Microcredit concept in business and banking organisation

Introduction:

The buzz word the Microcredit is the new concept in business and banking organisation. Microcredit is the extension of small loans to help the poor people that they can start small business and overcome poverty (Microcredit Summit, 1997). The topic really appeals me to do select for research of my dissertation. It will be helpful for my future career and very much related of my academic study.

Reason for my chosen research topic:

The reason I choose the base of Bangladesh for this topic is one is my familiarity with the nationality and the other is Grameen Bank (Bank for the poor) Professor Muhammad Yunus(2006 Nobel Peace Prize winner), founder of the Grameen Bank which invented the easiest way to go to the people who needs help(grameenbank.com).

Grameen Bank methodology is almost the reverse of the conventional banking methodology. Conventional banking is based on the principle that the more you have, the more you can get. In other words, if you have little or nothing, you get nothing. As a result, more than half the population of the world is deprived of the financial services of the conventional banks. General features of microcredit in Bangladesh Grameen bank are: It promotes credit as a human right. The main mission of the microcredit is to help poor people or families to help themselves to overcome poverty. its targeted specially poor women. Its not based on enforceable contract, based on Trust. Grameen bank provied door-step service where people should not go to the bank, bank should go to the people.

For my research I choose this topic, because the disbursement of small finance to the poor people in the rural area seemed to be successful. And women’s position ware less honoured to the family in Bangladesh culture but when Grameen Bank (architect of micro credit in Bangladesh) started delivering special credit scheme opportunity to the women and they started implementing and earning for the family, the status of the women ware changed and their contribution to the decision making in to the family became more important.

Possible research question:

As we know methodology for a research question is very important and has to be chosen to fulfil the purpose of the research. On my research I would like to dig out the provision of the grameen bank microcredit in the rural area in Bangladesh . My possible research question would be:

Understands the nature and characteristic of Grameen Bank Microcredit Program and how the Impact of Grameen Bank Microcredit Program changed the lifestyle of the poor people in Bangladesh.

Identify four authors who will inform my topic:

Yunus,M(2004)Grameen Bank, Microcredit and Millennium Development Goals.Economic and political weekly. September 2002 Vol.39 No.36 Pp 4-10

This paper traces the evolution of the ideas and practice of microcredit as pioneered by the Grameen Bank. Over the years, microcredit programmes in Bangladesh have grown, providing a wide range of services to meet the economic and social needs of its citizens, mostly poor women. It comes up with suggestions regarding the emerging issues of financial self-reliance and institutional sustainability of microcredit programmes.

Rahman.A (2001). Women and microcredit in rural Bangladesh: anthropological study of the rhetoric and realities of Grameen Bank. 2nd ed. oxford: Westview. p12-14.

In this book the chapter microcredit in development project considers the history of starting microcredit process of grameen bank. It considers how the bank has grown and extend loans in rural Bangladesh, specially to poor women. its also consider the figer of parcent of people who under this program and money the borrowed.

M.L. Narasaiah (2008). Microcredit and women. India: Discovary Publishing House. p1-61

The research objective considers in this book how grameen bank develop a micro-lending program to help the poorest people. It also concerns about how This program has empowered thousands of people–many of them women–and surprised experts in economic development who never believed that the very poor would find the initiative and ability to repay even the smallest ($25-$500) loans.

Benton E. Gup (2003). The future of banking. Westport: Quorum Books. p319-331

The research objective considers in this book the chapter named “Microcredit for the poorest country”. its explained origin of microcredit, summary of Grameen bank, Empowering the poor through microcredit in bangladesh and aslo some case study.

Extents meets the criteria of my research question are:

The word “microcredit” did not exist before the seventies. Now it has become a buzz-word among the development practitioners. Microcredit in Bangladesh grameen bank who said bank for poor people made me really fascinated to do my research on this topic. Because women’s position ware less honoured to the family in Bangladesh culture but when Grameen Bank (architect of micro credit in Bangladesh) started delivering special credit scheme opportunity to the women and they started implementing and earning for the family, the status of the women ware changed and their contribution to the decision making in to the family became more important. Also their strategy is different then any other conventional bank in Bangladesh.

To develop my research on time I will partly depend on the secondary data that has published in some of the literatures, books, reports and partly on the primary data that will be collected from the field survey by me or my representative, and may also take some telephonic conversation if needed. So it’s might not possible to develop everything but would be possible to make a clear view within the project time frame.
During my work the main obstacles might be faced to collect the secondary data, as the microcredit is not available all over the world. For primary data I need some representative in Bangladesh and also need to take some telephonic conversation.

My chosen topic The Impact of Grameen Bank Microcredit Program in Bangladesh all about banking system for the poor people in Bangladesh. Its have a clear link to theory. I explained what is microcredit and how it work. What is Grameen bank microcredit program in Bangladesh and how its work. What is the different between conventional banking methodology and Grameen bank methology ect. It is relate clearly to the idea of research question.
The topic really appeals me to do select for research of my dissertation. It will be helpful for my future career and very much related of my academic study. Strategic and finance management cover the banking knowledge, whereas I can use in the research method. Although my study gives me knowledge of global business organisation structure, but it can be key method to do research of my work.

Reference:

Yunus,M(2004)Grameen Bank, Microcredit and Millennium Development Goals.Economic and political weekly. September 2002 Vol.39 No.36 Pp 4-10

Rahman.A (2001). Women and microcredit in rural Bangladesh: anthropological study of the rhetoric and realities of Grameen Bank. 2nd ed. oxford: Westview. p12-14.

M.L. Narasaiah (2008). Microcredit and women. India: Discovary Publishing House. p1-61

Benton E. Gup (2003). The future of banking. Westport: Quorum Books. p319-331

What is Microcredit (2011) Grameen bank [Online] available at; http://www.grameen-info.org/index.php option=com_content&task=view&id=28&Itemid=177 [Accessed 21/05/2011]

Is Grameen bank different from conventional bank (2011) Grameen bank [Online] available at; http://www.grameen-info.org/index.php?option=com_content&task=view&id=27&Itemid=176 [Accessed 22/05/2011]

Karim,L. (2008). Demystifying Micro-Credit. The Grameen Bank, NGOs, and Neoliberalism in Bangladesh. 20 (1), p5-29.