“The entrepreneurs starting small businesses today will become tomorrow’s industrial leaders. Our responsibility is to ensure they have access to finance, knowledge and opportunities to succeed.”
The entrepreneurs starting small businesses today will become tomorrow’s industrial leaders. Ensuring they have access to finance, knowledge and opportunities is essential because supporting CMSMEs means investing in Bangladesh’s future economy.
The cottage, micro, small and medium enterprise (CMSME) sector is one of the strongest pillars of Bangladesh’s economy. Its contribution goes far beyond business activities.
The sector generates employment, creates new entrepreneurs, promotes industrialisation and strengthens local economies across the country.
What makes CMSMEs particularly important is their ability to create opportunities at the grassroots level. From small manufacturers and traders to service providers and agro-based enterprises, CMSMEs help transform economic potential into productive activities.
In many cases, today’s large industries started as small enterprises. Supporting CMSMEs therefore means investing in Bangladesh’s future economy.
At Al-Arafah Islami Bank, we consider CMSME financing a strategic priority because entrepreneurship development is essential for sustainable economic growth and employment generation.
Our CMSME investment portfolio currently stands at approximately Tk10,963 crore, serving more than 9,357 entrepreneurs across the country. To address diverse business needs, we have introduced specialised products such as Tijara, NISA, At-Tawfiq and Al-Awana.
These provide both collateral-free and collateral-backed financing options, allowing entrepreneurs to access financial support according to their business requirements.
Collateral remains one of the biggest barriers for small entrepreneurs seeking formal financing. Many capable entrepreneurs have strong business ideas and market potential but lack traditional security.
To address this challenge, we introduced collateral-free financing solutions such as Tijara for CMSME entrepreneurs and NISA for women entrepreneurs.
Rather than focusing solely on collateral, we increasingly evaluate business potential, cash flow, experience and the overall viability of the enterprise.
Our objective is to bring more entrepreneurs into the formal financial system and help them grow their businesses sustainably.
Financial inclusion is central to our mission because we strongly believe an entrepreneur’s location should never determine access to opportunity.
Through our extensive branch network, sub-branches, agent banking operations and field-level engagement, we are reaching entrepreneurs in rural and semi-urban areas.
In addition, our Al-Arafah Rural Development Program (ARDP) supports low-income individuals, micro-entrepreneurs and rural households through financing and income-generating activities.
By supporting agriculture, rural enterprises and small traders, we are helping strengthen local economies and create sustainable livelihood opportunities throughout the country.
Agriculture remains one of the most important sectors of Bangladesh’s economy, and its development is closely linked to rural prosperity and food security.
Through our AIB Open Investment for Agri Financing initiative, we provide financial support across the agricultural value chain, including production, processing, storage, transportation and marketing activities.
Our goal is not only to finance agricultural production but also to support agribusiness development and help farmers become successful entrepreneurs capable of generating higher value and income.
Women entrepreneurs are making significant contributions to Bangladesh’s economy, and we consider their economic empowerment a strategic priority.
Our women entrepreneurship portfolio is approximately Tk200 crore, serving nearly 900 women entrepreneurs nationwide.
To support their growth, we have introduced dedicated products such as NISA and Al-Awana. Beyond financing, we encourage women entrepreneurs to enhance their business knowledge, strengthen market linkages and take advantage of new opportunities created by digital technologies and changing consumer behaviour.
Access to finance alone is not enough. Sustainable business growth also requires knowledge, planning and managerial capability.
This is why we place strong emphasis on entrepreneur development initiatives. Through our business network and awareness programmes, we provide guidance on financial management, business planning and banking services.
We are also actively involved in entrepreneur development initiatives under Bangladesh Bank’s Skills for Industry Competitiveness and Innovation Program (SICIP), which helps entrepreneurs strengthen their managerial, financial and operational skills.
Technology is transforming the way financial services are delivered. Entrepreneurs today expect faster, more convenient and more transparent banking experiences. We are progressively digitising processes related to customer onboarding, documentation, application handling and service delivery.
Digital banking solutions reduce turnaround time, improve efficiency and enhance customer experience. As digital adoption increases, data-driven assessment and technology-enabled services will further expand financial access for entrepreneurs while ensuring sound risk management.
While the sector has tremendous potential, entrepreneurs continue to face several challenges, including limited access to finance, rising business costs, market competition, technological adaptation and market access constraints.
Many small businesses also require support in improving productivity, adopting technology and connecting with larger supply chains.
Addressing these challenges requires coordinated efforts from government agencies, Bangladesh Bank, financial institutions, business associations and development partners.
I am highly optimistic about the future of Bangladesh’s CMSME sector. Over the next five years, I expect the sector to become more formalised, technology-driven and integrated into national and global value chains.
At Al-Arafah Islami Bank, our vision is to be more than a financing institution. We want to be a long-term development partner for entrepreneurs.
CMSME financing represents around 22 per cent of our total investment portfolio, and we aim to increase this share to approximately 30 per cent in the coming years.
We firmly believe empowering entrepreneurs today will strengthen Bangladesh’s economy tomorrow. By providing inclusive, Shariah-based and sustainable financial solutions, we hope to help entrepreneurs grow, create jobs and contribute to the nation’s long-term prosperity.
