Effective microcredit banking for growth and development of small business and improve the poverty condition 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 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). Growth & development of sustainable level of small businesses, which create employments for low & semi-skilled workers, mainly self-employments, are considered one of the most effective ways to lift the nation out of the vicious cycle of poverty, are target & attention of the country. To pave 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 Bangladesh. The aim of the paper is to analyse existence MFIs and its microcredit policies and propose effective microcredit policies for growth & development of small businesses and socio-economic development. The researcher undergoes a field survey using a semi-structured questionnaires and a scheduled face-to-face interview 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. © 2018, ASERS Publishing House. All rights reserved.