Research On Small And Medium Enterprises Financing Issues In Bangladesh

The current global market is highly competitive and to remain competitive in the global market continuous growth of the economy is essential. The significance of SME sector to achieve rapid economic development is undisputed. The number of SMEs in Bangladesh is huge and it is growing every day. The economic development of Bangladesh is highly depending on the development of SMEs. However, there are several constraints that are impeding the development of SME sector and one of the primary impediments is access to finance. The main goal of this paper is to explore the financing issues of SMEs in Bangladesh and recommend probable solution to the issues.Data for this study was mainly collected from secondary source because of physical absence in Bangladesh. Articles, journals, studies and theories published by organizations and experts working on SME sector were collected from authentic source. After thoroughly studying their surveys and studies related data has been used in the study. Several definitions of SMEs have been explored to understand the true meaning of small and medium enterprise. Game theory model has been explained to find probable solution to the financing issues. The present scenario of SMEs in Bangladesh indicate that the development of SME sector necessary and the financial issues needs resolution to accelerate the pace of economic development. The SME lending process practiced in the agriculture industry shows that innovative lending process to other industries can solve the financial issues.