Agrosor–MFCE Project

Project Summary

The Agrosor–Microfinance Financing and Credit Enhancement (MFCE) Project has been implemented by Shishu Niloy Foundation (SNF) since 16 May 2023 with financial support from the Asian Development Bank (ADB) through PKSF. The project will continue until 30 June 2028 and is being implemented across 70 branches by a dedicated team of 399 staff members. PKSF has provided BDT 21.00 crore in two installments to strengthen access to finance for cluster-based microenterprises. The project currently serves 739 entrepreneurs, including 524 women and 215 men, with a special focus on promoting processing-sector enterprises and inclusive economic growth.

Goal

To promote sustainable economic development by improving access to finance for cluster-based microenterprises, strengthening local value chains, creating employment opportunities, and empowering women entrepreneurs through inclusive financial services.

Objectives

  • Provide financial services to entrepreneurs engaged in business cluster microenterprises, with priority given to the processing sector.
  • Ensure that at least 80% of the total loan portfolio is disbursed to women entrepreneurs.
  • Allocate 40% of total loan disbursement to poverty-prone areas.
  • Allocate 10% of total loan disbursement to climate-vulnerable regions.
  • Strengthen institutional capacity through a dedicated Agrosor Cell and focal person for effective project management and monitoring.
  • Enhance entrepreneurs’ access to finance, business development opportunities, and sustainable enterprise growth.

Achievement

  • Successfully launched project operations across 70 SNF branches.
  • Mobilized a skilled workforce of 399 staff for project implementation.
  • Received and utilized BDT 21.00 crore in financial support from PKSF.
  • Provided financial services to 739 cluster-based entrepreneurs, of whom approximately 71% are women.
  • Established mechanisms to prioritize women entrepreneurs, processing-sector enterprises, poverty-prone areas, and climate-vulnerable communities.
  • Strengthened SNF’s institutional capacity to manage specialized microenterprise financing.

Challenges

  • Limited technical and business management skills among many entrepreneurs.
  • Market price fluctuations and supply chain disruptions affecting enterprise profitability.
  • Climate-related risks impacting production and business continuity in vulnerable areas.
  • Ensuring quality monitoring while expanding project coverage across a large operational area.
  • Encouraging greater investment in processing-sector enterprises, which often require higher initial capital and technical support.

Learning

The implementation of the Agrosor–MFCE Project has demonstrated that targeted financial services, combined with institutional support and a strong focus on women entrepreneurs, can significantly accelerate inclusive economic growth. Prioritizing business clusters and processing-sector enterprises creates greater value addition, employment opportunities, and local economic resilience. The project also highlights the importance of continuous capacity building, effective monitoring, market linkages, and climate-responsive financing to ensure long-term sustainability of microenterprises.

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