and lack of working

opportunities

outside

agriculture.

Land

is

concentrated in few hands and about 29% of the rural households do not own any land other than homesteads. The

number

of

land

less

population

is

gradually

increasing. Consequently condition of rural people is deteriorating at an alarming rate. The govt. of Bangladesh and Bangladesh bank has undertaken various credit programs for the development of small-industries. All banks and NGOs in Bangladesh are involved in financing small-scale industries taking sufficient collateral securities against credit. However, ASA is a specialized credit institution established with the objective of providing financial support to the rural people with out collateral. It was first introduced as an experimental project in 1978 with the principle object of

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. LVII

improving

many

villages’

disadvantaged

people

in

country side may be considered a right step towards developing women entrepreneurship development. The main theme of ASA is to create self employment for its members predominantly for female members through distribution of credit for any activity chosen by the borrowers under close and intimate supervision of ASA workers. Both primary and secondary data have been used for the study. A total of fifty women entrepreneurs from

two

branches

and

10

ASA

personnel

were

interviewed for the study from two branches of ASA.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.LVIII

7.2 Recommendations The recommendations for the women development of entrepreneurship development of entrepreneurship are given below: 1) From out field investigation, we found that all categories of entrepreneurs have been suffering from

shortage

of

capital

for

expanding

their

activities. 2) We have observed earlier that disorganized market and huge influx of smuggled goods in the local market have been creating problems for expansion of business, new line of business, employment generation

and

technological

changes

for

all

categories of entrepreneurs expect live stock and fisheries. 3) As regards innovations, education and training are needed

practical

need-bass

training

should

be

provided to the women entrepreneurs to inactivate new ideas. The ASA may arrange adult education center like some other NGOs. 4) To save the women entrepreneurs from natural calamities ASA may also open a sister organization, which would act as an insurance company.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel.

LIX

1. Dr. Mizanoor Rahman “ Grameen bank finance entrepreneurship development: A case study of some selected areas” 2. ASA annual report, “ ASA publication, Dhaka, Bangladesh, 2004 3. ASA

“monthly report” ASA publication, Dhaka,

Bangladesh, 2004 4. ASA

“

A

quarterly

report”

ASA

publication,

Dhaka, Bangladesh, 2004 5. Ahmed.

M.

(1993)

growth

of

industrial

entrepreneurship in Bangladesh: A study of bank financial

engineering

industries

unpublished

doctoral dissertation, instate of Bangladesh studies, Rajshahi University. 6. Ahmed M. U. (1987) The financing of small scale industries-

A

study

of

Bangladesh

and

Japan,

Dhaka university, p-12 7. Cochran,

T.C

(1965),

“The

entrepreneur

in

economic changes” exploration in Entrepreneurial History, Vol-3, NO.1, p.p, 25-37. 8. Farouk,

A

(1987)

“some

experience

in

entrepreneurship development in Bangladesh” in Maanan, A (ed), entrepreneurship and management in

Bangladesh,

Bureau

of

business

Research,

Faculty of commerce Chittagong University. 9. Kilby, p (1971), “Entrepreneurship and Economic Development” the free press, New York, p-2. 10.

Singh,

K.

(1992)

“Women

entrepreneurs”

Ashish publishing House New Delhi.

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LX