The success of credit programmes for the landless poor lies in the alleviation of poverty. The process of alleviation of poverty can be more clearly understood through an analysis of the employment that is generated with the credit and the return from activities where such employment is generated. The paper shows that the three credit programmes, (BRAC, BRDB and Grameen Bank) have been successful in expanding the opportunities of self employment. Labour force participation rates among women have increased. Participation rates and employment per worker are higher among programme participants than among target group population in the control area. The paper also indicates that, the average return to self-employment is higher than the wage rate. Thus self-employment provides a good prospect of alleviating poverty through generation of more employment which pays-off at a rate higher than the wage rate. The average returns are higher in non-agriculture compare to those in livestock and agriculture (crop production activities).

The marginal productivity estimates of different types of labour shows that the marginal return to non-agriculture is the highest followed by agriculture and livestock production. However, the marginal productivity of each category of family labour, male and female, varies substantially by type of self-employment. In agriculture, the marginal productivity of female (family) labour is positive and significant, and that of male (family) labour is zero. In contrast, the marginal productivity of male (family) labour in non-agriculture is positive and significant and that of female (family) labour is zero. Further research is needed to explain why the marginal productivity of labour is zero in some activities.