small and median enterprises (sme)
TRANSCRIPT
Prepared bySohag Ahmed
INTRODUCTION One of the most familiar words in Developing
country like Bangladesh.
Play a crucial role in promoting economic development as well as industrial production.
DEFINITION OF SME Definition of SME in Bangladesh: Ministry
of Industry and Bangladesh Bank define SME by through criteria-
Small Enterprise-
Medium Enterprise-
Serial No. Sector Fixed Asset other than Land and Building (Tk.)
Employed Manpower (not above)
01. Service 50,000-50,00,000 25
02. Business 50,000-50,00,000 25
03. Industrial 50,000-1,50,00,000 50
Serial No. Sector Fixed Asset other than Land and Building (Tk.)
Employed Manpower (not above)
01. Service 50,00,000-10,00,00,000 50
02. Business 50,00,000-10,00,00,000 50
03. Industrial 1,50,00,000-20,00,00,000 150
ROLE OF SME In the national economy of Bangladesh
In the export economy
SME SECTORSSectors of SME
Upazila wise District wise Division wise Regional wise
PROCESS OF SME LOAN Submission of application form and other
required documents Assessment and approval of facilities
requested Insurance of letter of offering / rejection to
customer. Customer comply to legal requirements and
pre-disbursement conditions Disbursement of Credit facilities
SOURCES OF FUNDS FOR SME
Personal funds-saved or inherited of their own capital, Loans from relatives and friends- It may be able to obtain some
money at low or no interest from relative(s) or friend(s), Trade credit, Loans of credit from equipment sellers, Mortgage loans, Commercial Bank loans, Bangladesh Small and Cottage Industries Corporations (BSCIC)
loans, Enterprises Growth and Bank Modernization program (EGBMP), Small and Medium Enterprises Development Project (SMEDP), Taking partners, Selling capital stock, Miscellaneous sources (Life Insurance policies, Amortized loans
etc).
DOCUMENTS NEEDED FOR SME FINANCING BY
BANKS Personal guarantee Business plan Appraisal of assets to be financed Purchase agreement Cash flow statement Personal financial statement Formal application for financing Business financial statement Tin certificate Bank solvency certificate Vat certificate Export license
SECTOR WISE LOAN DISBURSEMENT IN SME
Banks/NBFIs
2010 2011Total
Disbursement% to service
sector% to trading
sectors% Mfg sector Total
Disbursement% to service
sector% to trading
sectors% Mfg sector
SOB 7523.98 3.05 61.50 35.45 2107.98 3.37 55.24 41.39
SB 2694.66 1.65 49.86 48.49 1225.89 2.04 52.16 45.79
FB 1133.93 12.81 47.93 39.27 592.12 12.05 49.22 38.73
PCB 40494.57 5.11 69.59 25.30 21302.00 6.08 66.12 27.80
Total Banks 51847.14 4.94 67.35 27.72 25227.99 5.80 64.13 30.07
NBFIS 1696.79 24.07 47.92 28.01 935.35 21.12 46.80 32.07
Total Banks & NBFIs
53543.93 5.59 66.69 27.73 26163.34 6.35 63.51 30.14
TARGET GIVEN BY BANGLADESH BANK AND
ACHIEVEMENT
Sonali Bank Janata Bank Basic Bank Jamuna Bank Pubali Bank Standard Charted Bank
0
500
1000
1500
2000
2500
3000
3500
4000
Yearly Achievement of Target Given by Bangladesh Bank-2011
Tk in
cro
re
TARGET GIVEN BY BANGLADESH BANK AND
ACHIEVEMENT
Sonali Bank Janata Bank Basic Bank Jamuna Bank Pubali Bank Standard Charted Bank
0
500
1000
1500
2000
2500
3000
3500
Yearly Achievement of Target Given by Bangladesh-2012(up to june)
Tk in
cro
re
TARGET GIVEN BY BANGLADESH BANK AND
ACHIEVEMENT
LOAN DISBURSEMENT OF GOVERNMENT BANK
Year 2010 Year 2011 Year 20120
500
1000
1500
2000
2500
3000
3500
4000
Time Series Analysis of loan disbursment of Government Bank
Tk o
n cr
ore
LOAN DISBURSEMENT OF PRIVET BANK
Year 2010 Year 2011 Year 20120
500
1000
1500
2000
2500
Time Series Analysis of loan disbusement of Privet Banks
Tk in
cro
re
SECTOR WISE LOAN DISBURSEMENT IN SME
IBBL BRAC UCBL EXIM ASIA BANK
UTTARA PRIME DBBL NBBA AL ARAFA0
20
40
60
80
100
120
Outstanding Loan amount (tkbn)
WOMEN ENTREPRENEURSHIP
Factors of women entrepreneurship in Bangladesh:
ReligionAgeMarital StatusEducational QualificationsSectors of InvestmentTypes of InvestmentsSource of Inspiration to Start a BusinessReceived TrainingInitial InvestmentSource of Capital
INVESTMENT OF WOMEN ENTREPRENEURSHIP
30%
30%5%
5%
5%
10%
5%5% 5%
Sector of Investment
Beauty ParlorTailoringCNG RepairingElectrical Device Selling & RepairingShopCloth ShopSewing Machine Selling & RepairingRestaurantStudio
PROBLEMS OF SME SECTOR IN BANGLADESH
Scarcity of raw materials Limitation of skilled employees Scarcity of raw materials Inability to comply with the bank’s collateral
requirements Insufficient technologies Insufficient supply of necessary utilities Conservative attitude towards risk, lack of vision,
ability to make plan Female entrepreneurs are treated discriminately Expensiveness of owing a retail space Absence of an effective and transparent legal system