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Microcredit and Social Business Movement as Catalyst for Poverty Eradication: The Grameen Experience

Author

Listed:
  • Abdullahil MAMUN

    (Department of Economics, Cukurova University, Adana Research Fellow, TUBITAK, Turkey)

  • Harun Bal

    (Department of Economics, Cukurova University, Adana, Turkey)

  • Tolga Kabas

    (Department of Economics, Cukurova University, Adana, Turkey)

Abstract

Being a country of developing world, Bangladesh has a long-standing history of fighting poverty by means of microcredit. Thanks to the development of group lending approach of Grameen Bank established by Nobel laureate Professor Mohammad Yunus, which has later been widely accepted as an alternative to the traditional collateral based lending in extending credit facilities to the door of hard core poor at affordable terms, Bangladesh has been able to register tremendous success in alleviating poverty. Apart from Bangladesh, Grameen type microcredit programmes are now being replicated in more than 100 countries both in the developing and developed world. At the same time, Grameen has constantly been devising new entrepreneurial solutions to the problems of the poor in the name of social business- a social cause driven, non-loss, non-dividend, self-reliant business dedicated to serve the most pressing needs of the disadvantaged. Muhammad Yunus has been successful to create a global infrastructure for social business which is working as a catalyst for encouraging social business experimentations around the world. The paper will critically examine the Grameen solidarity lending mechanism and social business framework and their efficiency in approaching poverty with their cross border experiences.

Suggested Citation

  • Abdullahil MAMUN & Harun Bal & Tolga Kabas, 2019. "Microcredit and Social Business Movement as Catalyst for Poverty Eradication: The Grameen Experience," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 5(5), pages 32-42, July.
    • Handle: RePEc:mgs:ijmsba:v:5:y:2019:i:5:p:32-42
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.55.1004
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    References listed on IDEAS

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    1. Abdullah Al-Mamun & Mohammad Nurul Huda Mazumder & C.A. Malarvizhi, 2014. "Measuring the effect of Amanah Ikhtiar Malaysia’s microcredit programme on economic vulnerability among hardcore poor households," Progress in Development Studies, , vol. 14(1), pages 49-59, January.
    2. Bertrand Moingeon & Muhammad Yunus & Laurence Lehmann-Ortega, 2010. "Building Social Business Models: Lessons from the Grameen Experience," Post-Print hal-00528385, HAL.
    3. van Rooyen, C. & Stewart, R. & de Wet, T., 2012. "The Impact of Microfinance in Sub-Saharan Africa: A Systematic Review of the Evidence," World Development, Elsevier, vol. 40(11), pages 2249-2262.
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    More about this item

    Keywords

    Microcredit; Social Business; Solidarity Lending Approach; Poverty;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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