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 166 POs of PKSF. An individual micro-entrepreneur can take loan up to BDT 1.0 million for his enterprise under the Agrosor Program.

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 1.65 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 laboratory for conducting research to protect the environment of country’s only breeding ground of Halda river and a Tissue Culture Lab for improving varieties of flowers have been established under PACE project.

Lending activities under Agrosor (Including MDP & SEP)

–        In FY 2018-19,  loan disbursement of PKSF to its Partner Organizations (POs) under Agrosor is BDT 10.21 billion and outstanding amount of loan with POs under this programme reached at BDT 17.28 billion.
–        During the FY 2018-19 POs’ disbursement to its borrowers is BDT 177.18 billion and outstanding amount of loan as on 30th June 2019 is BDT 110.65 billion.
–        During the FY 2019-20, amount of loan disbursement from PKSF to POs is BDT 13.58 billion and outstanding amount of loan is BDT 22.46 billion.
–        During the FY 2019-20, POs’ disbursement to its borrowers is BDT 195.32 billion and outstanding amount of loan as on 30th June-2020 is BDT 136.67 billion.
–        In comparison with the previous year, PKSF’s disbursement to its POs under Agrosor in FY 2019-20, has been increased by 33.01% and disbursement of POs to borrowers increased by 10.24%.
–        During the current FY 2019-20 (from July to December 2020) loan disbursement from PKSF to POs and POs to borrowers is BDT 7.05 and 90.51 billion respectively.
–        Up to December 2020, total number of borrowers stands at 1.65 million, which is about 81.22% of the total members under this loan program.
–        In December 2020, the average loan size under this programme is BDT 1,46,596.