SME finance is the funding of small and medium sized enterprises, and represents a major function of the general business finance market – in which
capital for different types of firms are supplied, acquired, and priced. Capital is
supplied through the business finance market
in
the form of bank loans and
overdrafts; leasing
and
hire-purchase
arrangements; equity/corporate
bond
issues; venture capital
or private equity; and asset-based finance
such
as factoring and invoice discounting.
SMEs are vital for economic growth and development in both industrialized and developing
countries,
by playing a key role
in creating new jobs.
Small
businesses
are
particularly
important for bringing innovative
products
or techniques to the market.
Criteria/ Sectors Fixed assets
excluding
land & building (Tk. in crore) No.
of manpower Medium Small Micro Medium Small Micro Manufacturing 10-30 0.5-10 0.05- 0.5 100- 250 25-99 10-24 Trade 1-15 0.05-1 <0.05 50-100 10-25 <10 Service 1-15 0.05-1 <0.05 50-100 10-25 <10 Cottage Industry <0.05 <10
An industry or enterprise can be treated as that category one following a benchmark but the same can fall under higher category if another benchmark is
considered. In that case it will be treated as higher category industry.
A woman, who owns a private firm or she holds minimum 51% stake in firm run
jointly or registered, will be treated as women entrepreneur.]
28. SME Foundation
SME Foundation formed in year 2006 under the Company act-1994. It plays the role in helping the SME entrepreneurs including the women entrepreneurs by
conducting various types of developing programs in Bangladesh. One of the
major aims is to promote the economic development through employment generation, reduction of social discrimination and poverty. The main activities
are: implementation of SME policy, advocacy & research, credit wholesaling
program, capacity
building
&
skill development, access
to
information
&
technology, women entrepreneurship development, business support, etc.