Sunday, 17 January 2016 00:00

Small Enterprise Finance

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A significant segment of society is not reached with financial services by either the formal banking sector or microfinance programmes targeted for poor households. This ‘missing middle’ can be a critical engine for economic growth and employment if equipped with the right tools.

BRAC developed a separate service that provides loans to entrepreneurs, to help grow micro and small sized businesses that help drive local economies. These tend to be in agriculture and small trade e.g. dairy and poultry farms, fisheries, auto-rickshaw mechanics, beauty parlours, and clothes retailers. BRAC’s impact from this service extends well beyond the number of borrowers, by promoting local employment and market development.

In Bangladesh, the project is called progoti, which means ‘progress’. Progoti clients are additionally supported with access to a range of savings products, options for refinancing and rescheduling. BRAC is also currently testing loyalty schemes and microinsurance products tailored to small entrepreneurs. In addition, clients are able to benefit from market linkages through BRAC’s network of social enterprises.

Small enterprise loans are available to both men and women, from all 2,000 of its branches spread across Bangladesh.




Total savings

USD 85 million

Total outstanding

USD 687 million

Average loan amount

USD 2,500

BRAC also provides small enterprise loans in Uganda, Tanzania, Sierra Leone, Liberia and Pakistan.


Read 5296 times Last modified on Monday, 17 October 2016 05:26