Associating MFIs with SMEs to Assist Post Pandemic Economic Resilience in Bangladesh

Banque de France Research Paper Series Pub Date : 2020-07-20 DOI:10.2139/ssrn.3659434

Md. Aminul Karim, T. Tanisa, K. Sakib

{"title":"Associating MFIs with SMEs to Assist Post Pandemic Economic Resilience in Bangladesh","authors":"Md. Aminul Karim, T. Tanisa, K. Sakib","doi":"10.2139/ssrn.3659434","DOIUrl":null,"url":null,"abstract":"Small and Medium Enterprises (SMEs) are one of the major sources of economic growth. Recent economic growth and development of Bangladesh have been highly linked with the flourishment of SMEs. Access to formal finance is one of the major impediments for the growth of SMEs. The recent economic slowdown due to the COVID-19 pandemic causes the SMEs to suffer to remain in the business. Supply chain disruption, unsold products, lack of product demand, liquidity crisis become more severe in this case. The government of Bangladesh is trying to help SMEs by providing funds through the banking sector but previous studies show the banking sector is not as effective for SME financing. Besides recent banking sector performance seems to be very poor. Therefore, to ensure the best use of funds we need an alternative channel. Mico-Finance Institutions (MFIs) can play a better role in this case. Several studies have shown microfinance was a successful tool to recover small businesses after natural disasters. This paper aims to address the role of microfinance to post-disaster SME financing and identifies the current gap between these two.","PeriodicalId":101534,"journal":{"name":"Banque de France Research Paper Series","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2020-07-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Banque de France Research Paper Series","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3659434","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}

引用次数: 1

Abstract

Small and Medium Enterprises (SMEs) are one of the major sources of economic growth. Recent economic growth and development of Bangladesh have been highly linked with the flourishment of SMEs. Access to formal finance is one of the major impediments for the growth of SMEs. The recent economic slowdown due to the COVID-19 pandemic causes the SMEs to suffer to remain in the business. Supply chain disruption, unsold products, lack of product demand, liquidity crisis become more severe in this case. The government of Bangladesh is trying to help SMEs by providing funds through the banking sector but previous studies show the banking sector is not as effective for SME financing. Besides recent banking sector performance seems to be very poor. Therefore, to ensure the best use of funds we need an alternative channel. Mico-Finance Institutions (MFIs) can play a better role in this case. Several studies have shown microfinance was a successful tool to recover small businesses after natural disasters. This paper aims to address the role of microfinance to post-disaster SME financing and identifies the current gap between these two.

查看原文本刊更多论文

将小额信贷机构与中小企业联系起来，帮助孟加拉国在大流行后恢复经济

中小企业(SMEs)是经济增长的主要来源之一。孟加拉国近年来的经济增长和发展与中小企业的繁荣密切相关。获得正规融资是中小企业成长的主要障碍之一。最近，受新冠肺炎疫情影响，经济增长放缓，中小企业难以继续经营。在这种情况下，供应链中断、产品滞销、产品需求不足、流动性危机变得更加严重。孟加拉国政府正试图通过银行部门提供资金来帮助中小企业，但之前的研究表明，银行部门对中小企业融资并不有效。此外，最近银行业的表现似乎非常糟糕。因此，为了确保资金得到最佳利用，我们需要另一种渠道。在这种情况下，小额信贷机构(MFIs)可以发挥更好的作用。几项研究表明，小额信贷是自然灾害后小企业恢复的成功工具。本文旨在探讨小额信贷对灾后中小企业融资的作用，并找出目前两者之间的差距。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Banque de France Research Paper Series

自引率

0.00%

发文量