Access to Finance
Economic Policy Paper on Access to Finance for SMEs: Problems and Remedies
Prepared under The DCCI-CIPE, ERRA Project
(CIPE is an affiliate of the U. S. Chamber of Commerce, Washington, DC, USA)
The Dhaka Chamber of Commerce and Industry (DCCI)
65-66, Motijheel Commercial Area, Dhaka-1000
2003
1
Economic Policy Paper on Access to Finance for SMEs: Problems and Remedies
Prepared by
:
Dr. A.K. Enamul Haque and Mr. Sakib Mahmud
Subject Matter Specialists
Publishers
The Dhaka Chamber of Commerce and Industry (DCCI) &
The Center for International Private Enterprise (CIPE)
(CIPE is an affiliate of the U. S. Chamber of Commerce, Washington, D.C., USA)
Advisors
M. A. Momen, President, DCCI
Hossain Khaled, Sr. Vice President, DCCI
Md. Hossain A. Sikder, Vice President, DCCI
The Center for International Private Enterprise (CIPE)
Officials
Andrew Wilson
Senior Program Officer for Eastern Europe and Eurasia
The Dhaka Chamber of Commerce an Industry (DCCI)
Officials
Ferdaus Ara Begum
Additional Secretary & Coordinating Officer
DCCI-CIPE/ERRA Project
The DCCI encourages the reprinting and translation of this publication to achieve wider dissemination. Short extract may be freely reproduced with due acknowledgement of the source. Permission of the DCCI should be requested for more extensive re -production or translation. A copy of the re-printed or translation material should be sent to the DCCI.
This Project is supported by a Grant from the Center for International Private Enterprise in
Washington, D.C., USA
2
Contents
Chapter-1: Introduction
Chapter-2: SMEs in Bangladesh
Chapter-3: Financial sector of Bangladesh
Chapter-4: Country Comparative Study
Chapter-5: Data Analysis: Findings of the Study
Chapter-6: Recommendations
Appendix:
List of References
Glossary of Terms
3
Economic Policy Paper on
Access to Finance for SMEs: Problems and Remedies
Chapter-1
1. Introduction
1.1 Small and
Prepared under The DCCI-CIPE, ERRA Project
(CIPE is an affiliate of the U. S. Chamber of Commerce, Washington, DC, USA)
The Dhaka Chamber of Commerce and Industry (DCCI)
65-66, Motijheel Commercial Area, Dhaka-1000
2003
1
Economic Policy Paper on Access to Finance for SMEs: Problems and Remedies
Prepared by
:
Dr. A.K. Enamul Haque and Mr. Sakib Mahmud
Subject Matter Specialists
Publishers
The Dhaka Chamber of Commerce and Industry (DCCI) &
The Center for International Private Enterprise (CIPE)
(CIPE is an affiliate of the U. S. Chamber of Commerce, Washington, D.C., USA)
Advisors
M. A. Momen, President, DCCI
Hossain Khaled, Sr. Vice President, DCCI
Md. Hossain A. Sikder, Vice President, DCCI
The Center for International Private Enterprise (CIPE)
Officials
Andrew Wilson
Senior Program Officer for Eastern Europe and Eurasia
The Dhaka Chamber of Commerce an Industry (DCCI)
Officials
Ferdaus Ara Begum
Additional Secretary & Coordinating Officer
DCCI-CIPE/ERRA Project
The DCCI encourages the reprinting and translation of this publication to achieve wider dissemination. Short extract may be freely reproduced with due acknowledgement of the source. Permission of the DCCI should be requested for more extensive re -production or translation. A copy of the re-printed or translation material should be sent to the DCCI.
This Project is supported by a Grant from the Center for International Private Enterprise in
Washington, D.C., USA
2
Contents
Chapter-1: Introduction
Chapter-2: SMEs in Bangladesh
Chapter-3: Financial sector of Bangladesh
Chapter-4: Country Comparative Study
Chapter-5: Data Analysis: Findings of the Study
Chapter-6: Recommendations
Appendix:
List of References
Glossary of Terms
3
Economic Policy Paper on
Access to Finance for SMEs: Problems and Remedies
Chapter-1
1. Introduction
1.1 Small and
References: goods1 of Bangladesh (DCCI, 2003). Based on the new definitions of SMEs, which includes industries with investments of Tk industries in the country can be classified as SMEs (Hussainy, 2003)2. Hence, the future of Bangladesh industrial development depends largely on the development of SMEs. industries, the total being 15.91%, as against 18.23% for Agriculture and forestry and 67.05% for others (Ministry of Finance, 2003). requirements (Meagher, 1998). As the capital market is not well developed and coordinated in Bangladesh, the entrepreneurs do not feel confident to raise funds