Microcredit empowers women
Around 90 percent clients of 732 microcredit organisations operating currently in Bangladesh are women, said Sirajul Hoque, a director of the Microcredit Regulatory Authority.
Still women have limited access to finance, he said.
Microcredit empowers women and develops entrepreneurship in women and a majority of them clear loan payments regularly, said Rokia Afzal Rahman, chairman of Arlinks Group and a former caretaker government adviser.
They spoke at a programme where Citibank NA Bangladesh announced the 14th edition of the Citi Microentrepreneurship Awards to honour the most innovative microentrepreneurs of the country.
The advisory council members of the annual awards made the announcement at a programme at the Six Seasons hotel in the city.
“Banks should change their behaviour and mindset in case of providing small entrepreneurs with funds,” said Salehuddin Ahmed, a former governor of the Bangladesh Bank.
He said microentrepreneurs never get access to banks due to a lack of collateral.
The contribution of microentrepreneurs to the gross domestic product is still very low at 12-13 percent, said Ahmed, who chaired the programme.
The microentrepreneurs should use modern technologies to diversify their products to improve their contribution to the economy, he suggested. Microcredit improved living standards of rural people, Hoque said.
This year, the programme is being jointly organised by Shakti Foundation and Citibank NA Bangladesh with the Credit and Development Forum (CDF) as the strategic partner.
The awards will be given in six categories: Best Microentrepreneur, Best Women Microentrepreneur, Best Youth Microentrepreneur, Best Microentrepreneur in Agriculture, Microfinance Institution and Innovative Microfinance Institution.
The organisers will accept applications for the awards through different banks and financial institutions. The award is expected to be given next year after a thorough screening and vetting process.
N Rajashekaran, country officer of Citibank NA, Abdul Awal, executive director of the CDF, and Humaira Islam, founder executive director of Shakti Foundation for Disadvantaged Women, also spoke.
Since the launch of the award in 2005 in Bangladesh, 68 microentrepreneurs and 21 microfinance institutions were awarded.
Channel i and The Daily Star are the media partners of the initiative.
