Though the government allocates Tk 100 crore in the national budget every year for the development of women entrepreneurship, not a single penny of this money gets used as the entrepreneurs lack awareness on how to ensure optimum utilisation of the fund.

"The entrepreneurs should be more enthusiastic about utilising this fund as the government is keen to finance their development," said Waseqa Ayesha Khan, the state minister for finance.

She was addressing a seminar, styled "Smart Financing for Smart Bangladesh: Possible Solutions for Mainstreaming the Marginal Entrepreneurs".

The event was organised by the Small and Medium Enterprise (SME) Foundation in association with Aspire to Innovate (a2i) at the Bangabandhu International Conference Center in Dhaka yesterday.

According to the state minister for finance, SMEs have a tremendous contribution to the economy and can play a vital role in realising the "Smart Bangladesh" initiative by digitalising their operations.

She also said the owners of cottage, micro, small and medium enterprises (CMSMEs) should take suggestions from established entrepreneurs on how to utilise government facilities.

Waseqa pointed out that a major reason why CMSMEs are denied bank loans is that they go not ensure accurate bookkeeping.

Against this backdrop, she advised maintaining a regular account of transactions, even if it means writing it by hand, so that they can show the banks sufficient records to access finance.

Nurun Nahar, deputy governor of Bangladesh Bank, said they have a Tk 30,100 crore portfolio to finance CMSMEs.

"If the entrepreneurs can utilise this properly and create demand, then the central bank will increase the portfolio further," she added.

Sulekha Rani Basu, additional secretary of the Finance Division, underscored the need for a change in mindset toward the SME sector and recognise their contributions to the economy.

So, banks and government service providers should be cooperative toward entrepreneurs, she added.

Delivering the keynote, Arfan Ali, chairman of Zaytoon Business Solutions, said in this day and age, rapid advances in technology and customer-centric approach are driving new business models.

Financial products can now be delivered in a faster, more efficient, and convenient way than previously possible, said Ali, who is also a former managing director of Bank Asia Limited.

Ali said financial inclusion for marginal and small firms has been enhanced by the various digital financial services offered by fintech companies in the country.

"This technological development has opened several propositions for the financial sector," he added.

Ali also said the financing gap for micro and small businesses can now be successfully addressed by fintech firms, big tech companies and neo-banks, challenging the future business of traditional banks.

The seminar was presided by Md Masudur Rahman, chairperson of the SME Foundation.

Salahuddin Mahmud, managing director of the SME Foundation; Sheikh Mohammad Maroof, acting managing director of City Bank PLC; Mohammad Jakirul Islam, head of SME strategy, innovation and new business of BRAC Bank PLC; and Md Tohurul Hasan, head of digital financial services at a2i, also spoke.