How IPDC is supporting the businesses powering Bangladesh's economy

Small and medium enterprises are widely recognised as the backbone of Bangladesh's economy, contributing around 25% of GDP and generating a significant share of non-agricultural employment. Beyond these numbers, SMEs play a critical role in entrepreneurship development, industrialisation and inclusive economic growth. Across the country, they continue to create opportunities, support livelihoods and contribute to economic resilience.

Despite facing challenges arising from inflationary pressures, elevated financing costs, exchange-rate volatility and global economic uncertainties, Bangladeshi SMEs have demonstrated remarkable resilience and adaptability. Their ability to navigate difficult conditions reflects the strength and potential of the sector.

From IPDC's perspective, the long-term outlook for SMEs remains highly promising. Increasing domestic consumption, rapid digital adoption, supply-chain diversification, and the growing participation of women and youth entrepreneurs are creating new opportunities. We believe sectors such as light engineering, agro-processing, healthcare, logistics, technology-enabled services, renewable energy and sustainable manufacturing are well-positioned to drive future growth. With improved access to finance, greater formalisation and supportive policy interventions, SMEs can become an even stronger engine of Bangladesh's transition towards an upper-middle-income economy.

At IPDC, we view digital transformation as a key enabler of SME growth and competitiveness. We continue to invest in digital financial services that make financing more accessible, convenient and efficient for entrepreneurs.

As reflected in IPDC Finance PLC's audited financial statements for the year ended 31 December 2025, SME financing remains one of our strategic priorities. We have continued to maintain a diversified lending portfolio with a strong focus on productive sectors, reinforcing our commitment to supporting entrepreneurship and economic development.

Access to finance remains one of the most significant challenges facing SMEs, particularly in an environment characterised by higher interest rates, tighter liquidity conditions and rising operating costs. Many promising businesses continue to struggle to secure adequate working capital or expansion financing despite having viable business models.

At IPDC, we recognise that SMEs require more than just funding. They need financial solutions tailored to their business cycles and growth ambitions. We support entrepreneurs through customised SME financing products, streamlined credit assessment processes and relationship-based banking that focuses on understanding each client's unique requirements. Our SME portfolio spans manufacturing, trading, services, healthcare, education and agribusiness sectors.

We also place strong emphasis on financial inclusion by reaching underserved entrepreneurs, including women-led enterprises and businesses operating beyond major urban centres. In addition to financing, we provide advisory support, financial literacy initiatives and business guidance to help entrepreneurs strengthen governance, improve cash-flow management and enhance long-term sustainability. These efforts are aligned with our broader objective of fostering responsible and inclusive economic growth.

As SMEs grow, many encounter challenges in transitioning from informal operations to structured business management. Common obstacles include governance issues, financial record-keeping, taxation compliance, working-capital management, technology adoption, succession planning and access to larger domestic and export markets.

Financial institutions can play an important role by going beyond traditional lending. At IPDC, we believe in supporting businesses throughout their growth journey by providing structured financing solutions, advisory services and guidance on financial discipline and business planning. We encourage entrepreneurs to maintain proper financial records, adopt digital accounting systems and strengthen governance practices, which are often essential prerequisites for larger-scale financing. As businesses mature, access to term financing, supply-chain financing and technology investment becomes increasingly important. By helping SMEs formalise operations and improve operational efficiency, financial institutions can facilitate their transition into larger and more competitive corporate entities.

Digital transformation is also reshaping the business landscape. Across Bangladesh, SMEs are increasingly adopting digital payments, mobile financial services, e-commerce platforms, cloud-based business tools, inventory management systems and data-driven decision-making practices to improve efficiency, expand market reach and strengthen customer engagement.

At IPDC, we view digital transformation as a key enabler of SME growth and competitiveness. We continue to invest in digital financial services that make financing more accessible, convenient and efficient for entrepreneurs. Our focus remains on simplifying customer journeys, enhancing digital engagement and leveraging technology to deliver faster and more responsive financial solutions. The growing use of digital channels has also improved transparency and financial inclusion, enabling SMEs to build stronger financial footprints and improve access to formal financing. We believe empowering SMEs through digitalisation will strengthen their competitiveness both locally and globally while contributing to the broader digital transformation of Bangladesh's economy.

Another encouraging development within the SME ecosystem is the steady rise of women entrepreneurship. Women-owned businesses are growing across sectors including retail, manufacturing, services, technology, healthcare, education and agribusiness. Women entrepreneurs are demonstrating strong business acumen, innovation and resilience while contributing significantly to employment generation and economic empowerment.

IPDC has long been committed to promoting women's financial inclusion. Through dedicated financing programmes, tailored products, capacity-building initiatives and strategic partnerships, we aim to address the unique challenges women entrepreneurs often face in accessing finance, collateral, business networks and market opportunities. Our commitment extends beyond providing capital. We actively support entrepreneurship development through awareness programmes, financial literacy initiatives and ecosystem partnerships designed to help women-led enterprises scale sustainably. This aligns with our broader vision of fostering inclusive growth and expanding economic opportunities for underrepresented segments of society.

On World SME Day, I would like to emphasise that the sustainable growth of SMEs requires a collective effort from policymakers, financial institutions, development partners and entrepreneurs themselves.

Policymakers can continue supporting SMEs through business-friendly regulations, infrastructure development, digital enablement, export facilitation and policies that encourage formalisation, innovation and productivity enhancement. Financial institutions should focus not only on expanding access to finance but also on providing advisory support, financial education and capacity-building services that help businesses become investment-ready.

Entrepreneurs, meanwhile, should prioritise transparency, sound governance, financial discipline, technology adoption and continuous learning to strengthen their competitiveness in an increasingly dynamic marketplace.

As demonstrated by IPDC's continued commitment to SME development and inclusive financing, we firmly believe that Bangladesh possesses immense entrepreneurial potential. By working together to create a more supportive, innovation-driven and inclusive ecosystem, we can unlock the full potential of SMEs, generate quality employment and accelerate the country's economic transformation in the years ahead.