Sme in Bangladesh

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Introduction
1.1 Origin of the Report:
In recent days the Small and Medium Enterprise (SME) Financing has become animportant area for Commercial Banks in Bangladesh. To align its corporate policy withthe regulation of Central Bank, banks have become more concerned about SME andopened windows to conduct business in this particular area. This study has beenconducted to fulfill the requirements of sixth term MBM program and gain an insightabout the present condition of small and medium enterprise in the economy of Bangladesh and their financing scenario in light of Bangladesh Bank regulation.
1.2 Background of the Study:
After Liberation of Bangladesh, intensive efforts were undertaken to accelerate the rate of industrialization in the country. At the beginning, import substitution and subsequentlyexport-led economic growth strategy was pursued for industrialization. In order to attainthis objective, large amount of industrial credit was funneled to the industrial sector. Butthe whole exercise of industrialization came to a halt with the massive diversion of resources to other non priority sectors. Policy makers, of late, have come to recognize thecontribution of SME sector towards economic development in the country. Small andmedium enterprises have been recognized as one of the most important means for providing better economic opportunities for the people of least developing countries likeBangladesh. A developing economy like that of ours suffers from many peculiar problemssuch as disproportionate pressure of population on agriculture due to lack of ruralindustrialization, unemployment and underemployment of human and materialsresources, unbalanced regional development etc. The contribution of small and mediumenterprises in the solution of these problems is beyond doubt, provided they are organizedand run on scientific basis.Small and medium enterprises are particularly suitable for densely populated countrieslike Bangladesh where SME sector can provide

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