The New Nation - Internet Edition

BSS, Rajshahi

Rajshahi Krishi Unnayan Bank (RAKUB) is implementing an uplift project, providing funds to the small entrepreneurs side by side with raising the scope of development activities in several parts of the country's northern region.

According to RAKUB officials, the five-year "Small Enterprise Development Credit Project" is being implemented in 46 upazilas of Greater Rajshahi, Pabna and Bogra districts and in one upazila of Kurigram district by spending around Taka 59.98 crore since July, 2003.

The project has been devised for poverty alleviation through direct increase in non-farm income of the small entrepreneurs and indirect creation of non-farm employment by supporting various initiatives in the development fields.

In addition to increasing the number of development schemes and expansion of the existing ones, the project is creating as well as flourishing women entrepreneurship side by side with establishing efficient project management in its implementation areas.

Out of the total project costs, the officials said, RAKUB has been spending Taka 26.14 crore while the Royal Norwegian Government (NORAD) is providing Taka 33.84 crore.

Describing the northern region as highly potential for agricultural production, they said there is immense possibility to create job opportunities for the unemployed rural folks, particularly women, in different non-traditional sectors.

They also said that the entrepreneurs, who lack access to commercial banks' credit facilities, are benefiting from the project, which will start for another five years if the first phase ends with a success in June 2008. During the second phase, it will cover the whole of Rajshahi division, they added.

The project is extending technical and financial help to the development enterprises, engaged in production, manufacturing, trading and service oriented activities. It has a target to help increase women enterprises in the region, where at least 20 percent of the total has been earmarked for the women entrepreneurs.

Priority is being given on the small agro-based manufacturing activities including food processing, repair works, transport, weaving factories, carpentry and pottery having good market potentials based on local technology and small service sector initiatives.

The project is also providing loans for non-traditional agricultural products including poultry, fishery, animal husbandry and plant nursery. However, the officials said, the primary agricultural activities like crop production have been kept outside the credit facilities.

Apart from promoting the creation of a small entrepreneur class, the project has been providing priority assistance to the suitable unemployed educated youths and graduates of micro- finance institutions. Some 12,500 small enterprises are getting financial and technical supports, they said.

Similarly, the project has a target to provide entrepreneur development training to about 12,500 borrowers and basic orientation training to more than 13,125 borrowers.

On successful implementation, the officials hoped, the project is expected to create about 37,500 new jobs for the rural folks side by side with raising the number of beneficiaries by at least 30 percent with non-farm income least 30 percent.