Microenterprise- Imperatives, Issues and Interventions

Abstract

Microenterprise is extremely important to the entrepreneurship development, human development, poverty reduction and employment generation in the overall economy. The specific objective underlies in the provision of resource allocation, infusion of    vital potent promoting microenterprise and to peruse socioeconomic patronization for development of the microenterprise.   Secondary data is used in this research. For the study, the researchers organized Focus Group Discussions to have a clear conception on the issue. NGO-MFI regular microcredit program (rural credit, urban credit, ultra poor credit, seasonal credit and specialized projects for agriculture, livestock etc.) is providing collateral free individual loan from Tk. 500 to Tk. 25,000. Training of NGO-MFI staffs on loan appraisals, improved lending methodology through ‘credit scoring’ or on the basis of cash flow, minimizing risks for larger loans are needed.  Non financial support through focus on clusters with development potential will help support services to be provided more efficiently and economically. It will help to emerge small and medium enterprises out of today’s microenterprises. Development of micro enterprise needs to two-pronged strategy – poverty reduction and employment creation strategy. In most cases, financing interventions did not help clients graduate beyond the reach of part-time self-employment. Entrepreneurship development training is needed for the micro entrepreneurs. Flexible service interventions attaching to the economic condition of the micro entrepreneurs doses input potent to the microenterprises. Most of the micro enterprises demand loan and its availability in time of need.