Entrepreneurship development 

program available in Bangladesh:

In Bangladesh, both Govt. and NGO’s provide special support to entrepreneurs. Among them
some Govt. organizations are-

 BSCIC,
  Karmasangsthan Bank,
 Krishi Bank,
 Basic Bank Ltd.

Some NGO’s are-

 Grameen Bank Ltd.,

 BRAC,
 MIDAS Financing Ltd.,
 BRAC Bank Ltd

A case study on entrepreneurship development program provided by them in Bangladesh is

given below-

BSCIC:

Bangladesh Small and Cottage Industries Corporation (BSCIC) is the prime mover organization
entrusted with the responsibility of development of small and cottage industries (SCI) in
Bangladesh. It is an autonomous corporation under the Ministry of Industries and was
established by an Act of the parliament in 1957. It is the successor organization of EPSCIC.

Main Objectives of BSCIC:

•    Increase of industrial production and productivity in the SCI sector;

•    Creation of employment opportunities;

•    Poverty alleviation;

•    Ensure optimum utilization of economic and human resources;

•    Accelerate overall economic growth of the country through SCI.

BSCIC Provides-

 Pre-investment counseling
 Post-investment extension services
 Technical information
  Design and prototype of handicrafts
 Industrial profiles and fact sheets
 Marketing information
 Infrastructural facilities
 Skill development training

Karmasangsthan Bank:

The Karmasangsthan Bank was established in 1998 as per Karmasangsthan Bank Act No.7 of
1998 with a view to involving the unemployed people of the country especially the unemployed
youths in the economic activities through self-employment opportunities for poverty alleviation.

Activities of the Bank:

Karmasangsthan Bank provides credit facilities in cash or in any any other manner for all sorts of
economic activities, especially to the unemployed youths, for self-employment, with or without
security. Karmasangsthan Bank can perform the following activities subject to terms and
conditions prescribed by Bangladesh Bank :

1. To receive deposits from statutory bodies, companies, loanees of the Bank and from such
other persons as not determined as a single person for the purpose by the Govt.
2. To procure/receive credit by way of mortgage of its assets or anything else for conducting
its business.
3. To secure pledge, mortgage, hypothecation or assignment of movable or immovable
property as security against loans and advances granted by the Bank.
4. To purchase shares of any statutory body.
5. To receive savings certificates, title deeds of ownership or any other valuable articles for
keeping them in safe custody.
6. To form, operate and control any kind of fund or trust and to hold and deliver shares of
such fund or trust.
7. To accord advice to the loanees of the Bank about investment of the loan.
8. To invest Bank’s fund in any sector approved by the Govt.
9. To set up, manage, develop and conduct any institution or project for the purpose of
training, welfare & development of the unemployeds.
10. To receive, collect, remit and pay monies, securities and bills within the country.

Bangladesh Krishi Bank:

Bangladesh Krishi Bank (BKB) is a 100% government owned specialized Bank in Bangladesh.
KRISHI means Agriculture. Since its inception, BKB is financing in agricultural sector
remarkably. BKB also performs commercial banking.
Credit Programs:

1. 1.        Crop Loan: Out of total annual allocation of Loan portfolio, 60% is earmarked

for Crop financing. The Credit program covers all the seasonal crops produced in the
country. The loan is disbursed as per norms set by the Bangladesh Bank. The rate of
interest for this sector is 8%. The rate of interest may however, vary from time to time.
Both the landowner and sharecroppers are normally the target group for this loan.
Marginal farmers are also eligible for the loan.
 Crop loan is sanctioned on annual basis.
 Credit passbook is issued to each borrower.
1. 2.       Fisheries Loan: To accelerate fish production BKB provides loan for excavation
and re-excavation of ponds, development of marshy lands, establishment of fish
hatcheries and new fisheries projects. The Loans are given in the following sub sectors:
 White Fish
 Shrimp culture (Marine, Brackish water and sweet water Culture )
 Fish & Shrimp hatchery (fingerlings production)

3.  Live Stock & Continuous Loan: Beef Fattening Program

Objectives of the program:

1. Create self-employment opportunity for poor and un-employed people.

2. Meet national deficit of animal protein.
3. Bring positive change in the attitude of the people through training.
4. Ensure participation of bank officials in the program and increase their

sense of duty and consciousness.

BASIC Bank Ltd.:

BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered
under the Companies Act 1913 on the 2nd of August, 1988, started its operations from the 21st
of January, 1989. It is governed by the Banking Companies Act 1991. The Bank was established
as the policy makers of the country felt the urgency for a bank in the private sector for financing
small scale Industries (SSIs).

BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial
banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of
loanable funds shall be invested in small and cottage industries sector.
The Bank Offers:

 Term loans to industries especially to small-scale enterprises.

 Full-fledged commercial banking service including collection of deposit, short term trade
finance, working capital finance in processing and manufacturing units and financing and
facilitating international trade.
 Technical support to Small Scale Industries (SSls) in order to enable them to run their
enterprises successfully.
 Micro credit to the urban poor through linkage with Non- Government Organizations
(NGOs) with a view to facilitating their access to the formal financial market for the
mobilization of resources.
 In order to perform the above tasks, BASIC Bank works closely with its clients, the
regulatory authorities, the shareholders (GOB), banks and other financial institutions.
 Corporate Strategy
 Financing establishment of small units of industries and business and facilitate their
growth
 Small Balance Sheet size composed of quality assets.

 Grameen Bank:

Grameen Bank (GB) has reversed conventional banking practice by removing the need for
collateral and created a banking system based on mutual trust, accountability, participation and
creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any
collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in
the overall development of socio-economic conditions of the poor who have been kept outside
the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad
Yunus, the founder of “Grameen Bank” and its Managing Director, reasoned that if financial
resources can be made available to the poor people on terms and conditions that are appropriate
and reasonable, “these millions of small people with their millions of small pursuits can add up
to create the biggest development wonder.”

As of September, 2011, it has 8.34 million borrowers, 97 percent of whom are women. With
2,565 branches, GB provides services in 81,379 villages, covering more than 97 percent of the
total villages in Bangladesh.

3. Special loan conditionalties which are particularly suitable for the poor. These include:

 very small loans given without any collateral

  loans repayable in weekly installments spread over a year
 eligibility for a subsequent loan depends upon repayment of first loan
 individual, self chosen, quick income generating activities which employ the skills that
borrowers already posses
 close supervision of credit by the group as well as the bank staff
 stress on credit discipline and collective borrower responsibility or peer pressure
 special safeguards through compulsory and voluntary savings to minimize the risks that
the poor confront
 transparency in all bank transactions most of which take place at centre meetings.

BRAC:   

“Alleviation of Poverty and Empowerment of the Poor”

“BRAC is the world’s largest development organization and is doing tremendous work
impacting the lives of millions. BRAC is making a significant contribution to Bangladesh,
making huge leaps forward in meeting the Millennium Development Goals.”

Known formerly as the Bangladesh Rehabilitation Assistance Committee and then as the
Bangladesh Rural Advancement Committee, BRAC was initiated in 1972 by Sir Fazle Hasan
Abed at Sulla in the district of Sylhet as a small-scale relief and rehabilitation project to help
returning war refugees after the Bangladesh Liberation War of 1971. In nine months, 14
thousand homes were rebuilt as part of the relief effort and several hundred boats were built for
the fishermen. Medical centres were opened and other essential services were ensured.[4] At the
end of 1972, when the first phase of relief work was over, BRAC turned towards long-term
development needs and re-organised itself to focus on the empowerment of the poor and
landless, particularly women and children.

By 1974, BRAC had started providing microcredit and had started analyzing the usefulness of
credit inputs in the lives of the poor. Until the mid 1970s, BRAC concentrated on community
development through village development programmes that included agriculture, fisheries,
cooperatives, rural crafts, adult literacy, health and family planning, vocational training for
women and construction of community centres.

Their Vision:

A world free from all forms of exploitation and discrimination where everyone has the
opportunity to realize their potential.

Their Mission:

Their mission is to empower people and communities in situations of poverty, illiteracy, disease
and social injustice. Their interventions aim to achieve large scale, positive changes through
economic and social programs that enable men and women to realize their potential.
In 2010, the mobilisation of tenant farmers for provision of credit and extension of improved
technology and modern farming practices were carried out in full swing.

 MIDAS Financing Ltd.:

 “The real friend of entrepreneurs”

MIDAS FINANCING LTD. (MFL) is leading financial institution of the country licensed by
Bangladesh Bank under the financial institutions Act 1993. MFL Housing Loan Scheme has
been launched to fulfill the dream of the limited income people by extending financial support in
the form of term loan for constructing a house and/or purchasing an apartment/readymade
house/commercial space.

Vision

To be a leading financial institution of the country with diversified financial services

contributing towards development of an enterprising society.

Mission

I to provide value added financial services to valued customers, strictly maintaining the ethical
standard in financial operation.

BRAC Bank Ltd.:

BRAC Bank is the last organization to have received a commercial banking license from
Bangladesh Bank, making it the youngest private commercial bank in Bangladesh. Its
headquarters are based in the capital Dhaka. The bank is partially owned by BRAC, the largest
non-government organization in the world, International Finance Corporation, the private sector
arm of The World Bank Group and ShoreCap International.

BRAC Bank was formed with the aim to serve the millions of small and medium enterprises
(SMEs) in the country. Having pioneered the concept of SME financing in Bangladesh, it is the
fourth largest SME bank globally. The company also provides services within corporate and
institutional banking, retail banking, as well as probashi banking, which specifically caters to
non-resident Bangladeshis abroad. Other areas include customized treasury and foreign exchange
solutions, and custody services. It ranks amongst the top banks nationally that processes
remittances from abroad.

Conclusion:

To enhance entrepreneurship, separate programs have been launched in Bangladesh for educated
youths and women. Specialized entrepreneurship courses have been included in the
undergraduate and graduate programs of business education. Entrepreneurship development
program available by BRAC, MIDAS Financing Ltd., Karmasangsthan Bank, Basic Bank in
Bangladesh is really appreciable but it is not enough. Govt. should take some further policies to
encourage and help entrepreneurs because entrepreneurship is the main way to develop the
country.