EFFECTIVE MICROCREDIT BANKING TO ALLEVIATE THE POVERTY IN BANGLADESH

The research focuses on the assessment of the MFIs (Micro Financial Institutes) & Small Business in Bangladesh; it focuses on the impacts of microcredit for growth & development of small businesses and improves the poverty condition. Bangladesh is one of the poorest countries in the world with low GDP/capita and minimum purchasing power. Almost a third of the total population (165 million) of the country lives below the national poverty line ($2/day). Lifting the vast population out of the poverty conditions and ensuring sustainable economic growth are the most remarkable national objectives in Bangladesh. The development of successful and sustainable small business, which creates employment for low- and semi-skilled workers, mainly self-employed, is considered one of the most effective ways to lift a nation out of the vicious cycle of poverty, and thus is a key policy goal for Bangladesh. Paving the way for MFIs since 1970s, especially during the new wave of microcredit in the 1990s, has come to be seen as an important development policy and a poverty alleviation tool in the country. The aim of the paper is to analyze existing MFIs and their microcredit policies and propose effective microcredit policies for growth and development of small businesses, as well as socioeconomic development. The researcher undergoes a field survey using semi-structured questionnaires and scheduled face-to-face interviews in Bangladesh. These analyses and the concept of the method of assessment of the impacts of microcredit determine the research methodology, research questions and the hypotheses which form the ideological basis of the research dissertation as well as its scientific contribution.