perception of the poor people towards microcredit delivery organizations in bangladesh

8/14/2019 Perception of the Poor People Towards Microcredit Delivery Organizations in Bangladesh

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Perception of the poor people towards microcredit

delivery organizations in Bangladesh

MKT:470


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Acknowledgement

We would like to express our gratitude and appreciation to all those who gave us the possibility to

complete this report. A special thanks to our faculty and instructor Dr. Tamgid Ahmed Chowdhury,Whose help, stimulating suggestions and encouragement, helped us to coordinate in writing this

report.

Finally yet importantly, many thanks go to all the participants that took part in our surveys who

have willingly shared their precious time.

Without the help of the particular that mentioned above, we would face many

difficulties while doing this.


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Table of Contents

1. Introduction

1.1. Executive Summary .... 5

1.2. Introduction .... 5

1.3. Conceptualizing Efficiency..... 6

1.4. Research Questions

2. Research Design ...... 8

2.1. Research Designing .... 8

2.2. Information Needed.. 8

2.3. Data Collection ...... 9

2.4. Scaling Techniques ...10

2.5. Questionnaire Development ...11

2.5.1. Interviewing Method ...11

2.5.2. Question Contents ...11

2.5.3. Overcoming Inability and Unwillingness to Answer ...11

2.5.4. Question Structure ...11

2.5.5. Question Wording ...11

2.5.6. Order of Qustions ...11

2.5.7. Form and Layout ...12

2.5.8. Reproduction of Qustionnaire ...12

2.6. Pilot Study ...12

2.7. Sampling Techniques ...12

2.8. Fieldwork ...13

2.8.1. Fieldworkers ...13

2.8.2. Training ...13

2.8.3. Supervision ...13

2.8.4. Validation ...13

2.8.5. Evaluation...14

3. Results with Interpretations ...14

3.1. Education ...1

3.2. Resource...14


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3.3 Library .. 15

3.4. Security ... ... 15

3.5. Cleanliness ... . 16

3.6. Advising ... ... 16

3.7. Photocopy Center ... .. 16

3.8. Cafeteria ... .. 17

4. Limita tions... . 17

5 . Recommendations ...... 18

6. Conclusion .... 18

7. Appendix ... ... 19

List of Tables

01. Education Quality ... Error! Bookmark not defined.

02. The Quality of Resource ... Error! Bookmark not defined

03. Frequency of going to Library ... .. Error! Bookmark not defined

04. Security System ... Error! Bookmark not defined

05. Cleanliness of the Campus ... Error! Bookmark not defined

06. Advising System ... Error! Bookmark not defined

List of Graphs

01. Price of Photocopying ... Error! Bookmark not defined

02. Waiting Time for Photocopying ...Error! Bookmark not defined

03. Most Admired Store in Cafeteria ...Error! Bookmark not defined

04. Pricing of Old School (Business Caf) ...Error! Bookmark not defined

05. Quality of Foods of Old School (Business Caf) ...Error! Bookmark not defined


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1. Introduction

1.1.Executive SummaryThis research paper aims to identify the perceptionof the poor people towards microcredit

delivery organizations in Bangladesh. The research work is divided into sectors like timeliness,

neutrality, cooperativeness, willingness, office time, security, listening proposal, attitude, and

reliability. We have tried to highlight the key variables influencing the perceived service of the

Microcredit organizations like NGO or GOV. This is a quantitative research. All the

questions are close-ended. Dogmatic questions, multiple choice questions, likert scale, and

semantic scale are used to conduct the research. 40 poor people from different sectors in

Bangladesh were taken as sample. To identify the perception, we have used SPSS software.

Our major findings are providing loan in time may ensure good service, organizations need to be

neutral for taking decision, field worker should be cooperative, office time should be

convenient, financial activities should be secured, attitude of the workers should be satisfactory in

terms of providing service.

1.2.IntroductionBangladesh has made significant progress in alleviating poverty in the last few decades,

particularly during the 1990s (Osmani, 1990; Hossain & Sen, 1992; Rahman & Hossain, 1995;

Sen, 1995; World Bank, 2007). Poverty1declined from 58.8% in 1991 to 46.9% in 2000 ((BBS),

2005; World Bank, 2005; Asian Development Bank, 2004). Although it has been suggested that

the reduction in poverty was due to faster economic growth (McLeod, 2007), this positive change

in the poverty rate coincided with a major increase in the annual budget for the social sector and

the large-scale proliferation of non-government organizations (NGOs) in the 1990s. Development

expenditure on housing, education, health and family planning by the Government of Bangladesh

(GOB) increased from 12.88% of the annual development programme (ADP) in the 1980s to

26.63% in the 1990s (World Bank, 1991, 1995; BBS,2002). These figures would be even greater if

the governments special poverty alleviation projects were included. In addition to government


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efforts, the number of NGOs involved in poverty reduction grew at a rate of 236% during the

1990s and 46% in the 2000s. The number of projects conducted by NGOs increased to 6781 in the

1990s and 9510 in the 2000s, compared with eight in the late 1980s (Non-government

Organizations Affairs Bureau of Bangladesh, 2010). According to the BBS, poverty declined

further to 40.4% in 2005 (BBSHIES, 2005). However, Hossain (2009) indicates that poverty in

Bangladesh increased to 47.3% in 2007, declining by 2% in the following year. Furthermore,

Hossain (2009) shows that between 2004 and 2007, 30% of households who were already poor

could not rise above the poverty line and another 19.2% of people moved from being non-poor to

poor. These less positive poverty estimates call into question the effectiveness of large investments

by the government and NGOs as part of thepoverty alleviation programmers in Bangladesh.

Questions are raised as to whether this lack of improvement in poverty in recent years is due to

economic turmoil and natural shocks or to problems in the efficiency of government organizations

(GOs) and NGOs.It is expected that the development and appropriate use of such a scale will give

policymakers in both GOs and NGOs a better understanding of the degree of efficiency, or

otherwise, in the service delivery process.

1.3.Conceptualizing Efficiency

Buchanan (1987) indicated that a service provider (in our case the GO or NGO) is seen as

efficient if it can create a situation in which people receive the services they need in the way they

require. In our case, we are conceptualizing efficiency from a service delivery perspective, unlike

the more traditional way of looking atprofits or numbers of consumers. In analysing the

efficiency of GOs and NGOs in poverty alleviation programmes, it is more important to examine

to what extent they reach the beneficiaries, reduce the ill-being of the poor, support them with

income generation, build the capability of the people and mobilize them in social activities, than

to measure the amount of profit they make by disbursing microcredit to the poor. Thus, the

efficiency of these organizations can be compared on the basis of service delivery mechanisms

and support services. Therefore, for our case, efficiency is defined as a comparison of what is

expected by the beneficiaries(poor people) and what is actually achieved by the participating

organizations (GOs and NGOs) in poverty alleviation projects with respect to management and

administrative credibility, the service delivery process, the skills of workers, problem-solving

capacity, interaction procedures and social mobilization skills.


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The performance of service provider (NGO and GOV);

Timeliness in terms of providing loan Neutrality in terms of taking loan. Cooperativeness of field worker. Workers willingness in terms of providing service. Office time convenience Security in terms of financial activities. Employees frequency in terms of listening proposal. Attitude of the workers.1.4.Research Questions> How timely they are in terms of providing Loan or other service?

>How much neutral the organization is for taking decision?

>How cooperative the field workers are?

>How willingly the filed workers provide their service?

> How convenient of the office time of this organization?

> How secured do you feel in terms of financial activities of this org.?

>How frequently the employee listen your proposal?

> How frequently the employee listen your proposal?

> Whom you prefer in terms of taking loan?

2. Research Design

2.1.Research DesigningThrough our research, we will look forward to explore the perception of the poor

people towards microcredit delivery organizations in Bangladesh and try for

improving the unsatisfactory services to a satisfactory level. Overall, our research

findings will be able to use as input into decision-making. Therefore, we can say it is

a conclusive research design. In which, we have used the descriptive research


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procedure. Our major objective was to determine the perception towards

Microcredit delivery oranizations, which is similar to the image study. To conduct

the research we have defined a clear problem statement, specific hypothesis and all

detailed information. Therefore, we can say it is a clear descriptive analysis.

2.2.Information Needed


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2.3.Data CollectionAs we do not have plenty of secondary data or literature review, we have planned to

conduct our research mostly by primary data analysis. There are various services

available in the field and we have decided to collect a huge data for a successful

evaluation. We have applied Quantitative Strategy in conducting the survey as a tool.

All the questions and possible answers were fixed. The number of people taken as

sample was also fixed, which is fifty-three. The whole procedure of carrying out the

survey was pre-specified. We have collected structured data. We have been

analyzed all collected data through MS EXCEL and SPSS softwares. To present

information statistically we have been used both bivariate and multivariate statistical

techniques.

Following is the diagram of the data collection procedure:

Descriptive data Survey data

Qualitative data

Primary data

R esearch data


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Survey: We have been collected data through survey method. We have been used

a formal questionnaire presenting questions in a prearranged order. We try to

develop Fixed Alternative questions where all answers were predetermined. Survey

was conducted directly by handing over the questionnaire. Therefore, any confusionover the questionnaire was cleared during the survey. We can show our survey

procedure through the following diagram:

2.4.Scaling TechniquesWe have followed Non-Comparative scaling procedure, where we have collected all

necessary responses independently. It is an itemized measurement scale

consisting numbers and brief descriptions associated with each category. According

to the basis of data analysis, we have used both likert scale and semantic differential

scale.The following diagram can show our scaling procedure:

Survey method

personl

interviewing

Face to face

questionairefilling

Electronic

interviewingInteret


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2.5.Questionnaire Development2.5.1. Interviewing Method

We have conducted both face to face personal interview and internet electronic

interview for filling the questionnaires and to collect as much as respondents.

2.5.2. Question Contents

We have been set all the necessary questiontions related to the Microcredit

services. We have been highlighted some important sectors so that respondence get an

indication in which sector they have to answered what service related questions. Every

single question in our questionnaire is designed in such a way that it covered a single

issue and like this we prepare our questionnaire included 22questions.

2.5.3. Overcoming Inability and Unwillingness to Answer

We have been go through the filter question procedure to screens potential

respondents. Where we discuss about the respondents past experiences as well as

find out how familiar they are with all the Microcredit organizations services. We

Scaling

TechniqueNon-comparative

scalingItemized rating

scale

Likert scale: 5 responsecategories from strongly

disagree to strongly agree

Semantic differentialscale: 5-point rating scalewith endpoint associated

with bipolar labels.


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have been set up the answers very straightforward, easy, meaningful and interesting

so that respondents need not to think a lot while answering at the same time they will

find the whole questionnaire very interesting.

2.5.4. Question Structure

We have been used a structured questionnaire where all of the questions are close

ended. All the multiple choice answers are mutually exclusive.

2.5.5. Question Wording

Our questionnaire wordings are very simple and easy to understand. There are both

positive and negative options available in the answers. We didnt use any leading

questions to manipulate our respondences.

2.5.7. Form and Layout

The overall questionnaire consists of several important parts. All the questions are

pre-coded and numbered serially.

2.5.8. Reproduction of Qustionnaire

We have given a professional look to our questionnaire with the simplicity. All directions of

Answering has been given above the questions. Each question has been reproduced

in a single page and we have used vertical response column to make our

questionnaire look good.

2.6.Pilot StudyWe have conducted a pilot study that means we pretest our sample with 15 people

through face to-face questionnaire fill up. All the respondents of pretesting were

selected from our target population. At the beginning the questionnaire was quite

large including 73 questions. After doing the pilot study we find out that some of thequestions are repetition and unnecessary. Because of the big number of questions

many respondents get bored and impulsive. Immediately after conducting the

pilot study we worked on those questions. We discarded unnecessary questions and

modify the whole questionnaire. Finally we come up with 22 questions from

different service sector. The pilot study was really very effective for our further


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research.

2.7.Sampling TechniquesAs microcredit delivery organizations are proving loan to all over the Bangladesh.

Here ewe tried to go for people those who reside in the city of Dhaka and side the

capital. So our sampling strategy was to collect data from all these different

occupational poor people.We have divided our sample into eight different groups

such as, Rickshaw puller, garments workers, day labor, farmer, shop keeper, micro

business people, housewives, and workers level people.All these different group of

people worked as mutually exclusive and exhaustive strata based on appropriate

characteristics. After dividing in different groups, we have randomly selected 40

respondents in the basis of simple random sampling. There is equal chance of being

included into the sample, which indicates that it is a probability sampling.

Following are the steps of our sampling procedure:


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2.8.Fieldwork2.8.1. Fieldworkers

We four group members work as a fieldworkers and collect data.

2.8.2. Training

We are not professionally trained but we have tried our level best to collect data in a

decent manner. Since our questionnaire is large, we try to make initial contact before

asking respondents to fill up the questionnaire by sharing academic experiences and

other service experiences. Whenever the respondents could not understand any

question, we try to make it clear for them. We have collected data in their own words,

didnt summarize anything. The survey questionnaire was completely confidential.

There was no option to write

2.8.3. Supervision

We were very concern to implement the fieldwork in a proper way. We cheat

not a single questionnaire. We have collect data through pure survey.

2.8.4. Validation

The entire questionnaire has been filled up by only from those who have taken

microcredit from different microcredit delivery organizations. All the answers are

100% valid.

2.8.5. Evaluation

It took 1 to 5 days to collect all data. We divided the questionnaires among the group

members to make the fieldwork easier. Answers have been recorded and analyzed

through SPSS for getting a reliable calculation.

3. Results with Interpretations


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4. Limitations

We had some limitations, which are listed below.

Time Constraint: We got only 3 weeks to conduct the research includingdata collection. This might have a negative impact on our result.

Budget Constraint: No budget was allocated to conduct the research. Therefore, wecould not entertain our respondents and attract them to gather the information about

the topic.

Small Sample Size: Sample size of 40 is not enough to represent the perception ofall the poor towards microcredit delivery organizations. If we had more time, we could

take more respondents and thus would get results that are more accurate.

Lack of Attention: As our questionnaire was a bit long, the people lagged inattention at the ending part of filling their questionnaires.

Broad Topic: Our research topic was quite broad. If we could specify downto more concrete topic, the results might have been more accurate and significant.


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perception of the poor people towards microcredit delivery organizations in bangladesh

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