Grameen Bank

Microcredit is a financial innovation that is considered to have originated with the Grameen Bank in Bangladesh, and Muhammad Yunus is its founder. This Bank offers collateral free loan to rural poor women. Women are afforded the opportunity of education and access to health care, reduced unemployment, so that their families and communities prosper. The future of the Microcredit is very bright now because it plays an important role for the development of poor families. This system is being introduced

opportunities, and characteristics of three well-managed microfinance institutions (“MFIs”): Grameen Bank (“Grameen”), Compartamos, and Friendship Bridge (“Friendship”). These analyses highlight the strategic leverage points – business strategies, organizational structures, financial reporting transparency, performance measurements, and organizational objectives – that determine the success of microfinance

Problems faced by Internal Governance System Relatives of the executive head exist in the governing body. Regular meeting of the governing body is not held. Members of the governing body are not informed about the current programs of the organization. Most of the members do not visit the NGO except Participating in meetings. The governing body is formed according to the choice of founding executive head. The governing body does not oppose the executive head’s opinion and decision. Meetings of the

leather goods. The principal minerals include natural gas, coal, white clay, and glass-sand. Bangladesh has been utilizing a mixed system of public and private development, which operates on free-market principles. The GDP growth rate is 6% (World Bank 2013). The per-capita income is estimated for the fiscal year 2013-2014 at US$1,115 taking the fiscal 2005-2006 as the base year (BBS 2014). Sustainable development is to maintain a balance between the human needs to improve lifestyles and feeling

extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in

need, we would like to provide an outstanding example of social enterprise which is Grameen Bank. Grameen Bank was officially founded in 1983 by Muhammad Yunus and it provides small loans, rather than charity, to the poorest of the poor especially women in Bangladesh. This indeed provides an opportunity for the people to transform their lives. In 2006, Nobel Peace Prize was awarded to Muhammad Yunus and the Grameen Bank for their efforts to create economic and social

On the idea of social entrepreneurship The idea of social entrepreneurship implies diverse things to various individuals and analysts (Dees, 1998). One gathering of scientists alludes to social enterprise as not-revenue driven activities looking for option financing methodologies, or administration plans to make social worth (Austin, Stevenson, and Wei-Skiller, 2003; Boschee, 1998). A second gathering of analysts comprehends it as the socially mindful routine of business organizations occupied

Introduction “If you are uplifting the poor, you are uplifting the nation”- M.K.Gandhi This statement clearly explains the essence of microfinance and its importance in the modern economy. Microfinance is a source of financial services and resources to the small entrepreneurs, villagers and less privileged section of the society. In December 2007, Forbes has brought out a special magazine on microfinance and has described microfinance as the next buzzword. Global Context and History The concept of

• The biggest problem faced by any SAARC country is poverty. Poverty has a wide spectrum of causes which vary from country to country. Issues like Naxalism in India, Civil wars in Sri Lanka, Terrorism in Pakistan have a direct link to poverty. Illiteracy and ignorance have resulted in an unbridled rise in population in many under developed nations. This is one of the alarming problems faced by the world considering its impact on global food and commodity market. The impact is so severe that, India

but they could be alleviated by the injection of small amounts of cash loaned on terms acceptable to them” (Yunus). Remarkably, 96% of these loans were repaid. There would be no chance the women could have borrowed the money from conventional banks, as banks require credit history, and charge high amounts of interest. Professor Yunus stated a very inspiring line at his interview, “To catch a dollar, you first need a dollar” (Yunus). In other words, in order to start any sort of business, capital must