According to Bangladesh Bank, The role of Small and Medium Enterprises (SMEs) is indispensable for overall economic development of a country particularly for developing countries like Bangladesh. Since this sector is labor intensive with short gestation period, it is capable of increasing national income as well as rapid employment generation; achieving Millennium Development Goals (MDGs) especially eradication of extreme poverty and hunger, gender equality and women empowerment. SME sector has played a vital role in economic development of some prosperous countries of Asia. Our neighboring countries have also given due importance on SME. Terming SME as ‘employment generating machine’ they stressed on SME development for higher economic growth, narrowing the gap of income inequality and poverty alleviation. The present government has also put much emphasis on the development of SME sector considering it as ‘the driving force for industrialization’. *

*(Source: http://www.bangladesh-bank.org/sme/smepolicye.pdf )

Agrani SME Financing Company Limited (ASFCLBD) promotes small and medium entrepreneurs in manufacturing and service industries through its SME Finance Scheme. The aim is to provide quality service to the entrepreneurs with potential and innovative ideas.

Small and Medium Enterprises (SMEs) involved in business with a proven track record are primarily eligible for the scheme. We offer different financial products to the potential clients considering the sponsors' credential, management strength, sales growth, technical soundness, cost efficiency, future prospect and last but not the least their transaction behavior with other lenders and associates, if any.

A substantial portion of the SME sector may not have the security required for conventional collateral based bank lending, nor high enough returns to attract formal venture capitalists and other risk investors. In addition, markets may be characterized by deficient information (limiting the effectiveness of financial statement-based lending and credit scoring). This has led to claims of an "SME finance gap" – particularly in emerging economies.*

*(Source: http://earthtrends.wri.org/features/view_feature.php?theme=5&fid=69)

This is precisely why ASFCLBD chose to fill this Gap. ASFCLBD will enable these people, who could not previously take loan because of this gap, to take SME loan and take charge of their destiny. ASFCLBD defines these people as “Missing Middle”. The implementation of company’s core activities through financing the Small and Medium Enterprises of missing middle section would contribute to the fulfillment of these objectives. Following the strategy of Government of Bangladesh for the poverty alleviation, the vision of the company is to develop sustainable small and medium scale labor intensive enterprise in order to create jobs for the unemployed and increase income for the missing middle group of the country.