An Analysis of Strengths & Weaknesses of SME Financing Program in Bangladesh:A Study on Social Islamic Bank Ltd

Abstract

After decades of researches and experiments with various enterprises model SMEs have emerged as the cornerstone of economic development in developing countries providing the platform for job creation and economic growth. So SMEs play an important role both in the developed and the developing countries including Bangladesh socially and economically. Lasting private sector development depends on them. Small industry involving simple technology and less investment has enormous potentiality for future growth and development in Bangladesh. The enterprises need financial aid to grow up SMEs through banking sector. Social Islamic bank is a leading Islamic bank in our country and the main target of this bank is to make credit available according to the Islami Sariah to the poor people. The main strengths of their SME practices are they are providing enough capital to the customers for starting their business and customers are satisfied about the collateral requirement for the loan amount. Another major strength of this bank is that according to the customers the special scheme for SME financing is successful to create positive impact in improving our socioeconomic condition. One of the major weaknesses of their SME practice is their high interest rate. Their SME service centers are also not convenient and available to all customers.

Keywords: SME, socioeconomic, strengths, weaknesses, Bangladesh.