The New Nation - Internet Edition

Md. Mahbubur Rahman Bulbul

Small loans could help millions of poor women create jobs, support their families and narrow the gender gap. Recently, United Nations and banking experts said this. According to International Labour Organization's (ILO) data released on 7th March, 2008, there are now 1.2 billion women working around the world, some 200 million more than a decade ago. Susan Maybud of the ILO's bureau for gender equality said microfinancing-small loans given to the poor, generally at slightly elevated interest rates-could play an important role empowering women with no other economic lifeline. She also said to Reuters, 'Microfinance is really their one glimmer of hope, their one way out of poverty'. She said households where women have borrowed from microfinance Institutions such as Bangladesh's ASA, Grameen Bank, BRAC have been shown to invest many development sectors with broad knock-on effects.

In Bangladesh, there is substantial empirical evidence from existing microfinance Institutions like as ASA, BRAC, Gameen Bank as well as other NGO's regarding new programmes and instruments that can effectively finance and refinance the micro as well as the small enterprise sector. It should be possible to quickiy adapt the microcredit model to meet the financing needs of the fast growing MSMEs. Most of the large NGO's in Bangladesh have had a similar experience and demonstrated their capacity to grow on a very fast track, but were constrained by availability of funds. We have some exciting evidence of how fast the new enterprises can grow from the experience of ASA, Grameen Bank, BRAC, some of the other NGO's as well as the emerging new private enterprises themselves. ASA by now has extensive experience with financing of Small Entrepreneurs Lending (SEL) loan programme which has been operating since 1996. Initial loan under the SEL programme ranges from Tk. 30,000 to Tk. 6,00,000 with terms of I year, 1.5 years or 2 years. The service charge on this product is 12.5% (yearly). ASA is dominating to create a huge number of women microentrepreneurs in Bangladesh through their SEL loan programme. They have a largest number of case stories on this purpose.

Here a success story of an women microentrepreneur who became rich by producing nursery business within very short time. Khaleda Begum, wife of Md. Mahbub Bahadur at Chittagang road area in Shiddirganj Thana under Narayanganj District, was once an unemployed poor woman but she turned herself into a model to others when she earned lakh of taka by selling different kinds of plants from her well established nursery project. The name of her nursery is 'The Sharif nursery'. Khaleda Begum completed her educational performance upto class Ten. In 1996, she married her husband Mr. Mahbub Bahadur. At the Primary stage of their conjugal life in not satisfactory. They have so much financial crisis in their family at that perid. Since then she had been passing hard days along with her family members. At that time she came in touch with the financial support of ASA, Chittagang road branch of Narayanganj district. Branch Manager of that branch, Mr. Minhazul Kabir and Assistant branch Mnager, Mr. Aminul Islam encouraged her to raise a high nursery project at chittagang road area in 2005. She expanded her nursery project after getting good plants and earning profit by selling and marketing the mouth-watering plants. At the 1st time, she received 10,000 taka as a micro loan from ASA Chittagang road branch of Narayanganj district. She i~vested this amount with all cooperation of her husband in her nursery project and she has been profited financially day by day. For the next term, she got 50,000·taka from that branch to expand her project very soon. Concern authority of ASA, Naryanganj district, District Manager Md. Mahmud Kadir Talukder and additional district Manager Md. Mahbubul Alam were very pleased after visiting her nursery project and they orderd their concern branch authority for giving a big amount loan under ASA's SEL loan programme. Lastly Khaleda Begum received I lakh taka from ASA's Ctittagang road branch under SEL loan programme and now she is highly pleased for this loan. She has a big plan with this loan. She wants to start another nursery project in different places very soon. For the present place of nursery project, she is paying 2000 taka as rent. Total area for her nursery project is bighas. Total project is rental. She has 5 labours for looking after this project.

Their biggest salary is 5000 taka and lowest salary is 2000 taka. Her total labour cost is Tk. 15,000 per month. After all costing, she gets 40,000 taka from her project. Now she is a self-sustainable and rich woman by the profit of her nursery project. There are many kinds of plants in her project. Very important plants of these are- owshudhy, Banaj, Falaz, Shova etc.

The plants were collected from Sylhet, Bagura, Khulna, Jossore by transport of Truck. Some times she collect plants for her project from tree fairs. Being doubly encouraged, a project covering 10 bighas of lands was undertaken by Khaleda at her Chittagang road area. She invested her earning amounting 5 lakhs taka in the project. Various plants are now available at her nursery project. There are 160 numbers of owshodhy, 120 numbers of fruits, 12 numbers of Banaj plants in her project. Besides, Khaleda Begum produced high yielding brinjal, onion and radish under her project. Olive and Lichi have also been planted there. She is a mother of one son and one daughter. Daughter is elder. She is a student of class four. Now Khaleda is very happy with her all family members. She is very pleased to ASA's authority for giving their financial assistance through their SEL loan programme. Khhaleda Begum has talked to us to spread a message to all women for not depending on jobs or others but to change their lots by their own efforts. Khaleda begum is a very positive example for all women micro entrepreneurs in Bangladesh which are doing their job for the positive change in their life style. In this way, ASA, at present, has successfully extended its outreach to about 80 million poor covering almost 6 million families through 4000 Branch offices all over the country. Lastly, I want to mention the recent statement of Walsh, who was the first female manager of Merrill Lynch International. She said, microfinance was critical to creating business and enterprises that could spawn more jobs. She also said, 'Micro grows to macro'.