IFC-SEDF holds seminar on access to finance
Monday, 25 June 2007
FE Report
The IFC-Southasia Enterprise Development Facility (SEDF) has organised a workshop at a city hotel to provide technical knowledge to the owners of small and medium enterprises (SMEs) on access to formal credit.
About 500 SME entrepreneurs, mostly from Dhaka and its outskirts, are participating in the four-day workshop, which commenced in the capital Saturday.
Sources at the SEDF said one of the key hurdles that the banks face in financing the SMEs is the inability of entrepreneurs to produce a proper business plan.
Besides, absence of book keeping and financial management skills amongst the SMEs are also creating impediments for them to access formal credit.
Sayed Tarek Kamal, IFC-SEDF financial market specialist, told the FE that it had mainly organised the unique event to identify the problems being faced by the SMEs while seeking formal finances.
"We will learn how to approach the financial institutions for credit support, and commercial banks and non banking financial institutions, in turn, will have the opportunity to finance the entrepreneurs," Kamal added.
The workshop will provide technical knowledge on nine specific areas so that the SMEs are well equipped on ways to approach for formal financing.
The technicalities to be taught includes how to apply for loan, common reasons for the SME loan rejection, different financial products, how to write a business plan, how to avoid cash flow problems, how do banks assess creditworthiness among others.
The South Asia based SEDF also organised a special session for the women entrepreneurs.
Ananya Wahid, financial market specialist, conducted the special session.
Women entrepreneurs told the FE that they are facing problems in obtaining loans from the financial institutions and in most cases they are denied because of lacking documents and information sought by the banks.
Shahin Sultana, a participant in the women entrepreneur's session told the FE that she joined the session to know about the financial products being provided by the banks.
Sultana, owner of Troi Boutiques said: "my initial endowment is Tk 100,000 and I want to expand my market with the commitment to marketing quality products. For this, I need financial support to grow".
SEDF sources said it will monitor the development of the workshop and hinted that it might organise more such programmes across the country.
The IFC-Southasia Enterprise Development Facility (SEDF) has organised a workshop at a city hotel to provide technical knowledge to the owners of small and medium enterprises (SMEs) on access to formal credit.
About 500 SME entrepreneurs, mostly from Dhaka and its outskirts, are participating in the four-day workshop, which commenced in the capital Saturday.
Sources at the SEDF said one of the key hurdles that the banks face in financing the SMEs is the inability of entrepreneurs to produce a proper business plan.
Besides, absence of book keeping and financial management skills amongst the SMEs are also creating impediments for them to access formal credit.
Sayed Tarek Kamal, IFC-SEDF financial market specialist, told the FE that it had mainly organised the unique event to identify the problems being faced by the SMEs while seeking formal finances.
"We will learn how to approach the financial institutions for credit support, and commercial banks and non banking financial institutions, in turn, will have the opportunity to finance the entrepreneurs," Kamal added.
The workshop will provide technical knowledge on nine specific areas so that the SMEs are well equipped on ways to approach for formal financing.
The technicalities to be taught includes how to apply for loan, common reasons for the SME loan rejection, different financial products, how to write a business plan, how to avoid cash flow problems, how do banks assess creditworthiness among others.
The South Asia based SEDF also organised a special session for the women entrepreneurs.
Ananya Wahid, financial market specialist, conducted the special session.
Women entrepreneurs told the FE that they are facing problems in obtaining loans from the financial institutions and in most cases they are denied because of lacking documents and information sought by the banks.
Shahin Sultana, a participant in the women entrepreneur's session told the FE that she joined the session to know about the financial products being provided by the banks.
Sultana, owner of Troi Boutiques said: "my initial endowment is Tk 100,000 and I want to expand my market with the commitment to marketing quality products. For this, I need financial support to grow".
SEDF sources said it will monitor the development of the workshop and hinted that it might organise more such programmes across the country.