Agrosor : A Program for Enterprise Development

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

PPKSF has been implementing an IFAD-funded project titled Promoting Agricultural Commercialization and Enterprises (PACE) since 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 the International Fund for Agricultural Development (IFAD), aims to accelerate poverty reduction through the expansion of farm and non-farm microenterprises throughout the country.

Apart from providing financial services to the microentrepreneurs, the project is making value chain interventions and extending technological support for the development of various potential economic sub-sectors. Under the financial services for microenterprises component of the project, currently around 1.48 million microentrepreneurs are receiving financial services for their microenterprises. The microentrepreneurs 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 different locations of the country to address technological constraints in the respective economic activities. Agricultural technologies like artificial insemination for improving cow breeds, sex pheromone technology and other bio technologies for producing safe vegetable production, 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 laboratory for conducting research to protect the environment of country’s only breeding ground of the Halda river and a Tissue Culture Lab for improving varieties of flowers have been established under the PACE project.

Lending activities under Agrosor

-    In FY 2018-19, the loan disbursement of PKSF to its Partner Organizations (POs) under Agrosor was BDT 9.19 billion and the outstanding amount of loan with the POs under this program reached BDT 16.26 billion.
-    During the FY 2018-19, the POs’ disbursement to borrowers was BDT 177.07 billion and the outstanding amount of loan as on 30 June 2019 was BDT 110.55 billion.
-    During the FY 2019-20, the amount of loan disbursement from PKSF to POs was BDT 7.87 billion and the outstanding amount of loan was BDT 15.43 billion.
-    During the FY 2019-20, the POs’ disbursement to borrowers was BDT 189.30 billion and the outstanding amount of loan as on 30 June 2020 was BDT 132.11 billion.
-    In comparison with the previous year, PKSF’s disbursement to its POs under Agrosor in FY 2019-20 decreased by 14.36% and the disbursement of POs to borrowers increased by 6.91%.
-    During the current FY (from July to September), the loan disbursement from PKSF to POs and POs to borrowers was BDT 1.94 and BDT 31.12 billion respectively.
-    Up to September 2020, the total number of borrowers stood at 1.54 million, which is about 80.69% of the total members under this loan program.
-    In September 2020, the average loan size under this program was BDT 1,36,829.


Trend of loan disbursement under Agrosor

Up to September 2020, the cumulative loan disbursements from PKSF to POs and POs to borrowers were BDT 72.04 and BDT 1030.73 billion respectively.