Presenter Introduction

Group 5: SENTIENT

NSU ID

Md. Sayed Hossain

1512669660

Manik Miah

1521611660

Md. Emtiaz Hossain

1512914660

Emdad Ahmed

1430954660

Sharmin Huda

1521732660

Topic: Small and Medium Enterprise Foundation

(SMEF), its activities and scope of growth in
Bangladesh.

Background of SME:
SI

Type ofIndustry

The amount ofinvestment

Number of
(Replacementcost and value employed workers
of fixed assets, excluding land
and factory buildings)

1.

Cottage Industry

Below 5 lakh

number of workers
not exceed 10

2.

Micro Industry

5 lakh to 50 lakh

10 to 24

3.

Small Industry

Manufacturing

50 lakh to 10 crore

25 to 99

Service

5 lakh to 1 crore

10 to 25

Manufacturing

10 crore to 30 crore

100 to 250

Service

1 crore to 15 crore

50 to 100

Manufacturing

More than 30 crore

More than 250

Service

More than 15 crore

More than 100

4.

5.

Medium Industry

Large Industry

Why SME development is so important:

Countries

Amount (% to

2012

Republic of Korea

GDP)
38.90%

2013

Thailand

33.70%

2012

Malaysia

20.10%

2013

Cambodia

7.80%

2012

Bangladesh

6.70%

2012

Kazakhstan

4.7 0%

Year

Managing
Director

Organogram of SME foundation:

Deputy
Managing
Director

General
Manager

Deputy
General
Manager

Assistant
General
Manager

Manager

Deputy
Manager

Assistant
Manager

Program
Assistant

Driver

Office Worker

Implementation of SME Policy Strategies adopted by

the Government of Bangladesh:
Policy Advocacy & Research
Credit Wholesaling Program
Capacity Building & Skill Development
Access to Technology
Access to Information
Women Entrepreneurship Development
Business Support Service

SWOT Analysis of Small & Medium Enterprise Foundation

(SMEF):
Strength

Weakness

Govt. approved
Wide resource and training
center
Oldest SME foundation in
Bangladesh.
It offers various kinds of
training for its clients.
Multi lingual staff
High social competences
Reputation in SME sector.
Large network of banking &
financial service.
Brand value and clean image.

Not widely available in rural

areas.
It is hard to get financial
facilities without any
mortgage.
The SME training center
number is still poor.
Poorly maintain international
diplomacy.
Lack of skilled people.
Investment philosophy and
investment process of low
importance.
More focus on niches SME
business.

SWOT Analysis of Small & Medium Enterprise Foundation

(SMEF):
Opportunity

Threats

Innovative ideas get priority.

Individual training for
entrepreneur.
Global market with minimal
barriers.
Proponent timing to enter the
market because of low interest
rates.
Women get much more priority
in this sector.
strong relationship SME
businessman and wide network.

Hard to get the financial facility

without any mortgage.
Inability to Market SME
Product.
Inability to Maintain Product
Quality.
Lack of Skilled Technicians and
Workers.
Poor Management Skills of
Entrepreneurs.
Lack of formal strategy.
Others established business in
the same business line up.

Small & Medium Enterprise Foundation (SMEF) Goal:

Accelerating sustainable economic growth through SME development.
Generating employment through involving unemployed, underemployed and
young people in the formal SMEs.
Creating enabling business environment for the SMEs.

A goal is hard to achieve without a target:

Target to provide training to five lac people in between 2021.

SME fair.
SME reward for the best SME businessman.
Arrange a classified training.

What strategies should SMEF followed to achieve that target?

Arrange monthly meeting.

Arrange a session by successful businessman and his history.
Could hire some field worker.
Arrange some certification session.
Online achieve with training materials.

SME challenges at a glance:

Limited resources for development and operations

Need for technology advancement
Limited loan portfolio
Capacity to smoothly execute extension services requirements
Engagement of large company
Operational scope
Review of SME development policy and its supporting guidelines
SMEs tracking systems
Infrastructure development for SMEs

Sources and uses of funds:

Mobilize and secure more sources of income

Sources of Funds
Internally generated funds
Government subventions
Stakeholders

SME Development Strategies of SME foundation:

Strategy- 1: Strengthen regulatory and legislative framework in favor of SMEs
Strategy- 2: Identify problems & prospects of SMEs/SME sectors/SME cluster for designing appropriate development interventions

Strategy- 3: Ensure availability of business support services for SMEs

Strategy- 4: Access to institutional finance for SMEs

Strategy- 5: Up-gradation and adoption of appropriate technology for SMEs

Strategy- 6: Develop human resources for SMEs

Strategy- 7: Adaptation of Information and Communication Technology (ICT) in SME Development

Strategy- 8: Position women entrepreneurs into the mainstream business community

Strategy- 9: Cluster based SME development

Strategy- 10: Institutional linkage for SME development

Others strategy that could add with regular strategies:

Relevant Policy Planning and Development of Government related

Institutions on SME Promotion:
Developments and Implementation of Intellectual Infrastructure
for Industrial Activities:

Corporate strategy:

Large corporate could be a partner of a growing SME business:

SME could align with corporate strategy:
Any promotion and sponsorship by corporates:
Best SME award:
International recognition:

Cluster development:

Plastics and other synthetics .

Handicrafts and Miscellaneous Sector.
Lignt Engineering and Metal Working.
Leather Making and Leather Goods.
Knitwear and Readymade Garment .
Healthcare and Diagnostic.
Designer, aesthetically challenging personal wear and effects.
Handloom and Specialized Textile.
Electronics and Electrical Educational Service .
Agro processing /agri-business/plantation agriculture/specialist farming/tissue-culture.

Contribution of banks to foster SME sector in

Bangladesh:
Seri
al
No
SL
NO
1

Name of The
Bank

Portfolio size (in

percentage)

Bank Name

2010

Sonali Bank

Janata Bank

Basic Bank

Jamuna Bank

5
6

Pubali Bank
Standard
Charted Bank

30.46 22.5
7
47.47 50.3
9
73.71 72.4
7
4
20.1
9
7.48 5.14
16
15.4
5

2011 2012
19.02
53.03
61.6
4.82
11.5
15.25

Recommendation:

A different policy and regulation needed to foster the cluster industry to grow
up.
An association must be needed to cluster enterprise to identify new cluster
and also find out what out harmful for these business.
Most of the cluster industry needs expert opinion and market expert advice.
From registration to funding SME businessman should get a one stop service.
Current funding and emergency funding is works a remedy for SME
businessman to enhance their business on a rapid move.
The overall efficiency and productivity of these enterprises within the cluster
cannot be improved unless uninterrupted utility services.
Technological support has become a crucial factor for the survival and
development of industries in competitive world.
In order to maximize the market share of the enterprise either at national or
at global level, a good network of market linkages is needed.
Micro entrepreneurs can be particularly encouraged through setting up value
chain support.
There is no alternative to a sound regulatory system that functions properly.