Fourth largest SME bank globallyFounded 2001K e y p e o p l e M u h a m m a d A .

( Ru me e ) Ali , C h ai rman S y e d M ah bu b u r Rah m an , M an ag in g

Director & CEOT h e
S h o r e C a p
I n t e r n a t i o n a l
( S C I )
i s
a
m i c r o fi n a n c e
i n v e s t m e n t
v e h i c l e ,
w h i c h
m o b i l i z e s
c a p i t a l
f o r
m i c r o fi n a n c e
i n s t i t u t i o n s
( M F I s ) .
S h o r e C a p
I n t e r n a t i o n a l
( S C I )
w a s
l a u n c h e d
i n
2 0 0 3
b y
S h o r e B a n k
Corporation. It is an international private
equity company that invests in small business banks and
r e g u l a t e d m i c r o fi n a n c e i n s t i t u t i o n s ( M F I s ) i n
d e v e l o p i n g a n d t r a n s i t i o n a l c o u n t r i e s .
S h o r e c a p I n t e r n a t i o n a l a l s o c o o r d i n a t e s w i t h
i t s a f l i a t e , C a p i t a l P l u s E x c h a n g e ( f o r m e r l y
S h o r e C a p E xc h a n g e ) , a n o t - f o r- p ro f i t
u n i t s p e c i a l i z i n g i n t e c h n i c a l a s s i s t a n c e a n d
c a p a c i t y b u i l d i n g , i n s u p p o r t o f i t s o p e r a t i o n s
i n A f r i c a , A s i a a n d Eastern Europe.S M E s
a r e
r e c o g n i z e d
a s
e n g i n e
o f
e c o n o m i c
g r o w t h
a n d
e m p l o y m e n t
g e n e r a t i o n
f o r
s u s t a i n a b l e industrialization in both developed and developing
countries of the world. In context of Bangladesh, there is noa l t e r n a t i v e o f
small and medium enterprises for rapid industrialization
and national economic growth throughlower capital
investment and employment generation. The SME
F o u n d a t i o n i s p l a y i n g i t s r o l e i n h e l p i n g t h e SME entrepreneurs
including the women entrepreneurs by conducting various programs with an aim to
developthe SMEs of Bangladesh. One of the major aims of SMEF is to bring the
grassroots entrepreneurs into the mains t r e a m o f e c o n o m i c
d e v e l o p m e n t t h ro u g h e m p l o y m e n t g e n e r a t i o n ,
r e d u c t i o n o f s o c i a l d i s c r i m i n a t i o n a n d poverty
alleviation.T h e I n d u s t r i a l P o l i c y o f B a n g l a d e s h 1 9 9 9 d e s c r i b e s
small industries as those employing less than 50
p e r s o n s a n d h a v i n g a fi x e d c a p i t a l i n v e s t m e n t o f B D T 1 0 0
m i l l i o n ( $ 1 . 6 9 m i l l i o n ) . M e d i u m i n d u s t r i e s w e r e d e fi n e d
asthose employing between 50 and 99workers and requiring
i n v e s t m e n t b e t w e e n B D T 1 0 0 a n d 3 0 0 m i l l i o n ( $ 1.69-5.07
million). This policy is now under revision as Industrial Policy 2004, which is yet to
be finalized andofcially published. According to media reports, the definition of
industry has been reportedly revised in termso f " r e p l a c e m e n t c o s t s " ,
t a k i n g t h e c o s t o f f a c t o r y s e t - u p a n d l a n d a s fi x e d . A n
industry with a replacem ent costof BDT 15 million
($254,000) is expected to be termed a small industry and

one with a replacement cost of BDT 15-100 million ($ 0.251 . 6 9 m i l l i o n ) a s a m e d i u m i n d u s t r y. I t m a y b e n o t e d t h a t

n e i t h e r t h e e x i s t i n g n o r t h e p r o p o s e d d e fi n i t i o n s
t a ke i n t o c o n s i d e r a t i o n o t h e r i m p o r t a n t
f a c t o r s , l i k e t e c h n o l o g i c a l
re q u i re m e n t s , t e c h n i c a l c o m p l e x i t i e s o f
p ro d u c t i o n , d e g re e s o f s k i l l s re q u i re d i n
w o r k e r s a n d m a n a g e r s , d e g r e e o f v a l u e addition
and turnover, import requirements, need for working
capital, and probable trade barriers to marke