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Grameen social business services in Bangladesh
Dr. Kazi Abdur Rouf
Research Associate, CLSEW, University of Toronto and YCAR, and Faculty of the Noble
International University
Abstract
This paper is an empirical research in Bangladesh on the Grameen Bank (GB) Nabben Uddugta
(new entrepreneurs) social business equating financing program conducted in 2014-2015 and in
2017. The purpose of this empirical policy research is to explore the policies, procedures, and
strategies of this social business equity funding project of the Grameen sister organizations as
well as to identify challenges facing the second-generation entrepreneurs of GB borrowers in
running their social businesses in Bangladesh. The grameen social business equity financing
program is totally different from Grameen Bank microcredit program in Bangladesh. This
empirical research study discovers the Grameen new entrepreneurs are not only run their
businesses for profits, but they are also engaging in green businesses for restoring harmonious
relationships in their local ecology. They are also engaged in many community civic activities
even they are protesting against social ill activities in their community that are harmful to
community people like stand against dowry marriages, teenage marriages etc.
Key words: Grameen social business equity financing; Grameen new entrepreneur.
1. Introduction
Grameen Bank (GB) has introduced micro-enterprise loans (Nabeen Udduk (NU) Reen (loan))
for the fast-moving borrowers and for the second-generation of GB borrowers in Bangladesh in
1999 and the Grameen Bank Nabben Uddugta (new entrepreneur) social business funding
services in 2008. During Kazi Rouf’s PhD research data collection in Grameen Bank (GB) in
2010, he found that 12% of GB borrowers had received micro-enterprise loans (loans larger than
the GB micro-credit) from GB. The Grameen Bank micro-enterprise loan size ranges from USD
$400 to USD $8000. The fast-moving GB borrowers and their children (after completing higher
education) get involved in micro-enterprise businesses in Bangladesh by receiving micro-
enterprise loans from Grameen Bank. This study finds many children of GB borrowers have
taken over their parents’ businesses. In addition to this, Grameen Bank micro-enterprise
initiative, the Yunus Center has been implementing the NU social business equity funding pilot
project in Bangladesh through the Grameen sister organizations designed by the Yunus Center
social business design lab since 2013.
After retiring Muhammed Yunus from Grameen Bank in 2010, he carries the idea of the Nabeen
Uddugta social business loan with him, and he has been piloting the Nabeen Uddugta social
business equity funding (NUSBEF) program through the Yunus Center and the Grameen sister
organizations, the (latter) of which are a little different from Grameen Bank micro-financing
program. The Yunus Center and the Grameen sister organizations that over-see the new investing
program are: Grameen Shakti Samajic Babsah, Grameen Telecom Trust, Grameen Kallyan, and
Grameen Trust. The NUSBEF is a partnership equity program between the investing Grameen
sister organizations and the Nabeen Uddugtas (NUs). These NUs are receiving the investment
funds from the grameen social business investing agencies in Bangladesh. Grameen social
business implementing agencies are using the Yunus Center social business design lab guidelines
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and formats in implementing the NU social business equity financing program in Bangladesh.
Yunus Centre has been organizing monthly social business workshops/seminars in Dhaka for the
NUs. Table 1 contains information on social business equity investment funding to NUs by
Grameen sister organizations, apart from Grameen Bank, in Bangladesh.
Table 1: Grameen sister organizations providing investment funding to NUs
Investing Grameen sister
organizations
Male NUs
receiving NUSBEF
Female NUs
receiving
(NUSBEF)
Total %
Grameen Trust 521 11 532 26
Grameen Kallyan 128 10 138 7
Grameen Telecom Trust 591 11 602 29
Grameen Shakti Samajik Babsha 756 40 796 38
Total 1996 72 2068 100
2. Objectives of the
1. To know the policies and strategies of GB micro-enterprise loans and incentives provided
to second-generation clients of GB by this new loan product
2. To explore differences among GB micro-credit, micro-enterprise loans and social
business loans.
3. To examine the business performance status of second-generation borrowers compared to
first-generation GB borrowers and to know their motives in encouraging and coaching
neighbouring poor children for schooling.
4. To discover challenges faced by second-generation borrowers in managing/running their
businesses; are they involved in green businesses.
5. To know whether NUs are aware of their community different social issues particularly
are they involving in any protest/advocacy program against dowry marriages and
teenage/ child marriages.
2.1 Specific Objectives
2.1.1 To discern motivations of second-generation clients of GB to be involved in micro-
enterprises
2.1.2 To see if these new entrepreneurs are aware of and work for community issues like
the practice of dowries, teenage marriage, school drop-out in child education,
emerging tourism and concerns for public security, water pollution, rural sewage,
dying rural artisan products, marketing problems, and helping neighbouring disaster
victims.
3. Research Questions
1. What are the policies, strategies, terms and conditions of GB micro-enterprise and social
business equity funding that is applicable for the recipients?
2. What incentive is GB providing to second-generation clients?
3. How are second-generation clients of GB motivated to pursue social business loans and
to get involved in micro-enterprises and in social business?
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4. How do second-generation businesses perform compared to first-generation GB-
borrowing businesses?
5. Do Grameen Bank graduate borrowers and the children of GB borrowers encourage and
coach neighbouring poor children for schooling; get involved in public well-being
programs/services; develop local community-living economic values?
6. What are the challenges he/she faces in running his/her business in Bangladesh?
4. Significance of the research
Working-age youth constitute 24% of the labour force in Bangladesh. However, overall
unemployment rates among Bangladeshi youth (age 15-24) are 8.9% (Asia Pacific Youth
Employment Network, 2012). Therefore, the Grameen new-entrepreneur social business equity
funding project is a very important one and essential for addressing the issue of unemployment
in Bangladesh. Many unemployed people are receiving Grameen NU social business equity loan
financing without mortgages from Grameen sister organizations very easily, and they are
becoming self-employed. Moreover, NUs are hiring their neighbourhood unemployed youths to
work in their businesses. Although the Yunus Center social business equity investment program
for unemployed youth entrepreneurs has started in 2013 as a pilot scheme in Bangladesh, this
program has huge scope in Bangladesh. Thousands of unemployed youths have benefited and
self-employed through this program. The success of the NU social business investment program
would be a model for youth entrepreneurship development in Bangladesh and in other parts of
the world.
By the end of 2015, 2068 second-generation of Grameen Bank borrowers have received social
business equity funding financed by Yunus Cente social business design lab, Dhaka. The loan
size averaging is USD$470. Yunus Center organized social business development seminars and
workshops for the new prospective entrepreneur and ongoing entrepreneurs who have able to
expose about grameen social business equity funding services. Moreover, Yunus Center social
business design lab also providing information to NUs about prospective businesses in their
areas. The whole process assesses NU’s capability and capacity to run business, find out local
business initiatives, build confidence of the NUs, assist entrepreneurs to get new business ideas
and develop a future business plan. The workshop and seminar also instil awareness of market
information and the business safety net, strengthen NUs’ management skills, and link them with
other similar business initiators to identify business and financial challenges and learn how to
minimize business and financial risk and recover from attendant losses. Moreover, grameen NUs
are receiving post–loan services like post-business counselling, business mentoring and business
management training etc. from Yunus Center social business design lab (Yunus Center, 2015).
This empirical research is attempted to explore policies and strategies of these two loan programs
(the GB micro-enterprise loan and the NU social business equity loan program), identify
problems/challenges that are faced by the borrower, and discover his/her needs. The research
explores status of their businesses in Bangladesh as well as discerns whether Grameen micro-
entrepreneurs need further support services to improve their social businesses in Bangladesh.
The research results of these two loan programs could assist NU, Grameen Bank, grameen sister
organizations and the Yunus Center social business design lab could improve their two loan
servicing programs and improve their loan implementing strategies. This empirical research
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would assist micro-enterprise loan receivers of GB borrowers and the social business equity loan
receivers of the second-generation borrowers of Grameen Bank to get better support service to
run and expand their business. Moreover, this research could provide lessons helpful to other
social business financing institutions in Bangladesh and elsewhere.
Although many studies have been conducted on the impact of Grameen Bank general loans in
Bangladesh, there is no study on the GB micro-enterprise loans and the Grameen NU social
business equity funding program. The study identifies some problems of the programs for the
first time. The grameen social business equity funding agencies can be benefited from the study.
These grameen agencies could think for solutions for the problems and challenges that NUs are
facing in Bangladesh.
5. Theoretical and methodological approach of the study
The researcher developed a questionnaire in consultation with Professor Ellie Perkins to collect
data using a survey method. A questionnaire containing open-ended and structured-questions
designed to collect data from randomly selected beneficiaries through face-to-face interviews in
Bangladesh. Then beneficiaries (respondents) randomly selected from each selected grameen
sister organizations-Grameen Kallayan, Grameen Shakti Samajik Babsha, Grameen Telecom
Trust, Grameen Trust and Yunus Center. Moreover, he has used participatory observation,
literature review, institutional ethnography (organizational manuals, policies, and text analysis)
for this research. The researcher visited Grameen Bank, Grameen sister organizations and Yunus
Center to collect relevant data from second-generation GB micro-entrepreneurs and NU social
business equity investment partners. He also attended seven workshops of the Yunus Center
social business design lab during his visit to Bangladesh in 2014, 2015 and 2017. Total sample
size is sixty. Snowballing sample selection method is followed for selecting the sample
(respondents) of the study. The researcher gather six clients’ in depth stories and collected
information on grameen sister organizations’ institutional legal structures, operational context
and operational strategies, their funding models, procedures, and the challenges they are facing.
The researcher maintained a diary when he is collecting primary information from NUs and take
field notes to record interviewees’ main ideas. This study also collects secondary data from
Grameen Bank and Grameen social business equity financing agencies annual reports.
5.1 Time table and duration
The researcher began his research in July 2014 sponsored by Professor Ellie Perkins, Faculty of
Environment York University. Data collection and data processing completed in December
2015. The second round data collection for the study is in 2017. As mentioned earlier, the
researcher visited Grameen Bank, Grameen sister organizations, Yunus Center in Bangladesh,
and then he processes the collected data, analyse data, write a paper with his own resources. He
shares his research findings with grameen executives, Faculty of Environmental Studies, York
University, York Center for Asian Studies (YCAR) and many other conferences in the world.
This research has accepted to present the findings at the Comparative International Educational
Society (CIES) Conference held in Vancouver in 2017. The researcher also presented this
research finding at the Society for South Asian Studies Conference 2017 and Center for Learning
Social Economic and Workplace, University of Toronto.
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6. Screening process to deliver Grameen social business funds to NU in Bangladesh
The field worker of the Grameen sister organization visits rural unemployed people and finds
potential new entrepreneurs (NUs) from there. The field worker discusses the Grameen social
business equity investment partnership opportunity with the NU. He/she shares Yunus Center
social business design lab guidelines and procedures of the Grameen equity investment
partnership program with NU. The field worker discusses this information with the local
potential NU through one-on-one counseling session and in open house meetings, workshops and
seminars in villages. He/she evaluates the potential NU by following the Yunus Center design
lab screening process. The potential NU also shares his/her business idea with the field worker.
This is a two-way reciprocal learning process.
The field worker prepares a list of the potential NUs and their rough business ideas, and sends
the list to Dhaka head office of the respective Grameen social business loan providing
organization. Then the business analyst of the sister organization calls each potential NU to
refine his/her business proposal and presents the business plan at the Dhaka Yunus Center design
lab workshop. The business analyst and potential NU together develop the business equity
partnership investment plan and write all the information in the Yunus center prescribed form.
The screened one page business plan is submitted to the Yunus Center social business design lab
workshop for review and approval.
6.1 Yunus Center Social business design lab workshop participants
The Grameen social business for Nabeen Uddugta (NU) is a new concept and its practice is also
new style equity funding which just recently beginning in Bangladesh designed by Yunus Center
Social business design lab. Prospective NU is the second-generation of GB borrower’s
unemployed rural youth in Bangladesh. Prospective NU participants for the Yunus social
business design lab workshops are: business people, social business practitioners, potential
investors/entrepreneurs, the donor community, academics, innovators, social workers, NGO
personnel, philanthropists and young entrepreneurs although the workshops are mainly for NUs.
6.2 Yunus Center social business workshop and procedures for the disbursement of social
business funds to young new entrepreneurs
The Yunus Center social business design lab is structured to enable brainstorming, and to train
and involve its participants in social business. In this process, many new ideas are generated in
the workshops and in the open house meetings. These workshops assist attended NU participants
in using these ideas in their businesses. People from different backgrounds also join in this
program to learn about social business and brainstorm on potential social business ideas. The
workshop brainstorms to develop social business ideas into real-world companies, generates
awareness and provides training about social business, creates linkages between investors and
entrepreneurs of social business and allows informative exchanges about successful social
business projects. As of 21 December 2015, one hundred and sixty-five participants from
national and international organizations with diverse background attended the Yunus Center
social business executive workshop program, including numerous international participants
(Yunus Center, 2015).
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The Yunus Center social business design lab is a meeting-place for people of diverse
backgrounds having the same goal: developing social business for the betterment of society. It is
a half-day-long program for people who are interested in social business. The prospective NU
presents his/her business plan at the Yunus Center social business design lab workshop held in
Dhaka.
6.3 Grameen social business workshops are using the popular education learning method
Yunus Center social business design lab workshops and seminars follow popular education
learning styles. The workshops and seminars use power points, videos, popular songs/music,
jocks/fun and films. Moreover, workshop facilitators facilitate group discussions that enhance
two ways interactions of communications among workshop participants. Grameen social
business design lab workshops/seminars encourage discussion that follows democratic way of
discussion among the attended workshop participants. Facilitators focus NUs business issues
they are facing and struggling with; they respect NUs’ voices and choices, values and their
business cultures. Grameen social business equity funding scheme beliefs and prefers NUs both
short-term and long- term goals and visions. Each Grameen social business workshop has an
agenda that is prepared according to need of the NUs need. NU shows his/her business products
and his/her handicraft products in the workshop. The Grameen NU social business promotes
local living economy, neighbourhood community economy in rural Bangladesh. Moreover, NU
discusses his/her family members’ lending contribution to the business. He/she also reports in the
workshop how his/her family members informally share their time to run his business.
Here family members are voluntarily working together to run NU business; they (family
members) contribute their time and labour where all family members share their effort to success
the business. It is like diverse economic practice where family members of NU contribute their
time for the business. It is like household sharing unpaid work but ultimately they receive the
benefits (food, housing, clothing etc.) of the business. Popular education is education of, for and
by the people. According to Paulo Freire (1994) popular education is an educational approach
that collectively and critically examines everyday experiences and raises consciousness for
organizing and movement building, acting on injustices with a political vision in the interests of
the most marginalized.
Popular education requires the “learners” to define what they need in order to learn. Lessons are
not dictated by a teacher or leader based on what they know or what they think is important
(Nadeau, 1996). Popular education also defined as a technique designed to raise the
consciousness of its participants and to allow them to become more aware of how personal
experiences are connected to larger societal problems. It has the potential to empower people to
collectively organize to change issues affecting their lives. The key component to popular
education is to create positive social change. Grameen social business workshops, seminars and
training services are following the population education elements.According to Denise Nadeau
(1996), popular education refers to the marginalized and exploited people’s education for
improving the conditions of the poor and oppressed. Gramen social business equity funding is
for the disadvantaged poor entrepreneurs in Bangladesh. The Grameen social business
entrepreneurs’ workshops are not only orient those (NUs) about business management and
business plan, but also exposed them to how marginalised NUs could overcome their family
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struggle, economic struggle and business struggle following the popular education model.
Because popular education is an approach that critically examines and learns from the lessons of
past struggles and from concrete everyday situations in the present. It is a deeply democratic
process; equipping communities to themselves name and create the vision of the alternatives they
are struggling for. Grameen social business equity funding workshop and training program
respect NUs’ knowledge and values. Moreover, the facilitators respect NUs business experiences
and expertise. They (workshop facilitators) also pay attention and listen to their challenges that
NUs are suffering from. It equips NUs to define their own struggles and to make their voices
heard. It involves a process whereby the NUs could collectively pursue their problems although
they do business individually. Moreover, they could collectively (family members) solve their
business problems including identifying the resources, and skills they need. Grameen social
business popular learning process develops within the process the consciousness and
commitment to the interests of the marginalised NUs as part of their struggle.
Grameen social business design lab beliefs that NUs have sufficient knowledge/skills on their
own that they can work out for the solutions to their business problems. So NUs no need formal
business training diploma for receiving Grameen social business NU equity funding. However,
the researcher does not agree with this Grameen social business design lab notion. Because many
NUs reported that they need business financial management skills and trade skills for running
their businesses well. However, Grameen social business scheme believes that women and men
at the community and grassroots level are the primary agents for social change. Grameen social
business brings new entrepreneurs ongoing consciousness-raising about the necessity of
unemployed NU to initiate social business in their areas in Bangladesh. Grameen social business
intends to promote social purpose community beneficial business that address the issue of youth
unemployment, lack of business capital and lack connections/networks among marginalised
youth entrepreneurs. Yunus Center social business lab facilitates business net work among the
grameen new entrepreneurs. The motive of the Grameen social business equity funding program
is to empower poor unemployed youth to be successful in their business, they become a role
model entrepreneurs in their locality that ultimately could impact economic uplift and social
change for the marginalised people in Bangladesh.
6.4 System of approval of the Grameen social business equity funding to NU
All business analysts and executives of Grameen sister organizations attend the Yunus Center
social business design lab workshop organize for the NUs. These grameen sister organizations’
business analysts and executives review the NU submitted business proposals. The business
proposals and business loan financing are approved in the workshop after review of the business
equity funding proposals in the same in the session. The NU receives social business funding
immediately after approval of the business proposal. If any business proposal does not satisfy the
review team, the NU could resubmit his/her revised business plan at the next workshop.
Table 2: Year- wise Grameen Bank and Grameen social business design lab funding to NUs Year NUL distribution agency names Funds to NUs %
2008-2012 Grameen Bank (GB)* 2500 49%
2013 Yunus Center and Grameen sister organizations 66 1%
2014 Yunus Center and Grameen sister organizations 462 9%
2015 Yunus Center and Grameen sister organizations 2068 41%
Total Grameen Bank, Yunus Center and Grameen sister organizations 5096 100%
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*Grameen Bank is disbursing NU micro-enterprise loans with its own channel which is different than the
Yunus center social business design lab and Grameen sister organizations social business equity funding
implementation strategy.
7. What is social business?
According to Muhammed Yunus, a social business is a non-dividend company dedicated entirely
to achieving a social goal. In social business, the investor gets his/her investment money back
over time, but never receives dividends beyond that amount. The sole purpose of the business is
to solve a predetermined social problem sustainable way. A social business operates in a free
market like a profit-making business, but the goal of a social business, rather than for profit
maximization, is to overcome poverty and attain financial and economic sustainability, and while
the investor gets back his or her investment amount, no dividend is given beyond the investment
money. The workforce gets a market wage with better working conditions and the invested does
business with joy. Many academicians use this term as social enterprise which is similar to social
business. Social entrepreneurs are influencing the regulatory and investment environments to
hold businesses more accountable to their social and environmental performance and to support
social enterprises. These social enterprises reflect enlightened human values (Jack, Mook, &
Armastrong 2009; and Yunus, 2015).
A social enterprise has two goals: (1) to achieve social, cultural, community economic and
environmental outcomes; and (2) to earn revenue. Social enterprises are businesses whose
primary purpose is the common good of people. The social entrepreneurs use methods and
disciplines and the power of the marketplace to advance their social, environmental and human
justice agendas. It has triple-bottom-line approach. However, social enterprises are revenue-
generating businesses with twist-social and economic objectives following capitalism. Yunus’s
social business promotes the same objective that is in line with community-beneficial businesses
in the U S and the Community Investment Corporations (CIC) UK based. The social business
accelerates the process of poverty eradication to an unthinkable pace using the same market
mechanism which accelerated global prosperity for the rich in the first place (Yunus, 2015).
7.1 Is Grameen social business equity funding following sweat equity system?
The answer is yes. A NU puts his/her labour and time in the business and his effort that also
contributes to his business as business equity. Grameen social business equity considers NU’s
experience as an asset of his business. NU business equity usually his preexisting business
products, current shop and business assets like machines, fridge, electricity facilities value, car,
van, truck etc. that are used in the business. Sweat equity is a party's contribution to a project in
the form of effort and toil, as opposed to financial equity such as paying others to perform the
task.
Sweat equity has also an application in social business, for example, the owner of social business
put his effort and toil to build his business. An auto owner puts his own efforts and toils in his
auto-mobile business to increase the value of the vehicle in a sweat equity auto business.
Moreover, the term sweat equity explains the fact that value added to someone's own house by
unpaid work results in measurable market rate value increase in house price. The more labour
applied to the home, and the greater the resultant increase in value; the more sweat equity has
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been used. Sweat equity usually used in the real estate business or house ownership business
where house owner work himself in the construction of the house for the real estate business
company. The real estate counts his/her labour wage as an equity value of the house value.
Moreover, sweat equity is used to describe the non-financial investment that people contribute to
the development of a project such as a start-up business. For example, sweat equity is counted
from the founders of the company, as well as advisors and board members. In many situations
where some members of a partnership are contributing their money and others are spending time;
here partnership composed of cash and non-cash sweat equity. Sweat equity is rewarded the
same as cash equity through a distribution of stock or other forms of equity in a start-up business.
Sweat equity is important to the successful start-up of a new social business, especially when
cash is in short supply. However, it is essential to value sweat equity vigilantly.
Moreover, it needs to be careful and aware that in early stages of a business, it is easy to
overvalue it, offering stock in exchange for effort. However, over time, such business could
become very expensive and erode the equity available to follow-on investors. Sweat equity
should be measured in terms of the long term value of the effort, the long term commitment of
the entrepreneurs, and the value-added by the social business entrepreneurs to the overall goals
of the social business. Sweat equity can also be considered factual and truthful. For example, a
homeowner may spend time fixing, repairing, and renovating their home. The value of their
efforts is considered sweat equity and adds to the value of the home.
Recently sweat equity has been used to describe a party's contribution to a project in the form of
effort as opposed to financial equity, which is a contribution in the form of capital. In a
partnership, some partners may contribute to the firm only capital and others only sweat equity.
Sweat equity can be called “stock for services” and sometimes “equity compensation". This type
of equity for service programs involving patent lawyers and securities lawyers who specialize in
start-up companies as clients.
Grameen social business investing agencies do not add their service cost in a monetary value in
the NU social business equity partnership funding rather they charge five percent investment
service charge with covering the grameen portion equity funding cost. The five percent service
charge is popular to the grameen new entrepreneur. However, this five percent investment
service charge by the grameen equity investing agencies is not covering their service costs. It
may be a token charge at the pilot phase of the grameen social business equity funding. Although
the NU is very happy for grameen five percent service charge fee for maximum five years for the
loan investments because it is very cheap for them; however, grameen social business investing
agencies need to work out what is the exact service charge could be for covering their investment
costs.
8. Uniqueness of the micro-enterprise and social business equity partnership loan
(literature review)
The micro-enterprise program/service of GB is a people-centered development program that has
multiplier effects among marginalized people of Bangladesh (Anan, 2005; Bornstein & Davis,
2010; Dees, 2003; Gibbons, 1995; Goetz, 2001; Henry, 2006; Harris, 2002; Khandlker, 2005;
Mahamud, 2004; and Yunus, 2010b; 2008). Second-generation of GB borrower gets involved in
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micro-enterprise business by using the Grameen social business equity funding (SBEF). The
children of GB borrowers have taken up the opportunities offered by the Grameen micro-
enterprise loan service and the Grameen social business equity partnership funding program,
helping the marginalised GB second generation to become economic and social actors in their
communities in Bangladesh (Yunus, 2010b). Such a type of social business program could be
developed to engage marginalised people through other micro-financing institutions (MFI) in
North America and elsewhere.
Researcher Kazi A. Rouf has worked in Grameen Bank and its other sister organizations in
Bangladesh for three decades, and he has found that the different programs of Grameen Bank
contributed to reducing poverty as well as they are promoting small entrepreneurship,
coperativism and environmentalism in Bangladesh (Bornstein & Davis, 2010). Yet, even though
the Grameen micro-enterprise program and NU social business equity partnership investment
program have been working for a few years, there is no research being conducted on this social
business equity financing program. The findings of this research could be learning lesions for
Bangladeshi people, and South Asian micro-entrepreneurs, North American social entrepreneurs
and academicians, because many poor entrepreneurs are still seeking micro-enterprise business
capital and self-employment support services for their businesses.
Now social scientists, leaders, philanthropists, academicians and researchers think capitalism has
created poverty by focusing exclusively on for-profit business. Capitalism creates a selfish
civilization, instead of a human-valued civilization. Business should be dedicated to operating
responsibly so that it could make a people’s economy in society (Yunus, 2015).
9. Research findings
Grameen Bank micro-credit has been widely published in news media, electronic media and
social media. Many journals and books published on Grameen Bank activities. However, this
paper is talking about Grameen new entrepreneur (NU) social business equity funding services in
Bangladesh. The Diagram-1 below talks about differences among Grameen group-based micro-
credit, Grameen micro-enterprise loans and Grameen social business equity investment funding.
Diagram-1: Differences among Grameen group-based micro-credit, Grameen micro-
enterprise loans and Grameen social business equity investment funding
Grameen group-based micro-credit and grameen micro-
enterprise loan
Yunus Center Grameen social business funding
Grameen micro-credit is providing micro loan, but Grameen
micro-enterprise loan (GMEL) is a bigger size loan than
micro-credit. GMEL can be received by the fast moving
Grameen Bank borrowers for manufacturing businesses,
poultry/dairy farming, and for medium size business.
Children of GB borrower and rural unemployed youth (outside
GB borrower) can receive Grameen social business funding on
equity basis. Here funds receiver is an individual investment
partner of the Grameen investing agency.
Borrower of GB borrows loan for six months with 20% interest
rate. Here there is no equity partnership between borrower and
GB. It is a group-based micro-financing program.
NU (new entrepreneur) receives business equity funding with
five percent fixed interest rate for a period of maximum five
years. NU and Grameen investing agency are joint partners of
the businesses on equity basis.
A diminishing method uses for calculating interest rate-
interest is calculated on the outstanding loan amount.
Five percent interest is not on annual basis; rather five percent
interest is on the disbursed loan for five years
Borrower of GB needs to repay his/her loan at weekly the NU repays his/her instalments of the loan every three months.
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center meeting every week. He/she does not need to attend weekly meeting for repaying
his/her loan
Grameen borrower can receive housing loan, student loan for
his/her children’s higher education
NU can become the owner of the business property after
repaying his portion of loan and interest.
Here loan proposal is done informal way NU need formally submit and present his/her business equity
plan to Yunus center social business design lab
No mortgage required NU must enter into business equity partnership
No need to sign loan documents in the non-judicial stamp by
GB micro-borrower.
NU must sign MOU of the business equity partnership
document in the non-judicial stamp
Grameen micro-credit and GB micro enterprise loan have been
available in Bangladesh for more than three decades. It is a
regular national program in Bangladesh.
Grameen NU social business equity funding is a pilot project
initiated by Yunus Center and implemented by Grameen sister
organizations in Bangladesh since 2013.
Grameen new entrepreneurs involve in diversified businesses in Bangladesh. They are involved
in setup IT centers, community information centers, sports/music/theater clubs, web-page
designing and multimedia studios businesses. Even they engage in businesses like poultry and
livestock farming, poultry feed manufacturing and selling, fisheries, equipment leasing, garments
manufacturing and marketing, and the manufacturing of leather and ceramic products. The
second-generation of GB borrowers run businesses that have promoted much public good and
social business in Bangladesh. This progressive Grameen social business equity financial
program keeps youth in rural social businesses, reducing the tendency of losing them to urban
migration.
After mutual agreement between Grameen social business implementing sister organizations and
the researcher, he himself in-person goes to Tangail, Manikgonj, Chadpur, Gazipur and
Nordhinddi districts in Bangladesh for collecting data from the Grameen new entrepreneurs.
Table 1: Zone wise distribution of respondents (borrowers of Grameen Bank ) in Bangladesh
Name of the Zone Number of respondent Percentage
Tangail 29 48%
Manikjong 6 10%
Narayangong 6 10%
Chadpur 11 18%
Gazipur 6 10%
Norshindi 2 3%
Total 60 100%
Below table 2 shows 42% of the NUs are engaged in shop keeping//groceries businesses and twenty four
percent of the NUs are running business on service and transportation sector in Bangladesh. The research
has a question on business locations of the Grameen new entrepreneurs in Bangladesh. The study finds
Grameen new entrepreneurs usually run their business (95%) within 10 km their home locations.
12
Table 2: NU numbers by business category Business category Male NUs Female NUs Total NUs %
Handicraft 56 7 63 3%
Agriculture and Forestry 14 0 14 1%
Fisheries and animal husbandry 125 8 133 6%
Services and transportation 464 26 490 24%
Micro-business 448 7 455 22%
Shop keeping 836 23 865 42%
Factories 58 1 59 3%
Total 1996 72 2068 100%
Socio economic status of the new entrepreneurs and their parents
The study indicates seventy-one parents of the NUs belong to age group 25-45. Eighty five
percent of the respondents are married. Half of the respondents are from joint family in
Bangladesh. The research finds thirty-two percent sampled respondents’ parents have elementary
education and thirty two percent of the respondents’ parents have no education. However, the
collected primary data indicates thirty-nine percent NUs have university education and forty-
eight percent NUs have high school/college degree education from Bangladesh. Thirteen percent
NUs have completed medicine and engineering degrees. The data finds there is more educational
mobility among the second generation of the GB borrowers than the borrowers of Grameen Bank
borrowers in Bangladesh. Moreover, the housing conditions of NUs are improved compare to
their parents. For example, ninety-five percent NUs are currently living in pacca and semi-pacca
houses, whereas their parents were living in the thatches in the 1980s.
The following table-3 is about loaned entry numbers of NUs from Grameen social business loan
agencies. As of 2015, seventy-seven percent NUs receive loans for the first time for their
business from grameen social business loan agencies. Only three percent of the NUs receive
loans for fourth time from these agencies. Table 3: Loan entry numbers of NUs
Loan entry number of NUs for their businesses Frequency Percentage
First time 46 77%
Second time 8 13%
Third time 3 5%
Fourth time 3 5%
Total 60 100%
Grameen bank has the higher education student loan services, and scholarship and stipends for
the children of GB borrowers in Bangladesh. Many second generation of Grameen Bank
borrowers receive student loans for studying higher education in Bangladesh. GB introduces
interest free higher education loan program for borrowers’ children in Bangladesh so that they
can pursue education at the highest level like studying at colleges, universities, medical and
engineering sciences since 1997. Although this educational loans program is new to Bangladesh;
however, this education loan program disbursed education loans to 32,202 children’s family
amounting $15.93 million. 70,076 children receipt scholarships amounted $1.39 million (GB
monthly report March 2009). 827 borrowers’ children completed Masters (general), Bachelor
degree (honours) 12,717, MBA 37, BBA 148, B. Sc Engineering 313, M. Sc. (Agriculture) 58,
B. Sc. (Agriculture) 241, and degree in Medicine 166 (GB annual Report 2006: p. 29). It is a
13
revolutionary achievement for borrowers’ family in Bangladesh. The table 4 indicates forty-two
percent NUs receive higher education loans from GB for studying higher education in
Bangladesh. Table 4: Student loan receiving status of NUs
NUs receive student loan Frequency %
No 34 57%
Yes 25 42%
Scholarship 1 2%
Total 60 100%
Many children of the borrowers of GB joint in their parents businesses, some of them get paid
employment. Interestingly, some children of borrowers of GB have started businesses separately
in the sub-urban areas. Now Grameen bank introduces small enterprise loans for borrowers’
children those are interested to set up high tech businesses, clinics, computer training centers,
and trade centers etc. Number of micro-enterprise loans are 1,733,166 amounted $632.84
million. However, there is no study on the education loans policy, and its impact in the
borrowers’ families, and in the community. However, it is important to know how many children
return to family businesses, how many of them self-employed, and paid employed. Therefore,
this research objectives are to look at education loans repayment system, repayment rate,
repayment sources, education loans’ impact in the borrowers’ families; inspiration for other
disadvantage children education, and the NUs participation in different community development
programs, activities like mobilize community people towards civic awareness, environmental
awareness, networking with other borrowers, and connection with other educated children in the
community and other elites in the community. Below Table-5 shows types of business owned by
the new entrepreneurs (NUs), and the second-generation of GB borrowers’ who are the receivers
of grameen social business equity funding services in Bangladesh.
Table-5 indicates they are involved in businesses like establishing Kindergarten schools,
coaching centers, IT learning centers, child care centers, community information centers,
agribusiness and community clubs etc. However, thirty-two percentage new entrepreneurs have
retailing/grocery businesses, only few (13%) of them have manufacturing businesses in
Bangladesh. None of them are involved in export-import businesses.
Table 5: Types of business owned by NUs of Grameen Bank (GB)
NU businesses Number %
Manufacturing 8 13%
Agribusiness/livestock/fisheries 7 12%
Retailing/Grocery 19 32%
Kindergarten/coaching center 5 8%
IT/Electronics 4 7%
Repairing/recycling 3 5%
Processing 5 8%
IT/repairing/recycling 2 3%
Construction 2 3%
14
Wholesales 4 7%
Others 1 2%
Total 60 100%
Although Bangladesh is an agricultural country, only 12% of the NUs are in
agricultural/livestock/fisheries businesses. The researcher asked NUs about their income
turnover status in agricultural production, raising livestock and fish cultivation. They mentioned
the incomes from these businesses are not on daily basis. Therefore, it is challenging for them to
continue such businesses.
Now-a-days business is very competitive. Table-6 data shows NUs are facing different problems
and challenges in their businesses. Here 33% respondents are suffering from competitions in
their businesses; 31% respondents mention they do not have customer service skills, trade skills,
IT skills and financial management skills. The strike, occupied movement and political turmoil
in Bangladesh disturb NUs business too. For example, 22% of NUs reported that they feel
business insecurity and physical insecurity because of recent political turmoil in Bangladesh.
Table 6: NUs’ facing problems/challenges in their businesses (multiple responses)
NUs’ facing problems/challenges in their businesses Frequency %
Competition 20 33%
Buying raw materials from distance place 8 13%
Lack of business and physical security 13 22%
Lack of customer-service skills 2 3%
Lack of trade skills/IT skills 6 10%
Lack of trade skills 5 8%
Lack of financial management skills 6 10%
Business irregular turnover 8 13%
Others (Get big loan from GB, repaying instalment amount is high, fisheries turnover after one
year, less capital, carry & collect hide from different places, more interest, strike and occupied
movement disturb businesses, cash sale, employees problem, political turmoil, poultry birds
death risk and virus problem, heavy rain, cyclone and storm, repay TK. 13,400 in every
months, daily business income information send SMS message to GB head office every day,
not experienced in business, customers not paying upfront, guardians give less tuition fees
etc.)
31 52%
Total respondents 60 100%
Grameen social business equity loan receivers can run their businesses more competitively and
efficiently if they have financial literacy skills, business management training and other support
services.
The study also looks at NUs’ first loan entry size. The table 7 indicates (as of December 2015)
fifty-six percent NUs first loan entry size fall between Tk.50, 000-Tk.150, 000. Only three
percent NUs receive loan above Tk.400, 000; however, table 8 data shows thirty-four percent
15
NUs current loan sizes are above Tk.200, 000 that means NUs loan receiving sizes are increasing
with their increase of loan entry numbers.
Table 7: NUs’ first loan size (TK)
First NU loan size of NUs Frequency %
<25,000 2 3%
25,001- 50,000 13 22%
50,001-100,000 13 22%
100,001-150,000 7 12%
150,001-200,000 5 8%
200,001-300,000 12 20%
300,001-400,000 6 10%
400,001-500,000 2 3%
Total 60 100%
Note: Tk. 59.00= Cdn$1.00
The study wants to know what the current values of the business are as well as to identify
whether NUs business values are higher than their loan capitals. Table 8 indicates seventy-five
percent NUs current business values are more than Tk. 200,000, which is higher than their
current loan sizes. The data indicates Grameen NUs gradually increasing their businesses assets
and capitals. As of 2015, none of the NUs’ businesses have failed in Bangladesh.
Table 8: Current loan size (TK) of NUs
Current NU loan size (TK) Frequency %
0 2 3%
1.00-50,000 10 17%
50,001-100,000 7 12%
100,001-200,000 20 33%
200,001-300,000 10 17%
300,001-400,000 6 10%
400,001-500,000 3 5%
500,001-600,000 2 3%
Total 60 100%
From the below table 9, it is found seventy-eight percent NUs receive new entrepreneurs’ equity
loans for starting their businesses; seven percent receive loans because they have been
unemployed for long. Through the Grameen social business equity funding program they
become self- employed.
Table 9: Reasons for receiving NU loan (multiple responses)
Reasons for receiving NU loan Frequency %
Start business 47 78.33%
Gain experience 11 18.33%
Unable to get paid employment 7 11.67%
Other reasons ( continuation of business, receive capital, connect gas line,
expand and add new products, continue family business, gather experience,
19 31.67%
16
repair furniture, establish school, music/arts, create employment)
Total 60 100%
The research also discerns for to know whether NUs current business value is higher or lower
than their receiving loans. The table 10 shows 53% of the respondents’ current business assets
values are more than Tk. 500,000 which is higher than their loan receiving capital. This data
further tails to the readers about the positive sign of increasing business success of the NUs in
Bangladesh. The research also looks for the loan repayment rate of the NUs to their loans.
However, such information is unavailable to me by the loan providing agencies. Even NUs do
not give their loan repayment information to the researcher. Although Grameen social business
loan service is a pilot scheme of the Yunus Center, however, it is very important for Grameen
loan providing agencies to collect the loans and keep records of the collected loans. It might
questionable to Grameen NU loan receivers’ credit worthiness in the future.
Table-10: Current business value (TK) of NUs
Current business value (TK) Frequency %
<50,000 2 3%
50,001-100,000 5 8%
100,001-200,000 3 5%
200,001-300,000 5 8%
300,001-400,000 3 5%
400,001-500,000 7 12%
500,001-600,000 5 8%
600,001-1,000,000 15 25%
1,00,001-1,500,000 6 10%
1,500,001-+ 9 15%
Total 60 100%
In the questionnaire, there is a question to Grameen NU respondents whether their businesses are
similar to their parents’ businesses. The data asserts 73% NUs businesses are not similar to their
parent’s businesses. From the table-11, the investigation also finds NUs main source (43%) of
business idea from their parents, followed by self-motivation of their involvement in their
businesses (35%).
Table 11: Sources of business idea of NUs
Sources of business idea Frequency %
Parents/ cousin advise 26 43%
Self 21 35%
Working experience 4 7%
Friends 4 7%
Others (Yunus center workshop, mobile licence, Student
association etc.)
4 7%
No response 1 2%
Total 60 100%
17
Usually business loan providers give importance to the knowledge of business plan, marketing,
customer services, quality business products, their pricing and book keeping etc. Moreover,
business loan providers look for good credit scores. In addition, developing countries maximum
small business loan providing agencies ask for business training certificates, written business
plans, and marketing research data before delivering loans to small entrepreneurs. However,
Grameen social business loan providing agencies do not provide small business management
training or do not ask for business training certificates before delivering loans to their loan
receiving entrepreneurs. Rather, they think business experience is very important for success of
the business. The collected primary data finds eighty-three percent of the NU respondents do not
receive business training before starting their businesses. However, forty-five percent of the
Grameen NU loan receivers intended to get small business training if it is available to them nears
their locations with free of costs or at cheap training fees. The investigation also finds sixty-two
percent of the NU respondents themselves motivate to engage in business, thirty-eight percent of
them get direction and support from their parents to engage in their businesses.
The questionnaire has a question for the Grameen NU respondents what are the mode of supports
they receive from Grameen Bank and its sister organizations related to their business. The table-
12 is the table of the multiple responses receive from the grameen NUs respondents regarding
mode of support they receive their loan receiving agencies. Ninety eight percent NU respondents
reported they receive their business capitals from Grameen loan providing agencies. The study
finds the Grameen social business loan providing agencies are not only limited to provide
business capital to NUs, but these loan financing agencies also encourage them (sixty percent
responses) to expand their businesses in Bangladesh.
Table 12: Mode of support of Grameen Bank to NUs’ businesses (multiple responses)
Mode of support of GB to NUs’ businesses Frequency %
Business Capital 59 98%
GB encouraged 36 60%
Assist to develop business plan 2 3%
GB support business idea 9 15%
GB mentoring/training/advising 10 17%
Others (advise from parents, GB continue NU loan, use mother loan, support rural handlooms,
attended formal business seminars/training, GB could visit nursery and advise, assist to keep
proper business records, GB frequent visits, teach trade skills and assist in advertising, provide
business information, supply mobile phone, introduce monthly repayment system and
mentoring NUs’ businesses)
17 28%
Total 60 100%
One of the important goals of Grameen social business is to create local employment opportunity
and create business apprentice in the community for unemployed youths for to learn business
praxis skills through the existing grameen new entrepreneurs. In order to know the opportunity
of employment has created in the community by Grameen NUs, the researcher asks questions to
the NU respondents how many employees they have employed in their businesses. The table-13
shows forty-eight percent respondents employ 2-5 employees in their businesses; thirty percent
of the respondents have hired 10-19 employees in their businesses. The researcher observes and
gives special attention to the businesses that have more than six employees to know the types of
18
business NUs are involved in the Grameen funded social businesses. The study finds the
businesses that have more than six employees are involved in hide collection, hide processing
and leather selling, paper packets processing, book binding, tree nurseries and agro-processing
etc.
Table 13: Number of employees hire in NUs’ businesses
Number of employees used Frequency %
0 11 18%
2-3 17 28%
4-5 12 20%
6-9 7 12%
10-19 18 30%
11-20 5 8%
21+ 5 8%
Total 60 100%
Moreover, the study finds seventeen percent of the NU respondents use their family members in
their businesses as extended hands for their businesses. Forty five percent of the NU respondents
reported they hire employees from outside people for their businesses but twenty percent
reported they hire employees both from the family and outside the family for their businesses. If
this statistics compare to Grameen Bank micro borrowers, it can be found maximum micro-
borrows of Grameen Bank themselves are involved in their business (Rouf, 2011). However, the
present study finds only ten percent of the NU respondents themselves work in their own
businesses.
The research also looks for the status of the NUs’ future business plan. The following table 14
has recorded multiple responses from the respondents. Table 14 shows maximum NUs have their
future business plans either to expand their businesses, or relocate their businesses to other
places. However, in case of Grameen micro-borrowers, there is no need business plan that to be
submitted to Grameen Bank for receiving loan from Grameen Bank.
Table 14: NUs’ future business plans
NUs future business plans Frequency %
Expand Business 54 90%
Keep business in the current site 22 37%
Looking for employment 4 7%
Relocate business other place 8 13%
Total respondents 60 100%
Another interesting statistics discover from the research (table 15) on the NUs’ opinions on ways
of expansion of their business. Here multiple responses recorded and coded. It is found eighty-
three percent of the NU respondents expand their businesses through learning by doing. Thirty
eight percent of the respondents have expanded their business by visiting other businesses in
their community. This open learning process is free but effective to them for success their
businesses.
19
Table 15: NUs’ opinions on ways of expansion of their business (multiple responses)
NUs’ opinions on ways of expansion of their businesses Frequency %
Learning by doing 50 83%
Advice from parents 17 28%
Visit other businesses 23 38%
Receive business training 20 33%
Others (personal consultation, wholesales, elder brother, friend, market demand,
receive pharmacy course, innovate new share design, work in big factory, poultry
raising training, work in rod, cement, rice boiler, use more capital, progress with
experience, learn business and advertise, dealership, develop IT skills, attend NU
seminars, continuous try, receive advise from justice Rouf, up grade school
22 37%
Total respondents 60 100%
The questionnaire of this empirical research has a section called business idea spread to
neighbours. It has six sub-sections questions. The questions are (a) other children of GB
borrowers inspired to start small business in your area by seeing your business (yes/no), (b) did
you motivate second generation of GB borrowers to get involved in small business (yes/no)?, (c)
if yes, how many of second-generation of GB borrowers were inspired and became engaged in
micro-enterprise businesses? (d) How many second generation of GB borrowers received micro-
enterprise loans as a result of your inspiration, (e) Do you like to teach business to those who
want to learn from you? If yes, how shall you teach them small-business development skills?
(put √): through occasional discussion/voluntary work in my business, payment to me for small
business training, (f) what are your advice to the second generation of GB borrowers who want
to get involved in a micro-enterprise and engage in a social business. The responses of the NU
respondents of the empirical research tabulated in the table 16, table 17, table 18, table 19 and
table 20. Table 16 shows eighty-seven percent of the NU respondents of the investigation agreed
to spread social business ideas to their neighbouring children.
Table 16: NUs agreed to spread business idea to their neighbouring children NUs agreed to spread business idea to their neighbouring
children Frequency %
Yes 52 87%
No 8 13%
Total 60 100%
Moreover, eighty-seven percent of the NU respondents’ agree spread their business ideas to their
neighbouring children (table 17). Through NUs advises, table 18 indicates eighty-seven percent
neighbouring children inspired to start business that are encouraged by NUs. Table 19 shows
eighty-two percent of the NU respondents motivate their neighbouring children to engage in
business. Moreover, Table 20 of the collected data confirms through the respondents’
motivation, many youths received GB micro-enterprise loans (MELs) motivated by NUs.
However, forty-three percent neighbouring children are not motivated for doing business.
Table 17: Business idea already spread to the neighbouring children by the NUs Business idea already spread to neighbouring children by
NUs Frequency %
Yes 52 87%
No 8 13%
20
Total 60 100%
Table 18: Neighbouring children inspired to start business encouraged by NUs
Children inspired to start business encouraged by NUs Frequency %
Yes 52 87%
No 8 13%
Total 60 100%
Table 19: NUs motivate children to engage in business
NUs motivate children to engage in business Frequency %
Yes 49 82%
No 11 18%
Total 60 100%
Table 20: Number of children received GB micro-enterprise loans (MELs) motivated by
NUs
Number of children received GB MELs motivated by NUs Frequency %
0 26 43%
1 11 18%
2 11 18%
3 4 7%
4 4 7%
5 2 3%
7+ 2 4%
Total respondents 60 100%
The table 21 is about to know whether NUs like to teach business to their neighbouring children
Table 21 indicates ninety percent of the NU respondents like to teach business to their
neighbouring children. This indicates grameen loan receiving entrepreneurs are trying to develop
and promote business culture in their community instead waiting for paid employment for long.
Table 21: NUs like to teach business to their neighbouring children
NUs like to teach business Frequency %
Yes 54 90%
No 6 10%
Total 60 100%
There are questions in the questionnaire for the NU respondents of the study what are the
advises and benefits they are receiving from Grameen loan providing agencies, the below table
22 provides information of it. Here multiple responses are recorded. Table 22 of the data
confirmed grameen NUs could do business from their home by receiving business capital from
the grameen loan providing agencies with easy terms and conditions. They reported that they
have employed their family members, community people in addition to their involvement in their
21
businesses They are not only utilize their own skills in their business, but also able to get
involved in other social activities from home as well as they can serve their own community.
Moreover, study respondents reported that they are able to develop trade skills in tech business,
share business experience, keep accounts properly, invest money properly, learn loss profit of the
business, understand business before do, add more products in business, attentive to customer
service, maintain good employee relations, find good business location, do business that has less
capital but more income, receive SME training, do business that has demand. The respondents of
the study also involve in mobile repairing business, they first start their businesses with their own
money. Now they know GB different agencies loan services, learn math and book keepings etc
by attending grameen workshops.
Table 22: NUs receive benefits and advise from Grameen loan providing agencies.
NUs receive benefits and advises from Grameen loan providing agencies Frequency %
Do business from home 22 37%
Get business capital from GB and grameen families 26 43%
Self-employment 18 30%
Employ family members 7 12%
Employ outside family members 21 35%
Join/create business network 12 20%
Serve own community/ develop social network 14 23%
Others (Develop trade skills in tech business , share business experience, keep accounts
properly, invest money properly, learn loss profit of the business , understand business
before do, add more products in business, attentive to customer service, maintain good
employee relations, find good business location, do business that has less capital but more
income, receive SME training, do business that has demand, , involve in mobile repairing
business, be good credit worthy, first start business with own money, be patient in business,
know GB different loan services, learn math and book keepings, be innovative, GB should
screen l before giving loan to loan seekers etc). 56 93%
Total respondents 60 100%
The dowry demand marriages and teenage girls’ marriages are unethical and injustice, but these
practices are predominant in Bangladesh. These social ill practices are creating different acute
social problems to the victims, victims’ family and to the community. The fifth object of the
research is to know whether NUs are involved in any protest/advocacy program against dowry
marriages and teen age marriages. Table 23, 24, 25, and 26 provide information on these social
issues. The study finds maximum NUs (87%) do not like dowry demand marriages and child
marriages. Even they protest against these social ill marriages.
Table 23: NUs ‘opinions on dowry
NUs’ opinions on dowry Frequency %
Dislike 52 87%
Like 8 13%
Total 60 100%
Table 24: NUs’ number of actions against dowry
22
NUs’ number of actions against dowry Frequency %
NUs only one action/feeling against dowry 21 35%
NUs two actions/feeling against dowry 19 32%
NUs’ three actions/feeling against dowry 9 15%
NUs’ four actions/feeling against dowry 4 7%
Total respondents 60
Table 25: NUs’ opinions against child marriage
NUs’ opinions against child marriage Frequency %
Yes 57 95%
No 3 5%
Total 60 100%
Table 26: NUs’ number of actions/feelings against teen age marriage (multiple responses)
Actions against teen age marriage Frequency %
NUs only one action/feeling against child marriage 40 67%
NUs two actions/feelings against child marriage 29 48%
NUs three actions/feelings against dowry 14 23%
NUs four actions/feelings against dowry 3 5%
Total respondents 60 100%
There is a specific objective of this research is to know if these new entrepreneurs are aware of
and work for community issues like the practice of dowries, teenage marriage, school drop-out in
child education, emerging tourism and concerns for public security, water pollution, rural
sewage, dying rural artisan products, marketing problems, and helping neighbouring disaster
victims. Moreover, this empirical research looks at whether NUs discuss issues with their
neighbours and do they have involvement in improving women status in the community. These
are social objectives of the social businesses in addition to economic performances. The below
table 27, table 28, and table 29 give answers to these study objectives. These tables contain
multiple responses from the NU respondents. The primary data of the study finds all NU
respondents are aware of different social issues like family conflict, neighbourhood conflicts,
pollution of water, air and soil, public health, dowry marriage and child marriage etc. in their
community (Table 27). Even they discuss these issues with their family members and community
members (Table 28).
Table 27: NUs discuss issues with their neighbours (multiple responses)
NUs discuss issues with their neighbours Frequency %
Share GB loan transactions/GB discipline 24 40%
Public health 28 47%
Do not pollute water/ supply/use clean water 42 70%
Dowry free marriage 45 75%
Community deforestation 18 30%
Initiate community projects (mosquito) 19 32%
23
Settling neighbours 16 27%
Other (Anti-worm campaign, to be no loan defaulter, eradicate labour unemployment,
garbage and sewerage cleaning , Puja security, put garbage in dustbin, write articles on child
marriage, dowry and community adult education, Library, street theatre, immunization, Gram
Shalishi, repair roads, injustice, KG school problem, aware of social problems, eye camp,
children quality education, talk on moral education, cutting trees, immoral issues)
31 52%
Total 60 100%
The researcher thinks green business is one of the dominant components of the sustainable social
business. Therefore, the study also looks at NUs’ involvements in green businesses in
Bangladesh as well as their involvement in improving women status in the community. The table
27 and table 28 give the answers to these questions. These tables are tabulated with multiple
responses that are received from the NU respondents. The investigation finds many NUs are
involved in recycling businesses, repairing businesses, remanufacturing businesses, homestead
gardening, backyard poultry farming, nurseries and orchard farming, organic compost making,
bio gas plant, IT, and second hand clothing businesses, but none of their businesses have
pesticide products etc. The table 28 shows NUs are active in improving women status in their
community. For example, they are lobbying for poor women interests; discuss vulnerable women
issues with local councillors and community elites. Many of the NU respondents (53%) are
involved for protecting the rights of the working poor women in Bangladesh.
Table 28: NUs’ involvements in green businesses (multiple responses)
NUs involve in green businesses Frequency %
Recycling business 28 47%
Repairing business 21 35%
Homestead gardening 30 50%
Backyard poultry/ livestock 32 53%
Agriculture farming/ nurseries orchards 20 33%
Others (Organic compost making, biogas plant, IT, mobile repairing and servicing, fisheries,
second hand clothing and used paper, used car, used fan business, no pesticide, care
environment, green debate, conduct on increasing loan size, Jot business, free tutoring, eye
camp, arrange free treatment to poor, battery recharging, raising pigeon and rabbits, use second
hand papers, repair handlooms, big nursery, family fisheries, repair school furniture, no fast
food business, grow flower and sale, teach Islamic peace education).
33 55%
Total 60 100%
Table 29: NUs’ involvement in improving women status in the community (multiple
responses)
NUs’ involvement in improving women status Frequency %
By representing and lobbying for poor interests 22 37%
Passing council information to the community 18 30%
Listening and getting information for poor people 27 45%
Protecting the rights of the working poor women 32 53%
24
Others (Religious education, Masjid/Milad/Puja Committee ,resolve Bazar conflict, funeral
services, decrease human exploitation, sale unused materials, make environment clean and safe,
do not kill birds in winter, distribute books, repair roads, debate competition, collect donation
for senior women, awareness creation, follow women labour Act, increase garments wage,
initiate dustbin project and sewerage cleaning project, anti-dowry/anti -teen mirage campaign,
eye camp, develop fisheries, repair roads , protest against injustice, campaign for women
employment, distribute newspapers, deliver job information to women, Rotary Club, advise on
personal hygiene, give money to poor girls’ weddings, protect widowed’ rights and distribute
clothing to women)
35 58%
Total 60 100%
10. Discussion
10.1 Direct benefits of the study
This advanced-level social business research directly beneficial to Grameen Bank, to Grameen
sister organizations, to the Yunus Center social business design lab, and to GB micro-enterprise
loan receivers as well as the second-generation of GB borrower social business equity funding
receivers (new entrepreneurs) in Bangladesh. This gives social entrepreneurs a space to discuss
the Grameen micro-enterprise financing experience. Moreover, the Grameen social business
equity investment partnership experience connects them to university social business research
and social enterprise organizations to provide them with the GB micro-enterprise research data.
Results of the research indicated that the majority of the samples (71%) belong to the age group
of 20-35.
This research indicates that all participants completed at least primary education from
Bangladesh. The data show that 39%% and 48% of the NU respondents have high school and
college education and university education respectively. The most interesting thing is thirteen
percent NUs have completed medicine and engineering education. All NUs respondents are
living in buildings made completely of concrete; these are called pacca buildings. Ninety five
percent live in houses where the floors and walls are built from concrete and the roofs that are
made of coagulated iron sheets; these are known as semi-pacca buildings. In the 1970s in
Bangladesh, most houses of the grameen micro-borrowers were made of thatch; however, they
and their children are living in the quality of housing that has improved their lives since then.
The grameen new entrepreneurs are involved in social businesses even they are engaged in
constructive public well being different social environmental and civic activities instead involve
in subversive activities in Bangladesh. This is the positive impact of the grameen new
entrepreneurs’ social business equity financing program in Bangladesh. The paper suggests
initiate community economic activities for the youth, develop social business education,
programs/services for the unemployed youths so that they could involve in income generating
activities in their communities. The Grameen new entrepreneur social business equity funding
education and services assist youths divert their minds from extremism, and trauma resulting
from politics of war to devote themselves to social businesses like set up kindergarten school,
child care center, computer training center, distributing winter clothing to vulnerable poor
people, repairing and recycling green social businesses etc. in Bangladesh. Bridging social
capital can generate broader identities and reciprocates among these grameen entrepreneurs. This
positive impact can be used for information diffusion to other people of their neighborhoods.
25
Contrarily bonding social capital has the potential to produce positive externalities; Fukuyama
called it radius of trust.
Grameen NUs social business loan services have been instrumental in piloting and providing
income-generating opportunities to the second generation of GB borrowers by providing equity
loan services to these young new entrepreneurs in Bangladesh. This program has also provision
to provide loans to female entrepreneurs that enhances female self-employment opportunity in
Bangladesh. The neighbouring prospective female entrepreneurs are motivated by seeing their
neighbours have been engaging in social businesses. Therefore, Grameen social business
program has a transformative praxis learning opportunity to other neighbouring people by seeing
their neighbours’ business operations. The program also empowers the grameen new
entrepreneurs to serve the local people through their businesses in Bangladesh.
The present research data of the Table 5 shows that NUs’ participation in the social businesses
like child care, running Kindergarten schools and community dental clinics results in their
increased participation in their families and communities. For example, Mamtaz Begum, a
female dental entrepreneur of Grameen social business said in an interview with the researcher
that community male people even male elites of the community come to her for their dental
services that show value her even respect her for her dental services to them. She advises other
community girls to educate them and to do business from home.
Moreover, the data indicates (in the Table 16, 18. 19, 21, 24, 25, 26 and 27) that Grameen NU
entrepreneurs are engaged in community civic activities through advising the community
unemployed young to engage in businesses, intern young in their businesses; protesting against
dowry marriages, child marriages, and engage with social organizations that are fruitful to them.
The female new entrepreneurs are trying to occupy their positions in the public spaces in order to
reduce women exploitation, and to reduce no longer a male monopoly in the NUs’ community.
The results indicate that although the respondents of the study expressed their opinions regarding
feminist issues like dowry marriages, child marriages and women’s equality rights at their
workplace and violence against women, they did not collectively lobby or protest publicly for
their rights.
Table 27, 24, 26 and 29 address the research objectives 5. The findings indicate that Grameen
NUs are concerned about having harmonious familial relationships and addressing social issues
such as poverty, dowry, teenage marriage, divorce, rural women’s employment, child education,
women’s health, child health, child nutrition, women adult education, women’s equality rights
and their status in the family. However, the research finds public corruption is not their concern
although these issues relate to their personal daily life and community life; however, these NUs
are not nationally organized to lobby for their concerns on these issues. The data, however,
indicate that NU respondents of the study have become aware about these issues. It is hoped that
increased awareness will translate into greater influence in the family and community well being.
In spite of this awareness of social issues among GB borrowers, these issues remain major social
concerns, dowry being a prime example. Dowry is a big problem for marginalized women in
Bangladesh because of patriarchal values and gender discrimination. Although these problems
are socially constructed, the study finds both grameen bank borrowers and grameen new
26
entrepreneurs are tremendously opposed to dowry marriage and teenage marriage. Moreover, the
data indicate in the table 22 that the majority of grameen social business loan receivers have
achieved tangible benefits like fulfilling or improving their businesses, receive guidance during
pre-and post-loan disbursement periods from grameen loan providing agencies on the social
business management, business monitoring and record keeping systems. They are also inspired
their unemployed community youths to engage in business and to be self employment.
Maximum NUs are successful to run their business with profit after getting loans from Grameen
families.
Moreover, the researcher observed during his data collection NUs are providing advise to their
neighbouring youths on use sanitary latrines, aware neighbours about their personal health and
complete higher education, engage in social businesses in the community instead waiting for
paid employment. However, these grameen new entrepreneurs have not yet been able to fully
achieve to run their business without borrowing business capital from the grameen loan
financing agencies.
The evidence from this study indicates that NUs enjoy participating in community activities and
contributing to prospective new entrepreneurs to be involved in social businesses in the
community because their (NUs) help enhances prospective entrepreneurs to gain important
business skills, helps others in their community, and broadens their intelligence. For example,
Aminur Rahman, a child food entrepreneur of Grameeen in Dubail Deldoware, Tangail states:
My advise to community prospective entrepreneurs and protest and campaigns against social ills
benefit disadvantaged poor people particularly women and helps to stop teenage marriage,
women’s torture and exploitation. Ultimately I have helped develop my community.
This demonstrates that NUs participation in different community activities increases their social
consciousness and helps them feel that they are making a difference in their communities. They
see that they can be useful in fighting different social ills in the community. However, these
vulnerable unemployed prospective youths particularly women NUs need the help of other
agencies to develop this potential.
Moreover, this post-doc GB micro-enterprise financing and grameen Nabeen Uddagta (NU)
social business equity partnership investment research broadens and improves the researcher’s
knowledge about GB social businesses, the GB financing model, the Yunus center social
business financing model and their implications in communities in Bangladesh and elsewhere.
10.2 Outputs, outcomes, and potential usefulness of the research
This research touched on the work of the Grameen Bank (GB) micro-enterprise development
program, and Grameen social business equity funding (investment partnership with NU) program
in Bangladesh. The research can be useful to micro-finance institutions (MFIs) and other social
financing agencies in Bangladesh, North American, Asian, African and Latin American micro-
financing agencies. This report can be learning lesions to Grameen social business equity
financing agencies those who are involved in grameen social business equity funding services in
Bangladesh. They can realize about their strengths, weaknesses, opportunities of their legal
structures, funding models, products and services, operational strategies, policies, and
27
monitoring and accounting systems by reading this report. Moreover, European, North American
and South Asian social enterprise agencies, educationalists, social economy researchers,
policymakers, and business students can be benefited from this research too. The findings of the
research have shared with the Grameen social business loan providing agencies and other people
in different seminars, conferences and symposiums in different countries.
10.3 Benefits of the Grameen NU social business investing program in Bangladesh
Yunus Center reports that there are many benefits of Grameen Nabeen Uddagta Social Business
Equity Funding Service in Bangladesh. The benefits are Grameen NU social business equity
funding service is an anti-colonial localization process that empowers marginalised poor people
in Bangladesh. It is a sustainable business development model in Bangladesh. The researcher
observes that second-generation micro entrepreneurs of GB and new entrepreneurs (NUs) of
grameen social business equity funding receivers are involved in businesses like community
information centers, sports/music/theater clubs, web-page designing, multimedia studios, poultry
and livestock farming, poultry feed manufacturing and selling, fisheries, equipment leasing,
garments manufacturing and marketing, and the manufacturing of leather and ceramic products.
An important component of the Grameen social business investing program is involved the
educated second generation of GB borrowers for to do their business in the community and serve
the community. The GB borrowers’ children, the second generation, are pursuing higher
education (GB News Bulletin, January 2010). They are also reading newspapers, watching T.V.,
and are more outward looking than their parents. The GB has encouraged the second generation
or children of borrowers to develop their education by providing them with education loans.
These youths have the skills to protest on the street, to lobby for their own rights, and are capable
of taking action for the rights of marginalise women. This lobbying is leading local government
bodies and informal leaders in the village to include the marginalise people in the public
decision-making process (Goetz, 2004). Urban feminists dominate the public agenda speaking
out on issues such as women’s trafficking, pornography, sex workers and the sexual division of
labor; however, rural women’s concerns are different and can be bypassed. Therefore, nurturing
the next generation to promote women’s empowerment in their families and promoting the rights
of the poor is very important.
11. Policy Implications of this research
Grameen Bank and Grameen sister organizations have been instrumental in providing income-
generating opportunities to poor people (particularly for empowering women through the
extension of collateral-free banking) in Bangladesh since 1976. This policy empirical research
examined whether the second-generation of Grameen Bank (GB) borrowers could adequately
enhance the developmental status of GB women borrowers and emancipate him/her from the
dominance of his/her rich business mate in his/her community life. It further explored the GB
micro-enterprise loan program and the Grameen Nabeen Uddugta (New Entrepreneurs) social
business loan policy, strategy, the barrier face by the GB Nabeen Uddugta borrower, and the
leadership of this borrower and his/her ability to transfer his/her leadership skills to other public
spaces, especially in social enterprise development in his/her community.
28
Moreover, the research explored whether the Grameen social business loan products and their
policies have resulted in increased social business participation by the household of the second-
generation of GB borrower, and in the increased tendency of the community toward social
development. Using the case of Bangladesh, this policy research brief recommended that GB and
the grameen social business equity financing agencies should include gender equality in its social
business loan product to address the role of women in the family and in the community. The
report also asked question is the second-generation borrower of GB whether they are able to
remove obstacles to economic and social progress and higher education in their life, and are they
able to break down patriarchal dominance in society, to alter economic and institutional
arrangements, and to promote more choices for women’s participation in social business in
Bangladesh?
The findings of this policy empirical research assists to write a report on the GB micro-enterprise
loan, the Grameen new entrepreneur social business equity loan policy and strategy, and the
barriers/challenges the second generation of Grameen new entrepreneurs faces in implementing
his/her social business in Bangladesh. It is anticipated that the report would incorporate the
support that is needed for the GB micro-enterprise loan borrower and the second generation of
Grameen NUs to take part in decisions that pertain to family and community issues in order to
promote his/her development in the family social enterprise sphere and for his/her leadership
development in the public sphere in his/her community in Bangladesh. The policy empirical
research report generates new knowledge in the field of social enterprise management and
development. The paper might help the Government of Bangladesh, other Bangladeshi micro-
finance institutions, and the governments and non-governmental organizations (NGOs) of many
other countries get ideas about the policies and strategies of the Grameen NU social business
loan program in Bangladesh. This research can be a lesson for both developed and developing
countries, and for NGOs, on the Grameen Bank social business product and service, and grow
interest in initiating a new-entrepreneur social business equity funding/loan project for the
marginalized people in their own country.
However, the study has some limitations. For example, the sample size of this empirical study is
60, a very small fraction of the total grameen NUs. Some NUs of the study chose not to accept
the request for an interview as they were busy with their business and other family activities and
some avoided the questions without giving any reasons. There has not been very much research
done on the repayment rate of the NUs loans and the social impact of the Grameen social
businesses in Bangladesh. Hence, the study does not make comparisons to be made with other
studies in this area. The study is conducted by the researcher from his own resources. Moreover,
he is unable to consult the scholarships of the study with other researchers neither in Bangladesh
nor in Canada.
12. Conclusion
Grameen Bank has been instrumental in providing income-generating opportunities to poor
people particularly for empowering women through the extension of collateral-free banking in
Bangladesh since 1976. This policy empirical research of grameen social business equity finding
program is totally different from Grameen Bank micro-credit program research study in
Bangladesh. This paper provides information only on Grameen Bank (GB) second generation
29
borrower, new entrepreneurs’ social business equity funding services and their social
entrepreneurship developmental status in Bangladesh. The Grameen social business equity
funding program has been experimenting in Bangladesh by grameen four sister organizations
designed by Yunus Center social business design lab since 2015.
The study indicates there is a huge market for social business equity financing services in
Bangladesh. Therefore, it is better to implement the Grameen social business equity funding
program by an independent institution in Bangladesh and fully assigned these institutions to run
the social business loan services massively in Bangladesh. In addition to this, this research study
suggests expanding the NU social business equity funding program to both inside and outside
Grameen Bank borrowers’ families.
Moreover, the paper suggests for organizing social business open house meetings, seminars,
symposiums and workshops in different districts/Upzillas across Bangladesh throughout the year
in addition conducting workshop and seminars in Dhaka. Yunus Center social business design
lab could print one page flyer on Nabin Uddugktta (new entrepreneurs) social business concept,
partnership pattern and design of business proposal. The flyer can contain ‘Grameen Social
Business’ partner agencies’ names, investment repayment system and business ownership system
etc. These flyers could be distributed to Grameen Bank branches, Grameen Shakti offices, and
other field offices of Gramen’s sister organizations. Yunus Center social business design lab
could setup a telephone hot line social business service for young entrepreneurs in Bangladesh.
This hot line service could serve to answer the queries of young new entrepreneurs of
Bangladesh. At the initial stage, the piloting of social business implementation services might
continue under present system for a while; however, this social business investing program has
huge market in Bangladesh. This grameen social business equity financing project to new
entrepreneurs has gotten popular. Therefore, a separate implementing agency with an energetic
middle age innovative chief executive is essential for regularly implementing this program in
Bangladesh.
Moreover, as GB and its sister organizations have a huge network across Bangladesh; therefore a
separate activism strategy needs to be developed to address the stated social and business issues
in Bangladesh. Additionally, there is a huge demand for social business equity loan among fast
moving borrowers of GB, therefore, Grameen Bank could continue social business funding
services to its first moving borrowers too although surprising Grameen bank has squeezed its NU
social business funding services after 2012. As mentioned earlier this policy empirical research
report generated new knowledge in the field of social enterprise management in the field of
entrepreneurship development in Bangladesh and elsewhere in the world.
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