Despite supportive policies from the Bangladesh Bank, micro, small, and medium enterprises (MSMEs) in Bangladesh continue to face significant challenges in securing loans, stakeholders convened at a roundtable in Dhaka on Monday. The event, titled Access to Finance: From Policy to Practice, was organised by the SME Foundation with support from the Local Government Division, Swisscontact, and Innovision Consulting.
Participants including entrepreneurs, bankers, policymakers, and development partners discussed the ongoing hurdles that hinder MSME growth. Md Musfiqur Rahman, Chairperson of the SME Foundation, highlighted that nearly 1.18 crore MSME entrepreneurs across the country are unable to reach their full potential due to limited access to finance. He emphasised the sector’s vital role in the economy and urged collective efforts to remove barriers and foster economic progress.
The 2024 Economic Census by the Bangladesh Bureau of Statistics revealed that over 99% of the country’s MSMEs are classified as cottage, micro, small, or medium enterprises. These businesses contribute approximately 32% to the gross domestic product (GDP) and employ about 85% of the industrial workforce.
Anwar Hossain Chowdhury, Managing Director of the SME Foundation, referred to MSMEs as the “backbone of the economy” and stressed the importance of coordinated strategies to overcome structural challenges. Meanwhile, Farzana Khan, Deputy Managing Director of the Foundation, pointed out that although financing discussions have been ongoing for years, little tangible progress has been made.
Rukhen Uddin Ahmed, Senior Adviser at Swisscontact, suggested exploring alternative financing avenues beyond traditional banks, including fintech platforms and private investment sources, to better support MSMEs.
The roundtable also shed light on the gap between policy initiatives and ground-level implementation. Many MSME entrepreneurs continue to face bureaucratic delays, stringent collateral requirements, and a lack of customised loan products, the press release noted.
Since its establishment in 2006, the SME Foundation, a government-affiliated agency under the Ministry of Industries has supported nearly 20 lakh entrepreneurs, with women comprising 60% of beneficiaries. The organisation operates in alignment with the National Industrial Policy 2022, SME Policy 2019, and the Sustainable Development Goals (SDG) 2030, aiming to bolster the sector’s growth and sustainability.
