SME and Microfinance

Criteria of SMEs updated as per SMESPD circular of B Bank 07 January 2016

SME plays vital role in market creation, employment and national economy.  Investment type in IBBL

Type	Mechanism
Term Investment	HPSM
Current Investment	Murabaha, Muajjal, Musharaka
Business/ Entrepreneur inv	Murabaha, Muajjal, Musharaka

Eligibility for SME Investment

Sole proprietorship, Partnership, Private Ltd company with Required infrastructure, Manpower, cash flow, marketability of products goods,

SME Sectors

Manufacturing: Food processing, Agri based industy, tannery, garments, electronics

Trading: all goods including import and export sectors

Service: Transport, telecommunication, hotel , information technology 

Category	Attributes under the categories	Fixed Assets (at cost)(Excluding land and building including Replacement Cost )	or total number of employees
Small Enterprise	Both Service & Trading Concern	Tk. 5 lac to 1 Crore	10 to 49 for service & 6 to 10 for trading
	Manufacturing Concern	Tk. 50 lac to 10 crores	25-99
Medium Enterprise	Both Service & Trading Concern	Tk. 1 Crore to 15 Crores	50 to 100
	Manufacturing Concern	Above Tk. 10 Crores to 30 crores	100-250

Note: If any entrepreneur falls under SE category on the basis any one standard, but the same falls under Medium category on the basis of the other standard, then the enterprise shall be treated as Medium Enterprise.

Criteria of SMEs (Contd.)

Category	Attributes under the categories	Fixed Assets (at cost) (Excluding land and building and including Replacement Cost )	And/or total number of employees
Micro Enterprise	Both Service & Trading Concern	Less than Tk. 5 lac	Less than 10
	Manufacturing Concern	Tk. 5 lac to 50.00 lac	10-24 or less
Cottage Industry	No division of concern	Less than Tk. 5 lac	Not more than 10 including family members

Note: If any entrepreneur falls under Micro category on the basis any one standard, but the same falls under Small category on the basis of the other standard, then the enterprise shall be treated as Small Enterprise.

Woman Entrepreneur: If a woman is owner of proprietary firm or in case of Partnership business, if she owns 50% share, she will be treated as Woman entrepreneur.