Small Loan, Big Impact: The Success Story of a Plastic Goods Entrepreneur

By David Sheng and Muhammad Kuddus

When the world handed Yousuf Ali challenges, he turned them into opportunities. 

Growing up in Bangladesh in the 1980s, Mr. Ali’s family struggled to make ends meet. At just 14 years old, financial hardships forced him to leave school and start work as an apprentice in a local factory to support his family. For four years, Mr. Ali worked in that factory. But he gained a valuable understanding of manufacturing, and eventually, those years of industry experience transformed into entrepreneurial inspiration.

In 1997, Mr. Ali set out to use his skills for a greater pursuit—to start his own manufacturing business for plastic goods. Faced with limited resources, Mr. Ali pooled his savings and sold two family cows, then bought necessary machinery and shipping trucks to launch the beginnings of the micro-enterprise. Mr. Ali began producing essential everyday items like portable money banks, small wash jugs, and agricultural tools. To counter high production costs, he decided to use recycled material, sourcing discarded plastic bottles and other plastic waste from across northern Bangladesh.

But with only two machines and limited capital, scaling up proved a challenge. Mr. Ali knew he needed loans, but commercial banks refused to offer their services as they required large amounts of collateral—something Mr. Ali simply did not have. “It was difficult,” said Mr. Ali, speaking in Bengali. “We were out of money, and I didn’t know how much longer the business could last.”

That’s when his uncle, a branch manager at Thengamara Mohila Sabuj Sangha (TMSS), introduced him to the organization’s Mohasthan Branch. TMSS, a Bangladeshi NGO and one of the largest microfinance institutions in the country, offered Mr. Ali the financial resources he needed. In 2001, Mr. Ali secured his first loan of ৳300,000 from TMSS. Using his newly acquired funds, Mr. Ali purchased more equipment, took out additional loans, then made further investments to expand his business. Before long, his loans were repaid, and his business was flourishing.

When Mr. Ali started his business, his family had very little. Today, he owns six bighas of land (nearly 4 acres) in his local village, nine decimals (around 4,000 square feet) in Bogura city, and a six-story building that houses his factory. Mr. Ali’s business currently employs 60 workers and generates millions of taka in revenue each month. His products are distributed nationwide, reaching customers in major cities like Rajshahi, Dhaka, and Chittagong.

For Mr. Ali, however, success isn't just about making a profit—it’s also about making an impact on his community. One of the most rewarding parts of his entrepreneurial journey, Mr. Ali said, was being able to create jobs for workers in his local community, where employment opportunities are limited. He also describes how his business actively supports the community by funding cultural celebration events and sponsoring sports programs.

Looking ahead, Mr. Ali has ambitious plans to expand his operations and bring his products to the global market. In doing so, he hopes to create even more jobs and opportunities for not just those in his own community but also beyond. 

But it all started, Mr. Ali said, with that loan from TMSS. “Microfinance with TMSS really turned things around, and I’m so happy I can now provide for my two kids,” explained Mr. Ali in Bengali. He hopes that, by sharing his story, others will be inspired to dream big and seek out opportunities as well.

Mr. Ali’s journey is one of many that demonstrate the power of microfinance. Truly, microfinance is far from “micro”; rather, it’s effective and far-reaching, able to help both individuals and entire communities.