...SME defined by SBP as an entity having less than 250 employees and Rs. 300 million revenues. SMEs account for a substantial part of the economy; there are about 3.2 million enterprises in Pakistan, of which about 3 million (93%) are SMEs. SMEs spread across the economy with varying density: see exhibit 1-A for the sector wise division of SME sector. According to a survey conducted by SMEDA, this sector contributes more than 30% to GDP and 25% to the country’s total export earnings, and employs close to 70% of the labor force in the manufacturing industry, services, and trade. Their share in manufacturing value addition is estimated to be around 35%. Small & medium businesses play a very critical role when economies are transiting from low to middle income levels yet Pakistan has paid less attention to the growth and development of this crucial pillar of economy. Our report mainly focuses on the financial constraint to growth of this sector. Capital requirements: According to SMEDA there’re 800,000 SMEs in Pakistan that are eligible for bank loans. Another 2.4 million potential businesses that can’t qualify for bank loans mainly rely on other sources of finance for their business needs. Approximately 89% of working capital and 75% of fixed investments are financed from retained earnings. (See exhibit 1-B) Remaining financing needs are fulfilled from external sources which include family and friends, bank loans and other small sources as depicted in exhibit 2-A. Despite the...
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...SME Financing in Bangladesh: Problems and Prospects SME Financing in Bangladesh: Problems and Prospects Prepared for Arafat Rahman Assistant Professor Institute of Business Administration Jahangirnagar University Prepared by Tanjila Sharmin 201301029 Md. Mourshed Uddin 201303006 Naim Ahmad 201403020 Sayeed Ishtiaque Ahmed 201403027 Md. Sazzad Hossain 201403034 Course Participant BUS 501: Managerial Communication (Section-02) WMBA Program Institute of Business Administration Jahangirnagar University December 20, 2014 Letter of authorization November 23, 2014 Course Participant BUS 501: Managerial Communication The purpose of this report is to familiarize you with the basic techniques and principles associated with writing a formal business report so that you can build and enhance this specific written communication skill. This formal report will be coordinated with a formal presentation session on the topic of the report. At a minimum, your report should include information related to the following issues: Introduction to the Industry/Sector/Area – What is the industry/sector/Area? What is the background of the industry/sector/Area in Bangladesh? Who are the major participants? You may show how the industry/sector/area is contributing to the economic development of the country. In this case, you must use industry-related data for the past three years (at least). In case of export-oriented industries...
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...Institutional Financing of SME in Bangladesh [pic] [pic] TERM PAPER ON Institutional Financing of SME in Bangladesh Submitted By: ID- Program- BBA Premier University, Chittagong Submitted in partial fulfillment of the requirements for the Bachelor of Business Administration. Submitted To: Ms. Nilufar Sultana Lecturer, Dept. of Finance & Banking, Faculty of Business Studies, Premier University, Chittagong. DATE OF SUBMISSION: /09/2012 Letter of Transmittal Date: To Ms. Nilufar Sultana Faculty of Business Studies Premier University, Chittagong Sub: Letter of Transmitter on Term Paper Dear Madam, This is my pleasure to submit my term paper report on “Institutional financing of SME in Bangladesh” which I was assigned. It was a great opportunity for me to acquire knowledge and experience in respect of the functions, procedures and operational activity, other than my topic of study. I have concentrated my best efforts to achieve the objectives of the assignment study and hope my endeavor will serve the purpose. However, I will always be ready to provide any further clarification that you may require. Sincerely Yours, ID# Program: BBA Batch Number: 16 8th Semester Section: Major:...
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...CHAPTER - 1 INTRODUCTION 1.1 INTRODUCTION TO SMEs Small and Medium Enterprises (SMEs) have played a significant role world over in the economic development of various countries. Over a period of time, it has been proved that SMEs are dynamic, innovative and most importantly, the employer of first resort to millions of people in the country. The sector is a breeding ground for entrepreneurship. The importance of SME sector is well-recognized world over owing to its significant contribution in achieving various socio-economic objectives, such as employment generation, contribution to national output and exports, fostering new entrepreneurship and to provide depth to the industrial base of the economy. Small and medium-sized enterprises (SMEs) are the backbone of all economies and are a key source of economic growth, dynamism and flexibility in advanced industrialized countries, as well as in emerging and developing economies. SMEs constitute the dominant form of business organization, accounting for over 95% and up to 99% of enterprises depending on the country. They are responsible for between 60-70% net job creations in Developing countries. Small businesses are particularly important for bringing innovative products or techniques to the market. Microsoft may be a software giant today, but it started off in typical SME fashion, as a dream developed by a young student with the help of family and friends. Only when Bill Gates and his...
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...scarce capital, intensive technology, foreign exchange constraints, poor management, corruption and inadequate attention to economic viability and market prospects which has resulted in poor performance of the industries in terms of output and employment (Steel & Webster, 1992). Following an economic recession in the 1980’s which resulted in the retrenchment of workers from the civil service, the rationalization of production in the private sector under the Economic Recovery Programme (ERP) was launched in 1983, and the high population growth rate of 2.6% per annum, coupled with the inability of the medium and large scale enterprises to grow and expand over time to absorb the idle labour, the SMEs has become an important option and alternative source of employment. SMEs have been...
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...GUIDE FOR EXPORTING SMEs EXPORT IMPACT FOR GOOD © International Trade Centre 2009 The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. Street address: ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland ITC, Palais des Nations, 1211 Geneva 10, Switzerland +41-22 730 0111 +41-22 733 4439 itcreg@intracen.org http://www.intracen.org Postal address: Telephone: Fax: E-mail: Internet: HOW TO ACCESS TRADE FINANCE A GUIDE FOR EXPORTING SMEs Geneva 2009 ii ABSTRACT FOR TRADE INFORMATION SERVICES 2009 F-04.03 HOW INTERNATIONAL TRADE CENTRE (ITC) How to Access Trade Finance: A guide for exporting SMEs Geneva: ITC, 2009. x, 135 p. Guide dealing with the processes involved in obtaining finance for exporting SMEs – explains the credit process of financial institutions from pre-application to loan repayment; examines the SME sector and barriers to finance, as well as the risks in lending to the SME sector as perceived by financial institutions; addresses SMEs’ internal assessment of financial needs, determining the right financing instruments, and finding the appropriate lenders and service providers; discusses how to approach and negotiate with banks; tackles cash flow and risk management issues; includes examples of real-life business plans and loan requests; includes bibliography (p. 134). Descriptors: Trade Financing, Export Financing, Export Credit, Risk Management, SMEs, Manuals. English...
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...SME financing peaked to nearly Rs. 400 billion in 2008 to Rs. 319 billion in June 2010. The number of SME borrowers has come down significantly to 197,808 constituting only about 5.2% of the total number of the borrowers of the banking industry. Credit gap of Rs. 25 billion is causing various SME closures. Cumbersome procedure and delays: Even after providing collateral the loan approval takes well over 6 months. According to a survey conducted by SMEDA most of the SMEs are denied credit by rejecting their movable/immovable properties other than land as collateral. As small business owners in Pakistan are not well educated, they’re unable to meet the stringent standards of banks. Either SMEs don’t apply for bank loans at all, or if they do (10.7%) they’re more likely to be rejected (75%) as compared to large businesses due to absence of established structures. The cost of credit financing: For SMEs access to risk-sharing credit is also difficult because of high costs. The interest rate spread of banks increased from 3% during 1990’s to 8% by the turn of the new millennium. According to a study conducted by ADB, lease financing represents up to 25% of total fixed investment. The cost of funds for leasing companies averaged approximately 18% per annum which is much higher than for banking sector. The report issued by ADB also identifies the difficulties in obtaining export finance as banks require export letters of credit. SMEs being mostly indirect exporters can’t...
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...International Journal of Business and Management Tomorrow Vol. 2 No. 7 Scope and Strategies in Financing of SMEs by Banks Onkar Chand Rana, Asst. Professor, Sri Sai University, Palampur, H.P. Professor K. Ravi Sankar, IGNOU, New Delhi Abstract Scope and Strategies in Financing of Small and Medium Enterprises by Banks- a case study of State Bank of India at Pathankot, was conducted with a view to examine the problems of SMEs of Pathankot area, examine the scope of further financing SMEs by Banks in Pathankot area and devise requisite strategies for financing of SMEs by Banks in Pathankot area and thereby increase their SME loans portfolio which would help the banks and ultimately the country to achieve the projections as per Indian vision 2020- a document by the Planning Commission according to which the Industry share in GDP which is 26% at present is projected at 34% and the service sector share which is at present 46%, is projected at 60% by the year 2020. On the analysis of the secondary data, which was obtained from Banks Performa Reports, Annual Returns and Annual Credit Plans, it was observed that huge scope exists for the banks in Pathankot centre for intensive financing of SMEs which is observed from the data that at present CD Ratio at the centre is 58.71% (below the prescribed national average of minimum 60%) and the share of SMEs to total advances being 31.58%, which need to be increased to at least 50%. The primary study was conducted on the basis of random...
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...definition of Small and Medium Enterprises (SMEs). Some define them in terms of their total revenue, while others use the number of employees as an indicator. The European Union defines a medium-sized enterprise as one with a headcount of 250, a small firm as one with a headcount of less than 50 and a microenterprise as one with a maximum of 10 employees. The National Board for Small Scale Industries (NBSSI) which is the regulatory body for SMEs in Ghana defines SMEs in terms of both fixed asset and number of employees. It defines an SME as an enterprise with turnover greater than US$200,000 and not more than US$5 million equivalent (NBSSI) The SME market constitutes the vast majority of businesses in Ghana and over the years has evolved to become the key supplier and service provider to large corporations, including multinational and transnational corporations. Principally, SME’s has contributed to: Expanding output; Providing value-added activities in the manufacturing sector; Creating employment opportunities especially in the services sector; Contributing to broadening Ghana‟s export base; Increased competition; Innovation; SMEs are important to almost all economies in the world, especially to those in developing countries. They contribute to productivity and job creation; they serve as a nursery for larger firms constituting the next step for micro enterprises (Palma and Gabriel, 2005). In addition, SMEs tend to be the primary driver for job creation...
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...Executive summary The objective of this report was to analyse the global topic of entrepreneurship, review entrepreneur traits and social entrepreneurship trends. Studies suggest entrepreneurs post success possess common traits, suggesting traits can be acquired. With these strong traits, entrepreneurs have the potential to produce substantial change on all levels of the triple bottom line. Profitability is equally as important to both commercial and social entrepreneurs. However, it is where they funnel their profits and their driving forces that differ. With so many social issues globally, there are a myriad of social entrepreneurship trends. However, this report focuses on community-supported agriculture, youth homelessness and support for refugee women, all of which are in need of extra support from social entrepreneurship. Contents 1.0 Introduction 1 2.0 Section 1: Overview of Entrepreneurship 2 2.1 Entrepreneurs 2 2.2 Social Entrepreneur 4 3.0 Section 2: Current Trends in Social Entrepreneurship 7 3.1 Community Supported Agriculture 7 3.2 Social Integration and Employment for Refugee Women 9 3.3 Youth Homelessness 10 4.0 Conclusion 11 5.0 References 12 1.0 Introduction The purpose of the report is to review entrepreneurship, identify the traits of an entrepreneur, and examine the factors that differentiate social and commercial...
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...“Problems to solve by lucy kellaway & the Financial Times” Do I have to invite co-workers to my wedding? This is a very interesting question. When you see it if no one asks you to think about it one is likely to think “what a stupid question, that has an obvious answer”, but you would be wrong. A person that works in a company will most likely spend more time there then at home. It shouldn't be to much of a predicament if the person holding the wedding gets is friends with everyone at work, which might happen if you work for a small company, and the work space consists of a small work force. What if you don’t like some one in your work place? or even if one feels that the time they spend with their colleagues is more then enough? It really depends on the person who is about to take the ultimate step in a relationship. One can invite everyone and just have to deal with those who are not to their liking, which will prevent any future resentments. One can invite just the ones they get along with, this with the notion that others will find out about the happening, and might result in future quarrels in the future. A politically correct approach can be taken by not inviting their co-workers to the wedding using the expenses as an excuse. As a person that has never worked in an office environment, and hasn’t even pondered on the idea of getting engaged, it is hard to considered the approach that I would take. Based on school environment birthdays, I believe if I was eccomicly...
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...The issues that our company has to address is setting up a for profit business in a place where there are the many disasters and calamities that are affecting the area. Another issue is that there are environmental elements that cause damage to the island which can in turn jeopardize the economy due to the fact that the majority of the resources that are used to support the country come from agricultural means. Along with the many instances of environmental threats, there are also external and internal disasters that have affected the island. Upon arrival I am greeted with the aftermath of a set of disasters that has recently ailed Kava. The objective of the company is to set up business here and in doing so give some of what has been taken away back to the country. This is easily said than done. There are a lot of things to consider in solving the problem. The main concentration at this point will be organizational processes, human resources, and ethics. The organizational processes of the company are to flow together to do the best thing for the people involved in the company while also making profit. In order for us to be successful, our organizational processes need to aim for the most beneficial way to introduce and do business here in Kava. Having the company here will help to bring in a new additive to the economy. There will be new area of work opened to the people here The decision-maker weights the previously identified criteria in order The various key...
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...going to be put under the microscope, divulging into the many aspects and rules of an expert witness and the opinion they give. A In the Criminal Procedure Rule, it terms an expert witness a person who is required to give expert evidence for the purpose of criminal proceedings, including evidence that is to determine the fitness to plead or for the purpose of sentencing. For example one may call on a police officer that is experience in collision investigations may offer his expert opinion on how the accident transpired. There are also times when an expert witness is not required, where a judge or jury can form his or her own views and inferences without the help of an expert. Expert witnesses can be called to testify on a variety of issues, such as DNA analyses, engineering, architecture, handwriting, fingerprints, psychologists, pathologist, etc. “When knowledge of a technical subject matter might be helpful to a trier of fact, a person having special training or experience in that technical field, is permitted to state his or her opinion concerning those technical matters even though he or she was not present at the event.” Expert witness will give an opinion of the facts that are presented in the relevant court case. It is known as...
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...CREATING SHARED VALUE BUSINESS POLICY ASSIGNMENT - 2 Executive Summary Creating Shared Value - Reinventing Capitalism By Michael Porter & Mark Kramer According to Michael Porter and Mark Kramer, "Creating Shared Value" can be defined as Policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. The concept of shared value which focuses on the connections between societal and economic progress has the power to unleash the next wave of global growth. Shared value involves creating economic value in a way that also creates value for society by addressing its needs and challenges. The purpose of the corporation must be redefined as creating shared value, not just profit per se. This will drive the next wave of innovation and productivity growth in the global economy. Moving Beyond Trade‐Offs Solving social problems has been ceded to governments and to NGOs. Corporate responsibilities programs a reaction to external pressure have emerged largely to improve firms’ reputations and are treated as a necessary expense. Fair trade aims to increase the proportion of revenue that goes to poor farmers by paying them higher prices for the same crops. Though this may be a noble sentiment, fair trade is mostly about redistribution rather than expanding the overall amount of value created. The Roots of Shared Value A business needs a successful community...
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...Social Problems in Societies Caroline Muthoni Kagane Kenyatta University Social Problems in Societies. A social problem is an issue that has an impact on members of society. It either affects members directly or indirectly. These are problems that a community agrees to be acceptable or unacceptable. Things like abortion, poverty, drug abuse and domestic violence can be listed as examples of social problems (Linda, David , & Caroline , 2012). Drug abuse is excessive, irrational and self-damaging use of a substance resulting to continuous craving, psychological damage, illusion or death. Drug abuse is a societal problem mainly affecting the youth both in school and out. Most youths engage in drug abuse out of peer pressure from friends who recruit each other into cults. The use of drugs in societies is high where the level of literacy is low. Nana (2006) notes that learned youths who are struggling to find good job after they are through with their education, get frustrated and engage themselves in use of drugs. This is one of the major problems in many societies where people cannot find job that match their level of education hence find comfort in use of drugs. Easy availability of drugs in today’s society makes it effortless for many people to get access to drug resulting to even small children using drugs. There are so many outlets where people can get drugs at a cheaper price hence so many people engaging themselves in drug abuse (Bosco & Moses...
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