Pvt equity, venture capital help expand small enterprises

Business Report :

Dhaka Chamber of Commerce and Industry (DCCI) president Ashraf Ahmed on Wednesday observed that Private Equity (PE) and Venture Capital (VE) should be popularized in Bangladesh to expand the small enterprises.

“Building a knowledge driven economy is vital for Bangladesh’s future, and new ventures need a supporting ecosystem to thrive. Funding, in the form of patient equity from venture capital firms, is critical for success. Financing of innovation is not within the expertise of banks, the traditional sources of financing,” he said.

The DCCI president was speaking at a discussion on “Connecting Innovative SMEs and Startups with Private Equity & Venture Capital Firms for Bridging Financing Gap”, held at DCCI in the city, said a press release.

Ashraf said banks depend on valuation of physical assets to secure their lending, which should not be the focus of businesses creating Intellectual Property (IP).