By Mahadi Hasan 

DHAKA, June 1, 2026 (BSS) - The Small and Medium Enterprise Foundation (SME) is helping around 2,500 grassroots entrepreneurs every year overcome financial and operational challenges through its Financial Literacy Programme, enabling them to access bank loans, improve business management, and expand their enterprises. 

The programme, designed primarily for small, micro, and cottage industry entrepreneurs, provides practical training on banking procedures, loan application processes, business documentation, record-keeping, trade licensing, and financial management. 

Officials said the initiative has become a vital tool for entrepreneurs who often struggle to secure institutional financing due to inadequate documentation and limited understanding of banking requirements. 

Deputy Managing Director of the SME Foundation Md Najim Hasan Sattar said many grassroots entrepreneurs possess strong business potential but fail to qualify for bank loans because they do not maintain proper records of their transactions and business activities. 

"Our entrepreneurs frequently lack formal business documentation, which creates obstacles when seeking loans from financial institutions," he said. 

To address this challenge, he said, the SME Foundation organizes regular training sessions across the country, equipping entrepreneurs with the knowledge and skills needed to manage their businesses more professionally and meet banking compliance requirements. 

Beyond training entrepreneurs, he mentioned that the foundation also trains approximately 500 bankers annually on SME-related government policies and the unique challenges faced by small business owners, helping create a more entrepreneur-friendly banking environment.
 
A key component of the programme is its matchmaking initiative, through which the foundation connects entrepreneurs directly with banks and financial institutions, he added. 

Under this arrangement, he said, groups of 40 to 50 entrepreneurs meet senior banking officials to discuss financing opportunities, loan requirements, and business prospects.
 
"The initiative has helped reduce entrepreneurs' fear of approaching banks while increasing their confidence in seeking formal financial services," he noted. 

The positive impact of the programme is reflected in the experiences of many beneficiaries. 

Nurjahan Begum, owner of Rani Boutique and Tailor House, said she was initially reluctant to visit banks due to a lack of knowledge about financial procedures. 

After receiving guidance and training from the SME Foundation, she successfully applied for a loan and expanded her business operations. 

Similarly, Arif Hossain, a jute product manufacturer, said the programme taught him how to maintain proper business records and financial documents, enabling him to secure bank financing more easily. 

The SME sector contributes between 27 and 30 percent of Bangladesh's Gross Domestic Product (GDP) and plays a crucial role in employment generation, industrial diversification, and rural economic development. 

Since its establishment, the SME Foundation has been working to strengthen the sector through entrepreneurship development programmes, capacity-building initiatives, SME fairs, and financial literacy campaigns. 

Officials believe that by training thousands of grassroots entrepreneurs every year and improving their access to finance, the foundation is contributing significantly to the long-term growth, competitiveness, and sustainability of Bangladesh's SME sector.