Small and medium enterprises (SMEs) in Bangladesh need to be appropriately classified to enable them to secure the right type of financing, which will pave the way for their growth and strengthening, according to experts who spoke referring to a report titled ‘Financing SMEs: Lessons from German Experiences’ released on November 28. The report has recommended that SMEs be classified into various categories such as micro and small enterprises, medium and large enterprises, normal SMEs, innovative SMEs, necessity SMEs, mature SMEs, and start-up SMEs. Limited access to bank finance, collateral requirements, and high-interest rates are some of the constraints SMEs face in Bangladesh, the report said.
