Contribution of the Banking Sector to Entrepreneurial Development: Paradigm Interventions and Enterprise Proliferation

Abstract

This study attempted to investigate some socio-economic parameters concerning the development of entrepreneurship of the banks' members. For this purpose, researchers chose Grameen Bank (GB) of Bangladesh, which received the Nobel Peace Prize in 2006. On the basis of proportionate stratified sampling, respondents were selected from different branches (2200) of Grameen Bank in Bangladesh. The total sample of the study included 750 respondents. A constructed questionnaire was used to collect data, and SPSS and Decision Analyst Stats 2.0 software packs were used for analyzing data. Different statistical tools (T-test, Correlation Coefficient, and ANOVA) were also used to analyze data. The results of the study show that the level of new small business initiatives by the Banks' customers has increased significantly. The results also show that the new business opening rate was high at the beginning of the membership. Therefore, the data reveal that the contribution of the Grameen Bank in providing funding to small and medium enterprises. Empirical evidence suggests that socio-economic conditions have significantly persuaded customers to become entrepreneurs by the bank's loan and credit program. The outcomes of the present study will be helpful for GB authority, policy makers, and customers to make appropriate decisions and make friendly policies about entrepreneurial development and enterprise proliferation.