Micro, small, and medium enterprises (MSMEs) in Bangladesh continue to face major hurdles in accessing loans, despite central bank policies designed to ease financing, speakers said at a roundtable in Dhaka.

The event — “Access to Finance: From Policy to Practice” — was organised by the SME Foundation with support from the Local Government Division, Swisscontact, and Innovision Consulting. It brought together entrepreneurs, bankers, policymakers, and development partners to examine persistent barriers.

SME Foundation chairperson Md Musfiqur Rahman said 1.18 crore MSME entrepreneurs were still unable to reach their potential due to limited access to credit. “Despite the sector’s immense contribution to the national economy, various obstacles still restrict their growth,” he noted.

MSMEs, which make up more than 99% of the country’s enterprises, contribute 32% to GDP and 85% of industrial employment, according to the 2024 Economic Census.

Foundation managing director Anwar Hossain Chowdhury described the sector as the “backbone of the economy,” while deputy MD Farzana Khan stressed that discussions on financing have produced “few tangible solutions.”

Swisscontact senior adviser Rukhen Uddin Ahmed urged exploring fintech and private investment as alternatives to traditional bank loans.

Speakers highlighted gaps between Bangladesh Bank’s policies and their implementation at the grassroots level, pointing to excessive collateral demands, bureaucratic delays, and a lack of tailored loan products.

Since 2006, the SME Foundation has supported nearly 20 lakh entrepreneurs, 60% of them women, under national industrial and SME policies.