Profitability of BRAC-financed Projects: A study of seven microenterprises in Matlab

The basic objective of this study was to look at the profit rates made by VO members once they have made investments in projects financed through BRAC loans. BRAC’s twin objectives of employment and income generation as part of its poverty alleviating strategy hinge crucially upon the success of its micro credit programme. Although weekly loan repayments may originate from a variety of sources, the intended channel is via the profits made on their individual micro-enterprises

This study took a sample of seventy households divided equally amongst seven different microenterprises. The projects investigated were paddy cultivation, potato cultivation, goat rearing, bull fattening, grocery shop, net making and poultry. The profit rates were calculated using detailed structured questionnaires which collected information on revenues and costs of the project. Information on time spent on the microenterprise was also collected in order to measure the opportunity cost of time.

Related information

  • Writer Name: Hassan Zaman, Saima Rahman, Shahed Hussain, Masud Rana
  • Published Date: Tuesday, 23 May 1995
  • Country: Bangladesh