Grameen Bank's Growth and Challenges

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Growth and Challenges

Yunus discusses the growth and challenges Grameen faced before becoming massively successful in his book, Banker to the Poor. In this chapter, Yunus discusses negative externalities which staggered the growth of his business and justifies his reasoning behind the credit program used by Grameen.

One major problem Grameen faced was its geographical location. Bangladesh is very prone to natural disasters which have to ruin the potential and determination the women display. Yunus is unwavering in his insistence on his loaners paying back their loan, despite natural disasters. He says, “This discipline is meant to boost the borrower’s sense of self-reliance, pride, and confidence.” By encouraging his loaners to pay Grameen back, he instills a sense of motivation to progress despite life’s tribulations. Grameen is also known for not having a training program, which Yunus finds counterproductive. He believes teaching his loaners new skills is a waste of time, and he wants them to “immediately put into practice the skills they already know--to weave, to husk rice paddy, raise cows, peddle a rickshaw.” In this way, women are confident in the talents they already possess and it is one problem for their family and community to raise issues about.

Yunus is truly reshaping the way a social entrepreneurship works. Not only does Grameen have a humanitarian aspect, but it is redefining what it means to be a Bangladeshi woman. Before joining, each member must recite a pledge which renounces harmful cultural practices such as child marriage and no education. Grameen is seeing the mending of societal problems, one family at a time.