The Micro-Enterprise Development program under BEES was launched in July 1997 with an aim to provide financial support small enterprises with sound potential for growth. Proper utilization of the loans helps small enterprises to generate profit and thereby increase the capital base. Thus this program is generating income and creating new employment through enterprise development in the urban and semi-urban areas by providing credit facilities as well as technical support to small entrepreneurs for starting up or expanding their existing business.

Objectives

To Generate income and create new employment through enterprise development in the urban and semi-urban areas by providing credit and technical services to small entrepreneurs for starting up or expanding their existing small business.

Key Features of Loans:

@    Loan range: Tk. 20,000-60,000

@    Interest rate: 15% flat

@    Repayment rate: weekly equal installments

@    The program supports: as many as 20 different business sectors.

Achievement

To enhance income level of the target groups and create employment opportunities, the program staff, motivate and facilitate the target people for taking initiatives and increase their income level. They maintain close liaison with different suppliers, buyers and money lending institutions and take necessary efforts to bring the enterprises at profitable and sustainable stage.

It is to be mentioned here that, in every year, some graduated group members of micro finance program join in micro-enterprise program as the entrepreneurs. After successfully operating own income generating activities for 4-5 years upon receiving loan and necessary skill development through training from BEES’s micro finance program, they became eligible to enter in micro-enterprise program. During the reporting period, over 2% of the covered entrepreneurs under the enterprise program joined the said program as entrepreneurs.

At the end of the reporting period (2002-2003); a huge number of beneficiaries is motivated and trained on various types of entrepreneurship development and a total amount of Tk. 94 million was disbursed amongst 2,256 entrepreneurs in 370 groups through its 8 Regional Offices against the annual targets of 3,075 entrepreneurs in 512 groups respectively. Thus the average loan size per borrower was about Tk. 41,666.

About Tk. 90 million was found as outstanding money at the closing of the reporting year and overdue was about Tk. 1.6 million i.e. overdue/outstanding ratio stands at 1.8%. Again regarding recovery status of the disbursed loan, it is observed that more than 98% loan of the total disbursed amount was recovered during the period. It implies that the program is moving forward with the sincere effort of the staff, which motivates and facilitates the new enterprises to initiate their business as well as the existing enterprises to expand the same.

On the other hand, to upgrade occupational skills of the entrepreneurs, the program staff provided skills development orientation by organizing group meetings through out the year. The program staff frequently supervised and monitored the activities undertaken by the entrepreneurs for different enterprises. The staff assist the entrepreneurs to overcome problems, if any arose during entrepreneurship development.

A total of three types of training courses were arranged for the entrepreneurs and a total of 1,750 entrepreneurs received training during 2002-2003. A total of 720 entrepreneurs received training on Poultry Firming while 425 entrepreneurs received training on Enterprise Development and Management and over 600 entrepreneurs attended the training course on Small Trades and Marketing System.

In order to establish different types of enterprise and make them profitable, building-up relationship among money lending institutions, raw material suppliers, buyers, shopkeepers and salesman and other government and non-government stakeholders is one the major efforts taken by BEE’s staff. The program staff arranged more than 200 meetings with the mentioned groups, individuals and institution during the reporting session where discussions were mainly concentrated on fund management, supply of raw materials and marketing facilities etc.

In the areas of enhancement of income level and creation of new employment opportunities among of the target groups about 60% beneficiaries of the total under the program has been able to increase their monthly average income at a significant level from their baseline status. At the same time, about 1,600 new jobs have been created under the program during the reporting year.

The loan distribution from BEES among different sectors during the reporting period is shown in the following table in a descending order. It is observed that maximum amount was disbursed for Poultry and livestock and; minimum was for Bakery & confectionary and Press.

Micro Enterprise Loan in Various Sectors (July 2002-June 2003)