ANVESHAK-International Journal of Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Impact of Microcredit Program on Women Entrepreneurship in Bangladesh:Experience from Society for Social Service


Affiliations
1 Department of Business Administration, Mawlana Bhashani Science and Technology University, Tangail, Bangladesh
     

   Subscribe/Renew Journal


The purpose of this paper is to explore and measure the influence and impact of microcredit program on women entrepreneurship in developing countries like Bangladesh. The research used 150 questionnaires from women borrowers financed by Society for Social Service, a microfinance institution of Bangladesh. Logistic regression model is used to analyze the results of the study. Under the microcredit program, women borrowers are served with credit and other facilities that influence them for starting and managing their business. Therefore, a huge conversion of economic condition- from ultra-poor (2.7%), poor (55.3%), and middle class (42%) to micro entrepreneur (92.7%), and small and medium entrepreneur (1.3%) is one of the indicators of success of microcredit program. Findings of this study indicate that amount of microcredit significantly impacts the women entrepreneurship, if other factors remain unchanged. Training facilities, supporting environment, tenure of business, capital, and family savings are also considered to be the factors that affect the women entrepreneurs. In this study, only one microfinancing institution is taken as sample firm, therefore care is required when generalizing the results. This paper will give proper guidelines to investigate the area of microcredit in developing countries and facilitate to form the base of future research in the issue of microcredit and women entrepreneurship.

Keywords

Microcredit, Microcredit program, Women entrepreneurship, Bangladesh, Society for Social Service.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abnews (2017). Number of women entrepreneurs’ rising, May 23. Available at: http://www.abnews24.com/english/2017/05/23/10312/Number-of-women-entrepreneurs%27-rising

  • ADB (2013). Promoting Women’s Entreprenureship in Bangladesh, Australian Government.

  • Adewusi, A. (2011). Africa- women’s economic empowerment opens up a world of opportunity, Global Research, Standard Chartered Bank.

  • Afrin, S., Islam, N. and Ahmed, S. U. (2010). “Micro credit and rural women entrepreneurship development in Bangladesh: A multivariate model”, International Journal of Business and Management, 2010, Vol. 3, No. 8, pp. 169-85.

  • Arif, M. Z. U. (2014). “Women empowerment and poverty reduction through participation of women in micro-finance with reference to Bangladesh”, ANVESHAK-International Journal of Management (AIJM), 2014, Vol. 3, No. 5, pp. 41-52.

  • Bakhtiari, S (2011). “Microfinance and poverty reduction: some international evidence”, International Business & Economics Research Journal (IBER), 2011, Vol. 5, No. 12.

  • Bangladesh Bank (2014). A primary survey on banks in promoting women entrepreneurship in Bangladesh, monetary policy department and research department, Bangladesh Bank, Dhaka, Bangladesh.

  • Chowdhury, M. M. R. (2017). Challenges for Women Entrepreneurs. The Daily Star, February 25. Available at: http://www.thedailystar.net/education-employment/challenges-women-entrepreneurs-1366573

  • Ekpe, I., Mat, N. B., Razak, R. C. (2010). “The effect of microfinance factors on women entrepreneurs’ performance in Nigeria: A conceptual framework”, International Journal of Business and Social Science, 2010, Vol. 1, No. 2.

  • GOB (2010). National industrial policy 2010, Ministry of Industries, Government of the People’s Republic of Bangladesh, Dhaka, Bangladesh.

  • Kanak, S., Iiguni, Y. (2010). “Microfinance programs and social capital formation: the present scenario in a rural village of Bangladesh”, International Journal of Applied Economics and Finance, 2010, Vol. 4, No. 3, pp. 173-180.

  • Kato, M. P., Kratzer, J. (2013). “Empowering women through microfinance: evidence from Tanzania”, ACRN Journal of Entrepreneurship Perspectives, 2013, Vol. 2, No. 1, pp. 31-59.

  • Khatun, F. (2014). Access to credit by women entrepreneurs in Bangladesh: challenges, obstacles, and way forward, Seminar paper presented at Bangladesh Bank Training Academy Auditorium, Dhaka, Bangladesh.

  • Mahmood, S. (2011). “Microfinance and women entrepreneurs in Pakistan”, International Journal of Gender and Entrepreneurship, Emerald Group Publishing Limited, 2011, Vol. 3, No. 3, pp. 265-274.

  • Mahmuda, I., Baskaran, A., Pancholi, J. (2014). “Financing social innovation for poverty reduction: a case study of microfinancing and microenterprise development in Bangladesh”, Science, Technology and Society, 2014, Vol. 19, No. 2, pp. 249-273.

  • Mayoux, L. (2001). “Tackling the down side: social capital, women’s empowerment and micro-finance in Cameroon”, Development and Change, 2001, Vol. 32, No. 3, pp. 435-464.

  • MIDAS (2009). Study on women entrepreneurs in SMEs: Bangladesh perspective, SME Foundation, Dhaka, Bangladesh.

  • Misnan, S. N. S., Manaf, H. A. (2015). “The role of microcredit in promoting women’s entrepreneurship skills: lesson from Amanah Ikhtiar Malaysia (AIM)”, Journal of Governance and Development, Special Issue on Social Entrepreneurship, 2015, Vol. 11, pp. 39-51.

  • Nahreen, A. (2017). Poverty Reduction: We Have Come a Long Way, The Daily Star, February, 27. Available at: http://www.thedailystar.net/towards-just-and-inclusive-society/we-have-come-long-way-1367623

  • Nazneen, T. (2017). Increasing number of women entrepreneurs, The Financial Express, April 29. Available at: http://thefinancialexpress.com.bd/public/views/increasing-number-of-women-entrepreneurs, Retrieved on August 2, 2017.

  • Society for Social Service (2016). Credit Programme. Available at: http://www.sss-bangladesh.org/?p=credit-program

  • Sultana, A. (2012). “Promoting women’s entrepreneurship through sme: growth and development in the context of Bangladesh”, IOSR Journal of Business and Management, 2012, Vol. 4, No. 1, pp. 18-29.

  • World Bank (2016). Poverty, The World Bank. Available at: http://www.worldbank.org/en/topic/poverty/overview


Abstract Views: 247

PDF Views: 0




  • Impact of Microcredit Program on Women Entrepreneurship in Bangladesh:Experience from Society for Social Service

Abstract Views: 247  |  PDF Views: 0

Authors

Kaniz Marium Akter
Department of Business Administration, Mawlana Bhashani Science and Technology University, Tangail, Bangladesh
Shahed Mahmud
Department of Business Administration, Mawlana Bhashani Science and Technology University, Tangail, Bangladesh
Subrata Banik
Department of Business Administration, Mawlana Bhashani Science and Technology University, Tangail, Bangladesh

Abstract


The purpose of this paper is to explore and measure the influence and impact of microcredit program on women entrepreneurship in developing countries like Bangladesh. The research used 150 questionnaires from women borrowers financed by Society for Social Service, a microfinance institution of Bangladesh. Logistic regression model is used to analyze the results of the study. Under the microcredit program, women borrowers are served with credit and other facilities that influence them for starting and managing their business. Therefore, a huge conversion of economic condition- from ultra-poor (2.7%), poor (55.3%), and middle class (42%) to micro entrepreneur (92.7%), and small and medium entrepreneur (1.3%) is one of the indicators of success of microcredit program. Findings of this study indicate that amount of microcredit significantly impacts the women entrepreneurship, if other factors remain unchanged. Training facilities, supporting environment, tenure of business, capital, and family savings are also considered to be the factors that affect the women entrepreneurs. In this study, only one microfinancing institution is taken as sample firm, therefore care is required when generalizing the results. This paper will give proper guidelines to investigate the area of microcredit in developing countries and facilitate to form the base of future research in the issue of microcredit and women entrepreneurship.

Keywords


Microcredit, Microcredit program, Women entrepreneurship, Bangladesh, Society for Social Service.

References





DOI: https://doi.org/10.15410/aijm%2F2018%2Fv7i2%2F121515