Contrary to popular belief it is not giant conglomerates which pave the way to a nation's long-term economic progress but rather smaller businesses run by enterprising individuals. After all, Bangladesh's current position as a promising economic powerhouse owes a lot to our humble beginnings post-independence.
Micro-enterprises, then, are the indisputable cornerstone upon which our nation's very foundation lies upon.
While our nation's current economic standing sees numerous industries benefiting from government subsidies, over the years our micro-enterprises seem to have been all but forgotten. Which is why the recent agreement signed by the Asian Development Board and our government for a loan of $200 million that seeks to bolster micro-enterprises owned by women through microfinance is absolutely a positive step.
Due to being small-sized operations by nature, a lack of collateral, along with weak operational capacity and information systems, MFIs find it difficult to secure commercial bank financing to on-lend to micro-enterprises. Which is where this initiative steps in.
This initiative has the potential to not only make a drastic impact on our rural economy but to also further the goal of women's economic emancipation in regions where women's autonomy is still, unfortunately, not a given.
However, as forward-thinking as this initiative is, there is still an overall need to unify business development support between all micro, small, and medium enterprises (MSME) in Bangladesh. Our country's growth, as impressive as it has been, has hardly been equitable, with a distinct fracture lying between MSMEs and bigger entities.
A holistic approach to helping our MSMEs is, therefore, the most pressing need of the hour. But this is still a good place to start.