POST TIME: 10 May, 2017 00:00 00 AM
Innovative SMEs to get UKAid funded finance

Innovative SMEs to get 
UKAid funded finance

Business Finance for the Poor in Bangladesh (BFP-B), funded by UK Aid of the UK government, has created a fund of six million Pound for the development of SMEs in Bangladesh, reports BSS.
“BFP-B is a UK Aid funded project and the organization has fund titled ‘Business Finance Challenge Fund’ of six million British Pound,” Challenge Fund Manager of BFP-B Md. Arafat Hossain said at a workshop  yesteday.
He said any Bangladeshi private sector firm including bank, non-banking financial institution, micro finance institution, companies providing advisory and other services to SMEs, NGO will have access to this fund as a grant.
The workshop on “Innovative Fund for SME Financing in Bangladesh” was jointly organized by Dhaka Chamber of Commerce and Industry (DCCI) and the BFP-B, said a media release.
Arafat Hossain said the end beneficiary of the fund will be SMEs. The third round of this project is in progress and will end on June 30 this year, he said, adding that the project prefers women entrepreneurs and pro-poor SMEs in rural areas.
“Business Finance Challenge Fund provides grant of up to 50 per cent of the cost of innovative commercially driven project.
The goal of this project as well as fund is to promote inclusive economic growth and to improve the income and livelihood opportunities for poor community in Bangladesh, he added.
Senior Vice President of DCCI Kamrul Islam said SME is the driving force of our economy. SMEs accounts for around 70 per cent of all enterprises in Bangladesh, he said, adding that limited access to finance is the biggest setback for SMEs.
“An innovative financing mechanism needs to be developed to enhance the SME growth of Bangladesh. Smart and innovative financing solutions against conventional financing tools could bring revolutionary change and supplement value to cement their base in macro economy,” he added.
Christopher August, team leader of BFP-B, said this fund has been created for the innovative SME development and poverty alleviation.