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.
|
Progoti
|
|
|
Borrowers
|
342,000
|
|
Total savings
|
USD 59 million
|
|
Total outstanding
|
USD 556 million
|
|
Average loan amount
|
USD 2,200
|
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