Bank's Participation in SME Financing: Obstacles to Small Enterprises in Bangladesh and its Remedy

The economic and social magnitude of the Small and Medium Enterprise (SME) segment at the present time is well approved in educational and procedure journalism. SMEs play a very momentous role in the economy in terms of economic augmentation, employment manufacture, entrepreneur improvement, and export take-home pay. Small enterprises lack access to finance due to their possess constrictions as well as the financial institutions' observation of high threat and expensive expenditure. Ensure access to various financial offers for small and medium enterprises (SME) critical to accelerating inclusive financial growth and achieving Bangladesh's goal of becoming a middle-income country by 2024. SMEs contribute about 50 percent of the country's industrial output, which is the lion's share of production, and employ about 80 percent more industrial manpower, They are financially limited, with one The fiscal gap is estimated at 20 percent of GDP. This paper challenges to find out the problems met by small enterprises in getting mortgages from banks in Bangladesh and the major troubles faced by banks while financing small enterprises. For accumulating primary data from the small businesses, three hundred forty-one (341) small enterprises were conference through the questionnaire. Investigation results show that 65.39% of enterprises acknowledged credits from banks, while 34.61% of enterprises did not take delivery of any credit. Small enterprises express more than a few troubles in acquiring credit from banks. On the other hand, 55 special categories of banks are conferences from side to side the opinion poll. Banks cited different troubles connected to small enterprise financing of which non-accessibility of obligatory certification, deficiency of good record of contact, bad reimbursement narration, lack of financial aptitude, being short of safekeeping, and undertaking are very common. Foundation the study findings, a set of strategy proposals have been originated