Bangladesh Bank (BB) following an agency agreement with Government of the People's Republic of Bangladesh (GoB) established the Equity and Entrepreneurship Fund (EEF) in the fiscal year 2000-2001 to stimulate investment in two high-potential sectors: the software industry and the food processing and agro-based industry. To facilitate this, a Specific Format was provided for preparing the feasibility study (report) or project profiles. This format helps in evaluating and analyzing proposed projects to determine their viability.
This structured format allows lenders and evaluators to systematically assess the project's feasibility, risks, and potential returns. Key areas of focus include:
Importance is to be given with regards to evaluating the format:
The project shall have to be viable technically & financially. It should be environment friendly. Importance shall be given on the appraisal of the entrepreneurship such as educational qualification in the relevant discipline, knowledge in the technology/process operating such project, track records in financial conduct specially with Banks/FI.
In case of Ratio Analysis, the project has to offer minimum IRR (Internal Rate of Return) of 15%, Return on equity (ROE) of 15% Debt service coverage Ratio 1.50:1 Current ratio 1.50:1 and Fixed asset coverage ratio 1.50: 1 and SWOT analysis should have to be acceptable.
By adhering to this format, entrepreneurs can present a comprehensive and coherent proposal, making it easier for evaluators to make informed decisions regarding funding from the Equity and Entrepreneurship Fund.
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