SME entrepreneurs in need of funds to expand business

A nine-grader Meherun was leading the life of a village housewife in Nilphamari following her marriage to a college teacher in 1985 until a big thing occurred to her. She was determined to do something on her own. The burning desire of becoming self-reliant kept chasing her till she found herself in an SME business framework, which not only dispelled the darkness of her abject poverty, but also brought her dignity. The female entrepreneur has now become a trademark in SME world. She is invited to participate in the ongoing 4th National SME Fair in the city. Meherun now runs an SME business entity called Noborupa House with its total capital of Tk20 lakh and yearly turnover more than Tk75 lakh. Over 700 women and men are now employed in her enterprise. A mother of three, Meherun’s entrepreneurial journey was not a smooth one. She had to follow a rough patch. Two years after her marriage, she dropped out of her study. She managed to convince her husband and resumed academic life and finally graduated. Since her husband’s income was not sufficient to run the family, Meherun decided to do something for earning money, but was dissuaded outright by her father-in-law. Nothing could deter her from becoming an entrepreneur. In 1999, she started her business with only Tk75,000 by purchasing some clothes and employing five other women in Syedpur area under Nilphamari district. Since then her business kept gaining momentum, and she had not to look back. Now, she is keen on expanding her business, but fails to realise the dream because of lack of fund. Though there are instructions from Bangladesh Bank (BB) to provide easy loans at a low interest rate for SME entrepreneurs, the reality is different, said Meherun, the owner of Noborupa House, a handicraft and fashion products manufacturer, told the Dhaka Tribune. Like Meherun Nesa, many SME women entrepreneurs are facing the same problem in getting loans from the banks to run and expand their existing business. Talking to the Dhaka Tribune at the fourth national SME fair, several women entrepreneurs expressed their disappointment to  banks and their cumbersome process of providing loans. “I started by business with Tk8,000 about 17 years ago, Ruksana Parvin Naju, owner of Naj Boutique House, a Rajshahi-based entrepreneur, told the Dhaka Tribune. In course of time, the business became bigger and its capital stood at about Tk10 lakh, she said. “I cannot supply products as per the demand of the consumers due to lack of production capacity, she said, adding that currently, products are being supplied to Dhaka, Sylhet and Dubai.” “Due to lack of funds from banks, we have to borrow from NGO at a higher interest rate,” Ruksana said. As per the existing terms and conditions of the banks, every entrepreneur has to mortgage their properties or ensure two grantors, either father or husband, and a government official, they claimed. “The government, banks, stakeholders – all are making empty pledges. Their promises are just word only,” Rabiya Begum Ruby, manger of Tupperware, told the Dhaka Tribune. She said the authority issued a circular to serve the SME sector, but she did not get any loans despite having quality and established business. Several participants, who talked to the Dhaka Tribune at the SME Fair, urged the government to spread training facilities for rural women through the SME Foundation. According to Bangladesh Bank data, the country’s scheduled banks have disbursed Tk1,15,870 crore in SME sector last year.