Promoting up-coming SME initiators

Dr. Atiur Rahman
Governor, Bangladesh Bank :
This will remain to be yet another milestone in our joint-campaign for developing SMEs in the region. SMEs in Bangladesh and elsewhere are not well organized and hence their voices are not always heard by the policy makers. Only united voices are given ear to in every sphere of life. United we can achieve; we can overcome any hurdles in this highly competitive world. Iam SME of India has demonstrated that unity is a force that you must reckon, unity is strength and unity provides you an edge. I am hopeful that ‘Iam SME of Bangladesh’ would also be able to bring meaningful changes in the lives of MSME entrepreneurs in Bangladesh as have been possible in our closest neighbouring country due to the pro-active role of Iam SME of India.
Bangladesh Bank over the last 6 years has been continuously striving to broaden access to finance for the MSMEs throughout the country. We have established a MSME friendly banking ecosystem. What is needed now is to reap the benefit of this central bank initiatives by the entrepreneurs. For that reason you need to be organized, motivated and energized to achieve more and meaningful changes. I came to know that, 16 highly energized entrepreneurs, 7 of whom are women have taken the first bold step towards formation of this new venture. This 16 member team of SME entrepreneurs is going to launch ‘Iam SME of Bangladesh’ today. Many might be wondering why only 16 members have started the journey. I am convinced and sure that this is just a mere number and within short time hundreds and thousands of MSME entrepreneurs will join the movement. I would call for all MSMEs to join in the movement to forge the alliance for making their voices louder and emphatic so that policy makers are forced to listen to their voices.
The organizers have taken a 3 day program where there will be presentations B2B meeting and grand women night. Reputed trainers and speakers India are here to participate and conduct the training and presentation sessions and I am confident that our entrepreneurs will be very much benefited from the training sessions. Many bankers have come forward and I am happy to see MDs and CEOs in the launching program.
Government of Bangladesh as well as Bangladesh Bank have rightly identified MSMEs sector as a priority sector for transformation of Bangladesh into a middle-income country. I am enthused seeing local, regional and global initiatives for MSME promotions are underway. Bangladesh’s achievement and strategies in MSME and women entrepreneurs’ development have become international good practices around the world. Many countries around the globe are sharing our experience in the MSME and women entrepreneurs’ development.
We have taken many regulatory and policy moves that helped achieve significant development in the area of MSME and Women entrepreneurs’ access to finance over the last 6 years. Some of the breakthrough interventions are as follows:
Ø Target based lending
Ø SME Credit program and guidelines
Ø Women Entrepreneurs Development Unit
Ø SME Banking Training
Ø Cluster based MSME Financing;
Ø SME Help Desk
Ø Introduction of Ratings for MSMEs
Ø Regulatory easing for MSME lending (less provision for MSMEs)
Ø Over the last six years significant changes in the MSME lending landscape have taken place. 7.5 million MSMEs accessed formal financial sector credit during this period. Financial sector financed MSMEs have created more than 5.00 million jobs during the same period.
Ø During the last six years more than 3,50,000 new MSEs got access to formal financial sector.
Ø The banks and NBFIs disbursed a total of BDT 3,89,390 crore to the MSMEs. Bangladesh Bank is also providing low cost funding support to the MSME bankers through its number of refinance windows.
Ø As of March 2015 under the BB refinance program 4760 crore BDT has been disbursed against financing to 47655 MSMEs.
Ø Women entrepreneurs financing is another breakthrough area where BB has successfully brought large number of women entrepreneurs under the formal financial sector access. During last six years our financial sector provided BDT 14,254 crore to 80 thousands women entrepreneurs.
Ø Under the refinance window BB has financed 1156.48 crore to 12677 women entrepreneurs which is 24% of total refinancing by BB.
Ø We are prioritising manufacturing and service sector industries in the micro and small segment. Lending to MSEs has increased from 43% in 2009 to 52% in 2014 in this segment.
Ø Let me give you a comparative picture of MSME financing with our neighbors. In Pakistan share of MSME lending to total lending from the financial sector is around 12-13% in India it is around 16-17% while we have been successful in increasing the MSME share in total lending to 24%.
We are open to learning new experiences from anybody in the world and as such when I came to know about the innovative interventions of Iam SME of India I instructed Mr. Chowdhury to learn about this and to see if this learning can be replicated in Bangladesh. I am happy to see that finally this is happening. I shall request Mr. Rajiv Chawla and his team to work with new Bangladeshi team to help them form a sustainable, efficient and effective team to steer the light of MSME development movement in Bangladesh. I hope the members of the newly formed platform ‘Iam SME of Bangladesh’ will be able to fulfill the long cherished desire of our needy entrepreneurs and ensure sustainable SME development in Bangladesh. I also hope that the newly formed association ‘Iam SME of Bangladesh’ team would work with utmost sincerity and devotion, and would remain by the side of the MSME entrepreneurs, especially of those from the rural and disadvantaged areas of Bangladesh.
Another important initiative is also underway with the help of government of India and NSIC, India. There is a move for establishing a model business incubation centre in Bangladesh.
This model centre will pave the way to provide practical training to tech entrepreneurs in skill acquisition as well as business management skills. I would like to extend my thanks to the Government of India for its generous support for this strategic initiative. In particular, I want to thank H E Mr. Pankaj Shawran, High Commissioner of India for taking this initiative.