IMPACT OF SMALL ENTERPRISE LOAN PROGRAMME OF PALLI DARIDRO BIMOCHON FOUNDATION ON THE BENEFICIARIES SOCIO-ECONOMIC DEVELOPMENT

Abstract

The purposes of the study were to assess the impact of Small Enterprise Loan Programme (SELP) of Palli Daridro Bimochon Foundation (PDBF) on the socio-economic development of the beneficiaries and to explore the contribution of the selected characteristics of the SELP beneficiaries to the impact of SELP on their socio-economic development. The study was conducted in Rajbari sadar under Rajbari district, Kaliakair upazlia under Gazipur district, Dhanbari upazila under Tangail district and Ramgati upazila in Lakshmipur district in Bangladesh. A survey method was used to collect primary data during October 2021 to March 2022. A total of 838 SELP beneficiaries of four upazilas under 55 districts of PDBF constituted the population of the study. Face to face interview was conducted to collect relevant data from the proportionate randomly selected 271 respondents. Twelve selected characteristics of SELP beneficiaries were considered as the independent variables. Impact of SELP of PDBF was the dependent variable of the research. The survey revealed that majority (69.40 percent) of the respondents increased their socio-economic condition which was ranged from medium to high level compared to 30.60 percent of the respondents was at low level. Twelve independent variables combinedly explained 53.70% of the total variation on the socio-economic development through SELP of PDBF. Regression analysis indicated that education (0.391), satisfaction towards loan received condition (0.215), age (0.212), savings deposit (0.139), length of involvement (0.129) and attitude towards SELP of PDBF (0.107) had positive and significant influence on their socio-economic development through SELP of PDBF. Based on the Standardized Problem Faced Index (SPFI) among the problem items, „high rate of interest‟ was ranked 1st, „inadequate loan amount as per demand‟ was ranked 2nd and 3rd was „product duplication in the same business area‟. Fist, 2nd and 3rd suggestions by the respondents were to „provide low interest rate‟, „adequate credit volume‟ and „arranging skill based training to small entrepreneurs‟ respectively. The findings may contribute to improve SELP beneficiaries‟ socio-economic condition through more effective policies.