- The document discusses financing of small and medium enterprises (SMEs) in Bangladesh. It notes that SMEs make up a large portion of the economy in Bangladesh and contribute significantly to GDP, employment, poverty alleviation, and other factors.
- However, SMEs face several constraints in obtaining financing, such as limited access to capital, high interest rates, lack of infrastructure and market opportunities, and information gaps. Commercial banks provide some financing but their involvement remains limited due to perceived high risks and costs of lending to SMEs.
- The study aims to identify constraints related to SME financing and provide policy implications. It reviews several other studies on SME financing challenges in Bangladesh and other countries
This is my Internship Report. I prepare it to complete my Graduation Degree (B.B.A). This report is based on statistical & past data. If it make something good for someone, that will be a great pleasure for me. Thank You.
The document discusses Small and Medium Enterprises (SMEs) in Bangladesh and the government's efforts to promote and finance them. It begins by redefining SMEs based on employee numbers and investment levels. It identifies 132 potential SME sectors and notes that manufacturing, trade, and services are most common. The Bangladesh Bank leads various policy reforms to increase SME access to finance, including refinancing windows and priority for small entrepreneurs. SME lending by banks has grown steadily. SMEs are estimated to contribute 30% to GDP and provide many jobs. The Bangladesh Bank and SME Foundation hold an SME fair to promote the sector and award top performing banks.
Presentation on SME Banking of Mercantile Bank LimitedTanvir Sazzad
This document provides an overview of a presentation on SME banking at Mercantile Bank Ltd. It discusses the objectives, scope, and limitations of the report. It also includes an introduction to the bank, its mission, vision, subsidiaries, and objectives. An analysis of the bank's internal and external environment is presented, including departments, resources, culture, competitors, and SWOT analysis. Finally, it discusses the bank's SME financing procedures, products, documentation requirements, credit assessment process, and loan recovery methods.
This document provides an overview of small and medium enterprise (SME) banking. It defines SME banking as representing a major function of general business finance that focuses on small and medium sized businesses. It describes the characteristics of SMEs as being easy to start, organize, finance, and focus on, with large profit margins. The advantages of SMEs are listed as flexibility, faster decision making, working as a unit, direct customer interaction, better access to loans, and utilizing unemployment. The document then outlines Bangladesh's SME banking system and how loans are processed and deposited. It explains that SME banking supports economic development in Bangladesh by generating employment, profits, utilizing local resources and traditional skills, and requiring lower infrastructure investments
The government is considering replacing the top executives of four major public sector banks due to poor performance. This leadership change is meant to signal that improved performance is expected in exchange for the capital support of Rs. 88,000 crore given to 20 state-run banks. Talent management is crucial for the banking sector given the challenges of attrition, high turnover, and attracting new talent. Retaining talented employees through effective talent management strategies will be key to the future success of banks.
The Term paper based on primary and secondary basis so do not copy it . Do study and taken help from this term paper. It is a well structure term paper. Yes all works have mistakes if here found some mistakes so forgive me.
Institutional credit and the profit efficiency of micro and small scale trade...Alexander Decker
This document summarizes a study on the impact of institutional credit on the profit efficiency of micro and small scale traders in Faisalabad, Pakistan. Data envelopment analysis was used to calculate efficiency scores for 85 traders, with the average technical efficiency being 0.78. Tobit regression then explored factors influencing efficiency. It found that average propensity to consume, interest rate, and number of times credit was taken negatively impacted variable returns to scale technical efficiency. Micro traders were more efficient than small scale traders. Traders using loans for their intended business purposes were more efficient than those using loans for other purposes. The study recommends financial institutions improve screening policies and provide training to traders.
This is my Internship Report. I prepare it to complete my Graduation Degree (B.B.A). This report is based on statistical & past data. If it make something good for someone, that will be a great pleasure for me. Thank You.
The document discusses Small and Medium Enterprises (SMEs) in Bangladesh and the government's efforts to promote and finance them. It begins by redefining SMEs based on employee numbers and investment levels. It identifies 132 potential SME sectors and notes that manufacturing, trade, and services are most common. The Bangladesh Bank leads various policy reforms to increase SME access to finance, including refinancing windows and priority for small entrepreneurs. SME lending by banks has grown steadily. SMEs are estimated to contribute 30% to GDP and provide many jobs. The Bangladesh Bank and SME Foundation hold an SME fair to promote the sector and award top performing banks.
Presentation on SME Banking of Mercantile Bank LimitedTanvir Sazzad
This document provides an overview of a presentation on SME banking at Mercantile Bank Ltd. It discusses the objectives, scope, and limitations of the report. It also includes an introduction to the bank, its mission, vision, subsidiaries, and objectives. An analysis of the bank's internal and external environment is presented, including departments, resources, culture, competitors, and SWOT analysis. Finally, it discusses the bank's SME financing procedures, products, documentation requirements, credit assessment process, and loan recovery methods.
This document provides an overview of small and medium enterprise (SME) banking. It defines SME banking as representing a major function of general business finance that focuses on small and medium sized businesses. It describes the characteristics of SMEs as being easy to start, organize, finance, and focus on, with large profit margins. The advantages of SMEs are listed as flexibility, faster decision making, working as a unit, direct customer interaction, better access to loans, and utilizing unemployment. The document then outlines Bangladesh's SME banking system and how loans are processed and deposited. It explains that SME banking supports economic development in Bangladesh by generating employment, profits, utilizing local resources and traditional skills, and requiring lower infrastructure investments
The government is considering replacing the top executives of four major public sector banks due to poor performance. This leadership change is meant to signal that improved performance is expected in exchange for the capital support of Rs. 88,000 crore given to 20 state-run banks. Talent management is crucial for the banking sector given the challenges of attrition, high turnover, and attracting new talent. Retaining talented employees through effective talent management strategies will be key to the future success of banks.
The Term paper based on primary and secondary basis so do not copy it . Do study and taken help from this term paper. It is a well structure term paper. Yes all works have mistakes if here found some mistakes so forgive me.
Institutional credit and the profit efficiency of micro and small scale trade...Alexander Decker
This document summarizes a study on the impact of institutional credit on the profit efficiency of micro and small scale traders in Faisalabad, Pakistan. Data envelopment analysis was used to calculate efficiency scores for 85 traders, with the average technical efficiency being 0.78. Tobit regression then explored factors influencing efficiency. It found that average propensity to consume, interest rate, and number of times credit was taken negatively impacted variable returns to scale technical efficiency. Micro traders were more efficient than small scale traders. Traders using loans for their intended business purposes were more efficient than those using loans for other purposes. The study recommends financial institutions improve screening policies and provide training to traders.
This document summarizes funding sources for small and medium enterprises (SMEs) in India. It notes that SMEs contribute 8% to India's GDP and discusses both direct and indirect sources of finance for SMEs. Direct finance comes from public sector banks that have loaned over $100 billion to SMEs. Indirect finance includes bonds issued by organizations like NABARD. The document also lists stakeholders involved in SME funding.
The difficulty in getting the right type of finance at the right time and in the right quantity continues to haunt the small entrepreneurs and still ranks first among the major problems faced by the small sector. This being the situation, it has become relevant to conduct a study aimed at evaluating. the role and performance of the SFCs. A detailed study on the role of the KFC in the industrialisation of Kerala is highly worthwhile especially in the period of global recession. . Various provisions of the SFCs Act enjoin on the KFC to undertake the stupendous task of industrial development in the State concerned by providing long-term credit to the MSME segment. The study based on secondary data. Secondary data were collected from various official records and reports. The KFC still functions as a Government undertaking. The majority of its shares in value are held by the Government of Kerala (97.06 per cent). Its capital structure consists of both own capital and borrowed capital. It gives more weightage to debt capital. Capital to Risk - weighted Assets Ratio (CRAR) was at 21.57 % during the year 2013-14, as against the minimum of 9% prescribed. , Corporation could make significant improvement in its performance in all major operational areas, viz, Sanction, (AAG 44.51)Disbursement(AAG38.16) and Recovery(AAG12.22). Schemes of financial assistance of the Corporation cover a series of activities ranging from manufacture to marketing of goods and services. Regarding the trend of loan operations, the role of the KFC in the process of industrialisation is found to be increasing year by year as the total amount disbursed
The primary function of financial institution’s to lend funds as loans to various sectors such as agriculture, industry, personal loans, housing loans etc., in recent times the institutions have become very cautious in extending loans. The reason being mounting non-performing assets (NPAs). An NPA is defined as a loan asset, which has ceased to generate any income for a bank whether in the form of interest or principal repayment. In order to study the menace of NPA, Kerala Financial Corporation (KFC) the premier institution which provides long term finance for industrial enterprises and assistance to the sick units for the rehabilitation purpose has been selected. NPA is a serious problem faced by KFC. Non- performance in a loan asset is the bane of the financial institutions in India. It is the universal problem and can cripple the economy of any nation. Mounting non-performing assets in a banking sector was the main reason for the financial crisis in the South East Asian countries. The Net NPA of KFC as per the records shows a declining trend. There is a tendency among the beneficiaries of the corporation to delay repayment of the loans and some percentage of these payments also turns into bad debts. The NPA and loans and advances are negatively correlated. It shows that while the amount of loan increases over the years, NPA shows a declining trend. The total amount of loan increased year by year, because corporation introduces variety of new loan schemes.
1) The document discusses credit profiles and ratings for small and medium enterprises (SMEs) in Asian emerging economies. It covers topics like the definition of credit profiles, constituents of credit profiles, credit rating migration, and problems faced by SMEs.
2) It provides details on credit rating processes in China and India, including common sources of financing for SMEs in China. Credit rating agencies that rate SMEs in India are also discussed.
3) Obtaining a credit rating can provide SMEs benefits like access to concessional funding from banks through lower interest rates and faster loan processing times. It can also help SMEs gain new business opportunities.
This document discusses financial inclusion and credit options for micro, small, and medium enterprises (MSMEs) in India. It defines MSMEs and microenterprises according to Indian law. It outlines past financing initiatives for MSMEs by public sector banks and the Small Industries Development Bank of India. It also discusses the importance of microloans for very small businesses and entrepreneurs in alleviating poverty. Overall, the document examines the credit needs of MSMEs and various government efforts to enhance access to financing.
This document is a research plan proposal submitted by Neha Maheshwari for a Masters degree. The proposal compares NPA (non-performing asset) management at SBI and ICICI Bank. It begins with an introduction on the importance of managing NPAs for bank and economic stability. It then reviews literature on previous studies of NPAs in Indian banks. The proposal will analyze classification and causes of NPAs, trends in NPA levels over time between public and private sector banks, and strategies to control and reduce NPAs.
Lecture 1 - Introduction to EntrepreneurshipStefanieWijaya
This document provides an introduction to entrepreneurship, including definitions of entrepreneurship and examples of successful entrepreneurs. It discusses entrepreneurship as involving effort to develop business strategies while managing risks and rewards. Examples of successful entrepreneurs provided are Chairul Tanjung of CT Corp in Indonesia and Jack Ma of Alibaba in China. It also categorizes small businesses in Indonesia into livelihood activities, micro enterprises, small enterprises, and medium enterprises.
Lecture 4 - Entrepreneurship and the EconomyStefanieWijaya
SMEs play a dominant role in economies worldwide and in Indonesia specifically. In Indonesia, SMEs account for over 97% of firms, provide over 97% of employment, and contribute around 60% to GDP. While SMEs contributions are lower per firm compared to large firms, the total impact of SMEs is greater due to their greater numbers and role as major job creators. The document analyzes SME contributions across various levels from local to international and shows SMEs have grown substantially in number of firms, employment, and GDP contribution in Indonesia between 2012-2017.
This document discusses a study that investigated the role of the Bank of Industry (BOI) in financing small-scale entrepreneurial development in Nigeria. It finds that BOI financing affects the problems faced by small and medium enterprises and that measures taken by BOI impact its contribution to financing these enterprises. However, BOI's role in supporting small business growth remains unclear due to their small economic output. The study aims to better understand BOI's contributions, the challenges small businesses face in obtaining BOI financing, and the impact of BOI's initiatives on small business development in Nigeria.
An Impact of Capital Adequacy Ratio on the Profitability of Private Sector Ba...Dr. Amarjeet Singh
Profitability being one of the cardinal principles of bank lending acts as a game changer for the survival and success of private sector banks in India. In order to stay profitable, banks have to capitalise on every penny advanced to yield the expected returns. However, considering the constraints laid down by the Reserve Bank of India, banks have to maintain a minimum capital adequacy ratio, as per the current BASEL III regulations active in India. With the mergers of public sector banks, the challenge has got just tougher for the private sector banks in India. Expansion and Diversification are the key strategies adopted by the key players from the private banking sector, however, with the minimum capital adequacy ratio observed by them, it is necessary to understand its actual impact on the bank’s profitability. This research paper aims to throw light upon the linkage that capital adequacy has with the bank’s profitability. It attempts to establish a relation between the Capital Adequacy Ratio with the Net profits of the bank. For the purpose of this study, data from the past 5 years of the leading private sector banks has been collected, namely, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, AXIS Bank and YES Bank. The collected data has been analysed using Pearson’s Correlation to establish a relation between the CAR Ratio & the bank’s profitability. Hypothesis testing has been further done to study the quantum of proportionate change in the profitability with a change in the CAR Ratio for private sector banks using applicable research tools. The said research tools are applied to achieve the desired results while maintaining the required quantum of accuracy. It also aims to understand the proportionate impact of changes in CAR to the bank’s profitability, which can act as a suggested measure for banks to develop a reliable framework for efficient capital management and increase overall efficiency. The results derived from the data collected and analyzed aim to provide scope for further study on the subject matter.
Strategic HR Imperatives for Indian Public Sector Banksscmsnoida5
India being one of the largest economies in the
world is gradually emerging as major economic
force to reckon with. Major growth has been
realized due to proactive as well as reactive
changes in the Indian business environment and
strategic postures adopted by companies. Banking
sector is the mirror of any economy through which
financial health of that country can be predicted,
India is not an exception. In India public sector
banks accounted for more 70 percent assets of
total banking industry. Their performance and
outcomes have major impact on growth of country
India. Due to the globalisation and deregulatory
forces, the competitive structure of banking
industry has gone for tremendous changes. These
changes imposing various challenges in front of
public sector bank to overcome with and align
their key areas with their strategic requirement,
rather than being stick on traditional and
conventional approach of banking. Therefore,
it becomes imperative for Public Sector Banks (PSB) to identify various existing mismatches
between their strategies, environmental moves
and ultimate goals and objectives to deliver best
value to their customer and adduce their position
in hyper competitive market.
Study present number of imperatives for HR
professional, authorities and bud researchers.
This document is a term paper submitted by Md. Asabuddin to their lecturer Nayan Chandra Das on Dutch Bangla Bank Limited in Bangladesh. It includes various sections such as an introduction, literature review, methodology, findings and conclusion. The paper examines Dutch Bangla Bank's corporate social responsibilities activities like donations to education, health and disaster relief. It also reviews the bank's mobile banking services and risk management framework. The term paper was completed as part of Md. Asabuddin's BBA program requirements.
The presentation covers the ecosystem of MSMEs in India, the challenges faced by entrepreneurs, GoI Initiatives, MSME Schemes provided by the government to encourage new enterprises, Opportunities available and the reasons of failure of new ventures and finally, details of the secors which provide opportunities for entrepreneurs to start a new business.
The document discusses Nestle India's efforts to promote sustainable agriculture and water stewardship. It describes projects Nestle has partnered on to introduce more efficient cultivation techniques for water-intensive crops like rice and sugarcane in the Kabini River basin. These techniques aim to benefit farmers through higher yields and lower costs while reducing water usage and promoting better soil health. The document also outlines Nestle's work with coffee and milk farmers to raise awareness on water conservation practices like drip irrigation, recycling, and optimizing water use.
The document discusses the author's acknowledgements and thanks to various people who helped and supported them during their project report preparation. It thanks the project guide for guidance and corrections. It also thanks the institution and faculty members for their support without which the project would not have been possible. The author extends thanks to family, friends, and well-wishers as well. It then provides a preface discussing the importance of practical training in business education to meet global standards. The author expresses that undergoing practical training was a great experience.
Commercial Bank of Ceylon PLC is one of the leading commercial banks in Sri Lanka with over 255 branches and 625 ATMs. The bank aims to be the most technologically advanced and customer friendly financial services organization in Sri Lanka and expand in South Asia (Vision). The bank's mission is to provide reliable, innovative and customer friendly financial services using cutting-edge technology while developing highly skilled staff to expand locally and regionally. The mission focuses the bank on using technology to serve customers, developing employees, and growing in Sri Lanka and the region.
The document provides an overview of integrated reporting for banking sectors in Bangladesh. It discusses the objectives of integrated reporting, which are to understand how it helps banks economically, socially, and environmentally and to analyze differences between banks. It also profiles several major Bangladeshi banks like Dutch Bangla Bank, IFIC Bank, and BRAC Bank. For each bank, it examines their economic, social, and environmental impacts and performance based on their annual reports. This includes discussing financial metrics, contributions to society, environmental initiatives, training programs, and other factors. The document concludes that integrated reporting provides benefits like value creation, collaboration, informed decision-making and improved stakeholder relations for organizations that implement it.
57 asset quality of nationalised banks and new private sector banks on priori...chelliah paramasivan
This document summarizes an article from the SELP Journal of Social Science on the asset quality of nationalized banks and new private sector banks regarding priority sector lending. It discusses that priority sector lending is important for socioeconomic development but can impact banks' asset quality. Nationalized banks have faced more problems with priority sector loan recovery compared to private banks due to more restrictions and compulsions. The document reviews various studies on factors influencing non-performing assets and their impact on banks' profitability, liquidity and solvency. Overall, asset quality is an important measure of banking efficiency and banks need to carefully monitor loan recovery to control rising non-performing assets.
BizWorld--Arizona Association of Teachers of Mathseanpmurray
The document describes BizWorld, a program that teaches business, entrepreneurship, and finance concepts to students through a simulated business experience. Students start, fund, and operate companies, experiencing profit/loss and completing financial documents. The program framework includes raising capital, designing/manufacturing/marketing/selling products, and finance. Teachers report students learn in a fun, engaging way about real-world math skills and career connections. BizWorld can be implemented in grades 3-8 over 10-15 hours and aligns with standards.
Presentation from "Engaging visitors through scientific discovery" at the 2013 Science Communication Conference organised by the British Science Association - slides by Ian Simmons, Jennifer DeWitt and Natasha Kirkham
This document summarizes funding sources for small and medium enterprises (SMEs) in India. It notes that SMEs contribute 8% to India's GDP and discusses both direct and indirect sources of finance for SMEs. Direct finance comes from public sector banks that have loaned over $100 billion to SMEs. Indirect finance includes bonds issued by organizations like NABARD. The document also lists stakeholders involved in SME funding.
The difficulty in getting the right type of finance at the right time and in the right quantity continues to haunt the small entrepreneurs and still ranks first among the major problems faced by the small sector. This being the situation, it has become relevant to conduct a study aimed at evaluating. the role and performance of the SFCs. A detailed study on the role of the KFC in the industrialisation of Kerala is highly worthwhile especially in the period of global recession. . Various provisions of the SFCs Act enjoin on the KFC to undertake the stupendous task of industrial development in the State concerned by providing long-term credit to the MSME segment. The study based on secondary data. Secondary data were collected from various official records and reports. The KFC still functions as a Government undertaking. The majority of its shares in value are held by the Government of Kerala (97.06 per cent). Its capital structure consists of both own capital and borrowed capital. It gives more weightage to debt capital. Capital to Risk - weighted Assets Ratio (CRAR) was at 21.57 % during the year 2013-14, as against the minimum of 9% prescribed. , Corporation could make significant improvement in its performance in all major operational areas, viz, Sanction, (AAG 44.51)Disbursement(AAG38.16) and Recovery(AAG12.22). Schemes of financial assistance of the Corporation cover a series of activities ranging from manufacture to marketing of goods and services. Regarding the trend of loan operations, the role of the KFC in the process of industrialisation is found to be increasing year by year as the total amount disbursed
The primary function of financial institution’s to lend funds as loans to various sectors such as agriculture, industry, personal loans, housing loans etc., in recent times the institutions have become very cautious in extending loans. The reason being mounting non-performing assets (NPAs). An NPA is defined as a loan asset, which has ceased to generate any income for a bank whether in the form of interest or principal repayment. In order to study the menace of NPA, Kerala Financial Corporation (KFC) the premier institution which provides long term finance for industrial enterprises and assistance to the sick units for the rehabilitation purpose has been selected. NPA is a serious problem faced by KFC. Non- performance in a loan asset is the bane of the financial institutions in India. It is the universal problem and can cripple the economy of any nation. Mounting non-performing assets in a banking sector was the main reason for the financial crisis in the South East Asian countries. The Net NPA of KFC as per the records shows a declining trend. There is a tendency among the beneficiaries of the corporation to delay repayment of the loans and some percentage of these payments also turns into bad debts. The NPA and loans and advances are negatively correlated. It shows that while the amount of loan increases over the years, NPA shows a declining trend. The total amount of loan increased year by year, because corporation introduces variety of new loan schemes.
1) The document discusses credit profiles and ratings for small and medium enterprises (SMEs) in Asian emerging economies. It covers topics like the definition of credit profiles, constituents of credit profiles, credit rating migration, and problems faced by SMEs.
2) It provides details on credit rating processes in China and India, including common sources of financing for SMEs in China. Credit rating agencies that rate SMEs in India are also discussed.
3) Obtaining a credit rating can provide SMEs benefits like access to concessional funding from banks through lower interest rates and faster loan processing times. It can also help SMEs gain new business opportunities.
This document discusses financial inclusion and credit options for micro, small, and medium enterprises (MSMEs) in India. It defines MSMEs and microenterprises according to Indian law. It outlines past financing initiatives for MSMEs by public sector banks and the Small Industries Development Bank of India. It also discusses the importance of microloans for very small businesses and entrepreneurs in alleviating poverty. Overall, the document examines the credit needs of MSMEs and various government efforts to enhance access to financing.
This document is a research plan proposal submitted by Neha Maheshwari for a Masters degree. The proposal compares NPA (non-performing asset) management at SBI and ICICI Bank. It begins with an introduction on the importance of managing NPAs for bank and economic stability. It then reviews literature on previous studies of NPAs in Indian banks. The proposal will analyze classification and causes of NPAs, trends in NPA levels over time between public and private sector banks, and strategies to control and reduce NPAs.
Lecture 1 - Introduction to EntrepreneurshipStefanieWijaya
This document provides an introduction to entrepreneurship, including definitions of entrepreneurship and examples of successful entrepreneurs. It discusses entrepreneurship as involving effort to develop business strategies while managing risks and rewards. Examples of successful entrepreneurs provided are Chairul Tanjung of CT Corp in Indonesia and Jack Ma of Alibaba in China. It also categorizes small businesses in Indonesia into livelihood activities, micro enterprises, small enterprises, and medium enterprises.
Lecture 4 - Entrepreneurship and the EconomyStefanieWijaya
SMEs play a dominant role in economies worldwide and in Indonesia specifically. In Indonesia, SMEs account for over 97% of firms, provide over 97% of employment, and contribute around 60% to GDP. While SMEs contributions are lower per firm compared to large firms, the total impact of SMEs is greater due to their greater numbers and role as major job creators. The document analyzes SME contributions across various levels from local to international and shows SMEs have grown substantially in number of firms, employment, and GDP contribution in Indonesia between 2012-2017.
This document discusses a study that investigated the role of the Bank of Industry (BOI) in financing small-scale entrepreneurial development in Nigeria. It finds that BOI financing affects the problems faced by small and medium enterprises and that measures taken by BOI impact its contribution to financing these enterprises. However, BOI's role in supporting small business growth remains unclear due to their small economic output. The study aims to better understand BOI's contributions, the challenges small businesses face in obtaining BOI financing, and the impact of BOI's initiatives on small business development in Nigeria.
An Impact of Capital Adequacy Ratio on the Profitability of Private Sector Ba...Dr. Amarjeet Singh
Profitability being one of the cardinal principles of bank lending acts as a game changer for the survival and success of private sector banks in India. In order to stay profitable, banks have to capitalise on every penny advanced to yield the expected returns. However, considering the constraints laid down by the Reserve Bank of India, banks have to maintain a minimum capital adequacy ratio, as per the current BASEL III regulations active in India. With the mergers of public sector banks, the challenge has got just tougher for the private sector banks in India. Expansion and Diversification are the key strategies adopted by the key players from the private banking sector, however, with the minimum capital adequacy ratio observed by them, it is necessary to understand its actual impact on the bank’s profitability. This research paper aims to throw light upon the linkage that capital adequacy has with the bank’s profitability. It attempts to establish a relation between the Capital Adequacy Ratio with the Net profits of the bank. For the purpose of this study, data from the past 5 years of the leading private sector banks has been collected, namely, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, AXIS Bank and YES Bank. The collected data has been analysed using Pearson’s Correlation to establish a relation between the CAR Ratio & the bank’s profitability. Hypothesis testing has been further done to study the quantum of proportionate change in the profitability with a change in the CAR Ratio for private sector banks using applicable research tools. The said research tools are applied to achieve the desired results while maintaining the required quantum of accuracy. It also aims to understand the proportionate impact of changes in CAR to the bank’s profitability, which can act as a suggested measure for banks to develop a reliable framework for efficient capital management and increase overall efficiency. The results derived from the data collected and analyzed aim to provide scope for further study on the subject matter.
Strategic HR Imperatives for Indian Public Sector Banksscmsnoida5
India being one of the largest economies in the
world is gradually emerging as major economic
force to reckon with. Major growth has been
realized due to proactive as well as reactive
changes in the Indian business environment and
strategic postures adopted by companies. Banking
sector is the mirror of any economy through which
financial health of that country can be predicted,
India is not an exception. In India public sector
banks accounted for more 70 percent assets of
total banking industry. Their performance and
outcomes have major impact on growth of country
India. Due to the globalisation and deregulatory
forces, the competitive structure of banking
industry has gone for tremendous changes. These
changes imposing various challenges in front of
public sector bank to overcome with and align
their key areas with their strategic requirement,
rather than being stick on traditional and
conventional approach of banking. Therefore,
it becomes imperative for Public Sector Banks (PSB) to identify various existing mismatches
between their strategies, environmental moves
and ultimate goals and objectives to deliver best
value to their customer and adduce their position
in hyper competitive market.
Study present number of imperatives for HR
professional, authorities and bud researchers.
This document is a term paper submitted by Md. Asabuddin to their lecturer Nayan Chandra Das on Dutch Bangla Bank Limited in Bangladesh. It includes various sections such as an introduction, literature review, methodology, findings and conclusion. The paper examines Dutch Bangla Bank's corporate social responsibilities activities like donations to education, health and disaster relief. It also reviews the bank's mobile banking services and risk management framework. The term paper was completed as part of Md. Asabuddin's BBA program requirements.
The presentation covers the ecosystem of MSMEs in India, the challenges faced by entrepreneurs, GoI Initiatives, MSME Schemes provided by the government to encourage new enterprises, Opportunities available and the reasons of failure of new ventures and finally, details of the secors which provide opportunities for entrepreneurs to start a new business.
The document discusses Nestle India's efforts to promote sustainable agriculture and water stewardship. It describes projects Nestle has partnered on to introduce more efficient cultivation techniques for water-intensive crops like rice and sugarcane in the Kabini River basin. These techniques aim to benefit farmers through higher yields and lower costs while reducing water usage and promoting better soil health. The document also outlines Nestle's work with coffee and milk farmers to raise awareness on water conservation practices like drip irrigation, recycling, and optimizing water use.
The document discusses the author's acknowledgements and thanks to various people who helped and supported them during their project report preparation. It thanks the project guide for guidance and corrections. It also thanks the institution and faculty members for their support without which the project would not have been possible. The author extends thanks to family, friends, and well-wishers as well. It then provides a preface discussing the importance of practical training in business education to meet global standards. The author expresses that undergoing practical training was a great experience.
Commercial Bank of Ceylon PLC is one of the leading commercial banks in Sri Lanka with over 255 branches and 625 ATMs. The bank aims to be the most technologically advanced and customer friendly financial services organization in Sri Lanka and expand in South Asia (Vision). The bank's mission is to provide reliable, innovative and customer friendly financial services using cutting-edge technology while developing highly skilled staff to expand locally and regionally. The mission focuses the bank on using technology to serve customers, developing employees, and growing in Sri Lanka and the region.
The document provides an overview of integrated reporting for banking sectors in Bangladesh. It discusses the objectives of integrated reporting, which are to understand how it helps banks economically, socially, and environmentally and to analyze differences between banks. It also profiles several major Bangladeshi banks like Dutch Bangla Bank, IFIC Bank, and BRAC Bank. For each bank, it examines their economic, social, and environmental impacts and performance based on their annual reports. This includes discussing financial metrics, contributions to society, environmental initiatives, training programs, and other factors. The document concludes that integrated reporting provides benefits like value creation, collaboration, informed decision-making and improved stakeholder relations for organizations that implement it.
57 asset quality of nationalised banks and new private sector banks on priori...chelliah paramasivan
This document summarizes an article from the SELP Journal of Social Science on the asset quality of nationalized banks and new private sector banks regarding priority sector lending. It discusses that priority sector lending is important for socioeconomic development but can impact banks' asset quality. Nationalized banks have faced more problems with priority sector loan recovery compared to private banks due to more restrictions and compulsions. The document reviews various studies on factors influencing non-performing assets and their impact on banks' profitability, liquidity and solvency. Overall, asset quality is an important measure of banking efficiency and banks need to carefully monitor loan recovery to control rising non-performing assets.
BizWorld--Arizona Association of Teachers of Mathseanpmurray
The document describes BizWorld, a program that teaches business, entrepreneurship, and finance concepts to students through a simulated business experience. Students start, fund, and operate companies, experiencing profit/loss and completing financial documents. The program framework includes raising capital, designing/manufacturing/marketing/selling products, and finance. Teachers report students learn in a fun, engaging way about real-world math skills and career connections. BizWorld can be implemented in grades 3-8 over 10-15 hours and aligns with standards.
Presentation from "Engaging visitors through scientific discovery" at the 2013 Science Communication Conference organised by the British Science Association - slides by Ian Simmons, Jennifer DeWitt and Natasha Kirkham
In the first of our FOLLOW Series I shared about Fasting (in preparation for a Church wide fast) We focused on the practical ways we can fast and how to approach, begin and end a successful fast. We explored Matthew 6 where Jesus was affirming Fasting as a significant spiritual responsibility AND indicating how it had changed in spirit under His new Kingdom. The practical piece at the end inspired by Elmer Towns helps people pray the Lords Prayer with a sense of flow and confidence. ENJOY.
The recruitment and selection process involves forecasting personnel needs, analyzing internal candidates, attracting external candidates through various sources like job boards, agencies, and universities, screening applicants through tools like tests and interviews, and ultimately hiring candidates. It is important to select the right employees as hiring has costs and legal implications if the wrong candidates are chosen. A variety of tests are used to evaluate cognitive, motor, physical, and personality attributes to identify the best candidates.
The document discusses the use of games and simulations in training at the Defense Acquisition University. It provides an overview of DAU's mission and vision, the different career fields served, and the research showing that immersive learning simulations produce better results than other forms of training and provide a return on investment. The document advocates for greater use of games, simulations and emerging technologies in corporate training curriculums.
This document provides an overview of the multi-level marketing company Xango and why it may be a good opportunity. It discusses trends in health, aging, and the benefits of network marketing. Xango offers natural products like mangosteen juice and skin care that address issues like inflammation. The compensation plan aims to be fair to both full-time and part-time participants. Xango provides training and support to help people succeed with the business model.
Germany and Japan Cooperative Support PlanNaoki Miyano
This document outlines an emotional support plan by the NPO POP LIFE JAPAN to help those suffering from the enormous 2011 earthquake in East Japan. The plan includes:
1) Holding continuous charity concerts of German and Japanese music in Tokyo and at evacuation areas to provide emotional support and report the real situation.
2) Visiting many damaged sites with cameras/video to share the real conditions online.
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The document introduces the KINDUZ Business Excellence Framework, which categorizes a business into four focus areas: operating model, value proposition, market dominance, and business outcomes. It describes each focus area and provides examples to illustrate how they work together to deliver business value and a competitive advantage.
This document summarizes a study examining the physiological and behavioral correlates of baseline stages of change in the Health Plus Challenge program. The study found that among 1532 program participants with a mean age of 47 and BMI of 32, stage of change for weight management had only a moderate correlation with exercise levels. All other factors, including BMI, failed to reach a reasonable level of correlation with stage of change. This suggests that factors other than stage of change need to be considered to explain the observed reduction in body mass in this population.
This document provides information on several Russian regulations (SanPiN) related to occupational health and safety, including working with asbestos, hygienic requirements for building materials production, and hygienic requirements for civil construction. It lists the titles and order numbers of the available regulations, and notes that they can be purchased in electronic format in several languages.
The document discusses key topics relating to financial markets and securities. It provides information on the role of financial markets in the US economy and key players such as companies, individuals, and organizations. It also outlines major types of securities like common stock, preferred stock, and bonds. The document discusses how financial markets are regulated and some of the major laws governing their operations.
The document outlines an agenda for a marketing management workshop. It introduces the facilitator, Sweta Sud, and provides an overview of the workshop topics and schedule. The workshop will cover principles of marketing, including the discipline of marketing, marketing environment and analysis, and marketing strategy and planning. It establishes rules for the workshop and outlines the day's agenda, which includes discussions of the discipline of marketing, marketing environment and analysis, and marketing strategy.
The UC Curation Center at the California Digital Library has developed a "paid-up" cost model for long-term digital preservation that allows for a single up-front payment to cover ongoing preservation costs indefinitely. The model abstracts preservation activities into 10 high-level cost components and defines three cost functions to estimate total costs over time: cumulative pay-as-you-go costs, discounted pay-as-you-go costs, and a paid-up price that assumes an up-front payment earning interest. This approach aims to address budget constraints by offering a one-time financial commitment for permanent digital preservation.
How to Jumpstart an Interstellar CivilizationErika Ilves
Paper presented at the 100 Year Starship Symposium in Houston, September 2013.
Abstract
Voyager 1 has barely left the solar system. Twelve people have walked on the Moon. Twenty-four got to lunar orbit, 530 to Earth orbit. Our Spirit, Opportunity, and Curiosity may be roving on Mars but we are far from being a solar civilization. Worse, seven billion of us on Earth are struggling to coalesce into a single planetary civilization. So is thinking seriously about how to become an interstellar civilization preposterously premature?
We make a case that jumpstarting an interstellar civilization could not be timelier: it is one of our best insurance policies against existential risk and a fast track out of the current sub-planetary civilization quagmire. We then proceed to look at what it would take to initiate an interstellar jump sequence in practice. We offer a qualitative assessment of cultural, technological, and governance transitions we would need to orchestrate, and explore how the interstellar community itself would need to evolve to accelerate these transitions.
Our proposals include launching an Interstellar Art Academy to inject a steady stream of interstellar edutainment into global culture; participating in the world’s global public policy and entrepreneurial fora to put interstellar and space development goals on the global agenda; facilitating a roadmapping process among major terrestrial industries to move space commercialization into space industrialization; designing an online game to simulate governance models to underpin interstellar expansion and, finally, turning the interstellar community of thousands into an epic volunteer organization of one million.
Am335x SOM from Calixto. Represented by Teknown in AmericasMuhammad Riyaz
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- EVMs are available for testing and development purposes and include the SOM along with common interfaces and expansion options.
Few people realize that the word virtuous is translated from the Hebrew word CHAYIL. To the King James Translators, the word virtue was emphasized for good reason. Religious crusade wars had waged for over 200 years. These wars took men away from their families for years at a time. While they were gone, it was important that the “virtue” or moral character of their women remain intact in their absence.
However, for a Hebrew woman, moral purity was a given. To do otherwise meant a swift death. Thus, Chayil in its original framework is ESHET CHAYIL meaning woman of VALOR. It is great courage in the face of danger, especially in battle. It implies bravery & courage-—doing what frightens you. Or pluck—the kind of daring that enables you to quickly remove someone from a dangerous or unpleasant situation. Chayil is nerve—braced mentally to face demanding situations. She is audacious—taking bold risks with confidence. A Chayil woman has backbone—strength of character, will and determination; Spirit—energy with determination and assertiveness; And guts—personal courage with tough character, true grit—courage with resolve. She is a woman with moxie—force of character with determination and nerve. This is a true Chayil Woman. And these are the characteristics women need today.
But Chayil doesn’t stop with valor. More than 50% of the time this word is translated, it is in the context of VICTORIOUS WARFARE. Another 25% of the time it is in the context of wealth and the ability to acquire it. When you add all this up, CHAYIL is an allegorical woman who knows how to fight and win the battle for the home marketplace and community. Chayil is the wealth of Deuteronomy 8:18 and Proverbs 13:22. And she uses that wealth to establish the Kingdom of God.
“Chayil changes everything we thought we knew about the VIRTUOUS WOMAN.”
This document discusses challenges in caring for adolescents with HIV. It describes two patients - Anton, who is reluctant to engage in relationships due to fears of infecting others, and Frank, who engages in unsafe sex. It also discusses Matt, who passed away wanting to experience teenage milestones like kissing. The document outlines barriers to adolescent HIV care like stigma, need for privacy, and difficulty transitioning to adult care. It compares characteristics and challenges in behaviorally versus perinatally infected youth. Pediatric HIV can impact neurodevelopment and growth. Effective adolescent HIV management requires addressing diagnosis, treatment, and maintenance while considering developmental and gender differences.
The whole data are collected from a report of SME Development in Bangladesh By East West University Bangaladesh.Some of data is deducted for present my slide easily. If you need any kind of information about SME Development in Bangladesh please search on internet get the actual data......thank u very much......assalamuwalikum owa rohmatullahi oba-rakatuh.......allah hafez
The supply side gaps and opportunities of small & medium enterprises (sm es) ...Alexander Decker
This document summarizes a study on the challenges faced by financial institutions in lending to small and medium enterprises (SMEs) in Bangladesh. The study found that SMEs in Bangladesh are underserved by financial institutions, which lack customer-tailored products and specialized credit risk assessment systems. Providing loans to SMEs also requires a long time for credit clearance. To address these supply-side gaps, the study recommends identifying the risks faced by commercial banks in lending to SMEs and finding solutions to increase credit flows to the important SME sector.
Role of sme’s in the socio-economic stability of KPK & FATAWaqar Noor
This document discusses the role of small and medium enterprises (SMEs) in the socioeconomic stability of Khyber Pakhtunkhwa and FATA regions of Pakistan. It finds that SMEs make substantial contributions to GDP, employment, taxes, and standards of living. However, SMEs in these regions struggle with lack of access to financing, high interest rates, and other barriers. The document recommends solutions like Islamic financing models, collateral-free leasing, entrepreneurship training, and capacity building to strengthen SME development.
This document discusses micro, small and medium enterprises (MSMEs) in India and their role in the developing economy. It reviews literature on the challenges facing MSMEs, including lack of access to financing, high costs of credit, and inability to meet quality standards. MSMEs contribute significantly to employment but face difficulties in growing. The document aims to understand factors preventing MSME growth and recommend policy solutions to support the sector's potential and allow MSMEs to contribute more to India's development.
Financial Inclusion and Micro and Small Enterprises GrowthDr. Amarjeet Singh
The persons or firms linked with the either way of
financial transaction are known as participants of financial
inclusion financially included otherwise financially
excluded. The normal way of flow of money is routed
through banking system, post office, insurance and FBFC
channels. The MSE is financially included with operation of
saving account, current account or loan account with banks;
financial transaction with other government financial
agencies as well as some private sector NBFC. Recent
initiatives of Government of India and Indian Banking
system have accelerated the performance of financial
inclusion through various schemes such as MNREGS,
Jandhan, Atal Pension Yojna, MUDRA and so forth. The
MUDRA scheme, credit scheme for MSE, credit scheme for
KVIC & Coir firm, Kishan credit card, General Credit
Card are exclusive financial inclusion scheme for MSE
credit. Out of total size of MSEs, less than forty percent
units are getting benefits from schedule commercial banks;
as on 2017-18 only Rs. 1337 billion credit facilities given by
the lending institutions. The paper examines the current
status and potential prospect of financial inclusion at given
numbers of units and employment.
This document is a minor project report submitted by a student on the emergence of private sector banks in India. It includes an introduction, objectives, importance of the study, literature review, profiles of companies and the banking industry. It discusses the growth of private banks in providing services like ATMs and online banking. The report finds that private banks have increased financial access, promoted economic growth, and improved standards of living in India.
The document discusses SIDBI, an Indian financial institution that provides financing support to small and medium enterprises (SMEs). It notes that SMEs play an important role in India's economy, contributing to manufacturing, exports, employment, and GDP. SIDBI was established to boost SME industries through refinancing banks that provide loans to SMEs, as well as direct financing. Over time SIDBI has expanded its services and products to better support the financial needs of SMEs. It currently provides refinancing, bill financing, project financing, and other resources to help SME industries grow and develop.
The document provides an overview of incentives and facilities for small and medium enterprises (SMEs) provided by the Bangladeshi government. It discusses key organizations that support SME development, including the Bangladesh Small and Cottage Industries Corporation (BSCIC), SME Foundation, Bangladesh Bank, BASIC Bank, and Bangladesh Krishi Bank. The BSCIC in particular provides various services to SMEs such as credit arrangement, infrastructure development, skill development programs, and market support. Challenges to SMEs include global competition, new technologies, skills gaps, access to finance and information.
A STUDY ON PROFITABILITY OF MSME LENDING BUSINESS FOR BANKS IN INDIAJohn1Lorcan
Micro Small and Medium enterprises play a very important role in India economy. MSMEs face several
problems, non-availability of finance is an important challenge for MSMEs in India. Among MSMEs,
micro unit face even more challenges as compared to medium and small enterprises. This research paper
is a study on the profitability of MSME loans given by banks in India. The analyses conclude that the
growth of MSMEs is higher than the growth of GDP and hence MSMEs are driving growth of the country;
MSMEs are paying higher rate of interest and hence banks generate better interest income on these loans;
and the NPAs in MSME accounts are lesser than the NPAs in large accounts. Hence the study concludes
that lending to MSMEs by banks is more remunerative and is also helping the country increase its GDP
growth and employment. Therefore, the banks should provide more loans to MSMEs by simplifying their
processes.
This document discusses small and medium enterprises (SMEs) and their access to finance in Bangladesh. It provides background on theories of finance and growth, and research showing that access to external finance is important for industry and investment growth. However, SMEs face difficulties obtaining funds due to characteristics of financial institutions. The document then discusses the importance of SMEs for development in Bangladesh as well as their current state, challenges in obtaining financing due to lack of collateral, and BRAC Bank's efforts to promote "missing middle" SMEs through various loan programs.
This document discusses small and medium enterprises (SMEs) and their access to finance in Bangladesh. It makes several key points:
1) SMEs account for over 90% of firms and a significant portion of GDP in developing countries like Bangladesh, but they often struggle to access adequate financing from banks due to issues like lack of collateral.
2) While various government and non-government initiatives have aimed to promote SME financing, studies continue to show SMEs have limited access to bank loans and face high rejection rates.
3) BRAC Bank emerged as one of the first banks in Bangladesh to specifically target the "missing middle" of small enterprises that were largely excluded from both microfinance and formal
This document discusses a project report submitted by Saifullah Yaqoob for their MBA degree from the Islamic University of Science and Technology. The project examines the financing of small and medium scale industries (SMSI) by J&K Bank in Kashmir. It provides context on the industrial profile of Jammu and Kashmir state and the role of the Department of Industries and Commerce. It acknowledges the internship completed by Saifullah Yaqoob at J&K Bank where they studied the bank's financing of SMSI. The document includes certificates from J&K Bank and the university praising the quality of the project report and internship.
Empowering MSMEs - Role of Banks & Financial Institutions, IT, Skill Developm...Resurgent India
MSMEs are nurseries for entrepreneurship, often driven by individual creativity and innovation, and make significant contribution to country’s GDP, manufacturing output, exports and employment generation. Moreover, MSMEs are imperative for achieving the national objective of growth with equity and inclusion.
This study empirically evaluates the performance of Nigeria's Small and Medium Enterprises Equity Investment Scheme (SMEEIS) using data from Benue and Nassarawa States from 1993 to 2008. The study found that there was no significant difference in bank loans to SMEs before and after the introduction of SMEEIS, and that the conditions for accessing SMEEIS funds were beyond the reach of most SMEs in Nigeria. This indicates that SMEEIS has not significantly impacted SME growth in Nigeria. The study recommends establishing a credit guarantee scheme with risk-sharing between the government and banks to encourage greater bank lending to SMEs and support their growth, development, and Nigeria's national economic
The document is a letter from a student submitting his thesis paper on the present position of the SME sector in Bangladesh. It discusses the objectives, scope, and methodology of the student's research. The research aims to identify the major constraints faced by SMEs in Bangladesh and analyze the performance and prospects of the SME sector. It was conducted using both primary and secondary data sources during the student's internship at a bank. The letter requests acceptance of the thesis paper as a requirement for the student's BBA program.
This study investigates specifically the impact of Oil and Non-Oil Products on Nigeria Gross Domestic Product
(GDP). Data were collected for period 1981-2016 Descriptive Statistics and Multiple Linear Regression Approach
was used, defining Oil, and Non-Oil Products as independent variables and Gross Domestic Product (GDP) as
dependent variable. From the analysis, Oil, and Non-Oil Products contributes immensely to the Nigeria Gross
Domestic Product (GDP). Contrary, the Oil Product is positively and insignificant on economic growth of Nigeria
(GDP) and the Non-Oil Product has positively and significant on economic growth of Nigeria (GDP). This study
therefore recommends that Nigeria should enhance her export promotion strategies and diversify her economy far
away from Crude oil.
The paper assesses the effectiveness of commercial bank loans as sources of funding Small and Medium Enterprises
(SMEs) in Southeast, Nigeria. A cross-sectional survey method wherein structured questionnaire was used to collect
data was adopted. A sample of 500 respondents was randomly selected from the five industrial hubs in the five states
of Southeast, namely Nnewi, Aba, Enugu, Abakiliki, and Owerri. With the aid of pecking order theory
(POT)/hypothesis of Lending, percentage formula, and SPSS version 20.0 tools, the data generated from the
respondents were analysed. Among others, the results of the analysis reveal that SMEs and commercial banks are
highly indifferent to the loans facilities; strict collateral requirements, high interest rates, and the nature of
requirements for guarantors dissuade SMEs from accessing loans; and government interventions provided palliative
measures but failed to address the problems associated with the loans. Therefore, this paper recommends policy
reforms to reduce interest rate, collateral and guarantor requirements. Further research on how to modernise and
harmonise other external sources of SME funding such as „daily contribution‟ and „Isusu‟ systems is required.
Operational Performance of Andhra Pradesh State Financial Corporation APSFCijtsrd
Andhra Pradesh State Financial Corporation APSFC , a State Level Development Financial Institution DFI , was established in 1956 for promoting Small and Medium Enterprises SMEs in the State of Andhra Pradesh under the provisions of the State Financial Corporation SFC Act,1951, with a prime focus on infusing entrepreneurial spirit among entrepreneurial class. It also provides term loans, working capital term loans, and special seed capital assistance to SMEs thereby contributing Balanced Regional Development. Today, more than six crore MSMEs contribute 8 percent to India's GDP, 6.11 percent to its total manufacturing output, and 24.6 percent in services.1India's MSMEs are at the heart of India's growth story. There are more than 6.3 crore MSMEs in the country generating employment for nearly 111 million Indians and creating nearly 1.3 million jobs every year. The entrepreneurial growth and development they contribute are not restricted to the urban areas only. Of the 55.8 million MSMEs, 59 per cent are based in rural India. The segment contributes close to 45 per cent to India's manufacturing output, over 40 percent to our exports, and about 8 percent to our GDP. However, how so far this credit development is able to contribute to the development of micro small and medium industries needs an extensive examination. The present paper is concerned to analyze some of the direct effects of credit support given by APSFC to micro small and medium enterprises development in Andhra Pradesh over a period of time from 2007 08 to 2018 19. Dr. P. S. Ravindra "Operational Performance of Andhra Pradesh State Financial Corporation (APSFC)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30990.pdf Paper Url :https://www.ijtsrd.com/management/accounting-and-finance/30990/operational-performance-of-andhra-pradesh-state-financial-corporation-apsfc/dr-p-s-ravindra
American Research Journal of Humanities & Social Science (ARJHSS) is a double blind peer reviewed, open access journal published by (ARJHSS).
The main objective of ARJHSS is to provide an intellectual platform for the international scholars. ARJHSS aims to promote interdisciplinary studies in Humanities & Social Science and become the leading journal in Humanities & Social Science in the world.
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1. Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.5, No.11, 2014
161
A Study on Financing of SME’s in Bangladesh
Md. Taslim Uddin
Lecturer, Department of Business Administration, Southern University Bangladesh
Academic Building-2, 739/A Mehedibag Road, Chittagong, Bangladesh
Email: taslimcu@gmail.com
Abstract:
Bangladesh is now dreaming to become the middle income country within 7 to 8 years. The governor of
Bangladesh bank advocated that every year 2% poverty reduced in Bangladesh consequently at present the
people who lived in under the poverty line is 27%. The contribution of SME sector in this regard was incredible.
Diverse hurdle likes limited financing, high interest rate; poor infrastructure, credit information gap etc make the
performance of SMEs below the global standard. This study is an academic analysis to identify some of the
constraints related with SMEs financing and some policy implications for the future.
Keyword: SME financing, GDP contribution, poverty alleviation.
1. Prelude:
Small and medium enterprises (SMEs) are acknowledged worldwide as lifeblood of local trade, commerce and
industry. With lower energy supply, lesser infrastructure facilities and minor environmental risk SMEs
contributes notably to alleviation of poverty, create employment opportunities, women empowerment and
equitable distribution of income as well as diversification of industrial sector in Bangladesh. SMEs account for
about 45% of manufacturing value addition. They account for about 80% of industrial employment, about 90%
of total industrial units and about 25% of total labor force. Their total contribution to export earnings varies from
75- 80%. The total number of SMEs is estimated at 79754 establishments, of which 93.6% are small and 6.4%
are medium which contributed around 20-25% of GDP.(source: Agricultural credit and special programs
department, Bangladesh Bank)
Commercial banks are the key sources of SME financing. But only a few years ago many major regional banks
chose to ignore the needs of small and medium sized business. Continuous monitoring, facing problem of to
recover the loan amount distributed to the SME sectors and high risk with low return rather than industrial loans
makes consider as SME financing as less attractive to the commercial banks. So in this situation, Bangladesh
bank performs a crucial responsibility to the SME financing for the advancement of Bangladesh’s economy.
From year 2010, Bangladesh Bank sets target of SME loan for government and private banks operating in
Bangladesh. In year 2011. Most of the banks was fail to achieve their target but janata Bank( target amount 2000
crore tk, provided 2011 crore tk, 101.59% of their target amount) and Jamuna Bank (target amount 472.50 crore
tk, provided 704.72 crore tk, 149.08% of their target amount ). Still the involvement of commercial banks in this
sector relatively insignificant.
2. Literature review:
Chowdhury et. al (2013) have made a study on “Problems and Prospects of SME Financing in Bangladesh”. The
study found that SMEs contributes significantly in poverty reduction programs and potential contribution to the
overall industrial and economic growth and suggested Venture Capital, Bank Syndication Scheme, HRD in
Financial institutions and in Government offices, Training and Development etc as potential tools of eliminating
the constrains of SMEs financing.
Akterrujjaman (2010) conducted a study “problems and prospects of SMEs loan management: A study on
Mercantile Bank Limited, Khulna Brach” where major findings are related to the high interest and loan duration
rates, reasons for SMEs relatively informal way of doing business in contrast to bank’s formal procedures and
prerequisites, bank’s relative inexperience in this field.
Electrin et. al (2013) in his article “An Evaluation of Microfinance Services on Poverty Alleviation in Kisii
County, Kenya” examine the effect of micro finance services on poverty reduction. The study suggested that the
MFIs operating in the County be empowered through provision of finances which can be advanced to the locals
as credit to facilitate rapid economic growth.
Aboagye and Acheampong (2013) conducted a study on “Wealth Creation through Micro Financing: Evidence
from Small Scale Enterprises in Ghana”. They found that personal sources were the main sources of funding for
Small Scale Enterprises (SSEs) start-up and expansion. They concluded that MFIs should ensure that they
understand the business of their clients to be able to design products and services that fit their needs.
Shamsuddoha and Nasir (2011) have made a study on “Micro Credit Program of Selected NGOs: An Empirical
Study on Rural Poor Women ” and evaluated the entrepreneurial program of reputed Non-government
organization (NGO) and identifies Difficulty in getting loans, Inadequate and unintegrated supply of fund,
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Higher rate of Interest, Premature recovery loan are the major problems facing the selected women entrepreneurs.
Alam and Ullah (2006) in their study “SMEs in Bangladesh and Their Financing : An Analysis and Some
Recommendations” found that lack of medium to long-term credit, limited access to market opportunities,
technology, and expertise and business information. Lack of suitable incentives, inefficient and limited services
from relevant government agencies as well as poor capacity of entrepreneurs are other reasons for the slow
growth of SMEs. Study recommend that flourish, SMEs will create new entrepreneurs, generate more jobs and
contribute to a great extent to the national economy.
Zaman and Islam(2011) in their article “Small and Medium Enterprises Development in Bangladesh: Problems
and Prospects” considered smooth and sustainable development of SMEs all over the country will be one of the
vehicles for poverty alleviation, and generation of more employment. They found Lack of Investment Finance
and Working Capital Finance, Inability to Market SME Product, Lack of Skilled Technicians and Workers, Non-
Tariff Barriers (NTB) and Changes in World Trade Regimes are the major financing constraints faced by SMEs
in Bangladesh. And suggested Enhancing Access to SME Finance, Development of SME Infrastructure, Quality
of SME Products, and Training Facilities for SME workers and Entrepreneurship etc are as some policy
measures to overcome those constraints.
Chowdhury and Ahmed (2011) have made a working paper on “An Appraisal of the Problems and Prospects of
Small and Medium Enterprises (SMEs) Financing in Bangladesh: A Study on Selected Districts”. They observed
that non availability of adequate credit, complex loan granting procedure, inadequate infrastructure facilities,
problems of collateral requirements, paucity of working capital, non availability of skilled work force; poor
salary structure, lack of coordination among SME related organizations, lack of appropriate marketing strategies
etc. are the major hindrances to the development of the SMEs in Bangladesh. They recommended easy loan
application and disbursement procedure, fix the minimum salary, adequate finance for modernization, expansion
and technological advancement of SMEs etc for the development of SMEs.
3. Objective of the study:
The prime objectives of the current study are:
1. To highlight the SME financing policies in Bangladesh.
2. To identify the present situation of SME’s in Bangladesh.
3. To expose the problems in SME financing and provide policy implication for superior SME
performance.
4. Methodology of the study:
The present study is based on secondary data. Thus the secondary date that used in this study was taken from
diverse publications of Ministry of Industries, Bangladesh Bank, SME foundation, Bangladesh Bureau of
Statistics, MIDAS, Financial Institutions, different journals regarding strategic issues are used to support the
findings .And at the same time newspapers are also used for various information.
5. What is SME financing?
SME can be defined by a simple sentence “Small Business with Big Opportunity”
Small Enterprise refers to those enterprises where goods are produced, recycled, repaired or traded in traditional
way; where bank investments total is limited to Tk.250, 000; where 10 or fewer workers are engaged on wages
or commission basis.
Medium Enterprise refers to those enterprises where goods are produced, recycled, repaired or
traded applying some capital machinery; Where 20 or less people are engaged on wages or commission basis;
where total bank investments does not exceed Tk.75, 00,000.
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The definition published by Ministry of Industries and endorsed by Bangladesh Bank of SME is as follows:
Medium Industry/Enterprise
Nature of Enterprise Total Fixed Assets (Excluding Land and
factory building)
Total number of
employees
Service Concern Not exceeding to TK.15 Crore Up to 100 person
Trading Concern Not Exceeding to TK.15 Crore Up to 100 person
Manufacturing
Concern
Not Exceeding to TK.30 Crore Up to 250 person
Small Industry/Enterprise
Nature of Enterprise Total Fixed Assets (Excluding land &
factory building)
Total no. of Employees
Service Concern Not exceeding to TK.1.00 crore Upto 25 persons
Trading Concern Not exceeding to TK.1.00 crore Upto 25 persons
Manufacturing concern Not exceeding to TK.10.00 crore Upto 99 persons
The European Union (EU) defines SMEs as independent enterprises, not owned, up to 25% or more of the
capital or voting rights by one or jointly by several enterprises. SME employs fewer than 250 employees with
an annual turnover not exceeding 40 million Euros or the annual balance sheet total does not exceed 27 million
Euros.
6. Why SME:
The SME plays a vital role in our developing economy. Some charismatic advantages stimulate the
entrepreneurs to set up small and medium enterprises. These are as follows:
1. Low investment:
To start a small enterprise one need not large investment, by using SME loan one can start a business.
2. Favorable Government policy:
Our government policy is always favorable to small medium enterprises. Various facilities and incentives are
provided by government to SME sector.
3. Cheap labor:
Labor is cheap and available in our country. We can use this labor force in lower cost, which is favorable for
SME sector.
4. Self employment:
Bangladesh is facing severe unemployment problem. A large portion of our educated people is searching for job.
Provided with proper training and capital assistance they can engaged in small scale businesses.
5. Raw material:
There is abundance of some raw material such as bamboo, jute, wood, etc. So basing on these raw materials
small and medium enterprises can set up in our country.
6. Employment Generation:
Bangladesh is a densely populated country. Job opportunity here is very scanty; Unemployment rate is
approximately 40%. Therefore, it is the prime concern for the nation to generate income through creation of job
opportunity & employment. Creation of job opportunity at large scale by us is not possible. What can be done
better is to help self-employment through SME financial support.
7. Economic Growth:
Small and Medium Enterprises (SMEs) play a vital role in the economic growth and development of the country,
especially in one like ours. Bangladesh has approximately six (6) million micro, small, and medium enterprises
with less than 100 workers, out of which around 27,000 are SMEs. Micro, small, and medium enterprises
provide more than 75% of the income of the households in Bangladesh. The sector contributes nearly 25% of the
GDP, 40% of gross manufacturing output, 80-85% of industrial jobs and constitutes around 25% of the total
labor force making this sector an attractive one for lending by financial institutions.
8. Industrial development:
In Bangladesh, Small and Medium Enterprises (SMEs) are significant contributors to manufacturing growth and
employment creation, which facilitate industrial development. The share of SMEs in the manufacturing sector in
terms of fixed capital, gross investment and sales is 48 percent, 33 percent and 40 percent respectively.
7. Policies of procedure of SME financing:
Since most of the Bangladeshi firms fall under SME, Government has to provide proper rules and regulations
and suggest some standard policies to accelerate the economic growth of Bangladesh.
In the year 2009 Bangladesh Bank established SME department. Since 2010 to March, 2013 more than
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tk.1963.69 billion SME loan has been distributed among 13,09,277 entrepreneurs. Where 32% in production
sector, 62% in commercial sector and 6% in service sector.
Bangladesh Bank has recently established “SME and Special Programmers Department” for policy formulation,
facilitating fund, monitoring and development of entrepreneurship in the SME sector.
The policy and guideline formulated by this department are demonstrated below:
1. Fix up an indicative target for SME loan disbursement for all the banks and financial institutions
operating in Bangladesh. banks/financial institutions will follow the 'Area Approach Method' to attain their
targets separately by dividing it as branch wise, region wise & sector wise.
2. A separate business strategy for SME financing with least documentation and speedy loan sanction.
3. For small entrepreneurs credit limit will be ranged from Tk. 50,000 (Fifty thousand) to Tk.50, 00,000
(Fifty lac).
4. Women Entrepreneurs will be given priority in the SME sector. Establishing “Women Entrepreneurs
Dedicated Desk” is essential for all banks and other financial institutions. At least 15% of total sanction will be
held in reserve in favour of the women entrepreneurs and the interest rate will be 10% only. Institutions may
sanction up to Tk. 25,00,000 to women entrepreneurs against personal guarantee. In that case, group
security/social security may be considered.
5. Arranged training facilities for the entrepreneurs.
8. Present scenario of SMEs in Bangladesh:
According to ADB( Asian development bank), about 6 million SMEs and micro enterprise firms of less than 100
employees contribute significantly in economic development and create job opportunities in Bangladesh
specially when the unemployment rate is approximately 40% and 36% people still live under the poverty line.
SMEs also contribute enormously to the GDP of Bangladesh.
Table 1: Contribution of SMEs in the GDP on Bangladesh
Numbers of workers Total Contribution
to GDP (Taka)
Percentage of
Total contribution
0-1 193 996 555 714 26
2-5 379 663 897 358 51
6-10 73 120 983 681 10
11-20 45 183 240 157 6
21-50 33 960 498 076 5
51-100 15 138 922 373 2
Total 741 064 097 360 100
Source: ICG/MIDAS Survey, 2007
Note: US $ 1 = BDT 69.00
Table-1 depicts the contribution of SMEs in GDP of Bangladesh. it is reflected that micro enterprises operate by
the 2-5 workers has the highest contribution(51%) in the total contribution of SMEs in the GDP. More concisely,
86% of the contributions come from the SMEs where the numbers of workers are up to 10 and the enterprises
run by more than 21 workers contribute only 7% of the total contribution from SMEs to GDP in Bangladesh.
Table 2: Sector wise contribution of SME in GDP of Bangladesh (Taka)
Sector Total Contribution to GDP
(Taka)
Percentage of Total
Contribution
Agriculture 177 729 637637 24
Fishing 32 872 674 464 4
Construction 7 196 460 200 1
Manufacturing 282 344 700 575 38
Wholesale and Retail trade and Repairs 171 335 861 390 23
Hotels and Restaurants 28 599 263 975 3
Transport, Storage and Communication 8 950 171 356 1
Real state, Renting and Business activities 13 771 436 794 2
Education 151 808 506 1
Health and Social Work 2 743 049 893 1
Other Service activities 15 632 094 785 2
Total 741 327 159 609 100
Source: ICG/MIDAS Survey, 2007
Note: US $ 1 = BDT 69.
It is observed from the table 2, manufacturing sector contributes 38% that is the peak contribution in GDP. 47%
of the contribution in GDP comes from jointly agriculture and whole sale and retail sector.
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In spite of having extensive contribution the poverty alleviation, economic growth and social advancement,
SMEs are still disregarded by the formal financial institutions. Due to High administrative costs, low
capitalization, insufficient assets, fail to meet collateral requirement etc. banks and other formal financial
instructions are unenthusiastic to expand their credit portfolios.
The following table shows the total amount of financing and the total amount of SME financing based on the
nature of the banks.
Table3: the total amount of financing and the total amount of SME financing based on the nature of the banks.
( In Crore)
SL Bank Position as on
30.06.2013
Percentage
Total Financing SME Financing
1 State owned banks 90224 13350 14.80%
2 Specialized banks 29612 7950 26.85%
3 Private Commercial Banks 295835 73788 24.94%
4 Foreign Commercial banks 23346 2403 10.20%
Total 439020 9743 22.22%
Sources: Bangladesh bank, 2013
The following table shows amount of SME financing based on service, trading and manufacturing sector
Table4: amount of SME financing in different sector
( In Crore)
Sources: Bangladesh bank, 2013
But the matter of hope is that Bangladesh bank is trying to make SMEs attractive to the formal financial sector.
Bangladesh bank provides relatively cheaper funds to the banks and charges only 5% interest rate on these funds
while lending institutions make decision on the lending rate of interest. Besides this, International Development
Agency (IDA) has supplied us $10 million to enterprise growth and bank modernization project. Moreover, ADB
also agreed to provide $30 million in this sector. (Jesmin, Rubayat, 2009)
9. Constraints of SME financing in Bangladesh
At present SME sector is facing a lot of barrier in Bangladesh. The major constraints are:
1. Inadequate fund:
Banks and other financial institutions set a specified limit for SME financing. If big amount financing require for
the expansion of existing business or pursuing new venture then it is difficult to collect require fund from the
bank.
2. Project Preparation and Evaluation:
Regardless of Bangladesh bank instruction, Loan application process for SMEs financing is still lengthy. On the
other hand, it is quiet difficult to the entrepreneur to prepare a formal project proposal. Even when he prepares
the proposal drawing on outside expert services, there is no guarantee that the proposal will be evaluated
properly
3. High cost of financing:
Although financial institutions obtain cheap cost funds from Bangladesh bank and other donor agencies, still
they charge high interest rate on SME financing. The rate is almost 13-17% and this high rate is on the prime
hitch of the growth of small and medium enterprises.
4. Limited sources of financing:
Banks are the major sources of SMEs external financing but the limited network of banks restricts borrowers'
access to credit. So most of the cases they needed to depend on retained earrings and informal sources of credit
where the costs are extremely high.
5. Collateral requirement:
Banks demand good collateral as a safeguard and reduce risk exposure from the small and medium enterprises.
But most of the SMEs fail to comply with this requirement of the banks and deprived of SME loan facility.
6. Technology:
Due to adequate capital and lack of skill workers, SMEs are needed to depend on simple technology base and
highly labor intensive business.
7. Infrastructure:
SMEs in Bangladesh are facing difficulties by the poor infrastructure like electricity, water, roads and highway.
Sector SME Amount Growth
30.06.12 30.06.13
Service 1638 2209 34.85%
Trading 2053 27769 37.7%
Manufacturing 10463 11869 13.44%
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8. Information:
Most of the SMEs have very limited technology. Accounting package is used by 1-2% of the SMEs and the rate
is 15% who used computer. Only 8-10% SMEs use internet for their business purpose.
9. Lack of education among the entrepreneur:
Most of the entrepreneurs are not well educated so they face trouble to make a business through micro enterprise
and selecting the appropriate sources of their necessary fund.
10. Other constraints:
At present china, Taiwan, Korea, India and Taiwan supply different product at a very cheap rate. Sometimes
their product price is less than the production costs of our local SMEs products.
Recommendations:
In order to improve the performance of the SME and targeting group for the SME, the following measures have
been suggested
1. Banks and other formal financial institutions need to be increased the limit of SME financing and they
also need to change their view towards it.
2. Government as well as Bangladesh bank need to be established a standard format and policy for SME
loan proposal and project evaluation. Beside this, close monitoring of the banks activities regarding
SME loan evaluation is crucial.
3. The interest rate should be lowered. It is must to make easy entrance to SME financing.
4. For the development of SMEs, only banks and donor funds are not sufficient. Government and other
related forces need to create more diverse sources of SME financing.
5. To overcome the constraint of collateral, the banks are required to relax their collateral requirement of
the banks.
6. Government and financial institutions may provide sufficient fund for advance technology.
7. To overcome the obstacle of infrastructure the government of Bangladesh needs to take appropriate
measure to improve infrastructure of Bangladesh for the optimum growth of SMEs.
8. Government of Bangladesh should take measures like publicity in media, separate web page design,
information office etc for proving all necessary information regarding SME financing.
9. Different training programs, work shop and formal educational curriculum should be included in for
increasing entrepreneurial skill.
10. Government can be imposed different restriction on imported SMEs’ product to protect our local
company.
Conclusion:
Small and medium enterprises are recognized as a ‘thrust sector’ by the Ministry of Industries because of the
contribution of this sector in the social advancement and economic growth. Though it is highly labor intensive
but still major portion of job opportunity is generated by this sector. For the balance development in all over the
country it plays a vital role. As a result the standard of living in country areas is increased. Regardless of
government positive attitude toward the SMEs, the performance of this sector in still below the international
level. The government should persist the effort to improve infrastructure, legal framework and policy regarding
SMEs financing. From the discussion it can concluded by saying that there is no doubt that SMEs are the key
tool to the economic development of Bangladesh but for getting desire result it necessary that effective
implementation of the mentioned suggestion and a system to monitor that effectiveness.
References:
Ahmed, Kashfia and Chowdhury, Tanbir Ahmed, (2009), “Performance Evaluation of SMEs of Bangladesh”,
International Journal of Business and Management,vol.4, no.7.
AKTERUJJAMAN, S. M.(2010). “Problems and Prospects of SMEs Loan Management: A Study on
Mercantile Bank Limited, Khulna Branch” Volume– V, Issue– 02.
Alam, Md. Shamsul and Ullah, Md. Anwar.( 2006). “SMEs in Bangladesh and Their Financing: An
Analysis and Some Recommendations”, The Cost and Management, Vol. 34 No. 3.
Chowdhury, Md. Shahnur Azad, Azam, Md Kazi Golam and Islam, Serajul.( 2013). “ Problems and
Prospects of SME Financing in Bangladesh”. Asian Business Review, Volume 2.
Helal uz Zaman, A.K.M. and Islam, Md. Jahirul.( 2011). “Small and Medium Enterprises Development in
Bangladesh: Problems and Prospects”, ASA University Review, Vol. 5 No. 1.
Jesmin, Rubayat.(2009). “FINANCING THE SMALL SCALE INDUSTRIES IN BANGLADESH: THE
MUCH-TALKED ABOUT, BUT LESS IMPLEMENTED ISSUE”, Volume 16 Number 1.
Mintoo, Abdul Awal,(2006), “SMEs in Bangladesh”, CACCI Journal, Vol.1,.
Report of Asian Development Bank (ADB). (2002). “Strategic Issues and Potential Response – Small and
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Medium Enterprise Development and Export Expansion”, Asian Development Bank (ADB),
Dhaka.
Shamsuddoha, Mohammad and Nasir, Tasnuba, (2011), “Micro Credit Program of Selected NGOs: An
Empirical Study on Rural Poor Women”, International Journal of Educational Research and
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SME Cell. (2005). “ Policy Strategies for Development of SME”, Ministry of Industries, Government of
People’s Republic of Bangladesh.
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