AID Microenterprise Stock-Taking: Bangladesh Field Assessments

摘要

The Women's Entrepreneurship Development Project (WEDP) provides credit, training and business support services to women-owned and -managed microenterprises in Bangladesh's more remote and rural areas. The assessment of WEPD finds that program impact has been appreciable. On the other hand, measurement of impact is constrained by lack of data on the program services and client activities. WEPD's financial sustainability is a problem. The program does not generate any interest income to offset its operating expenses and, by assisting clients with the loan approval process, WEPD is actually subsidizing the banks which provide the loans. Further, because its clients are mainly small entrepreneurs, WEPD is unlikely to collect fees for its services and in fact sustains significant losses in providing per diem and pocket money for its client trainees. Other factors hindering WEPD sustainability include the policy and regulatory environment governing capital markets, WEPD's cumbersome administrative practices, and the government's practice of cancelling interest payments after floods. Policy- and program-related lessons taught by the WEPD program conclude the report.