A high-level roundtable on “Access to Finance: Policy to Practice” highlighted the persistent challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in Bangladesh. The discussion, held at the SME Foundation headquarters on 24 August, was organized by Innovision Consulting under the Prabriddhi Project, a Local Economic Development initiative funded by the Governments of Bangladesh and Switzerland.
The event brought together entrepreneurs, bankers, policymakers, and development partners to explore how supportive financial policies can be turned into real opportunities for MSMEs.
Farzana Khan, Deputy Managing Director of SME Foundation, opened the session by thanking partners for their collaboration. She noted that access to finance has long been a major concern for SMEs but that only a few challenges have been meaningfully addressed.
Md. Anwar Hossain Chowdhury, Managing Director of SME Foundation and chair of the roundtable, said in his opening remarks that engaging stakeholders is key to diagnosing challenges and designing solutions that can strengthen MSMEs, which he described as the backbone of the economy.
Chief guest Md. Mushfiqur Rahman, Chairperson of SME Foundation, emphasized the need for financial literacy, financial inclusion, and access to finance. He pointed out that Bangladesh has around 1.18 crore SME businesses, yet their full potential is not being utilized. He assured entrepreneurs that the SME Foundation is committed to supporting them when they face difficulties.
Financial experts and bankers also shared their perspectives. Khondker Morshed Millat, Practice Area Lead of Innovision Consulting and former Director of Bangladesh Bank, highlighted the importance of a reliable MSME database to guide financial institutions. Md. Amzad Hossain of NCC Bank stressed that cashflow is the most important factor in loan applications, while Harunur Rashid, former Head of SAMD at NCC Bank, argued that banks are often not suitable for SMEs and that a separate institution may be needed to handle SME credit.
Representatives from Swisscontact suggested exploring alternative financing options. Rukhen Uddin Ahmed, Senior Advisor, said that microfinance institutions and other channels could play a greater role, while Syed Abu Sufian, Senior Manager, noted that proper documentation remains essential despite banks’ willingness to lend.
Entrepreneurs shared their experiences of barriers such as high interest rates and strict documentation. Md. Al-Amin from Bhairab emphasized these challenges, while Sangeeta Sarker, leader of the Women SME Association in Kushtia, called for tailored support for women-owned businesses. Afsana Asif argued that market access should come before finance, and incubation expert Md. Quamruzzaman Babu stressed SME readiness training and equity financing. Amit Sarker, Associate Director of BRAC Microfinance, added that financing must be complemented by training, market linkages, and risk coverage.
Nazmul Ahsan, Portfolio Director at Innovision Consulting, recommended more flexible policies for MSMEs. He suggested that missing a few instalments should not immediately classify businesses as defaulters, as this reduces their future access to finance.
The session also featured a presentation by N. M. Shahriar, Associate at Innovision Consulting, who outlined the project’s objectives and expected outcomes. It was moderated by Md Al Imran Rumon, Portfolio Director at Innovision Consulting.
Senior officials from SME Foundation, including Nazeem Hassan Satter, Mohammad Jahangir Hossain, Md. Masudur Rahman, and Suman Chandra Saha, were also present.
The roundtable ended with a shared commitment among participants to develop practical and inclusive financing solutions to unlock the potential of MSMEs in Bangladesh.