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Started in September 2006
and funded by the Japanese Bank for International Cooperation (JBIC),
this six-month survey assessed the degree of access to credit among
micro, small and medium sized enterprises (MSMEs) in Bangladesh.
A recent survey estimated
that MSMEs employ about 31 million people and contribute 20 - 25 %
of GDP in Bangladesh.[1]
The
same survey also stated that over three-quarters of MSMEs are
located in rural areas. Though faced by many challenges, it is
commonly understood that access to credit is the most significant
challenge facing these enterprises – they are too big for
traditional microfinance institutions but too small for the formal
banking sector. JBIC wanted to know more about the existence of
said “missing middle” enterprises and the extent of their exclusion
from available means of finance.
In order to draw
conclusions that might be more applicable to the nation as a whole,
JOBS and JBIC selected eight (8) districts, clustered in the north
and west of the country. Selection was based on: Concentration of
agri-business and manufacturing concerns; Commercial agricultural
production (both crop and livestock); Concentration of input
suppliers; Presence of big, private sector production facilities;
and presence of BSCIC (Bangladesh Small and Cottage Industries
Corporation) facilities.
Objectives:
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Identify the “missing
middle” enterprises, considering such aspects as size, sector
and required credit
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Define the barriers
said enterprises encounter when trying to access credit
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Assess the mismatch
between financial services required and those services available
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Locate key areas where
support is required and provide recommendations
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