Problems and Prospects of SME Financing in Bangladesh

Chowdhury, Md. Shahnur Azad; Azam, Md. Kazi Golam; Islam, Sikder Sunbeam

doi:10.18034/abr.v2i2.304

Cited by 34 publications

(22 citation statements)

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“…Developing countries are found to face more constraints than that of the developed countries (Delberg 2011). Like other developing countries, financing has been identified as a major issue for small firm growth in Bangladesh (Akterujjaman 1970;Chowdhury, Azam, and Islam 2015) as this sector has much restricted access to finance in formal institutional sources in Bangladesh (Islam, Yousuf, and Rahman 2014). The issue of small firm financing problem in Bangladesh has been indicated in many studies (Choudhury and Raihan 2000;Ahmed 2004;Rabbani and Suleiman 2005;Alam and Ullah 2006;Chowdhury 2007b;Chowdhury and Ahmed 2011;Zaman and Islam 2011;Khan et al 2012;Mamun, Hossain, and Mizan 2013;Uddin and Bose 2013;Haider and Akhter 2014;Islam, Yousuf, and Rahman 2014).…”

Section: Introductionmentioning

confidence: 99%

Finance, financial literacy and small firm financial growth in Bangladesh: the effectiveness of government support

Hossain

Ibrahim

Uddin

2020

Journal of Small Business & Entrepreneurship

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Although firm growth is an old issue, very limited number of studies have found on the issues of small firm growth. Studies in many countries have focused on some specific growth factors and no comprehensive research on this issue is available to draw a conclusion. Based on the concept of the theory of 'Resource Based View (RBV)', current study motivated to see how the resources like finance and financial literacy of owner-manager affect financial growth of small firms and the role government support plays in that relationship. Data was collected through questionnaire from 407 owner-managers of small firms. Using partial least squares, the study found that both finance and financial literacy has strong positive relation with small firm financial growth. Astoundingly, the study uncovered that government support does not moderate the relationships between finance, financial literacy and small firm financial growth in the expected way, which the study argues to be a result of the seemingly weakness of the government support distributions. Therefore, policy makers and practitioners should ensure the better access to financial resources of small firms and required financial literacy of owner-managers as well as effective government support for fostering more growth of small firms.

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Section: Introductionmentioning

confidence: 99%

Finance, financial literacy and small firm financial growth in Bangladesh: the effectiveness of government support

Hossain

Ibrahim

Uddin

2020

Journal of Small Business & Entrepreneurship

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“…SMEs are already an important feature of the enterprise landscape in Bangladesh. About 80% of all enterprises in the country fall within this category, and the category contributes to 40% of the total employment (Chowdhury et al, 2013). According to the Survey of Manufacturing Industries 2012 of BBS, SMEs comprise 91% of the total manufacturing establishments in Bangladesh, employing 40.9% of total persons engaged in manufacturing (BBS, 2013).…”

Section: Introductionmentioning

confidence: 99%

Role of Small and Medium Enterprise Clusters in Urban–Rural Linkage: A Study Based on Manufacturing SMEs of Khulna City, Bangladesh

Ranman

Kabir

2021

Environment and Urbanization ASIA

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This study explores the role of small and medium enterprise (SME) clusters in urban–rural linkages, an increasingly acceptable strategy in policy planning for regional development. As this approach to development has mostly been studied from a macro perspective, there is paucity of research from a micro perspective, particularly in the context of Bangladesh. This study, thus, aims to explore the contribution of manufacturing SME industry clusters in linking urban and rural regions. The data used in the study has been collected from 119 SME entrepreneurs using a structured questionnaire. Factor analysis and logistic regression have been applied to explore the contribution of industrial clusters in urban–rural linkages, focusing on the city of Khulna as the study area. The findings show that such SME clusters can positively contribute towards linking the two territories through two main forces, namely, funds and mobility. The findings provide useful insights for policymakers and urban planners to take initiatives for identifying and developing such SME industry clusters instead of focusing on the development of large industries, both in urban and rural areas to enhance balanced regional development. In highlighting the contribution of SME industry cluster as a micro level actor in the process of urban-rural integration, the study aims to make a meaningful contribution to literature in the field of development planning.

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“…It has a potential socioeconomic contribution noticeably in job creation, revenue creation, innovations and serve as a vibrant catalyst for urban and rural growth (Love & Roper, 2015;Memili, Fang, Chrisman, & De Massis, 2015;Regnier, 2017). Most of the industrialized countries, over 98% of all manufacturing sector firms originate from the SMEs sector and they are main employment providers (Chowdhury, Azam & Islam, 2015). The characterizations of SME are typically peculiar in every country, established on the role of SME in the economy, policies and programs considered by agencies or institutions authorized to develop MSME.…”

Section: Introductionmentioning

confidence: 99%

Assessing MSMEs Growth Through Rosca Involvement Using Paired t-Test and One Sample Proportion Test

David

Adubisi

Farouk

et al. 2020

Journal of Social and Economic Statistics

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In this research work, rotating savings and credit association (ROSCA) effect on the growth of micro, small and medium enterprises (MSMEs) and identification of a factor supporting the continuity of ROSCAs is studied. A well-designed questionnaire with a reliability value of 0.957 was distributed to 400 entrepreneurs in Wukari through snowball sampling technique. After validity check, 368 valid questionnaires were used for the research. Firstly, a paired t-test was applied to know if entrepreneurs achieve significant positive growth in their business before and after 5 years of joining ROSCAs. At 5% level of significance, entrepreneurs achieved significant positive growth in their businesses 5 years and above of joining ROSCAs. Secondly, a one sample proportion Z-score test was used to identify the major factor responsible for ROSCAs continuity. At 5% significance level, flexibility was identified as the major factor responsible for ROSCAs. It was concluded based on the results obtained that ROSCAs has a significant positive effect on the growth of MSMEs and ROSCAs continuity towards MSMEs growth is due to its flexibility factor in terms of operations, disbursement, seeking loans and interest rate.

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Problems and Prospects of SME Financing in Bangladesh

Cited by 34 publications

References 0 publications

Finance, financial literacy and small firm financial growth in Bangladesh: the effectiveness of government support

Finance, financial literacy and small firm financial growth in Bangladesh: the effectiveness of government support

Role of Small and Medium Enterprise Clusters in Urban–Rural Linkage: A Study Based on Manufacturing SMEs of Khulna City, Bangladesh

Assessing MSMEs Growth Through Rosca Involvement Using Paired t-Test and One Sample Proportion Test

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