For Jharna Akhter, the journey of running a small handicraft and apparel business in Kushtia has always been marked by determination and resilience. But it wasn’t the daily grind of entrepreneurship that proved the most daunting, it was the next step: growth.
When she first considered applying for a bank loan to expand her business, it felt less like a strategic move and more like crossing into unfamiliar terrain.
Like many micro-entrepreneurs across Bangladesh, Jharna found herself navigating a system that seemed distant and inaccessible. The loan process, instead of enabling her, became a source of anxiety—one riddled with technical jargon, complex forms, and rigid requirements that felt far removed from her reality. Each visit to the bank left her more discouraged, more convinced that the system wasn’t built for people like her, people with talent, drive, and a vision, but without the formal financial literacy or resources often taken for granted.
Her story isn’t unique. Across Bangladesh, thousands of micro and small enterprises like hers operate outside the formal financial system without trade licences, proper bookkeeping, or a banking footprint. This informality not only limits their ability to grow but also keeps them invisible to the institutions that could support them. Entrepreneurs remain hesitant, uncertain of how to navigate the system, while banks are wary of lending to businesses that lack documentation or credit history. To bridge this gap, financial literacy becomes essential, as it empowers entrepreneurs to make informed decisions, plan investments, and access formal credit. Additionally, it brings informal economic activity onto the formal financial grid. This not only boosts the resilience and growth of individual businesses but also enables municipalities to better track and support local enterprises through data-driven planning and service delivery.
Recognising the need for intervention, local authorities and business associations, with support from PRABRIDDHI, a Local Economic Development (LED) initiative jointly implemented by the Governments of Switzerland and Bangladesh stepped in to design a practical solution.
As part of this effort, PRABRIDDHI facilitated hands-on Financial Literacy Trainings tailored to the realities of small entrepreneurs. Conducted across four municipalities, Bogura, Kushtia, Bhairab, and Cox’s Bazar, the trainings supported 60 MSME owners with essential skills in business planning, record-keeping, income-expense tracking, and navigating loan applications.
The trainings went beyond theory. Through interactive simulations and role-plays, participants were immersed in realistic scenarios, mimicking the experience of sitting across the desk from a bank officer, asking questions, and submitting a loan application. For many, it was the first time these intimidating processes felt accessible.
The initiative followed a phased approach:
· Identifying financial barriers
· Delivering tailored financial literacy trainings
· Strengthening MSME – bank trust and linkages
These simple yet strategic steps are helping build more inclusive financial ecosystems. Inspired by the results, several financial institutions and municipalities are exploring how to adapt and replicate the training model for their own communities.
By recognizing the invisible barriers and empowering entrepreneurs to break through them, PRABRIDDHI and its municipal partners are proving that inclusive finance isn’t just a policy goal - it’s a local movement, one that’s opening doors to opportunity, stability, and sustainable growth.