Even if the Government sets aside Taka 100 crore in the annual national budget to support the growth of women-owned businesses, not a single cent of this money is ever utilised because the entrepreneurs are unaware of the best ways to use the funds, says State Minister for Finance, Waseqa Ayesha Khan .
She stated, “The entrepreneurs should be more enthusiastic about utilising this fund as the government is keen to finance their development.”
Smart Financing for Smart Bangladesh: Possible Solutions for Mainstreaming the Marginal Entrepreneurs was the title of the session she was speaking at.
The event was organised by the Small and Medium Enterprise (SME) Foundation in association with Aspire to Innovate (a2i) at the Bangabandhu International Conference Center in Dhaka.
According to the Minister, SMEs have a tremendous contribution to the economy and can play a vital role in realising the “Smart Bangladesh” initiative by digitalising their operations.
She added that in order to make the best use of government facilities, owners of cottage, micro, small, and medium-sized companies (CMSMEs) should consult with experienced entrepreneurs.
Waseqa noted that failing to maintain correct bookkeeping is a primary factor in the denial of bank loans to CMSMEs.
In light of this, she suggested keeping a regular log of transactions—even if it requires handwriting—so that they can demonstrate to the banks that they have enough documentation to qualify for financing.
According to Bangladesh Bank deputy governor Nurun Nahar, the bank has a Taka 30,100 crore portfolio available for financing CMSMEs.
“If the entrepreneurs can utilise this properly and create demand, then the central bank will increase the portfolio further,” she added.
Salahuddin Mahmud, managing director of the SME Foundation; Sheikh Mohammad Maroof, acting managing director of City Bank PLC; Mohammad Jakirul Islam, head of SME strategy, innovation and new business of BRAC Bank PLC; and Md Tohurul Hasan, head of digital financial services at a2i, also spoke.
