ABSTRACT
PurposeThe purpose of this study is to empirically estimate the impact of a government microcredit program on the handloom weavers to promote small and medium enterprises (SMEs) in Bangladesh.Design/methodology/approachThe data were collected from 311 handloom weavers from the Sirajganj District of Bangladesh from July to December 2015 using a multistage sampling technique. The analysis was conducted using a two-stage least squares regression model incorporating instrumental variables to control for the probable endogeneity problem associated with the study.FindingsThis study finds that government microcredit had no significant impact on borrowers' investment in their business, whereas credit received from multiple sources other than government credit had a significant negative impact. Additionally, literacy level, household assets and the number of operational handloom units positively affected investment, while the number of non-operational handloom units and distance negatively affected the investment.Research limitations/implicationsThis study's findings are more specific for the selected case and may not be generalizable to all kinds of SMEs.Practical implicationsThe policy implications are targeted at increasing loan size based on the number of operational handloom units to improve the performance of government and other microcredit programs to facilitate the growth of SMEs in Bangladesh.Originality/valueThis study specifically focuses on estimating the financial performance of government microcredit programs for SME development within the handloom industry, which has not been sufficiently explored in the literature.
ABSTRACT
As a result of COVID-19 spread, Bangladesh implemented a range of measures including general holidays, lockdown, no lockdown, and strict lockdown which resulted in the dramatic ups and downs of the price level of the products. This study aimed to examine the influence of COVID-19 on poultry products (meat and eggs) in Bangladesh using Gazipur-an intensive poultry growing area - as a case study. Monthly market price data of poultry meat and eggs, and primary panel data from the same respondents using a random sampling technique through a structured questionnaire-based interview, Focus Group Discussion (FGD), and Key Informant Interview (KII) were collected. The results reveal that after the incidence of COVID-19, the price of poultry products at farmgate, wholesale and retail levels dropped drastically for the first three months (February to April 2020). Following that, the market price of farm (broiler) chicken and eggs increased by 40% and more than 30%, respectively. On the other hand, the price of local (deshi) chicken increased by 15%, which was already high on the market. However, in the early phase of COVID-19, many smallholder poultry farmers and hatchery owners were forced to shut down due to less demand/no demand of the product along with high feed cost and inadequate support from external sources. The government should provide financial support with low or no-interest rate to the smallholder growers in order to enhance their resilience against shocks like COVID-19 pandemic, natural disasters, etc.