%0 Journal Article
%T The limitations of microcredit for promoting microenterprises in Bangladesh
%A Alam Mahmudul
%A Molla Islam Rafiqul
%J Economic Annals
%D 2012
%I Faculty of Economics, Belgrade
%R 10.2298/eka1292041a
%X Microcredit is regarded as a tool for poverty alleviation. A stereotyped delivery system is designed and used for promoting and serving survival- and subsistence-level economic activities, particularly for poor female clients. In Bangladesh its success has raised social expectations as to its potential as also a promoter of microenterprises, which are growth-yielding small businesses beyond subsistence-level economic activity. The field survey shows that about 11.7% of the microcredit borrowers are this kind of potential or growing microentrepreneur. It also shows that microcredit¡¯s standardised delivery system, particularly in respect of gender preference, loan size, loan disbursement, and repayment schedules, is a strong limiting factor in effectively serving the microenterprises, which require a more flexible credit package. Therefore a methodological modification is necessary to accommodate flexibility in the microcredit delivery system.
%K Grameen Bank
%K microcredit
%K microenterprise
%K subsistence
%K poverty alleviation
%K stereotype
%U http://www.doiserbia.nb.rs/img/doi/0013-3264/2012/0013-32641292041A.pdf