Despite making significant contribution to the country’s economic growth and employment generation; micro, small and medium entrepreneurs have been being neglected in many ways since long. In the past, government and different non-government agencies on several occasions came up with various assurances to provide support to the micro traders but still they are to face various difficulties in getting loan and marketing their products.
According to Bangladesh Bank (BB) data, total SME loans by all banks and non-bank financial institutions (NBFIs) increased merely by 2.10 percent to Tk.1,97,718 crore at the end of March 2019 from Tk.1,93,647 crore at the end of March 2018. The disbursement of SME loans was 19.63 percent of total loans disbursed by all banks and NBFIs at the end of March 2019 which is not as per the expected level, analysts opined.
“We are being neglected in many ways. As we have to run our business with very little capital so no one shows interest in our business. When we go to banks for loan, the officials asks us to show our bank statement. We don’t know whether they make fun with us by saying this,” Shahdot Hossain, a micro entrepreneur at Uttara in the city, said.
Experts said Micro, Small and Medium Enterprises (MSME) have huge contribution in the country’s economic but not getting the expected support from the authorities and agencies concerned. They said country’s most of the bank and financial institutes always entertain big entrepreneurs but the MSME entrepreneurs has to face several problem to get financial support.
The MSME is facing various challenges including financial problem, difficulties with product marketing and policy making which seriously taking toll on their business expansion. Speakers at a recent workshop in the city on “Financing Solution for Micro, Small and Medium Enterprises (MSMEs) in Bangladesh: Findings and Perspectives” also made identical opinions.
Recently a senior official at the Financial Institution Division, Ministry of Finance, said country’s MSME sector has huge prospects as the micro entrepreneurs are playing a vital role in economic growth and generating employment across the country. He said leading financial institutes of the world eyeing to Bangladesh as they want to make billion dollar fresh investment in this sector. Growth in this sector has increased enormously in recent times.
He said a number of local and international financial institutes are providing financial support to the sector. Now it needs to ensure easing the process of funding from banks and all other financial intuitions. SM Moniruzzaman, Deputy Governor of Bangladesh Bank recently said SME sector plays a vital role in achieving higher economic growth, reducing poverty and contributing to significant job creation.
Referring that the MSMEs are facing major challenges in accessing finance, he said Bangladesh Bank indicative MSME loan disbursement target with the help of commercial bank. The indicative target has increased manifold in 2018 from 2010. And the rate of achievement against target on average was 114 percent during 2010 to 2018.
He said apart from bank and non-banking financial institutions (NBFIs), Micro Finance Institutions (MFIs) also disburse huge microfinance loans. The MFIs disbursed about Tk 261 billion in fiscal year 2016-2017.