Women empowerment of Bangladesh by SME.fsibl.mahdi.

Prepared by: Mahdi Hasan Tanvir pg. 1
Table of Contents
Preparatory part:...........................................................................................................................................i
1. Acknowledgement:............................................................................................................................i
2. Letter of transmittal: ........................................................................................................................ii
3. Student Declaration:.......................................................................................................................iii
4. Supervisor’s Declaration:...............................................................................................................iv
5. Executive summary:.........................................................................................................................v
Chapter 1: Introductory part:..................................................................................................... 5
1. Introduction of the report:.............................................................................................................5
2. The rationale of the study: .............................................................................................................6
3. Aims of the study: ...........................................................................................................................6
4. Research objectives:........................................................................................................................6
4.1. Broad objective: ..................................................................................................................6
4.2. Specific objectives:..............................................................................................................6
5. Scopes:..............................................................................................................................................6
6. Limitations: .....................................................................................................................................7
7. Ethical consideration ......................................................................................................................7
Chapter 2: Organization part...................................................................................................... 9
1. Background of First Security Islami Bank Limited: ...................................................................9
2. Corporate information of the FSIBL:.........................................................................................10
3. Corporate Governance:................................................................................................................11
4. Vision: ............................................................................................................................................12
5. Mission:..........................................................................................................................................12
6. Product and services of FSIBL:...................................................................................................13
7. SWOT analysis of FSIBL:............................................................................................................17
7.1 Internal factor analysis (IFA):...................................................................................................18
7.2 External factor analysis (EFA):.................................................................................................18
7.3 TOWS matrix:.............................................................................................................................19
8. Porter’s five forces of FSIBL:......................................................................................................20
9. External and internal environment of FSIBL:...........................................................................21
10.1 Internal environment of FSIBL:..............................................................................................21
10.2 External environment:..............................................................................................................21

10. Ratio and financial performance analysis of FSIBL: ..................................................................22
10.1. Ratio analysis: ..........................................................................................................................22
10.2. Financial statement analysis:..................................................................................................26
Chapter 3: Topic part:................................................................................................................ 28
1. Small and medium enterprise (SME): ........................................................................................28
2. SMEs in Bangladesh:....................................................................................................................28
3. Women entrepreneur: ..................................................................................................................29
4. The present situation of SME and women empowerment in Bangladesh:..............................29
5. Vision 2021 in SME sector: ..........................................................................................................30
6. Challenges for women entrepreneurs: ........................................................................................30
7. SMEs and special facilities for women entrepreneurs: .............................................................31
8. The process of SME investment: .................................................................................................32
9. Monitoring of SME investments:.................................................................................................32
10. Required organizational structure of a new enterprise: .......................................................33
11. The approval process of SME:.................................................................................................34
12. Investment Disbursement: .......................................................................................................35
13. Initial requirements for SME investment:..............................................................................35
Chapter 4: Actual task................................................................................................................ 37
1. Primary learning:..........................................................................................................................37
2. Secondary learning:......................................................................................................................37
3. Working in general banking:.......................................................................................................38
4. Working in SME and women entrepreneurs..............................................................................38
5. Working in cash section: ..............................................................................................................38
Chapter 5: Research ................................................................................................................... 40
1. Problem statement:.......................................................................................................................40
2. Background of the problem:........................................................................................................40
3. Project timeline:............................................................................................................................41
4. Budget information:......................................................................................................................41
5. Research methodology:.................................................................................................................42
6. Hypothesis development:..............................................................................................................43
7. Data interpretation:......................................................................................................................44
8. Findings: ........................................................................................................................................49
9. Recommendation: .........................................................................................................................50
10. Conclusion:................................................................................................................................51

Chapter 6: Appendix .................................................................................................................. 53
1. Reference:......................................................................................................................................53
2. Abbreviation:.................................................................................................................................54
3. Images:...............................................................................................................................................55
4. Questionnaire:...............................................................................................................................61

Chapter 1: Introductory part:
1. Introduction of the report:
To make a country developed it must have enough industries, employment, the country has to
increase their scope of new investment. Before starting a new business the owner must have
enough cash or equity and the owner might need an investment from the bank. If it is easier
and lower interest rate in banks then he may get more money to start or run his business with
enough cash. But in starting no one could start a business in a larger way. They had to start it
in a small or medium enterprise manner. In Bangladesh, we have to increase our new
investment sector and we need more entrepreneurs and we need to give them enough financial
and other supports. In our country, to provide financial help to an entrepreneur we introduced
new policy is called SME.
During the last few decades, the contribution of women in our economy has been increasing
day by day. Women employment has increased from 8.4% to 34% from 1983 to 2011. To keep
it running and to make it strong Government and Bangladesh Bank have been taken many steps
for small and medium enterprise and in short, it is SME. First Security Islami Bank Limited
has also taken great steps to increase their policies to attract entrepreneurs.
This report will show how SME has been improving the lives of women in Bangladesh with
easy investment and lower profit and the process provided by First Security Islami Bank Ltd.

2. The rationale of the study:
This report discusses the SME banking activities and policies provided by FSIBL and how this
SME investment is helping our women to make them self-employment and how it is
developing our country’s economy. This report will also discuss the process of SME
investment. It will help to understand the overall idea of how FSIBL is involved in women
empowerment and economic development through SME investment.
3. Aims of the study:
The aim of this study is to identify the process and details about SME banking and investment.
This research will also focus on the FSIBL services on SME and how this bank is different
from others in services of SME and what are the benefits our women are getting in this SME
sector.
4. Research objectives:
4.1. Broad objective: To identify, to analyze and to recommend how FSIBL is helping women
to become self-employment by providing SME investment
4.2. Specific objectives:
• To know about SME investment for women.
• To learn about the process and activities of SME.
• To learn about the impact on the economy.
• To know how entrepreneurs are benefitted from SME investment.
• To find out the areas in which SME is facing barriers.
• To learn about the ways it is helping our women to make them self-employment.
5. Scopes: This study will show the information and data about SME financing of FSIBL and
the process by which our women might become a successful entrepreneur and the way FSIBL
and our women entrepreneurs are contributing to the economy.

6. Limitations:
• Lack of practical knowledge about SME.
• Time limitations to collect enough data.
• Lack of information on the website.
• Latest data on SME financing was not available.
• As I am a student and an intern so it was difficult to get all necessary data from
entrepreneurs and bank.
7. Ethical consideration: In making this report I was honest in collecting data, using
information from sources. I didn’t bribe anyone for any information and any confidential data
or resources of the company didn’t publish. This research is made to make others understand
about our SME financing of FSIBL and women empowerment in our country.

Chapter 2: Organization part
1. Background of First Security Islami Bank Limited: Under companied Act
1994 FSIBL was first incorporated in Bangladesh on 29 August 1999 but it got permission
from Bangladesh Bank to run its operation on 22 September 1999. FSIBL started its
banking policy based on Islami sharia on 01 January 2009 after getting approval from the
high court, Finance ministry, and Bangladesh Bank.
Now FSIBL has 162 branches all over Bangladesh and it has four regional offices in
Chittagong, Sylhet, Khulna, and Rajshahi. For reducing cash carrying problem FSIBL has
already 128 ATM booth all over Bangladesh.
Division Number of branches
Dhaka 55
Chittagong 56
Sylhet 09
Khulna 22
Rajshahi 08
Barisal 08
Rangpur 04
Total: 162

2. Corporate information of the FSIBL:
Name of the Company First Security Islami Bank Ltd.
Chairman Mr. Mohammad Saiful Alam
Vice Chairman Mr. Alhaj Mohammad Abdul Maleque
Managing Director Mr. Syed Waseque Md. Ali
Company Secretary Mr. Oli Kamal
Legal Status Public Limited Company
Date of Incorporation August 29, 1999
Date of commencement of business August 29, 1999
Date of getting license from BB September 22, 1999
Date of Opening of First Branch October 25, 1999
Corporate Head Office House- SW(I) 1/A, Road-8, Gulshan-1, Dhaka-1212, Bangladesh.
Registered Office 23, Dilkusha, Dhaka-1000, Bangladesh
Line of Business Banking
Authorized Capital Tk.10,000 Million
Paid up Capital Tk.6,788.74 Million
Date of consent for IPO 04 June 2008
Phone 88-02-9888446 (Hunting), 8402613-8402625 (ICT Division).
Fax 880-02-9891915
E-mail bcs@fsiblbd.com , info@fsiblbd.com
SWIFT Code FSEBBDDH
Auditors Shafiq Basak & Co, Chartered Accountants, Shatabdi Centre
(6th
Floor), 292, Inner Circular Road, Fakirapool, Motijheel, Dhaka.
Legal Advisor The Law Counsel, Barrister & Advocates, City Heart (7th Floor), Suite
No. 8/8, 67, Naya Paltan, Dhaka-1000. Phone: 9349647-8,
Tax Consultant K.M. Hasan FCA, K.M. Hasan & Co. Chartered Accountants, Dhaka
Office Home Tower Apartment (8 th & 9 the Floor), 87, New Eskaton
Road, Dhaka – 1000, Phone: 9351457,9351564, Fax: 9345792-112.

3. Corporate Governance:
Mohammed Saiful Alam,
Chairman
Khandkar Iftekhar Ahmad,
Nominated Director
Alhaj Mohammed Abdul
Maleque, Vice- Chairman
Mrs. Farzana Parveen,
Director
Md. Wahidul Alam Seth,
Director
Ahmed Muktadir Arif,
Independent Director
Mohammad Ishaque,
Independent Director
Shahidul Islam, Director
Mrs. Atiqur Nesa, DirectorMrs. Rahima Khatun,
Director
Syed Waseque Md Ali,
Managing Director

4. Vision: To be the premier financial institution in the country by providing high-quality
products and services backed by latest technology and a team of highly motivated
personnel to deliver excellence in Banking.
5. Mission:
• To contribute to the socio-economic development of the country.
• To attain the highest level of satisfaction through the extension of services by dedicated
and motivated professionals.
• To maintain the continuous growth of market share by ensuring quality.
• To ensure ethics and transparency at all levels.
• To ensure sustainable growth and establish full value of the honorable shareholders and
Above all, to contribute effectively to the national economy.

6. Product and services of FSIBL: FSIBL provides seven products and services and
they are-
o Deposit products of FSIBL:
• Al-Wadiah Current Deposit Account
• Mudaraba Savings Deposit Account
• Mudaraba Special Notice Deposit Account
• Mudaraba Term Deposit Account
• Onkur Account – Mudaraba Students Savings A/C (School Banking)
• Projonmo – Mudaraba New Generation Savings A/C
• Uddin- Mudaraba New Generation Deposit Scheme
• Alo – Mudaraba Education Deposit Scheme
• Shuvessa Mudaraba Gift Cheque
• Mudaraba Deposit Double Scheme
• Mudaraba Deposit Triple Scheme (Triple Benefit)
• Aroba – Mudaraba Deposit Four Times Scheme
• Mudaraba Monthly Profit Scheme
• Mudaraba Cash Wakf Deposit Scheme
• Mudaraba Hajj Savings Account
• Zakat Fund
• Morjada – Al-Wadiah Current Plus Account
• Somman – Al-Wadiah Premium Account
• Agroshor – Mudaraba Millionaire Deposit Scheme
• Unnoti – Mudaraba Crorepati Deposit Scheme
• Menotti- Mudaraba Sromojibi Savings Account
• Proyas – Mudaraba Money Plant Deposit Scheme
• Probin – Mudaraba Senior Citizen Savings Account
• Aharoni – Mudaraba Housewife Deposit Scheme
• Bondhon – Mudaraba Marriage Deposit Scheme
• Niramoy – Mudaraba Health Care Deposit Scheme
• Absher – Mudaraba Pension Deposit Scheme

• Mudaraba Monthly Deposit Scheme
• Shades – Mudaraba Emigrant Deposit Scheme
• Shades – Mudaraba Emigrant Deposit Scheme
o Investment Schemes:
• Investment/ utilization of funds:
Investment / Utilization of the funds.
Bai-Murabaha (Deferred Lump Sum/ Installment Sale)
Bai-Muajjal (Deferred Installment / Lump Sum Sale)
Ijara (Leasing)
Musharaka (Joint-Venture, Profit-Sharing)
Mudaraba (Trustee Profit-Sharing)
Bai-Salam (Advance Sale and Purchase)
Hire-Purchase
Direct Investments
Ijara (Leasing)
Post Import Investment
Purchase and Negotiation of Export Bills

Inland Bills Purchased
Murabaha Import Bills
Bai-Muajjal Import Bills
Pre-Shipment Investment
Guard-ul-Hasan (Benevolent Investment)
Letter of Guarantee
Tender Guarantee
Performance Guarantee
Guarantee for Sub-Contracts
Shipping Guarantee
Advance Payment Guarantee
Guarantee in lieu of Security Deposits
Guarantee for exemption of Customs Duties
Others
Letter of Credit (L/C) / Back to Back Letter of Credit (L/C)
Specialized Schemes
Tender Guarantee
Consumer Investment Scheme
SME Investment Scheme.
• Letter of guarantee:
Investment / Utilization of the funds.
Bai-Murabaha (Deferred Lump Sum/ Installment Sale)
Bai-Muajjal (Deferred Installment / Lump Sum Sale)
Ijara (Leasing)
Musharaka (Joint-Venture, Profit-Sharing)
Mudaraba (Trustee Profit-Sharing)
Bai-Salam (Advance Sale and Purchase)
Hire-Purchase
Direct Investments
Ijara (Leasing)
Post Import Investment

Purchase and Negotiation of Export Bills
Inland Bills Purchased
Murabaha Import Bills
Bai-Muajjal Import Bills
Pre-Shipment Investment
Guard-ul-Hasan (Benevolent Investment)
Letter of Guarantee
Tender Guarantee
Letter of Credit (L/C) / Back to Back Letter of Credit (L/C)
Specialized Schemes
Tender Guarantee
SME Investment Scheme,
Lease Investment Scheme,
Hire Purchase,
Earnest Money Investment Scheme,
Mortgage Investment,
Employees House Building Scheme,
ATM, VISA Investment Card, EEF, etc.
• Letter of credit (L/C):
Tender Guarantee
SME Investment Scheme,
Lease Investment Scheme,
Hire Purchase,
Earnest Money Investment Scheme,
Mortgage Investment,
Employees House Building Scheme,
ATM, VISA Investment Card, EEF, etc.

7. SWOT analysis of FSIBL:
SWOT means of strength, weakness, opportunity, and threat. This SWOT provides full SWOT
analysis of the company’s business and operations of FSIBL and it will help us to understand
the market position of FSIBL. It is very important to know about the strengths and opportunists
he bank have and from weakness and threats, we could know their improving area.
o Strengths of FSIBL:
The first strength of FSIBL is that it is a Shariah-based bank.
It has profitable deposit scheme and investment with the profitable interest rate.
Their behavior pleased customers nicely.
They have profitable growth.
All employees are honest about their duties and responsibilities.
Experienced management team.
o The weakness of FSIBL:
Lack of necessary information on SME.
Less growth on the carrier for employees.
Poor marketing strategy.
Lack of motivation.
o Opportunities of FSIBL:
Increasing awareness among clients about Islamic banking.
Providing more help to women entrepreneurs.
They have sufficient branches, as a result, they have opportunities to access in
different kinds of business.
Service charge is less in FSIBL than other banks.
Training facilities.
o Threats of FSIBL:
Some other banks have opened their Islamic banking branches.
The competitors of FSIBL have more geographical coverage than FSIBL.
Due to huge competitions, other banks are coming with new products and services.

7.1 Internal factor analysis (IFA):
Factors Weight Ratings Weighted score
Strength(S)
Experienced management
team
0.25 3.50 0.87
Profitable growth 0.20 3.00 0.60
Islamic Shariah based
banking
0.28 3.75 1.05
Weakness(W)
Less growth on carrier 0.18 2.50 0.45
Marketing strategy 0.15 2.75 0.41
Lack of motivation 0.10 2.00 0.20
1.00 5.00
7.2 External factor analysis (EFA):
Factors Weight Ratings Weighted score
Opportunities(O):
Providing more help for new
entrepreneurs
0.28 3.00 0.84
Increasing awareness about
Islamic Banking
0.25 2.75 0.68
Training facilities 0.18 2.50 0.45
Threats(T):
New entrances with Islamic
Banking
0.18 2.00 0.36
New offers to customers from
competitors.
0.15 1.75 0.26
1.00 5.00

7.3 TOWS matrix:
Strength(S)
Experienced management team
Islamic Shariah-based banking.
Weakness(W)
Less growth on a career.
Marketing strategy.
Opportunities(O):
Providing more help
to entrepreneurs.
Increasing awareness
about Islamic
Banking
SO
By strong management team,
FSIBL could focus on new SME
sectors and improvement areas.
FSIBL need to develop a new
scheme in Islamic sharia.
WO
FSIBL could improve their
marketing strategy for
Islamic Banking.
FSIBL should attract new
startup owner to take
investment from FSIBL
Threats(T)
New entrants with
Islamic Banking
New offers from
competitors to
customers
ST
The Strong management team of
FSIBL could keep it strong from
new entrants.
FSIBL need to introduce new
schemes for customers.
WT
FSIBL need to take new
marketing strategy to attract
customers.
They need to provide
promotion to employees
based on performances.
Internal factors
External factors

8. Porter’s five forces of FSIBL:
• The threat of new entrants: (Medium): Day by day people are increasing in our country
and country is developing day by day as a result people are earning more money and they
need more money. So the necessity of new banks has been increasing. They are also
providing SME investments to entrepreneurs. Some banks are newly introducing Islamic
Sharia-Based banking because as Muslim we need Islamic Sharia-Based banking. New
banks are coming with different policies to attract customers.
• Bargaining power of suppliers (Medium to high): Bangladesh Bank, clients who deposit
money to FSIBL and other financial institutions who finance the bank are suppliers for the
bank. If FSIBL cannot provide more interest on deposit and if FSIBL cannot provide more
return to investors then suppliers may switch to other banks and now we have many banks
with computable profit on deposits and investments.
• Bargaining power of buyers (Medium): Those clients who are taking investments from
banks they also have other banking options if they get less interest on the investment.
Though there are laws and regulations of SME from BB for all banks but entrepreneurs
have more interest in Islamic banks.
• Threats of substitutes (less): New many banks are coming with attractive schemes to
customers and others buyers and suppliers are also getting more options but the fact is
competitions is now in a stable position because of fixed rules from BB for SMEs.
• Rivalry among existing banks (less): Though there are many banks and many of them
are running with Islamic Banking but there is not much rivalry among these banks. They
are running their business with their own products and services.

9. External and internal environment of FSIBL:
10.1 Internal environment of FSIBL:
o Management: FSIBL has strong managing governance.
o Employee morale: Their employees behave with their entrepreneurs and women
entrepreneurs in a perfectly professional manner and they try to help as much as
possible.
o Culture changes: Since they are Islamic Bank in banking sector they have changed
their outlook, systems, and policies. To cope up with culture changes they are bringing
new policies. In SME sector they are trying to achieve hundred percent investment
o Financial changes: FSIB has enough liquid resources to run its business properly and
to provide investment to women entrepreneurs.
10.2 External environment:
o Changes to the economy: Today our economy is not that much bad position so we can
hope that day by day we will do better in the banking sector and FSIBL is helping to
improve women empowerment.
o Threats from competitors: Though competition is increasing in the banking industry
FSIBL is trying to provide a better investment to SME and women.
o Political factors: Our political situation is now stable position and our Govt. is taking
great steps to increase SME sector.
o Govt. regulations: Govt. regulations on new bank entries have increased and Govt. is
trying to increase women self-employment.

10. Ratio and financial performance analysis of FSIBL:
10.1. Ratio analysis:
• Current ratio: ( Current assets/Current liabilities)
2016 2015 2014 2013
1.03 1.03 1.04 1.04
The current ratio measures its ability to pay its short-term liabilities. Higher the current
ratio, more liquid the firm is considered. Usually, a current ratio is 2 is acceptable but it
depends on the industry. Here in FSIBL, their current ratio is below 2 which is not good in
acceptable category. But they are maintaining an average ratio.
1.02
1.03
1.04
2013
2014
2015
2016
1.03
1.04 1.04
1.04
CURRENT RATIO
Figure: 10.1.1

• Return on equity(ROE): ( Net income/shareholder’s equity)×100
2016 2015 2014 2013
13% 8% 8.2% 11%
By using ROE a company’s management know their ability to convert their shareholder’s
equity into their income. ROE of 15-20% is considered good. In FSIBL their ROE is not good
because they are not in a stable position. Though in 2013 to 2016 they have made 11% to 13%
though they had 8% in 2015 and 8.2% in 2014. We can assume that in 2017 they will be able
to continue their progress.
• Return on assets (ROA): (Net profit after tax/ Total asset)*100
2016 2015 2014 2013
0.46% 0.31% 0.31% 0.48%
It measures the net income produced by total assets during a period. We can also say that ROA
measures how efficiently FSIBL is managing its assets to produce profits during the period.
Here, ROA of FSIBL was in a good position in 2016 but 2014 and 2015 they didn’t do well.
0%
5%
10%
15%
2016
2015
2014
2013
13%
8%
8.20% 11%
0.00%
0.20%
0.40%
0.60%
2016 2015 2014 2013
0.46%
0.31% 0.31%
0.48%
Figure: 10.1.2
Figure: 10.1.3

• Cost income ratio(C/I): ( Total operating expense/total operating income)
2016 2015 2014 2013
54% 60% 56% 54%
It measures the relationship between banks operating cost and their operating income. The cost
of running a company in relation to its income. That means how efficiency the bank is running
and the lower the C/I ratio the more profitable it should be. In FSIBL from 2013 to 2016, we
can see their ratio is under control and it is decreasing that means they are controlling their
expenses in relation to its income.
• Total asset turnover: ( operating income/total assets)
2016 2015 2014 2013
2% 2% 2.5% 2%
Asset turnover ratio indicates how efficient the bank is using its assets to earn revenues. More ratio
means the company is doing well with its assets. In FSIBL they have 2% in each year from 2013
to 2016 and they are in a stable position.
50%
55%
60%
2016
2015
2014
2013
54%
60%
56%
54%
0
0.2
0.4
2013
2014
2015
2016
0.02
0.25
0.02
0.02
Figure: 10.1.4
Figure: 10.1.5

• Net profit margin: (net profit after tax/operating income)
Net profit margin is the percentage of revenue remaining, after all, operating expenses, interest,
taxes and preferred stock dividends (but not common stock dividends) have been deducted
from a company's total revenue. We can see from the graph, a net profit margin of FSIBL is in
average position in last 4 years. But the higher the net profit margin is better for the company.
• Earnings per share: ( net income/number of shares)
EPS describes how much a company is earning in a particular share. It attracts the shareholders
to invest a company. If they get the higher return they will invest more and if a company can
earn more per share then they would be able to return more to shareholders. In FSIBL then
were increasing from 2013 to 2016 and we can assume they would be able to get more in 2017.
0%
20%
2013
2014
2015
2016
17%
13%
13% 17%
0
1
2
3
2016
2015
2014
2013
2.08
1.26
1.02
1.89
2016 2015 2014 2013
17% 13% 13% 17%
2016 2015 2014 2013
2.07 1.18 0.96 1.87
Figure: 10.1.6
Figure: 10.1.7

10.2. Financial statement analysis:
Particulars 2016 2015 2014 2013 2012
Profit and loss account
Total
operating
income
8,024,887,101 6,162,268,697 5,118,942,928 4,477,954,018 3,783,840,279
Total
operating
expense
4,298,829,516 3,696,368,100 2,906,120,870 2,434,138,445 1,831,881,369
Profit before
tax
2,549,406,582 1,464,893,989 1,494,345,628 1,543,262,163 1,503,216,409
Profit after
tax
1,404,982,582 798,394,989 649,295,628 776,476,241 762,709,068
Balance Sheet
Cash 32,300,509,774 27,230,976,084 1 6,290,251,915 11,549,381,969 10,528,144,967
Investments
in share and
securities.
14,786,490,432 13,064,062,181 10,583,235,873 6,433,599,564 5,664,479,782
Total assets 301,228,474,940 255,480,341,218 204,512,653,030 162,822,976,854 129,733,173,088
Total
Liabilities
290,526,508,145 245,840,947,968 196,163,882,114 155,389,377,281 124,068,693,306
Shareholders’
equity
10,701,966,795 9,639,393,250 8,348,770,916 6,433,599,564 5,664,479,782

Chapter 3: Topic part:
1. Small and medium enterprise (SME):
SME is a small and medium business which is independently owned and operated. Their
employees are limited.
2. SMEs in Bangladesh:
Entrepreneurs are considered as one of the most important sectors for any developing and
underdeveloped countries. Now women are in a great position in our socio-economic
development of Bangladesh but they need more resources, training, investments etc. According
to Bangladesh Economic Review 2009, about 6 percent of country’s $90 billion economies
comes from SMEs, which is also the largest sector in terms of employment generation. (Daily
Star December 29, 2009).
Developing country like Bangladesh where SMEs are the strong sector of national economic
development, women entrepreneurs are getting remarkable progress in new businesses in
different areas.
In Bangladesh, there are almost 6 million SMEs. There are different categories of SME, they
are:
o Non-manufacturing enterprise(trade or services):
Microenterprise: Those enterprises who have less than 10 lakhs fixed assets
(excluding land and buildings), having maximum 15 employees. They get
investment up to TK 25 lakh.
Cottage enterprise: they have less than TK. 10 lakh as fixed assets and having
maximum 15 employees. They get investment up to 10 lakh.
Small enterprise: They have 10 lakh to 1 cr. fixed assets and 16-50 employees.
Their investment limit is TK 5 cr.
Medium: They have fixed assets about 2 cr. to 30 cr. They have 51-120 employees
and they may get investments up to TK 50 cr.

o Manufacturing enterprises:
Microenterprise: Those enterprises who have TK 10 lakh to TK 75 lakh fixed
assets (excluding land and buildings), having 16-30 or fewer employees. They get
an investment up to TK 1 cr.
Small enterprise: They have 75 lakh to 15 cr. fixed assets and 31-120 employees.
Their investment limit is TK 20 cr.
Medium: They have fixed assets about 15cr. to 50 cr. They have 121-300
employees (garments 1000 min) and they may get investments up to TK 75 cr.
o Trading sector:
Microenterprise: They have less than TK 10 lakh as fixed assets and maximum
15 employees. Their investment limit is TK 25 lakh.
Small enterprise: They have TK 10 lakh to TK 2cr. They have 16 to 50 employees
and they may get investments about 5 cr.
3. Women entrepreneur: If a woman engages in a business in her name or she has 50% or
more shares of that business she is considered as a women entrepreneur.
4. The present situation of SME and women empowerment in Bangladesh: Now
in Bangladesh, small and medium enterprises are one of the most significant parts of our
economy. These enterprises are easy to start with a small investment, fewer employees and
produce goods and fill local demand and when the enterprise makes good position then it
exports its goods. Now women are doing great in socio-economic development by making
themselves self-employment with the help of SME investments.
Bangladesh Bank has updated its rules and regulations for SMEs and women empowerments
and set a limit of credit. BB has also updated the definition of SME sectors.
Banks are advised by BB for providing investments up to 20% in 2017 and raise it to 25% by
2021. They are trying to provide more priority to small enterprises than medium enterprises.
BB has also provided instructions to increase investment amount in the following sectors by
2021-

Manufacturing sector 40%
Service 25%
Trading 35%
And at least 10% of lending need to go to women entrepreneurs and BB advised to increase it
up to 15% by 2021.
It has been found that at present women entrepreneurs constitute less than 10% of the total
business entrepreneurs in Bangladesh whereas women in advanced market economies own
more than 25% of all businesses.( Professor Masuda M. Rashid Chowdhury, 2011).
The average age of women entrepreneurs of Bangladesh is less than 20 years to 61 years and
above. A recent research has found that none of the women entrepreneurs are illiterate but the
majority of them are below SSC and some completed HSC. SME foundation says that about
4.98% women entrepreneurs were graduates, only 4.44% completed their master’s degree and
a few of them had some professional degrees. Majority of women entrepreneurs are married.
5. Vision 2021 in SME sector:
Two major objectives of 2021 are empowerment and equal rights for women and economic
development and initiatives. Our Prime Minister Sheikh Hasina, her Government is doing a
great job and have been taking the huge initiative to raise the economy from low-income
economy to the first stage of the middle-income economy since the national election of 2008.
Increasing per capita income, making more educated, sustainable development, attracting new
entrepreneurs to invest in the economy are some examples of some initiatives to make better
conditions.
6. Challenges for women entrepreneurs: The contribution of women in our economy is
not enough due to some barriers for women. Women entrepreneurs are also facing some
barriers and they don’t get family support from husband, social challenges are another barriers
for women to run their new business properly because people generally don’t like women to
do business and don’t want to give them full freedom. Though there are many barriers for

women but day by day they are increasing their capabilities in the developments of our country.
There are also some other problems, they are:
• Absence of skilled manpower: there are lack of skilled modern machine operators,
qualified managers, trained designers and researchers.
• Use of old machines: Those machines are using in productions are not good quality
products, they have low productivity, also have higher cost of production.
• Limited access to finance: Though Govt. is trying their best to decrease financial
barriers for entrepreneurs but there is complicated access to finance.
• Poor quality of products: Producers have inability to achieve quality certification,
limited ability to meet buyer’s satisfactions.
7. SMEs and special facilities for women entrepreneurs:
To develop the SME sector and to increase the productivity of enterprises and to improve the
ability and knowledge of entrepreneurs our Govt. has been taking many initiatives. They are
also taking other approaches for women entrepreneurs. The participation of women in
industrial and socio-economic development is not enough and to increase their participation
and to improve their contribution without risks and barriers Bangladesh Bank and SME
foundation have taken some new policies. Reducing barriers, lower interest fees on
investments and there are also:–
15% quota for women entrepreneurs in taking investments. BB has ordered to all banks
To ensure this fixed quota for women so that they feel interested in starting a new business
with enough investments and lower risks.
Training facilities for entrepreneurs. Bangladesh Bank and SME foundation are providing
training for new women entrepreneurs to make them confident.
The interest rate for women entrepreneurs is now only 10%.
It is ordered from Bangladesh Bank to accept and settle all types of investments of women
entrepreneurs based on highest priorities.
Priorities on export-oriented SMEs and also in both electronic and print media.
There must have a special desk for women entrepreneurs in each and every bank.

Personal guarantee: One of the biggest facilities for women entrepreneurs is a personal
guarantee that means if the borrower is women or majority of the owners of the enterprise
are women they may get 25 lakhs TK as a personal guarantee.
Collateral free investments: For small and women entrepreneurs banks can provide
collateral-free investments up to 25 lakhs against the personal guarantee. To maintain bank
and customer relationship bank may apply their own rules and regulations.
Refinance for banks in women sector: Bangladesh Bank is providing 5% refinance
facilities in case of women entrepreneurs.
8. The process of SME investment: For entrepreneurs, FSIBL is always ready to provide
SME investments and for women, there is a special help desk in each and every branch of
FSIBL. To get an investment first entrepreneur have to apply to the branch and must specify
the types of business she wants to start and other details also. Business requires some initial
requirements and organizational structure. Then by following official steps, she will get an
investment. For 2017 FSIBL have 100 crores budget for SMEs. To women entrepreneurs, they
have 10% interest and for others 13% to 15%. When FSIBL got the order for an investment
they purchase goods for entrepreneurs to reduce the misuse the cash and the policy of Islamic
Banking and by following this process FSIBL ensures 100% investment goals.
9. Monitoring of SME investments: To achieve the target of FSIBL in SME sector bank
needs to monitor their credit disbursement areas. It also helps to reduce risk factors for
investments, successful recovery of investments. How the borrowers are doing their business
and their improvement level etc. all are monitored thorough Head office, Bangladesh Bank,
Branch level of FSIBL, Regional offices.

10.Required organizational structure of a new enterprise:
Board of Directors
EC of Board of Directors
Managing Director and CEO
Deputy Managing Director
Head of Investment (Appraisal and approval)
Head of Corporate and Commercial Banking
Relationship Management
Business Development
Head of Investment Administration
Head of Investment Monitoring
Table: 10.1

11.The approval process of SME:
Investment application:
Recommender by RM/Marketing/Branch Manager
Zonal office (ZO)
Recommended to higher authority/declined and sent to branch
Investment division, Head Office
Managing Director
Approved/Declined (As per delegation)
Beyond capacity, Recommended to board
Investment committee
Deputy Managing Director
Executive Committee/Board of Directors
Table: 11.1

12. Investment Disbursement: Security documents are to be prepared in accordance with
approved terms and to be legally enforceable. Standard Investment facility documentation’s
are to be drafted/prepared by the legal counsel. At present, the Branch performs the function
of preparation of documents (other than syndication) and exceptions are referred to legal
counsel for advice. Disbursements under Investment facilities are made when all security
documentation is in place. The report should reflect/include the name of all the lenders with
the facility, limit and outstanding. All formalities regarding large Investments and Investments
to Directors are guided by Bangladesh Bank circulars and related section of Banking
Companies Act. All Investment Approval terms must be met. The checklist certificate is to be
signed by Investment In-Charge and Head of Branch.
13.Initial requirements for SME investment:
o Doing an application for taking the investment
o Need a personal Account into the branch who taken investment
o Three witness account into the same branch
o Five passport size photograph where borrower-2 & witness-3 copy
o Need National id cart o borrower & witness also
o Signature
o Charges
o Deed of asset
o The photograph of the firm or asset
o Evaluate why taken the investment
o The disbursement of SME

Chapter 4: Actual task
1. Primary learning:
o Organizational culture
o Time management.
o How to deal with a client.
o Dealing with a customer in a challenging situation.
2. Secondary learning:
o The process of account opening.
o Helping customer with necessary information.
o Collecting necessary documents such as- photocopy of NID card, Passport, trade
license, Tax identification number(TIN)
o Consulting with women entrepreneurs.
o Providing information for taking SME investments.
o Debit card issue.
o Cheque book issue.
o Working in SME department.

3. Working in general banking: In general banking part there are various activities and I
had to explain terms and others basic issues about general banking to customers. The activities
I had done:
• Account opening: If a customer wants to open an account he/she must bring some
necessary documents and they are NID photocopy, two copy passport size photo of the
account owner, NID and one copy photo of the nominee. Then he/she have to fill up the
account opening form based on the type of account they want to open.
• Receive cheque book request: Customer needs to apply for a checkbook to the branch
and that need to be approved by the branch manager. Then within few days customer will
get his/her chequebook.
• Debit card issue: Customer wants a new debit when he/she lost one or they want to have
a new one for the first time.
• Cheque book issue: When customer come to our branch to collect their chequebook then
they need to sing in a register prove then I issued the cheque book and give it to them. Then
the customer can use his book at any time.
• Contact with the customer to get their cheque book: I called customers to inform about
their cheque book so that they can come to get that.
4. Working in SME and women entrepreneurs: In FSIBL, Bashundhara branch there
is an SME helpdesk. At the beginning of my internship, I was advised about the process and
details of SME and other facilities for women about getting investment. Based on
entrepreneurs business, requirements, and within the limitations of the branch authority
provide investment money to customers by buying the goods. If customer’s investment
requirement is beyond branch limit then s/he need to contact head office.
5. Working in cash section: I have worked in cash section for few days. I did cash sorting,
bill taking.

Chapter 5: Research
1. Problem statement: Women are not getting sufficient SME based financial and
managerial help from FSIBL in order to contribute to the economy and to increase self-
employment.
2. Background of the problem: Now, Bangladesh is a developing country. But the
contribution of women in our economy is less than other countries. The majority of them are
uneducated, poor and they don’t have enough opportunities for employment. But now a day’s
women entrepreneur or their employment is a much-focused factor for govt.
The relative SME shares in total GDP range between 25-30 percent and that in manufacturing
value added vary between 40-45 percent (Ahmed Momtaz Uddin, 2008).
Developing country like Bangladesh contribution of women in our national economy is very
important and as women, they face several barriers, limitations, lack of financial contribution
etc. To help them in order to make them confident in the investment sector, FSIBL is providing
services according to Bangladesh Bank rules and regulations. Special help desk for women
and more priority to solve their issues and others approaches have been taking for a long time.
The study on How FSIBL is helping women empowerment by providing SME investment will
help others to get the idea about women empowerment in Bangladesh and FSIBL’s
contribution to the economy.

3. Project timeline:
4. Budget information:
Particular’s Amount (TK)
Transportation 900
Printing, Photocopy & Binding 800
Cell phone & Internet Bill 200
Others Expenses 200
Total 2100
10-Oct 20-Oct 30-Oct 9-Nov 19-Nov 29-Nov 9-Dec
Develop research methedology
Making the research plan
Develop the hypothesis
Conduct survey research
Data analysis and finding with interpretation
5
8
8
15
14
Date
Activities Gantt Chart
Figure: 5.3.1
Figure: 5.4.1

5. Research methodology:
o Research approach: Quantitative method
o Type of research: Exploratory.
o Methods of data collection:
Primary source:
Practical work experience.
Interview with officers of Bashundhara branch and entrepreneurs.
Secondary source:
Annual report of FSIBL: 2012-2016
Unpublished data form FSIBL, Bashundhara branch.
FSIBL’s website.
SME foundation website.
Bangladesh Bank website.
Different reports and journals.
o Population: Officers of FSIBL and women entrepreneurs who got investment from
FSIBL, Bashundhara branch.
o Sampling method:
Sampling unit: Officers of Bashundhara Branch and women entrepreneurs.
Sample frame: Consist or 15 officers and 20 women entrepreneurs.
Sample size: 35
Sampling procedure: Data collected from different sources and the procedure was
Probability Sampling.
o Research limitations:
Insufficient data.
Data confidentiality of bank.

6. Hypothesis development:
1. FSIBL is capable enough in providing sufficient investment to women entrepreneurs.
2. SME investments, especially for women, don’t take and settle with higher priority.
3. Women are getting valuable consultancy from SME helpdesk.
4. FSIBL is not following BB rules and regulations for women entrepreneurs.
5. FSIBL is not ensuring 100% investment target for women entrepreneurs.
H1 H2 H3 H4 H5
1.Strongly disagree
1
10 2 9 9
2.Disagree 2 12 6 12 11
3.Neither agree
nor disagree
6 5 3 5 6
4.Agree 10 6 9 5 6
5.Strongly Agree 16 2 15 4 3
Total 143 127 134 88 88
Average ( )X 4.09 2.73 3.83 2.51 2.51
Standard Deviation
( σ)
1.05 1.14 1.30 1.31 1.27
Z-TEST VALUE 8.96 1.19 6.05 0.05 0.04

7. Data interpretation:
Hypothesis 1
H0: FSIBL is not capable enough of providing sufficient investment to women entrepreneurs.
HA: FSIBL is capable enough of providing sufficient investment to women entrepreneurs.
Ho: μ = 2.5 n = 35
HA: µ > 2.5 √n= √35 = 5.92
Z cal = (X- μ)/ (σ/√n) ¯ X = 4.09
= (4.09-2.5) / (1.05/5.92) σ = 1.05
= 8.96
At 5% level of significance follows Z distribution Z 0.05 = 1.645 (for one tailed test).
Since Z cal > Z tab, we reject the null hypothesis. So, at 5% level of significance, it can be said
that FSIBL is capable enough in providing sufficient investment to women entrepreneurs.
Strongly disagree
3% Disagree
6%
Neither agree nor
disagree
17%
Agree
28%
Strongly agree
46%
Figure: 5.7.1

Hypothesis 2:
Ho: SME investments especially for women take and settle with higher priority.
HA: SME investments especially for women take don’t and settle with higher priority.
Ho: μ = 2.5 n = 35
HA: µ > 2.5 √n= √35 = 5.92
Z cal = (X- μ)/ (σ/√n) ¯ X = 2.73
= (2.73-2.5) / (1.14/5.92) σ = 1.14
= 1.19
Since Z cal < Z tab, we accept the null hypothesis. So at 5% level of significance, it can be said
that SME investments especially for women take and settle with higher priority in FSIBL.
Strongly Disagree
29%
Disagree
34%
Neither Agree Nor
Disagree
14%
Agree
17%
Strongly Agree
6%
Figure: 5.7.2

Hypothesis: 3
Ho: Women are not getting valuable consultancy from SME helpdesk.
HA: Women are getting valuable consultancy from SME helpdesk.
Ho: μ = 2.5 n = 35
HA: µ > 2.5 √n= √35 = 5.92
Z cal = (X- μ)/ (σ/√n) ¯ X = 3.83
= (3.83-2.5) / (1.30/5.92) σ = 1.30
= 6.05
Since Z cal > Z tab, we reject the null hypothesis. So at 5% level of significance, it can be said that
Women are getting valuable consultancy from SME helpdesk.
Strongly Disagree
6%
Disagree
17%
Neither Agree Nor
Disagree
8%
Agree
26%
Strongly Agree
43%
Figure: 5.7.3

Hypothesis: 4
Ho: FSIBL is following BB rules and regulations for women entrepreneurs.
HA: FSIBL is not following BB rules and regulations for women entrepreneurs.
Ho: μ = 2.5 n = 35
HA: µ > 2.5 √n= √35 = 5.92
Z cal = (X- μ)/ (σ/√n) ¯ X = 2.51
= (2.51-2.5) / (1.31/5.92) σ = 1.31
= 0.05
that FSIBL is following BB rules and regulations for women entrepreneurs.
Strongly Disagree
26%
Disagree
34%
Neither Agree Nor
Disagree
14%
Agree
14%
Strongly Agree
12%
Figure: 5.7.4

Hypothesis: 5
Ho: FSIBL is ensuring 100% investment target for women entrepreneurs.
HA: FSIBL is not ensuring 100% investment target for women entrepreneurs.
Ho: μ = 2.5 n = 35
HA: µ > 2.5 √n= √35 = 5.92
Z cal = (X- μ)/ (σ/√n) ¯ X = 2.51
= (2.51-2.5) / (1.27/5.92) σ = 1.27
= 0.04
that FSIBL is ensuring 100% investment target for women entrepreneurs.
Strongly Disagree
26%
Disagree
31%
Neither Agree Nor
Disagree
17%
Agree
17%
Strongly Agree
9%
Figure: 5.7.5

8. Findings:
H1
3% respondents strongly disagree, 6% respondents disagree, 17% respondents
neither agree nor disagree and 28% respondents agree and 46% respondents strongly
agree on FSIBL is capable enough in providing sufficient investment to women
entrepreneurs.
H2
agree on the fact that SME investments especially for women take and settle with
higher priority in FSIBL.
H3
agree with this hypothesis. So, women are getting valuable consultancy from
SME desk of FSIBL.
H4
agree on FSIBL is following BB rules and regulations for women entrepreneurs.
H5
agree on FSIBL is ensuing 100% investment target for women entrepreneurs.

9. Recommendation:
1. FSIBL is now well-established bank with Islamic Sharia. They have enough liquidity to
provide an investment to women entrepreneurs so that they can start a new business with
enough cash. It helps them to be successful entrepreneurs.
2. According to BB rules, women investment issues must be taken with the highest priority
than others SME issues. FSIBL is following BB rules and women are getting fast help from
the bank in getting investments or any problems regarding on SME issue. If they continue
it they can make a better relationship with more entrepreneurs.
3. There is an SME women help desk in FSIBL to help and provide consultancy to women
entrepreneurs. FSIBL can increase help though customers are satisfied with their help.
4. If FSIBL continues its loyalty to BB rules and regulations, they may get the higher trust of
women entrepreneurs and other SME entrepreneurs.
5. FSIBL is following Islamic Shariah-based banking and they can improve theirs activates
by trying best to follow 100% investment target by financing, buying products, monitoring
their activities and providing helps. They should continue this to make our women stronger.

10.Conclusion:
Developing countries like Bangladesh women empowerment is a very necessary for today’s
world. Day by day the contribution of women in our economy is increasing and banks are
doing a great service by providing sufficient investments entrepreneurs.
Our govt. has taken many steps especially for women so that they may break all their barriers
and make them self-employment is society. BB is revising their rules and regulations and
removing barriers for women and ordering all banks some new and updated interest rules and
others regulations for women entrepreneurs.
FSIBL is doing their best to help women entrepreneurs in getting investments, advising them,
monitoring their activities so that they can use their full investment. FSIBL is contributing
great services to our national economy by increasing women empowerment.

Chapter 6: Appendix
1. Reference:
• Abdin, M.J (2017, February 25). SMEs and our development goals. The Daily Star.
Retrieved 18 Nov. 2017, From http://www.thedailystar.net/education-employment/smes-
and-our-development-goals-1366591
• Business (2017, July 03). BB updates SME terms. The Daily Star. Retrieved 19 Nov 2017.
From http://www.thedailystar.net/business/bb-updates-sme-terms-1427509
• Chowdhury, M. (2011). Emerging women entrepreneurs in SMEs. The Daily Star.
Retrieved 20 Nov 2017. From
http://archive.thedailystar.net/suppliments/2011/anniversary/part7/pg3.htm
• Roy, M.K & Rouf, M.A & Sarkar, A.S & Azam, S. Financing Small and Medium
Enterprises: Results from a Branch Level Study.
• Mission and vision of FSIBL, Retrieved 12 Nov 2017. From http://www.fsiblbd.com/
• Annual report of FSIBL. Retrieved 15 Nov 2017. From
http://www.fsiblbd.com/category/annual-report/

2. Abbreviation:
o FSIBL- First Security Islami Bank Ltd.
o SME- Small and Medium Enterprise.
o BB- Bangladesh Bank
o CIB-Credit Information Bureau
o SWOT- Strength Weakness Opportunity and Threat
o A/C- Account
o HO-Head office
o TIN-Tax identification number

Image: 6.3.1(Balance sheet of FSIBL 2016, 2015
3. Images:

Image: 6.3.2(Profit and loss account of FSIBL 2016, 2015

Image: 6.3.3(Profit and loss account of FSIBL 2016, 2015

Image: 6.3.4(Balance sheet of FSIBL 2014, 2013

Image: 6.3.5(Profit and loss account of FSIBL 2014, 2013)

Image: 6.3.6(Profit and loss account of FSIBL 2014, 2013)

4. Questionnaire:
Dear Sir,
I am Mahdi Hasan Tanvir student of IUBAT University (International University of Agriculture
and Technology). My program is BBA (Major in Finance and Banking). I am doing my internship
in First Security Islami Bank Ltd, in Bashundhara Branch, which is part of my practicum where
my topic is ““Women empowerment by SME investment of FSIBL-A study on FSIBL,
Bashundhara Branch. I need your cooperation for the fulfillment of my report. Please rank the
level of satisfaction regarding the duration and rules and regulations of the Following:
First Security Islami Bank Limited, Bashundhara Branch
Age:
Gender:
Date:
Occupation:
3. FSIBL is capable enough in providing sufficient investment to women
entrepreneurs.
i.Strongly agree.
ii.Agree
iii.Neither agree nor disagree
iv.Disagree
v.Strongly disagree.
4. SME investments, especially for women, don’t take and settle with higher
priority.
i.Strongly agree.
ii.Agree
iv.Disagree

5. Women are getting valuable consultancy from SME helpdesk.
i.Strongly agree.
ii.Agree
iv.Disagree
6. FSIBL is not following BB rules and regulations for women
entrepreneurs.
i.Strongly agree.
ii.Agree
iv.Disagree
7. FSIBL is not ensuring 100% investment target for women entrepreneurs.
i.Strongly agree.
ii.Agree
iv.Disagree
Thank you for your cooperation.

Women empowerment of Bangladesh by SME.fsibl.mahdi.

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