Role of Working Capital Finance in the Growth of SME Sector in Bangladesh

Md. Maniruzzaman

The main objective of this research is to highlight the SMEs working capital requirement and access of finance and related issues, as experienced by SME Entrepreneurs in the Bangladesh. Our study also indicates that the existence of trust between organization and bank improves access of financing and reduces the borrowing costs. This paper helps to think the SME owner/Manager to arrange alternative access of finance to meet up working capital finance. Bangladesh has huge potential in SMEs sector, it is a labor intensive sector but requires optimum level of current assents. Most of the time the SMEs entrepreneurs couldn’t arrange the  current assets from their own capacity, So they requires support either from financial institution or from unorganized sources. This study tries to find out the source of working capital finance and its easy access among the SME owners who are highly ambitious to go forward the SMEs business and try to contribute economic development in Bangladesh