The New Nation - Internet Edition

ACCORDING to recent media reports, small and medium enterprises of the country would not flourish if the interest rate for their loans is not brought down to half of the general interest rate. The chairman of the SME Foundation has mentioned at a press conference that banks at present charge up to 13 per cent interest for medium and large enterprises while they charge more than 13 per cent interest for small enterprises besides showing a negative attitude towards them. The newly appointed chairman, however, put forward a suggestion of opening 'a bank' of the foundation's own for providing exclusive and better financial help and services to the SMEs.

The SME Foundation has so far failed to fulfil the high hope and ambition as it is run more like a government entity than a private one. At the same time, the foundation is suffering from an image crisis though the new chief has expressed the determination to work with all concerned to overcome it. The main problems the small and medium enterprises of the foundation are non-availability of credit and working capital. The small and medium enterprises would have to be made viable, profitable so that they could contribute significantly to the economic development of the country.

The SMEs, as visualised, might replace the best known micro-credit that is branding Bangladesh around the world as it has the potentials to be the foundation on which country's industrialisation should be based. Being a country, with mostly unemployed people, Bangladesh should employ its citizens in small and medium industries instead of only looking elsewhere for job opportunities. Viability of the enterprises should be viewed with utmost priority and the SME Foundation should acquire the fund as promised by Bangladesh Bank to extend credit to SMEs.