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A case study of Grameen Bank Assignment
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Added on 2021-01-01
A case study of Grameen Bank Assignment
Added on 2021-01-01
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Dissertation
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TITLE: “How does the development of micro-finance institutions help toimprove the living standard of poor people in Bangladesh. A case study ofGrameen Bank."CHAPTER 1: INTRODUCTION1.1 Background to the researchMicro finance is the concept of business work targeted at individuals and small businessconcern who need approach to conventional banking and associated facilities. It includes microcredit which gain attention of large number of poor people towards Grameen bank and reachwith desired goals. An organisation used this method in order to fulfil all needs and requirementseffectively. For long time period, various researchers have been used micro finance activitieswhich alleviate poverty by developing income and jobs. Micro finance has been increasingquickly which main goal is to assist group out of poorness and boost economic development(Bondinuba and et. al., 2016). Its main function and importance has been amplify the globalfinancial situation when trust into formal banking system. Despite from this, global identificationand quality of micro finance where there is integrated grounds of their net profits and it is verywork on their contributions to financial intermediation and gaining economic growth. Microfinance refers as a large number of different financial products which includes micro credits,micro saving, micro insurance and remittance management. For example, UK country micro-finance institutions helps in making the economic status of development nations effectively. Amicro finance institutions is an organisation which offers business services and facilities to lowincome group. This will play an essential part in bridging the space between the conventionalfinancial organisation and the rural poor (Jose and Chacko, 2017). The micro finance is directly influence on entrepreneurship and it emphasis the currentresearch which does not provide sufficient justification for the connection between micro financeand entrepreneurship development in various developing countries. This is mainly concerned ongaining financial growth and success in order to reach with desired goals and objectiveseffectively. There are various micro finance which are provide loans on increasing entrepreneursincome and innovation. It is associated with accurate business skills, technologies, information tobe offered by micro finance with careful screening and monitoring in make sure about effectiveutilitarian of loan capital. This is based on an assumption which combines the poor into2
economic circuit, the micro finance was helpful in promoting development and growth. Theorigin of Micro-finance has started in the year of 1976 by Muhammad Yunus in Bangladesh. Ithas positively effect on poor people as well as societies. Grameen Bank (GB) provides micro-finance services and facilities for people in the rural areas so that they can use capital forproductive activity and it will being financially stable and independent. The report is based onGrameen Bank which is micro-finance administration and people improvement bank which isbased in Bangladesh (Najmi, Bashir and Zia, 2015). This makes small loans to impoverishedwithout any collateral. Along with this, an investigator will understand research aims andobjectives which assist in finishing the study. Literature review describes different writer andscholarly person views or opinions regarding research topic. It is used for describing andevaluating investigation project which assist researcher in order to conduct appropriate researchreport. In this, data analysis is helpful in examining various respondents views and reviewsregarding bank services and facilities which are offered by them. 1.2 Organisational BackgroundGrameen Bank is a micro-finance organisation and society evolution bank which wasfounded in Bangladesh. This will provide small loans to make improvement without requiringcollateral. Grameen Bank regulated and originated in 1976, who establish a investigation work tosurvey how to plan a assets transfer scheme for rendering banking facilities or work to theagricultural poor. The bank was authorised by national government for modulate and run as anself-directed bank in Bangladesh. The total number of creditors are around 8.4 million and 97%are only for women. In the year of 1998, the Bank's “Low cost Housing Program” won a WorldHabitat Award. In addition to this, in the year of 2006, the founder of bank who is MuhammadYunus were collectively honour the Nobel Peace Price. It was discovered that the bank hasincrease its finance from various types of methods and these sources are also changing from timeto time. When this bank was opened, the donor agencies used to give the capital to them in bulkat low rates (Fofana And et. al., 2015). This bank was basically founded on the principle thatinstead of giving charity, taking loans is a better option in order to promote business oragriculture. Therefore, this bank provides opportunities to people who belong to lower class,illiterate, unemployed etc. so as to motivate them to do business. 3
1.3 Significance of the ProblemThe main issue in this research report is that living standard of poor people which issituated in Bangladesh. Grameen Bank is micro-finance organisation which assist in developingand make improvement in living standard of poor individuals. The situation present in thatcountry needs to be improves otherwise the people living their might face severe issues in nearfuture. The respective bank require to identify standard of living of people where they need todevelop effective strategies and policies (Garikipati, 2017). It will assist in reducing poverty,income distribution and achievement of millennium development goals (MDGs). Micro-financeis reasoned as one of the most essential and effectual execution for poorness alleviation. Once,the problem is identified then it will become easy for the institution to motivate the individuals todo business so as to improve their standard of living. For doing business, loans will be providedto then by the bank. 1.4 Statement of the PurposeThe primary aim of this study is to examine detailed information about people whorequired money for living their life along with basic needs. Grameen bank provide capital forthose people who does not survive their life in better manner or who are in the need of money orwho have no hopes of getting money from anywhere to do their business. In Bangladesh, thereare around 26.4 percent people who are living in rural areas and approximately 18.5 percent aresurvived in urban areas (Islam, 2016). The current rate of intense poverty is 12.9% as comparedto 17.6% in six years ago. For make improvement in living standard of people, Grameen bankshould provide small loans to the needy people who live in Bangladesh without any basisrequirement. Along with this, such investigation is conducted for analyse rate of poor people andprovide them necessary services or facilities in Bangladesh. This initiative of bank will helpthem in raising the living conditions of people who are situated in that country. 1.5 Statement of ProblemThe main issue in this research report is that there are number of poor people who arebelow the poverty line. Also they does not survive or endure their life with required facilities andservices so that Grameen bank provide them small amount of loans. With this, country peoplecan easily change their standard of living by taken loan from Grameen bank. This will assist inevaluating and determining their strategies or policies which are helpful for make improvementin standard of living of poor people. 4
1.6 Research AimThis is considered as one of the essential section of an enquiry because there is not anypurpose where way are conducted and continue effectual. It will discuss as an issue and problemwhich is faced by organisation and it is required solution that can assist in easy to reach withhigher development and financial gain level effectively (Jamal, Raihana and Sultana, 2016). Thispart of dissertation helps in studying the entire research in correct direction so as to make surethat accurate results are achieved. Aim: “How does the development of micro-finance institutions help to improve the livingstandard of poor people in Bangladesh. A case study of Grameen Bank."1.7 Research ObjectiveIn this section, it is termed as vital part through which this define goals of an organisationin order to reach with desired customers. This is helpful for researcher because through this theyare capable for determining or evaluating entire investigation project in better manner. Suchobjectives are developing strong connection with customers as well as organisation which helpinvestigator for conducting research process. The research objectives are described as follows: To describe the meaning of micro-finance institutions.To provide classification of micro-finance institutions.To preview importance of micro-finance. To evaluate theories and models of micro- finance. 1.8 Research QuestionsIn this part, questions are formulated and developed by researcher as per the objectives sothat they have created such things for themselves. It can be examined that it is most essential partof research report by which they are easily able to understand and evaluate an investigation inbetter way (Cervelló-Royo, Moya-Clemente and Ribes-Giner, 2015). It is more essential andimportant part of research which will help an investigator to address all objectives of studysystematically and successfully. The research questions are explained as follows:What is the definition of micro-finance institutions ?What are the classification of micro-finance institutions ?What is the importance of micro-finance ?What are the theories and models of micro-finance ?5
CHAPTER 2: LITERATURE REVIEW2.1 IntroductionLiterature review is academic paper which provide in-depth knowledge of specific topic.In this part, an investigator gather and collect data and information from various sources andrepresent it in an effective way in front of reader. In this, researcher express knowledge onrespective topic from author's view and opinions (Porter and Kramer, 2019). This sectionprovides in depth knowledge to scholars regarding current study or research on same topic.Therefore, it has been identified that literature review is the best way in order to evaluateparticular topic effectively. In literature review, researcher evaluate the impact of development of micro-financeinstitutions help to improve the living standard of poor people in Bangladesh. The literaturereview portion covers the specific research topic along with sub sections which evaluate theoverall impact. In the beginning, it will reflect knowledge importance of free movement forrecruitment sector. A literature review is simple summary of sources but it is generally has anorganisational structure and integrate both summary and synthesis. In this, summary is the recapof important information of source but a synthesis is a re-organisation, or a reshuffling of suchinformation. It will gives a new interpretation of old material and it combine new with oldinterpretation. This will provide a brief summary of literature review which assist in analysingand examining different authors views and opinions regarding specific research topic. 2.2 Definition of Micro finance institutionAs per the view of Songbae Lee, Micro means small and finance is related to money. So,Micro finance is a short term banking service which facilitates loan to an individual or groupwho have low-income or unemployed. Micro finance can also be called as microcredit, whichdirectly refers to small loans to every needy person, who can start at ground level work for thegrowth of a living standard. Grameen Bank plays a vital role in providing loan to small workersor a needy person who get something of the ground to maintain standard of life. In a nutshell,Grameen Bank facilitates micro finance to an individual or a group which help in the beginningof ground level of work (Islam, 2016). The Micro finance institution which takes part inproviding lending and give an additional services to maintain an institution which scatter loans toall needy people, as to give growth in the economy. Grameen Bank is one of the institution6
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