Bangladesh Bank Training Academy Journal

Abstract

Considering the importance of SMEs in economic growth and development of Bangladesh, substan tial attention has been devoted to the materialization of SMEs’ easy and cost effective access to finance. Still it is not adequate to support the full potential of SMEs in Bangladesh. Apart from this, it is understood that to reap maximum benefits from SME financing, it should be accompanied by parallel efforts to improve the investment climate and to develop other related SME support services. This paper attempts to analyze the current financing framework of SMEs in Bangladesh for developing SMEs with a view to providing an understanding on the issue in the context of the country. The study is supported with data on current SME financing status of Bangladesh and constraints therein. The findings of this paper are certain issues and options explaining mechanisms and supports related to the SME financing and development with an emphasis on replicating the best practices of the SME-enriched counries which could be a better mode of learning for Bangla desh. Subsequently, practical suggestions and recommendations are presented which can promote greater access to finance and efficient use of funds and thereby ensure the optimum finance for the sustainability of SMEs in Bangladesh.