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Accelerating Poverty Reduction in Bangladesh Through the Grameen Family of CompaniesBuilding Social Enterprises as Business Ventures
By M. Khalid Shams
January 2009
www.grameenfoundation.org
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About Grameen Foundation
Grameen Foundation is a global non-profit organization that combines microfinance, technology, and innovation to empower the world’s poorest people to escape poverty. Its global microfinance network and technology initiatives reach an estimated 34 million people in 28 countries across Asia, Africa, the Americas, and, through Grameen-Jameel Pan-Arab Microfinance, Ltd., in the Arab world. Based in Washington, D.C., Grameen Foundation was founded in 1997 by Alex Counts, who began his work in microfinance with 2006 Nobel Peace Prize Laureate Dr. Muhammad Yunus, the founder of Grameen Bank. Dr. Yunus is a founding and current member of Grameen Foundation’s board of directors.
For more information on Grameen Foundation, please visit www.grameenfoundation.org.
Acknowledgments by the Author
During the 1990’s, I was involved very closely with some of the most exciting institution-building and social development work in association with Professor Yunus and Grameen Bank. Following my retirement from the Bank, I was very keen to document the experience and share it with a larger audience. I am delighted that Grameen Foundation facilitated this short research, enabling me to sit back, reflect and write about this experience. Alex Counts, who leads the Foundation, has always been a strong supporter of the global Grameen movement and strongly endorsed the idea that microfinance should now leverage the new social enterprise development efforts. This study was made possible because of the willing help from the management of Grameen Bank and the various Grameen enterprises. I am grateful to Professor Yunus, Professor Rehman Sobhan, Faizur Razzaq and many others within the Grameen Family, and outside, for their critical inputs. Jennifer Meehan of Grameen Foundation has been immensely helpful with her comments and her meticulous attention to details.
I would like to stress that this document reflects entirely my personal views, based on data and information that was available for the period 2004 to 2006. We are, however, dealing with the development of Grameen social enterpises in a very dynamic context and many of them are still evolving, responding to a changing market as well as the emerging social scenario. The message nevertheless comes out very loud and clear: through a new breed of “social enterprises” we can definitely attain our goals of poverty alleviation in a more comprehensive, more business-like and cost-effective way.
M. Khalid Shams
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Accelerating Poverty Reduction in Bangladesh through the Grameen Family of Companies
Building Social Enterprises as Business Ventures
By M. Khalid Shams
The experience of the Grameen Family of Companies, now numbering more than thirty, demonstrates that social enterprise in the fields of health, education, technology and beyond is not only a doable proposition, but a necessary one; it should be undertaken by successful microfinance institutions to leverage their existing microfinance operations and knowledge of the poor, especially the poorest, as Grameen Bank has done across a broad spectrum of social and economic sectors. It is not a question anymore of whether it should be done, but a question of how. The challenge is clear: to support a new breed of business ventures as efficient social enterprises, minimizing the operational risks and building them into financially sustainable ventures within the shortest possible timeframe.
Initiating Sustainable Social Enterprise in Bangladesh
For more than three decades, Grameen Bank has been pioneering programs to alleviate poverty. The bank began as an action-research project in 1976 and transformed into a bank in 1983, providing microcredit and related financial services targeting the rural poor in Bangladesh.1 Ninety-seven percent of the borrowers were village women, and they became shareholders of the bank. Because Grameen Bank was constituted as a “for-profit” organization owned by the poor, it became the first model of a kind of “social enterprise2”, more specifically a “social business3”, a term coined by Professor Muhammad Yunus in his book Creating a World Without Poverty.4
Grameen Bank and some of the more prominent Bangladeshi non-govermental organizations (NGOs), all of whom sought to combat poverty, were originally positioned at two extreme ends of a large spectrum when they began their operations. Grameen Bank was focused exclusively on microcredit for poverty alleviation in a ‘business-like’ way; it believed empowerment of the poor, particularly of women, was only feasible through a cost-effective, financially self-reliant mechanism. In comparison, most NGOs began with a social development agenda that depended
1. Grameen Bank’s statutory functions and the targeted clientele were specified in the 1983 Grameen Bank Ordinance, last revised in 2007, permitting Grameen Bank for the first time to expand its financial services in the municipal areas.2. A “social enterprise” is a business enterprise set up for the attainment of a social development objective (i.e. in education, health, nutrition, women’s empowerment) in a businesslike way that ultimately becomes financially self-sustaining. 3. A “social business” is a type of social enterprise. Professor Yunus proposes two types. First, “companies that focus on providing a social benefit rather than on maximizing profit for their owners, and that are owned by investors who seek social benefits…” Second, “profit-maximizing businesses that are owned by the poor or disadvantaged.” (Creating a World Without Poverty, p. 28)4. Creating a World Without Poverty: Social Business and the Future of Capitalism, Muhammad Yunus, Public Affairs Books, New York, New York, 2007
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on large subsidies, including generous contributions from external donors. In the end, both ultimately helped facilitate the convergence of microcredit and social development. This convergence laid the groundwork for new social enterprises to form and grow.
What led to Grameen Bank’s movement towards a broader social development agenda? As Grameen microcredit expanded in the 1980s, it became clear that while microcredit was a prerequisite for poverty alleviation, it was more effective when the social development needs of women and their families were met at the same time. Natural calamities that come frequently in Bangladesh—floods, tornadoes and other disasters, along with traditional subjugation of rural women—signaled the need for urgent social development. While some studies showed that microcredit helped about 60 percent of Grameen Bank’s borrowers cross the poverty line
over time, 40 percent remained nearly as poor due to these natural disasters, the payment of dowries for marrying off daughters, and chronic illnesses. It became apparent that, to ensure sustainable growth and development, Grameen Bank borrowers needed access to better health, better housing, better schooling, better nutrition, and greater social participation.�
The bank also recognized that more than 80 percent of the Bangladeshi population was engaged primarily in agriculture and related
activities with low productivity, resulting in deeply entrenched poverty. Fisheries, livestock, and rural industries were the other traditional sectors of the economy where large numbers of people were trapped in a vicious cycle of poverty. Application and management of new technologies by the poor themselves, or by institutions which could manage the technology on behalf of the poor, seemed the most appropriate means for raising productivity and creating better lives for the large numbers of rural poor.
The recognition and acceptance of two precepts—that microfinance was more effective when addressing social development needs of women and their families and that new technologies could directly raise the productivity of the rural poor—became the twin drivers of Grameen Bank’s social enterprises. This led to the emergence of the Grameen Family of Companies.
The Grameen Family of Companies
What is now termed as the “Grameen Family of Companies” has in fact emerged over time, with each social enterprise set up in response to a specific social development need or a particular social situation. Contrary to common belief, there is no evidence that new Grameen social enterprises were initiated by Grameen Bank following any master plan or blueprint. While there is now a large cluster of enterprises which carry the name “Grameen,” there is no special element
�. Seminal research in this connection was done by Helen Todd in her book Women at the Center—Grameen Bank Borrowers After One Decade, Westview Press, Boulder, Colorado, 1996.
“Microcredit turns on the economic engines among
the rejected population of society. Once a large
number of these tiny engines start to work, the
stage is set for big things.”
- Professor Yunus, Creating a World Without Poverty
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that legally binds them together, although Professor Yunus chairs nearly all. Each has a mandate of its own, some focus very strongly on specific social issues, others on having an indirect social impact. A complete overview of the Grameen Family of Companies appears in Appendix A.
The “Grameen Companies” can be divided into the following five categories, which are not mutually exclusive:
Enterprises originating from operations within Grameen Bank. These are essentially enterprises born out of projects started by Grameen Bank. As operations were scaled up, each enterprise received a separate corporate identity as a not-for-profit. Each had a clear mandate for poverty alleviation, either directly or indirectly. Examples are Grameen Motsho o Poshushampad Foundation (the Fisheries and Livestock Foundation), Grameen Krishi Foundation (the Agriculture Foundation), Grameen Fund and Grameen Kalyan (Welfare).
Enterprises for Financing Micro, Small and Medium Enterprises. Three enterprises fall into this category. Grameen Trust aids in international replication of the Grameen-based microcredit model for the direct alleviation of poverty. Grameen Fund provides venture financing for new technology-based micro-initiatives. Grameen Byabosha Bikash provides guarantees to Grameen Bank branches, enabling bigger enterprise loans for borrowers.
Social Development Enterprises. Described by Professor Yunus as “social consciousness driven” companies, this category represents the first generation of Grameen enterprises focused on purely social issues. The enterprises combine social development objectives (health, education, revival of the handloom industry, marketing of rural products, services or functions not performed by any other institution) with financial self-sufficiency. Examples are Grameen Shikkha (education), Grameen Kalyan (health insurance for the rural poor) and Grameen Uddog (rural handloom weavers).
New Technology Ventures. These enterprises introduce and apply new technologies capable of quickly raising the productivity of the poor and attaining socio-economic development on a more sustainable basis. Striking examples are the new information and communication-based technologies which allowed the poor to be connected to the global market for the first time. For instance, Grameenphone, a for-profit joint venture between Telenor of Norway and Grameen Telecom, a not-for-profit company, created a village phone program which had more than 300,000 subscribers at the end of 2006.
New Social Businesses. These enterprises combine social development objectives with profitability, ideally limiting the financial dividends paid to shareholders so that gains can be used to continue building the businesses. Thus, a social business might be defined as a non-loss, non-dividend business…ultimately, the surplus generated by the business is passed on to the target group of beneficiaries in forms such as lower prices, better service, and greater
“Is there a common thread that links all these
varied enterprises? Just one. They all share
the same goal: to improve life for the people
of Bangladesh, especially the poor.”
- Professor Yunus, Creating a World Without Poverty
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Comprehensive Health Insurance for the Rural Poor for a $2 Annual Premium
Grameen Kalyan (GK), a not-for-profit company originating from Grameen Bank, operates an innovative health care program out of 35 centers in 12 of the 64 districts in rural Bangladesh. For an annual premium of only $2, Grameen Bank borrowers and other rural inhabitants receive preventive and clinical health care services from qualified medical doctors and trained technical staff. In addition to the premium, subscribing families also pay a small fee for a doctor’s consultation, nominal expenses for lab tests and reduced costs for medicines. Patients who are not Grameen Bank borrowers pay a slightly higher premium and consultation fees.
In 2007 more than 321,000 patients received care, compared to 245,000 treated in 2004, an increase of 76 percent. As of 2007, the program had recovered 92 percent of its operational expenses, a significant achievement for any health care program*.
GK’s health care program recently has added more specialized, subsidized medical services including dentistry services; gynecological, pre-natal and ante-natal mother care; and intraocular lens transplants for treatment of cataracts which often afflict the elderly rural poor. The program is also considering an ear, nose and throat specialty. GK continues to innovate and expand services, even beyond its facilities; following the cyclonic storms that struck the coastal districts in November 2007, GK promptly mobilized and dispatched medical teams that provided emergency treatment to more than 20,000 people.
Project Analysis
While the operating expenses of a rural medical care program can be substantially recovered, the primary financial challenge is the upfront capital cost of setting up health care centers in remote locations. GK has opted for slow, steady growth, i.e. setting up 35 centers in 12 years. GK has been able to leverage the microfinance experience of Grameen Bank in implementing a program that is 90 percent operationally sustainable, while demonstrating the social impact of comprehensive health care on the lives of the rural poor.
Currently, efforts are being made to scale up GK. Funding is not a concern since GK has a significant financial surplus. The real challenge is operational—it has been difficult to persuade doctors to stay in the rural areas and, consequently, there has been a high turnover of
medical staff.
*An evaluation carried out by the Institute of Health Economics of Dhaka University concluded, “… the older centers of GK health programme have attained financial sustainability and the trends show that the newer centers will also attain financial sustainability in course of time.”
A Grameen Bank client receives preventive health care
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accessibility.6 The surplus might also be reinvested for further expansion of the business. An example is Grameen Danone Foods Ltd., which limits its dividends payouts after initial investment costs have been fully recouped, and Grameen Health Care Services, whose sponsors place a cap on their profit-taking in order to reinvest in further expansion of the program. Currently, only these two companies, along with Grameen Bank, are actual social businesses as defined by Dr. Yunus.
These five categories of new social enterprises represent the unfolding of an unprecedented institution-building experiment designed to support poverty alleviation.
Performance Assessment Matrix
The results of this remarkable enterprise-building over the last two decades are assessed in terms of three distinct criteria: 1) the social development impact on the poverty alleviation of a targeted clientele group, 2) the profitability of the enterprise operations, i.e., the capacity to meet all operational expenses from operational income, and 3) the application, development and extension of technologies capable of increasing the productivity of the poor or the effectiveness of institutions engaged in poverty alleviation.
Results for each social enterprise by category are summarized in Appendix A.
Social Impact
In terms of social impact, these 20-odd enterprises, large and small, are all dedicated to the task of poverty alleviation, either directly or indirectly. Except for Grameen Bank, none of the social enterprises is directly owned by the beneficiaries themselves.7 Because each enterprise emerged out of a unique set of circumstances, their social results cannot be aggregated. Each was a product of a set of opportunities occurring at a certain time and place. They have followed different business paths; a few were closely aligned with Grameen Bank and provided services directly to its borrowers (Grameen Byabosha Bikash, Grameen Kalyan and Grameen Telecom, for example). Others have followed altogether independent paths. A few have grown very rapidly, while others have been constrained by resources or lack of market opportunities. But together these enterprises all clearly and very strongly converge around their principal social development objective, alleviation of poverty in Bangladesh.
6. Creating a World Without Poverty, Muhammad Yunus, page 24.7. Ownership by the poor is still perceived as an unfolding process in the development of social enterprises. Much will depend upon the development of the capital markets in Bangladesh. A further consideration is how shares of the social enterprises are allocated among millions of poor households. More recently, Grameen Bank has set up a separate ‘Investment Trust’ to facilitate poor people’s ownership of shares of GrameenPhone, the largest mobile phone operator in the country.The Trust will manage the portfolio on behalf of the Grameen borrowers, a unique initiative in the capital market of Bangladesh.
The establishment of numerous social
enterprises under the “Grameen” banner, set up
within the last two decades, has indeed been
the most significant institutional experiment in
social development undertaken in a business
like way.”
- M. Khalid Shams
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One can begin to measure progress by examining changes in specific and measurable social indicators, such as employment generation, health improvement (i.e. declining mortality rates, contraception prevalence, nutrition), children attending schools, adult literacy and access to market. For example, to assess the direct impact of Grameen Kalyan’s health insurance program, indicators could include: 1) decline in mortality rates within a geographic area, 2) number of patients receiving diagnostic services in the health centers, and 3) cost-effectiveness of the health delivery system. The extensive financial resources of highly profitable enterprises such as Grameen Telecom, Grameen Knitwear, etc. can also be directed toward new development activities considered urgent: establishing new hospitals, extending IT education, and providing vocational training.
Financial Performance
In terms of operational profits and losses, the financial performance of the social enterprises during the period 2004 to 2006 falls into four categories.
First, there are those hugely profitable concerns. Grameen Telecom, Grameen Cybernet, Grameen Kalyan and Grameen Knitwear are the most profitable companies in this cluster. Grameen Telecom is the biggest, with its profits supplemented by regular dividends from Grameenphone as well. Grameen Shakti, with generous project aid at the start from external donors, has now built a very large capital base and has a rapidly expanding business marketing solar photovoltaic units for rural homes as well as biogas units.
Second, a relatively large cluster of social enterprises, while still small in revenue earnings or business turnover, could grow much faster with more investments. These include Grameen Fund, Grameen Motsho o Poshushampad Foundation, Grameen Uddog, Grameen Shamogree, Grameen Byabosha Bikash and Grameen Communications.8
Third, Two enterprises with 100 percent social development content—Grameen Trust and Grameen Shikkha—are managing endowment funds and are attempting to meet operational expenses from their own income.
Fourth, two companies with enormous potential for development and social impact have, unfortunately, accumulated losses. They are Krishi Foundation and Grameen Solutions. More competent management, revised business strategies and infusion of additional capital could lead to a turnaround for both.
See Appendix B for a detailed breakdown of financial results by enterprise.
8. The Fisheries and Livestock Foundation (GMPF) was able to source initial project financing from KFW, Germany, as well as FAO-UNDP. Grameen Uddog, which started with the export of “Grameen Check”, borrowed heavily from commercial banks and faced difficulty with the sudden decline of the export demand. Both Grameen Krishi Foundation and Grameen Solutions are still saddled with large debt burdens.
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Integrated Fish Farming and Livestock Development for the Poor
Over a thousand years ago, ponds were dug out of the soil in northwest Bangladesh. Laying dormant for hundreds of years, in 1986 these government-owned ponds were leased to Grameen Bank which, in turn, established Grameen Motsho o Poshushampad Foundation (GMPF), or the Fisheries and Livestock Foundation, to manage the farms. Spread over more than 800 ponds encompassing 707 hectares of a fresh-water area in the northern districts of Bangladesh, the GMPF represents a new model of integrated fisheries-livestock production. GMPF targeted as fisheries-group members poor households used to eking out their subsistence by working traditional pond fisheries alone. Landless poor were guaranteed secure access to water resources in exchange for participating in the management and protection of the water bodies. GMPF provided technical support, including operation of hatcheries, production of hatchlings through induced spawning, provision of fishing nets, and appropriate feed and marketing.
Fish production rose dramatically from only 47 tons in 1985 (the year prior to Grameen Bank lease) to 1,160 tons in 2007. The 2,750 participating households, nearly half headed by women, receive 50 percent of the revenues earned from marketing the increased tonnage of fish. In 2007, each household received a profit of taka 15,000 ($230), significant incomes for these poor families.
In the last ten years, GMPF combined modern aquaculture with the development of higher yielding dairy cattle and the production, processing and marketing of milk, and provided microcredit for investments in fisheries and livestock. A $3.03 million grant from FAO-UNDP enabled the foundation to provide microfinance for fisheries-group members to purchase and rear crossbred livestock, e.g., milk cows, beef cattle, goats and sheep. Since fishing provided only seasonal employment, rearing livestock enabled the existing fisheries-group members to further supplement their incomes.
Project Analysis
Although GMPF has been able to ensure almost 100 percent recovery of all its loans for fisheries and livestock development, it has barely succeeded in meeting its operating expenses. The experiment with the Joyshagar Fish Farms, specifically the 50:50 sharing of profits with the poor households which assist in managing the fish ponds, has generated large incomes and social benefits. But further scaling up the program would require additional capital investments, which have not been forthcoming. The future of the fish farms also depends on the renewal of the lease agreements with the government, set to expire in 2010.
It is critical to note that GMPF has established a powerful model of technology-based social development. It has contributed three innovations to the fight to end poverty: 1) a technological innovation—intensive management of inputs required to increase production of the fish ponds, 2) a social innovation—organization of the poor households living around the ponds to participate in pond management for their own development; as a social enterprise, earnings were shared--50% to the community, 50% to the Foundation, and 3) while the poor gained incremental income from the fisheries, the decision to integrate a livestock element with the development of fisheries has resulted in much greater returns on investment, given the huge demand in urban and peri-urban areas for dairy products.
Men help fisheries-group members net their catch
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A Social Business to Provide Nutrition to the Rural Poor
Grameen Danone Foods Ltd., a joint venture set up in 2006 between the French dairy giant and a consortium of four Grameen not-for-profit enterprises, is a bold experiment designed to meet the nutrition needs of malnourished rural children. The project’s “unique proximity” business model* was launched with an equity fund of taka 75 million (USD$1.15 million) shared equally by Grameen and Danone. The proximity model was established in Bogra, a northern river district with a high incidence of malnutrition that is known for producing the best yoghurt in Bangladesh. First, Danone engineers designed a small dairy plant with a production capacity of 6,000 kg of specially fortified yogurt per day. Next, Grameen Bank members within the community, mostly women from poor village households, were mobilized to participate. With microcredit from Grameen Bank, the members raised milk-producing cattle and sold the milk to the dairy plant for processing into yogurt. Finally, members were employed to sell the nutritious yogurt exclusively to community households with malnourished children. Sixty-five percent of the yogurt was refrigerated and sold through shops and stalls. The remaining 35 percent was sold by women who took the product to villages on a daily basis. The cost of each cup of yogurt was an affordable taka 5-7 (about 10 cents).
This proximity model contrasted sharply with large commercial dairy plants which procured milk locally, but sold it to the highly profitable urban market, effectively depriving rural children of this nutritious food.
Project Analysis
Trial production and marketing of yogurt began in 2007, but soaring prices of milk required an increase in the price of each cup to taka 8. Therefore, the marketing strategy and business plan had to be revised; at present a number of options are being considered. Yogurt may have to be re-combined or reconstituted while maintaining its nutritional content. Another option to meet rising costs may be to segment marketing at higher prices in urban areas where there is a strong demand for Danone yogurt while keeping prices lower in rural areas.
* “The existence of the yogurt plant will benefit the local economy both directly and indirectly, having a positive multiplier effect for many families,” Dr. Yunus writes. “This explains the way we describe the mission of Grameen Danone: ‘To reduce poverty by a unique proximity business model which will bring daily nutrition to the poor.’ The Grameen-Danone factory is not some distant corporate behemoth. It is a friend of the community and an integral and natural part of its social ecosystem”, Creating a World Without Poverty, Muhammad Yunus, page 158.
A child tastes yogurt made at the local dairy plant
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Technology
A unique feature of the Grameen Family of Companies’ development experience is the introduction and application of appropriate technology aimed at quickly raising the productivity of the poor. Experimentation began first with the fisheries sector and extended to agriculture, two segments of the Bangladeshi economy where large numbers of the poor are engaged in subsistence-level operations. With the Grameen Fisheries and Livestock Foundation, modern aquaculture for raising the fish yields of the ponds was introduced. The foundation organized poor households located around the bodies of water and, with the aid of new management systems and a new production technology, quickly raised the income and welfare of the poor families. With the Grameen Agricultural Foundation, modern irrigation technology capable of raising rice and wheat yields and diversified cropping systems was introduced to subsistence farmers. Difficulties arose, however, when an appropriate social management system, particularly the farmer organizations, lagged behind.
Grameen further promoted introduction of new information and communication-based technologies through the formation of Grameenphone, which established a nationwide modern mobile telephone network starting in 1997. Grameen Telecom brought about a quiet revolution by facilitating Grameen Bank borrowers to become the “village phone ladies” of the country. These women used cell phones to create pay phone businesses, another striking example of how the introduction of a new technology is capable of rapidly increasing the income of the poor. Grameen Foundation has taken the Village Phone model beyond Bangladesh to countries including Uganda, Rwanda, and Cameroon.
Challenges and Solutions
In undertaking such a large number of social development ventures over a span of two decades, some errors in judgment and management lapses were inevitable. Within the Bangladesh socio-economic context, there were numerous risks which could not be anticipated. Here are some of the key challenges faced by the social enterprises.
• Ensuring the quality of sustainable corporate governance.• Ensuring effective supervision and maintaining adequate oversight by boards of directors, specifically over financial discipline.• Finding initial equity or seed funding, particularly for the not-for-profit entities. Borrowing from commercial sources for capital investments was found to be a risky and costly way of managing finances since social enterprises take longer to become viable.• Managing large technology-based joint ventures.
Various factors and circumstances combined to overcome these challenges and facilitate the creation of the social enterprises. Their operational success was either a function of their market niche, or the demand for products and services offered by them. In the case of the Grameen enterprises, the leadership provided by Professor Yunus and the institutional leverage of Grameen Bank were important preconditions. Here are other key factors that led to success:
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• When poverty alleviation was the strategic objective, two factors were key: 1) an initial endowment for equity finance or concessional funding to start, and 2) a microfinance program capable of generating surplus financial resources and much needed initial seed capital.
• The social mandate of each venture was clearly articulated, as were the products and services to be marketed. Realistic business plans outlined the venture’s distinct comparative advantage including a market assessment, the technological feasibility, a production plan, a sales and marketing strategy and a financial plan.
• A professionally competent management team committed to the social objectives of the enterprise was a prerequisite. A formal structure for corporate governance was established and prepared to exercise statutory oversight, regular supervision and
Segmented Marketing for Health Care
A segmented market approach and differential pricing policy for health services is a distinguishing feature of the Grameen Eye Hospitals, a social business as defined by Professor Yunus, which aims to provide eye care for the poor at affordable costs. The project design applied the “Robin Hood” principle, with higher income community members subsidizing the cost of treatment for the poor. Targeted clients were differentiated into five separate categories according to their income.*
The first Eye Hospital was established in November 2007 in the center of Bogra. A new hospital outside of town was opened in May 2008. Together, the hospitals are serving close to 300 patients per day, with even more, unused capacity in the new facility. Plans call for four more hospitals by 2011.
Another significant feature of the Grameen Eye Hospitals venture is the self-imposed restriction by the four Grameen sponsoring companies to place a cap on their profit-taking. Once the initial capital cost is recouped, the shareholders are committed to re-investing the bulk of their profits for further expansion of the program. Attaining financial viability is the best way to ensure the sustainability and the expansion of coverage to the targeted beneficiaries.
Project Analysis
The first Eye Hospital “broke even” on an operational basis just one year after opening. Two challenges face the second Eye Hospital: its out-of-town location, accessed by a road in very poor condition (it is currently under construction), and lack of knowledge about the new hospital. The hospital manager is planning an advertising effort once the road has been improved.
* The experience of the Arvind Eye Hospitals in India has shown that such a business approach enabled recovery of all operating and capital costs within five years.
A woman recovers from an eye care procedure
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management accountability. A financial control system ensured limited long-term financial liabilities, securing performing assets.
• The choice of an appropriate technology was key to quickly raising the income and productivity of the poor. In addition, a technology-based social enterprise was likely to be profitable in the short run and hence more sustainable. The appropriate technology established the credentials of the enterprise, created the confidence of social entrepreneurs and, more importantly, generated additional financial resources that could be used to expand the social development program.
• Enterprises that could leverage existing microfinance-related experience were likely to be more successful. Providing financial services to the poor working in agriculture, fisheries, livestock, rural industry and small enterprises became substantive programs for some of the earlier Grameen social ventures.
• Joint ventures between private entrepreneurs and multinationals facilitated the launch of technology-based social enterprises. While these proved to be more profitable ventures, negotiations with other entrepreneurs, especially large multinationals, required bargaining skills and the application of due diligence with the objective of a mutually beneficial partnership.9
Key Lessons Learned
The principal lessons are these:
• These enterprises have been designed and developed, each with a clearly articulated social mandate. They have acquired independent corporate identities. They have had both direct and indirect social development impact in varying degrees. They have clearly demonstrated that social development objectives can be achieved efficiently, in a businesslike way.
• The social enterprises have been leveraged by the massive microfinance platform of Grameen Bank and the guidance provided personally by Professor Yunus.
• Grameen Telecom, Grameen Knitwear, Grameen Cybernet, Grameen Shakti, all technology-based enterprises, have become hugely profitable, with large cumulative profits and retained earnings. Their accumulated profits have facilitated financing of other social business ventures and enhanced their capacity for future investments.
• Enterprises engaged primarily in social development i.e., education, health, Grameen Bank replications, while critical for alleviation of poverty, required start-up endowments or project grants by way of seed capital. This factor has limited their scalability over
9. There was an understanding between Telenor & Grameen Telecom that Telenor’s majority stake in Grameenphone will be reduced over time and Grameen Telecom will have the first right to purchase the shares.
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time. But they can gradually become operationally self-sufficient through prudent management of the seed funds.
• A significant initiative was the development of new financial services to meet the growing demand for credit by the more mature micro-borrowers and the emerging micro, small, and medium enterprise (MSME) sector. Grameen Fund and, in particular, Grameen Byabosha Bikash, have played a strategic role in this sector. These also have enormous potential for future growth.
• The primary concerns and risks involved in building the new enterprises centered around the task of ensuring quality of corporate governance, developing professional management, and exercise of timely supervision and oversight by the board of directors. Management of technology-based enterprises presented a more complex challenge. In case of Grameen Krishi Foundation, the choice of an inappropriate ‘deep tubewell’ technology and its mismanagement proved to be a cause of its immediate difficulties. In the case of joint ventures like Grameenphone and Grameen Cybernet, the partners were driven exclusively by the profit motive, subordinating the social development objectives.
Looking to the Future
There are a number of potential scenarios for the future of the Grameen Family of Companies and social enterprises more generally, ranging from a minimalist view to a more ambitious “social stock market” advocated by Professor Yunus. For example:
Scenario 1: With business as usual, the social enterprises generating a financial surplus through current operations would continue to operate as now, provided there is market demand for their goods and services. With surplus or retained earnings, they could also invest in new enterprises. Financial surpluses generated by the more profitable enterprises could provide the required seed capital for new social business ventures. Companies which have accumulated losses would have to be closed down.
Scenario 2: The success of existing Grameen enterprises and the campaign for social business could have a snowballing effect. There could be a surge of new social enterprises through other NGOs, and new collaborative partnerships between NGOs, multinationals and local entrepreneurs.
Scenario 3: Social enterprises in health, education, nutrition, environmental protection, etc. will have to provide quality services at affordable costs to those needing them most. Large MFIs which have successfully scaled up their operations can become the platforms for launching new social businesses, with the support of endowments or equity contributions from multinationals and philanthropists.
Accelerating Poverty Reduction in Bangladesh Through the Grameen Family of Companies January 2009 ��
Providing Children with Opportunities for Education
Continuing education is a special need for the children of Grameen Bank members. To begin to meet that need, Grameen Shikkha (GS), or Grameen Education, was established in 1997 as a not-for-profit company to raise funds for a nationwide endowment program that would provide scholarships to poor children. The plan was to finance the scholarships out of the interest earned from fixed deposits kept with Grameen Bank branches, located mostly in remote rural areas; this would keep GS’s management and overhead costs to a minimum. In addition, the bank branches, located throughout the country, could assist in preparing profiles of educational institutions and in identifying eligible children.
To begin the program, GS’s first task was to raise contributions nationwide from individuals as well as institutions, and to manage the funds to provide the maximum number of scholarships. GS figured that a deposit of taka 50,000 (USD$770) would allow the endowment fund to provide a monthly stipend of taka 250 (USD$3.65) to a student.
But without any start-up capital, GS’s fund-raising task proved to be difficult. The biggest challenge was to identify interested, and socially motivated, sponsors, and to persuade them to contribute. Funds trickled in from individuals in Bangladesh and even abroad*. The first significant donation did not come until 2002--taka 100,000 (USD $1,540) for two scholarships—one for a boy and another for a girl in the sponsor’s home district. While the sponsor base has built slowly, by June 2008 the contributions of 150 sponsors have provided 2,000 scholarships annually to children in more than 54 districts of the country.
In addition to the growing scholarship program, GS also is managing early education and childhood development programs with significant community participation. In Gazipur, for example, there are three active programs: parenting education, a child development center, and a pre-school program. The project covers 86 villages, with 7,000 children enrolled. Teachers for the pre-school program and facilitators for the parenting program are members of the community, selected by a Village Development Committee based on their qualifications.
Project Analysis
The scholarship program is self-funded, and Shikkha underwrites the Village Development Committee in Gazipur, with parents paying nominal tuition. Grameen Bank is involved in several ways: it assists Shikkha with accounting services and provides information about the village programs at its center meetings. While village involvement is key to the pre-school and child development programs, reaching scale is difficult.
* Grameen Foundation has provided endowment grants to GS and several other MFIs that have adapted programs based on the GS model. A scholarship recipient studies her lessons at school
�� Accelerating Poverty Reduction in Bangladesh Through the Grameen Family of Companies January 2009
Conclusions
In conclusion, the review of the Grameen experience demonstrates that social enterprise is not only a doable proposition, but a necessary one. It should be undertaken by successful microfinance institutions to leverage their existing microfinance operations across a broad spectrum of social and economic sectors. It is not a question anymore of whether it should be done, but a question of how. The challenge is clear: to design a new breed of corporate entities as efficient social businesses, minimizing the operational risks and building them into financially sustainable ventures within the shortest possible time frame.
The immediate need is to provide them with endowments or social equity capital, not with loan funds as was done in the past. These sources can come from social entrepreneurs, financial institutions, or multinationals interested in social business and/or expanding business at the ‘base of the pyramid’. It will call for skillful negotiations and designing new business ventures; it will call for powerful bargaining by social entrepreneurs.
There is a vast chasm that separates the funders of social enterprises from potential social entrepreneurs. The task is to build bridges between the two key players; this is where microfinance institutions can play a central role as campaigners for social business and mobilizers of resources for potential social enterprises.
“With globalization threatening to wipe out the weak
economies and poor people from the economic map, it is
time to consider the case of social business enterprises more
seriously than we ever did before.”
- Professor Yunus, Creating a World Without Poverty
Accelerating Poverty Reduction in Bangladesh Through the Grameen Family of Companies January 2009 ��
Author Biography
M. Khalid Shams is internationally recognized for his extensive experience in planning and managing development programs within both government and non-government sectors in Bangladesh and other Asian countries.
His early career in Bangladesh included senior executive positions in the Ministry of Agriculture and the Bangladesh Agriculture Development Corporation. In 1977 he founded the Civil Officers Training Academy, where he oversaw the development of the new curriculum for the Foundation Training of an integrated civil service.
His close relationship with Grameen Bank and its founder, Professor Muhammad Yunus, began in the early 1980’s. For the past 20 years, he has played a key leadership role in the development of not-for-profit as well as for-profit companies, representing a new genre of social enterprises. During this time he has served as Deputy Managing Director of Grameen Bank; Managing Director of Grameen Telecom; Board Chair of Grameenphone Ltd., which pioneered the village phone program in collaboration with Grameen Telecom; and Founder/Managing Director of Grameen Uddog, which has successfully marketed Grameen Check, the traditional handwoven fabric of Bangladesh. His numerous board positions include membership on the Board of Trustees of Grameen Trust and member director of Grameen Fund, Grameen Shakti, Grameen Solutions Ltd., Grameen Capital Management Ltd., and the Shakti Foundation, an urban microfinance program. He has recently joined the government-sponsored Small & Medium Enterprise Foundation as a board member.
Internationally, Mr. Shams was the Coordinator of Research in Social Development Management for the Asian and Pacific Development Center, and he led the first replication of Grameen Bank-based microcredit projects in Malaysia, Indonesia and the Philippines.
Mr. Shams holds an M.A. in Political Science from Dhaka University and an M.P.A. in Economic Development from Harvard University. He makes his home in Dhaka, Bangladesh.
Slno
Nam
e of
En
terp
rise
Year
Cor
pora
te
Stat
usM
anda
te *
*Ta
rget
ed c
lient
ele
Perf
orm
ance
Ana
lysi
sC
urre
nt S
tatu
sSo
cial
Im
pact
¹Pr
ofita
bilit
y ²
Tech
nolo
gy
App
licat
ion
³1.
Gra
mee
n Tr
ust
1989
Not
for p
rofit
To sp
read
Gra
mee
n B
ank
appr
oach
gl
obal
ly, a
nd o
ffer fi
nanc
ial a
nd
tech
nica
l sup
port
to G
ram
een
repl
icat
ions
NG
Os r
eplic
atin
g G
ram
een
Ban
k ap
proa
ch
wor
ldw
ide
VH
LN
Glo
bal n
etw
ork
esta
blis
hed
for s
ucce
ssfu
l re
plic
atio
n of
G
ram
eenc
redi
t2.
Gra
mee
n K
rishi
(A
gric
ultu
ral)
Foun
datio
n
1991
Not
for p
rofit
Pove
rty a
llevi
atio
n th
roug
h in
crea
sed
crop
pro
duct
ion,
and
mar
ketin
g of
fa
rm p
rodu
ce; i
ntro
duct
ion
of n
ew
irrig
atio
n-ba
sed
tech
nolo
gy to
rais
e fa
rm p
rodu
ctio
n
Smal
l & la
ndle
ss
farm
ers
VH
AL
VH
Bei
ng re
desi
gned
in
vie
w o
f los
ses;
de
ep tu
bew
ell
tech
nolo
gy fo
und
inap
prop
riate
3.
Gra
mee
n U
ddog
1993
Not
for p
rofit
To re
vive
the
tradi
tiona
l han
dloo
m
indu
stry
in ru
ral B
angl
ades
h;
deve
lop
new
mar
ket o
ppor
tuni
ties b
y lin
king
han
dloo
m w
eave
rs w
ith th
e bu
rgeo
ning
gar
men
t ind
ustry
Trad
ition
al
hand
loom
wea
vers
, im
pove
rishe
d be
caus
e of
gro
win
g un
empl
oym
ent
VH
LL
Ope
ratio
ns a
re
now
bei
ng m
erge
d w
ith G
ram
een
Sham
ogre
e
4.G
ram
een
Mot
sho
(Fis
herie
s) &
Po
shus
ham
pad
(Liv
esto
ck)
Foun
datio
n
1994
Not
for p
rofit
Bro
ad p
over
ty a
llevi
atio
n go
al
thro
ugh
the
intro
duct
ion
of
aqua
cultu
re a
nd n
ew te
chno
logy
for
rais
ing
fish
prod
uctio
n
Land
less
and
fis
hing
com
mun
ity
livin
g ar
ound
pon
ds
VH
LH
See
case
stud
y
�.G
ram
een
Fund
(s
ocia
l ven
ture
fu
nd)
owns
shar
es in
:
1994
Not
for p
rofit
Vent
ure
finan
cing
to p
rom
ote
smal
l m
ediu
m e
nter
pris
es th
roug
h eq
uity
fin
anci
ng a
nd lo
ans
Smal
l and
med
ium
en
trepr
eneu
rsH
LV
HM
icro
loan
s &
equi
ty fi
nanc
ing
has s
paw
ned
smal
l & m
ediu
m
ente
rpris
es
(a)
Gra
mee
n C
yber
net
Ltd.
19
96Fo
r pro
fitTo
pro
vide
inte
rnet
serv
ices
in
Dha
ka a
nd re
st o
f the
cou
ntry
and
pr
omot
e de
velo
pmen
t of I
CT
Urb
an m
iddl
e cl
ass
LV
HV
HPi
onee
red
inte
rnet
se
rvic
e; c
onfin
ed to
D
haka
city
onl
y(b
)G
ram
een
Bite
k Lt
d.Fo
r pro
fitTo
man
ufac
ture
, mar
ket
elec
troni
c an
d el
ectri
cal g
oods
and
und
erta
ke
R&
D o
n el
ectro
nics
Urb
an m
iddl
e cl
ass
LH
HSm
all s
cale
op
erat
ion
Appe
ndix
A: O
verv
iew of
Gra
mee
n Fam
ily of
Com
panie
s
Key
:
L Lo
wH
H
igh
VH
Ve
ry h
igh
N
Non
eA
L A
ccum
ulat
ed lo
ss
Not
es:
1. S
ocia
l im
pact
ass
essi
ble
in te
rms o
f (a)
out
reac
h &
pro
gram
me
cove
rage
(b) d
irect
inte
rven
tions
in so
cial
sect
ors i
.e. h
ealth
, edu
catio
n, n
utrit
ion
(c) e
mpl
oym
ent
and
inco
me
gene
ratio
n. T
hose
hav
ing
an in
dire
ct im
pact
are
cat
egor
ised
L.
2. O
pera
tiona
l pro
fits a
s ind
icat
ed in
bal
ance
shee
t. Fo
r yea
rs 2
004,
200
� an
d 20
06.
3. T
echn
olog
ical
impa
ct a
sses
sed
in te
rms o
f ben
efits
from
tech
nolo
gy g
oing
dire
ctly
to th
e po
or, o
r ind
irect
ly th
roug
h te
chno
logy
app
licat
ion
at e
nter
pris
e le
vel.
*
Ope
ratio
nal v
iabi
lity
mea
ns a
bilit
y to
mee
t all
oper
atio
nal e
xpen
ses o
f the
com
pany
from
its o
pera
tiona
l inc
ome.
Gra
mee
nPho
ne h
as b
een
kept
out
side
the
purv
iew
of t
his l
ist.
* *
Fun
ctio
ns in
dica
ted
in th
e M
emor
andu
m o
f Ass
ocia
tion.
Gra
mee
nPho
ne h
as b
een
excl
uded
from
this
list
bec
ome
it fu
nctio
ns li
ke a
ny o
ther
tele
phon
e op
erat
or w
ith in
depe
nden
t man
agem
ent.
�� Accelerating Poverty Reduction in Bangladesh: The Grameen Family of Companies January 2009
Accelerating Poverty Reduction in Bangladesh: The Grameen Family of Companies January 2009 ��
Slno
Nam
e of
En
terp
rise
Year
Cor
pora
te
Stat
usM
anda
te *
*Ta
rget
ed c
lient
ele
Perf
orm
ance
Ana
lysi
sC
urre
nt S
tatu
sSo
cial
Im
pact
¹Pr
ofita
bilit
y ²
Tech
nolo
gy
App
licat
ion
³6.
Gon
osha
stha
ya
Gra
mee
n Te
xtile
M
ills
199�
For p
rofit
To p
rovi
de m
echa
nise
d dy
ing,
pr
oces
sing
, fini
shin
g fo
r han
d an
d m
achi
ne m
ade
cotto
n fa
bric
; and
to
faci
litat
e de
velo
pmen
t of r
ural
ha
ndlo
om in
dust
ry
Rea
dy m
ade
garm
ents
and
te
xtile
indu
stry
; al
so h
andl
oom
w
eave
rs
HA
LV
HG
ram
een
Udd
og
has d
ecid
ed to
w
ithdr
aw fr
om th
is
join
t ven
ture
7.G
ram
een
Tele
com
199�
Not
for p
rofit
To p
rom
ote
pove
rty a
llevi
atio
n th
roug
h IC
T de
velo
pmen
t, vi
llage
ph
ones
for G
B b
orro
wer
s, an
d ve
ndor
of N
okia
GB
bor
row
ers a
s V
P op
erat
ors
VH
VH
H
8.G
ram
een
Sham
ogre
e (P
rodu
cts)
1996
Not
for p
rofit
To m
arke
t gar
men
ts m
ade
with
ha
ndw
oven
fabr
ic a
nd o
ther
pr
oduc
ts; o
pera
te “
Mai
nam
ati”
co
ld st
orag
e; m
anag
e on
con
tract
C
hitta
gong
pac
kage
s fac
tory
Urb
an m
iddl
e cl
ass
cust
omer
s; p
otat
o gr
ower
s of C
omill
a di
stric
t
HL
HSu
cces
sful
ly
mar
kete
d ga
rmen
ts
mad
e w
ith
Gra
mee
n ch
eck
9.G
ram
een
Shak
ti (E
nerg
y)19
96N
ot fo
r pro
fitTo
pro
mot
e an
d m
arke
t ren
ewab
le
ener
gy in
rura
l are
as i.
e so
lar p
v,
biom
ass,
bio-
dige
ster
s
Low
& m
iddl
e in
com
e ru
ral
hous
ehol
ds
VH
HV
HM
arke
ting
mod
el
for s
olar
PV
uni
ts
succ
essf
ully
es
tabl
ishe
d in
rura
l ar
eas
10.
Gra
mee
n K
alya
n (W
elfa
re)
1996
Not
for p
rofit
To p
rovi
de lo
ans/
gran
ts fo
r GB
staf
f; w
elfa
re, h
ealth
car
e se
rvic
es to
GB
m
embe
rs/s
taff,
edu
catio
nal f
acili
ties
for c
hild
ren
of G
B m
embe
rs
thro
ugh
scho
lars
hips
& lo
ans a
nd
inve
stm
ents
and
gra
nts t
o ot
her
soci
al e
nter
pris
es
GB
mem
bers
, GB
st
aff,
Gra
mee
n en
terp
rises
for
inve
stm
ents
VH
VH
LSe
e ca
se st
udy
11.
Gra
mee
n K
nitw
ear
Ltd.
1997
For p
rofit
To m
anuf
actu
re k
nitw
ear f
or
100
perc
ent e
xpor
t and
pro
vide
em
ploy
men
t to
rura
l wom
en fr
om
low
inco
me
hous
ehol
ds
Buy
ers i
n Eu
rope
&
USA
LV
HV
H
12.
Gra
mee
n C
omm
unic
atio
ns
1997
Not
for p
rofit
To c
ompu
teris
e G
B b
ranc
hes a
nd
beco
me
outs
ourc
ee o
f all
data
pr
oces
sing
wor
k of
GB
; to
prom
ote
ICT
proj
ects
in ru
ral a
reas
; and
to
dev
elop
softw
are
prod
ucts
&
serv
ices
GB
Man
agem
ent
HL
VH
Succ
essf
ully
au
tom
ated
GB
MIS
&
acc
ount
s; p
ilot
IT p
roje
cts
Slno
Nam
e of
En
terp
rise
Year
Cor
pora
te
Stat
usM
anda
te *
*Ta
rget
ed c
lient
ele
Perf
orm
ance
Ana
lysi
sC
urre
nt S
tatu
sSo
cial
Im
pact
¹Pr
ofita
bilit
y ²
Tech
nolo
gy
App
licat
ion
³13
.G
ram
een
Shik
kha
(Edu
catio
n)19
97N
FPTo
man
age
a na
tionw
ide
scho
lars
hip
prog
ram
me
for p
oor s
tude
nts,
to
desi
gn a
nd o
pera
te e
arly
chi
ld h
ood
deve
lopm
ent &
pre
-sch
ool e
duca
tion
deve
lopm
ent p
rogr
amm
e fo
r chi
ldre
n fr
om p
oor f
amili
es, a
nd to
pilo
t lev
el
Ars
enic
inst
igat
ion
proj
ects
Seco
ndar
y, h
ighe
r se
cond
ary
scho
ol
stud
ents
, rur
al
child
ren
from
poo
r fa
mili
es, a
nd th
e ar
seni
c af
fect
ed
rura
l pop
ulat
ion
VH
LL
See
case
stud
y
14.
Gra
mee
n C
apita
l M
anag
emen
t Ltd
1998
For p
rofit
Mer
chan
t ban
king
, with
inve
stm
ent
in sh
ares
, sto
cks,
capi
tal m
arke
t, to
m
anag
e po
rtfol
io o
f priv
ate
inve
stor
s
Inst
itutio
nal &
pr
ivat
e in
vest
ors i
n th
e ca
pita
l mar
ket.
HH
N
1�.
Gra
mee
n So
lutio
ns
Ltd.
(for
mer
ly
Gra
mee
n So
ftwar
e Lt
d.)
1999
For p
rofit
To d
esig
n, d
evel
op, s
ell s
oftw
are
for l
ocal
mar
ket &
exp
orts
, pro
vide
in
tegr
ated
IT so
lutio
ns, a
nd to
pr
omot
e IT
dev
elop
men
t
Cor
pora
te
cust
omer
s of
softw
are
& IT
so
lutio
ns
LA
LV
HR
ecap
italis
atio
n,
new
bus
ines
s pla
n be
ing
prop
osed
by
new
man
agem
ent
16.
Gra
mee
n B
yabo
sha
Bik
ash
(Bus
ines
s pr
omot
ion)
2001
Not
for p
rofit
To p
rovi
de g
uara
ntee
aga
inst
loan
s by
GB
bra
nche
s for
fina
ncin
g ne
w
vent
ures
, big
ger i
nves
tmen
ts; t
o fa
cilit
ate
deve
lopm
ent o
f sm
all
ente
rpris
e
GB
bor
row
ers
capa
ble
of
inve
stin
g m
ore
than
Tk
30k
VH
HL
New
mod
el
esta
blis
hed
for
finan
cing
of
smal
l & m
ediu
m
ente
rpris
es; b
ig
impa
ct in
term
s of
MSM
E fin
anci
ng17
.G
ram
een
IT P
ark
2001
For p
rofit
To p
rom
ote
IT d
evel
opm
ent b
y pr
ovid
ing
wor
k sp
ace
and
requ
ired
ICT
infr
astru
ctur
e to
indi
vidu
al
entre
pren
eurs
.
IT e
ntre
pren
eurs
--
----
Clo
sed
oper
atio
ns;
man
agem
ent
trans
ferr
ed
18.
Gra
mee
n In
form
atio
n H
ighw
ay
2001
For p
rofit
To
pro
vide
inte
rnet
serv
ice
&
conn
ectiv
ity n
atio
nwid
e G
ener
al P
opul
atio
n--
----
Dor
man
t
19.
Gra
mee
n St
ar
Educ
atio
n20
02Fo
r pro
fitTo
pro
vide
IT tr
aini
ng: c
ertifi
cate
, di
plom
a &
deg
ree
Educ
ated
un
empl
oyed
you
th--
----
Dor
man
t
20.
Gra
mee
n H
ealth
C
are
Serv
ices
Ltd
.20
06--
To p
rovi
de m
edic
are
to th
e po
or a
nd
to se
t up
eye
hosp
itals
in d
istri
cts
Rur
al &
urb
an p
oor
VH
LV
HSe
e ca
se st
udy
21.
Gra
mee
n D
anon
e Fo
ods L
td.
2006
For p
rofit
To se
t up
dairy
, foo
d pr
oces
sing
pl
ants
for n
utiti
on o
f rur
al c
hild
ren
Mal
nour
ishe
d ru
ral
child
rens
VH
--V
HSe
e ca
se st
udy
�� Accelerating Poverty Reduction in Bangladesh: The Grameen Family of Companies January 2009
Sl N
oEn
terp
rise
2004
200�
2006
Rem
arks
Inco
me
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arke
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16.
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2.3
Req
uire
s add
ition
al in
vest
men
t to
incr
ease
pe
netra
tion
in a
gro
win
g m
arke
t18
.R
afiq
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ovan
20.6
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ig g
row
th p
oten
tial b
ut c
onfr
onts
re
gula
tory
rest
rictio
ns
Appe
ndix
B: Fi
nanc
ial Re
sults
from
Ope
ratio
ns of
Selec
ted G
ram
een E
nter
prise
s, 20
0�-2
00�
Info
rmat
ion
com
pile
d fr
om a
udite
d fin
anci
al st
atem
ents
sele
cted
com
pani
es w
hich
are
cur
rent
ly o
pera
tiona
l.A
mou
nts s
how
n in
$U
SD th
ousa
nds.
Exc
hang
e ra
te u
sed
was
6�
taka
to U
SD$1
.
Accelerating Poverty Reduction in Bangladesh: The Grameen Family of Companies January 2009 �9
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