Stagnated Growth of Microenterprises and Flawed Role of Credit NGOs : Evidence from Bangladesh

Abstract

Since the 1970s, the funding of microenterprise by the credit non‐government organizations (CNGOs) in developing countries such as Bangladesh has been recognized as a means of creating job opportunities for the rural poor. Despite injection of substantial amount of microcredit by the CNGOs, a large number of microenterprises do not survive for long and those who survive do not grow beyond the subsistence level. This paper advances the argument that a low survival rate as well as stagnated growth of microenterprises owe to the flawed developmental role of the CNGOs. The author provides evidence from Bangladesh in support of such contention. The paper concludes that unless the CNGOs play flawless development roles, low survival rate and persistent stagnated growth will haunt the microenterprises in developing countries.

Citation

Ziaul Hoque, M. (2004), "Stagnated Growth of Microenterprises and Flawed Role of Credit NGOs : Evidence from Bangladesh", Humanomics, Vol. 20 No. 1, pp. 32-39. https://doi.org/10.1108/eb018891