An observation of SME foundation promoting capital market to SMEs in Bangladesh as an alternative source of financing through Qualified Investor Offer (QIO)

Abstract

Small and Medium Enterprises in Bangladesh are major contributors to the country’s economy with all the signs and potentiality of humungous growth in the next few decades. However, sources of financing at affordable cost and proper accommodation had always been a barrier in the way to their optimal growth. During my period of internship at the SME Foundation, I have observed SME Foundation’s “Credit and Finance Services” wing in promoting the capital market to SMEs throughout the country and growing interested in the reasons for yet an underdeveloped capital market participation of the SMEs. This Report generates insights on the way SME entrepreneurs perceive bank loan availability, their perception of the advantages and drawbacks of QIO offered by SME Foundation and BSEC as well as the current Scenario of SMEs which issued shares via QIO. The report also sheds some light on the banking industry and its inclination toward SME financing.