A Programme for Enterprise Development

PKSF launched its Micro Enterprise programme in 2001 to extend its financial services to the progressive members of other credit programmes for undertaking economic activities that require bigger amount of capital. PKSF upgrades it micro enterprise policy on the basis of the needs of micro-entrepreneurs. At present, apart from the progressive clients of other credit programme, PKSF provides financial services through its Partner Organizations (POs) to all micro entrepreneurs for expediting employment generation. Any business activity that has investment up to BDT 1.5 million (excluding land and building) is considered as microenterprise. The program is now renamed as Agrosor. This program is being implemented all over in Bangladesh through 178 POs of PKSF. An individual micro-entrepreneur can take loan up to BDT 1.0 million for his enterprise under the Agrosor Program.

PKSF completed implementation of Finance for Enterprise Development and Employment Creation (FEDEC) project, to expand the microenterprises in the country. International Fund for Agricultural Development (IFAD) and PKSF jointly financed the project. Beside financial services, the micro-entrepreneurs received technical and technological support under the project. PKSF has launched an IFAD funded project titled Promoting Agricultural Commercialization and Enterprises (PACE) in January 2015, to expand PKSF’s ME development program. Entrepreneurs are receiving financial and non-financial technical services and technological support to enhance their productivity and income under this project. The PACE project jointly financed by PKSF and International Fund for Agricultural Development is aimed at expediting poverty reduction through the expansion of farm and non-farm microenterprises throughout the country.

Apart from providing financial services to the micro entrepreneurs, the project is making value chain interventions and extending technological supports for the development of various potential economic sub sectors. Under the financial services for microenterprises component of the project, currently around 1.2 million micro entrepreneurs are receiving financial services for their microenterprises. The micro entrepreneurs are using their loan amount in various enterprises of trade, farming, processing and service sectors.

Different proven technologies were transferred from home and abroad to the different locations of the country to overcome technological constraints in the respective economic activities. Agricultural technologies like artificial insemination for improving cow breed, sex pheromone technology and other bio technologies for producing safe vegetables, perch method technology for goat rearing, prawn and carp fish mixed culture technologies, high value fruit cultivation technologies were extended to increase productivity of the respective sub-sectors. Besides, the country’s first ever successful crab hatchery was established in Shyamnagar, Satkhira for the expansion of export oriented crab culture sub-sector in the southern coastal areas of Bangladesh. A total of 20,000 project participants are now getting benefits from these technological supports.

Lending activities under Agrosor

  • In FY 2014-15, loan disbursement of PKSF to its Partner Organizations (POs) under Agrosor is BDT 5.52 billion and outstanding amount of loan with POs under this programme reached at BDT 10.06 billion. In comparison with the previous year, PKSF’s disbursement to its POs under Agrosor in FY 2014-15, has been increased by 7.62% and disbursement of POs to borrowers by 22.87%.
  • During the FY 2014-15 POs’ disbursement to its borrowers is BDT 62.27 billion and outstanding amount of loan as on 30th June 2015 is BDT 35.99 billion.
  • During the FY 2015-16, amount of loan disbursement from PKSF to POs is BDT 6.90 billion and outstanding amount of loan is 11.78 billion.
  • During the FY 2015-16, POs’ disbursement to its borrowers is BDT 90.24 billion and outstanding amount of loan as on 30th June-2016 is BDT 49.76 billion.
  • Up to June-2016, total number of borrowers stands at 0.97 million, which is about 87.81% of the total members under this loan program.
  • During the current FY 2016-17 (from July-2016 to April-2017) loan disbursement from PKSF to POs and POs to borrowers is BDT 6.51 and 94.25 billion respectively.
  • In April-2017, the average loan size under this programme is BDT 1,02,493.

  Trend of loan disbursement under Agrosor:

Up to April-2017, cumulative loan disbursement from PKSF to POs and POs to   borrowers is BDT 44.46 and 426.20 billion respectively.