MICRO-CREDIT

ON
WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA:
A CASE STUDY OF SOME WOMEN ENTREPRENEURS.

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

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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. III

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. 13

Chapter-Four: ASA :An Overview 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

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

 38
5.1 Basic characteristics of entrepreneurs
38
5.1.1 Age of the entrepreneurs
39
5.1.2 Educational background of entrepreneurs
39
5.1.3 Occupation of the entrepreneurs
40
5.1.4 Husbands occupation of the entrepreneurs
41
5.1.5 Marital status of ASA entrepreneurs
42
5.1.6 Inspiration to be a member of ASA
42
5.1.7 Income earners of the entrepreneurs
43
5.1.8 Families’ monthly income of the entrepreneurs
44
5.1.9 Residential status.
45
5.2 Development of entrepreneurship.
45
5.2.1 Income earners of the entrepreneurs
46
5.2.2 Occupation of the entrepreneurs
47
5.2.3 Nature of dwelling.
48
5.2.4 Husbands occupation of the entrepreneurs
49
5.2.5 Family’s monthly income of the entrepreneurs
51-53
Chapter-Six: Problem of Entrepreneurs Development

51
Problem of Entrepreneurship Development.
51
6.1 problem faced by Entrepreneurs
52
6.2 problems faced by ASA personnel
54-56
Chapter-Seven: Summary and Recommendation

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: Types of respondents 6

Table- 2: Age of the entrepreneurs 38

Table –3: Educational backgrounds of entrepreneurs 39

Table –4: Occupation of the entrepreneurs. 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. 47

Table-14: Husbands occupation of the entrepreneurs before & joining
ASA. 48
Table-15: Family's monthly income of the entrepreneurs before & after
ASA finance. 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 1997-
2002, 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 foreign countries provide funds to some
selected NGOs for poverty 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, 1968). Oxford English dictionary (1993)
defined entrepreneurs as one who undertakes an
enterprise especially a contractor active as 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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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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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 provide by the
department is insufficient. Lack of 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.

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. 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 for programming
entrepreneurship in Bangladesh. He 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. He recommended for the
development of the training program for micro
enterprises after assign for the 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 low and order situation and

infrastructure development for 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.

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

MICRO-CREDIT ON WOMEN ENTREPRENEURSHIP DEVELOPMENT OF ASA: ***By S M Rasel. 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 underemployment.
Entrepreneurship 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 micro finance services, refining its
operational structure and developing its low–cost
delivery method. ASA focused on 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.

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 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 Amount in million taka.

1. Year of starting the micro-credit program 1991

2.
Total No. Of branch office Rural 1733
Urban 232 1965

3. Total No. Of staff (Central office100, field 11307) 11407

4. Total No. Of villages 54229

5. Total No. Of unions/ wards 7860

6. Total No. Of Thanas (Sub districts) 509

7. Total No. Of Districts 64

8. Total No. Of groups Small 129230
Small business 6607
HP 1254 137091
9.
Total No. Of Active member Small 2867121
Small business 89119
SEL 10038

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 HC poor 29981
BDS 401
2996660
10. Total no. Borrowers Small 2650075
Small business 81132
SEL 10038
HC poor 29981 2772719
Education
1092
BDS
401
11. Small
Saving Balance 2552.58
Small business 274.36 2828.24
HP 1.28
BDS
0.02

12. Members life insurance (Security Fund) 1438.35

13. Total loans Disbursed 109983
(With service charge) (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

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

4.4 ASA oregano-gram

General Body

Governing Body

Managing Director

GM-SEL (one) GM-Operation GM-Alternative GM-Audit

(one) Initiative (one) (one)

Head finance& Head-Accounts Director (R&P)

MIS & Admin

Director (Program) Head Information General Audit

Team
Deputy Director (DD)
IT, MIS & RLF
Field Auditor
Asst. Director (AD)

Program Manager (PM)

Accounts & HRD Logistics

Direct Administrator-DA/
Direct manager-DM/ Supports staffs
Team leader-TL/ District Driver, peon, Guard
Officer-DO Cleaner

Branch manager – BM
Manager SEL
Loan officer

Support staff

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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 of seasonal disasters. The good
governance and community assistance program
(GGCAP) will strengthen communities 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

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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.

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XXXII
4.5.8 Student Internship program:

ASA's student internship program was developed in

cooperation with four of Bangladesh’s leading
universities and colleges. Established in 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 university, Lalmatia Mohhila college,
Bhawal Badere Alam Govt. College and Shekh
Borhanuddin college. 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.

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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.

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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) members
6. Impact on the life of poor Increase of women’s’
people 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

7. ASA model self-reliant in Totally self-reliant/free

Bangladesh from 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
9. Loans for non- easy
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.
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.
XXXVIII
03. Behind the organization and achievement.

Events Steps
1. Branch structure Very simple office with one
room, minimum staff, mid-
level structure without
secretariat.
2. Central Office Only 100 officials
3. Power of decision Highest level of
decentralization 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 manual,
strong monitoring and
supervision. Playing promot-
ionnal role in all stages, tran-
sparency & accountability.
6. Family in the jurisdiction 30 lakh families (10%of the
of service total population in the
country)
7. Accounts keeping/ Simple & transparent.
Record 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 & No extra cost, appointment/
orientation/ Training orientation from the field.

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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. Extension of branches (Including mini-

branch) 912
2. Total branches (End year) 2200
3. New thana 20
4. Total thana (End year) 510
5. New village 7500
6. Total villege (End year) 43046
7. No. Of group increase 50000
8. Total group (End year) 152639
9. Total number of active clients (members) 3350000
Small 2920000
Small business 85000
SEL 25000
Hard core poor 320000
10. Savings increase (Net) taka. In million 200
11. Total savings (End year balance) taka. In 3000
million
12. Total number of active borrowers 3200000
Small 2794000
Small business 83000
SEL 23000
Hard core poor 300000
13. Total loan disbursement (During the year)
taka. In million. 30376
Small 23489
Small business 4757
SEL 1250
Hard core poor 880
14. Total loan disbursement (cuml.with s.
charge) taka. In million. 117293
Small
Small business 101195
SEL 13420
Hard core poor 1684
994
15. Total loan portfolio (end year principal)
taka. In million. 15204
Small 13759
Small business 1171
SEL 264
Hard core poor 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 housewife. The next come self-
employed, which accounts for 20% followed by
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

Employed 8 16

Total 50 100

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
service

Other 02 04

Total 50 100

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

Father in law 08 16%

Relatives 5 10%

Own 30 60%

Rental 07 14%

Total 50 100

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 Percent After no of Percent

earners entrepreneurs 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 small trading etc) is the major
occupation which account for 64% 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 After no of Percent

entrepreneurs entrepreneurs

Housewife 32 64 17 34

Self
employed 10 20 32 64

Employed 08 16 01 02

Total 50 100 50 100

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 Percent After no of Percentage

the house of loanees loanees

No of 6 12 0 0
house

House 29 58 14 28
made by
straw

House 15 30 36 72
made by
tin

Total 50 100 50 100

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 After no of
Occupation Percent Percent
entrepreneurs entrepreneurs
Day labor 18 36 06 12
Small
18 36 21 42
business
Agriculture 10 20 10 20
Transport 02 04 04 08
service
Other 02 04 09 18
Total 50 100 50 100

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 monthly income of the simple
entrepreneurs before joining the 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 After no of Percent

entrepreneurs entrepreneurs

Below - 09 18 Nil Nil

1000

1001- 30 60 04 08
2000

2001- 06 12 11 22
3000

3001- 04 08 19 38
4000

4001 50 100 50 100

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.

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