SME Financing and Entrepreneurship Development in Bangladesh: An Impact Analysis

Abstract

The current study has examined 41 SMEs financed by BASIC Bank to evaluate the impact on entrepreneurship development. The study evaluates the entrepreneurship development of the sample enterprises through  variables like, sales growth, return on investment, assets turnover and profit margin. The study found that by taking loans from BASIC Bank the sample enterprises have been able to increase their sales, profit, assets and the like. Thus, the findings of the study show that firms that receive bank loans can significantly increase their performance. The regression analysis also depicted the significance of the impact of financing on entrepreneurship development of selected SMEs. The study also highlighted several areas where BASIC bank’s assistance programs create positive effect like, improved profitability, higher level of output, increased sales, increased productivity, increased employment and the like.

Keywords: Productivity, Profitability, Financial assistance, Entrepreneurship Development.

DOI: 10.7176/EJBM/11-4-06