Sme Banking in Bangladesh
SME Banking in Bangladesh.
OVERVIEW OF SME:
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According to the European Union (2003) SMEs are defined as enterprises which have at most 250 employees and an annual turnover not exceeding 50 million Euros.
According to the World Bank (2006) medium enterprises are defined as enterprises which have at most 300 employees and an annual turnover not exceeding 15 million US dollars.
In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered as a vital instrument for poverty alleviation and ensure the rapid industrialization.
THE MINISTRY OF INDUSTRIES, GOVERNMENT OF BANGLADESH IDENTIFIED 11 BOOSTER SECTORS:
Electronics and electrical
Software-development
Light engineering and metal-working
Agro-processing/agro-business/plantation agriculture/ specialist farming/tissue-culture
Leather-making and leather goods
Knitwear and ready-made garments
Plastics and other synthetics
Healthcare & diagnostics
Educational services
Pharmaceuticals/cosmetics/toiletries
Fashion-rich personal effects, wear and consumption goods.
PROBLEMS:
Resource scarcity
High employee turnover
Absence of modern technology
Poor physical infrastructure
Financial constraints
Lack of uniform definition
Lack of entrepreneurship skills
Participation of women entrepreneurs
Access to Market and lack of awareness regarding the importance of marketing tool
Lack of commitment to innovation and customer satisfaction
Lack of quality assurance
Lack of research and development facilities
Fierce competition with the cheaper foreign goods
SUGGESTIONS:
Government must have to take adequate measures to ensure the uninterrupted supply of raw materials for SME.
Government needs to take appropriate measures to fix the minimum salary/wages of the employees of SME. That will help to minimize the employee turnover.
Government and financial institution may provide adequate finance for modernization and technological
OVERVIEW OF SME:
----------------
According to the European Union (2003) SMEs are defined as enterprises which have at most 250 employees and an annual turnover not exceeding 50 million Euros.
According to the World Bank (2006) medium enterprises are defined as enterprises which have at most 300 employees and an annual turnover not exceeding 15 million US dollars.
In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered as a vital instrument for poverty alleviation and ensure the rapid industrialization.
THE MINISTRY OF INDUSTRIES, GOVERNMENT OF BANGLADESH IDENTIFIED 11 BOOSTER SECTORS:
Electronics and electrical
Software-development
Light engineering and metal-working
Agro-processing/agro-business/plantation agriculture/ specialist farming/tissue-culture
Leather-making and leather goods
Knitwear and ready-made garments
Plastics and other synthetics
Healthcare & diagnostics
Educational services
Pharmaceuticals/cosmetics/toiletries
Fashion-rich personal effects, wear and consumption goods.
PROBLEMS:
Resource scarcity
High employee turnover
Absence of modern technology
Poor physical infrastructure
Financial constraints
Lack of uniform definition
Lack of entrepreneurship skills
Participation of women entrepreneurs
Access to Market and lack of awareness regarding the importance of marketing tool
Lack of commitment to innovation and customer satisfaction
Lack of quality assurance
Lack of research and development facilities
Fierce competition with the cheaper foreign goods
SUGGESTIONS:
Government must have to take adequate measures to ensure the uninterrupted supply of raw materials for SME.
Government needs to take appropriate measures to fix the minimum salary/wages of the employees of SME. That will help to minimize the employee turnover.
Government and financial institution may provide adequate finance for modernization and technological