FAQ
What does SEDF do?
The SouthAsia Enterprise Development Facility (SEDF) works to increase local capacity in three key areas:
- Access to Finance
- Sector Development and Business Services
- Business Enabling Environment
SEDF brings together leading international Small and Medium Enterprise (SME) support organizations, while drawing on the global experience of the International Finance Corporation (IFC) and the World Bank. For more information, please see “What is SEDF.”
Does SEDF finance projects? Does it give out any loans?
SEDF is a technical assistance facility. It does not offer any direct funding or loans.
Will SEDF help buy office equipment or help with the set up?
SEDF does not directly finance the purchase of any equipment or hardware of any kind for either company or offices.
Does the World Bank give Suppliers' Credit? How can one apply for it?
For information relating to the World Bank, please see the World Bank website ( www.worldbank.org ) for further details.
Is SEDF an NGO?
SEDF is not an NGO. SEDF is a multi-donor funded facility managed by International Finance Corporation (IFC) of the World Bank Group.
What does multi-donor facility mean?
Multi-donor facility refers to project development facilities that are financed by a number of donors. SEDF donors include the International Finance Corporation, the European Commission, the Canadian International Development Agency, the Norwegian Agency for Development Cooperation, the Department for International Development of the United Kingdom, the Government of the Netherlands and the Asian Development Bank.
What is in it for the donors of SEDF?
The donors believe that in order to have a greater impact on poverty alleviation, it is better to pool together resources under a multilateral umbrella and have a long-term program with a clear uniform objective rather than have small-scale bilateral efforts. The end purpose is to alleviate poverty and enhance the economic growth of the region.
What is the IFC?
The International Finance Corporation (IFC) is the private sector arm of the World Bank Group. For further information, please visit: www.ifc.org.
Why is SEDF conducting such activities? What is the motive behind this for SEDF, IFC or the World Bank?
The World Bank Group and donors of SEDF want to contribute to poverty alleviation. IFC does this through the development of the private sector and SEDF has been set up to stimulate the growth of private sector SMEs in this region.
Does SEDF recover or share cost? If it shares cost, does it mean it gives grants? Does SEDF support grants?
SEDF is a grant-funded program, so most of its assistance is subsidized. However, the institution or company requesting SEDF assistance must pay for part of the cost.
How do you define SMEs?
The definition of SMEs used by the Government of Bangladesh is the definition used by SEDF. Usually companies having investment in fixed capital between BD Taka 1 crore and BD Taka 30 crore are defined as SMEs.
What is the linkage program of SEDF?
SEDF works on the development of linkages between SMEs and large corporations. Many local SMEs lose out against foreign suppliers or in-house sourcing due to lack of understanding of the needs of the corporation in terms of delivery practices, quality standards, etc. The Facility aims to play a catalytic role to improve sourcing from local SMEs by providing required technical assistance. Please see the Linkages page under SDBS for more information.
What is TA? How can one become a recipient of such assistance?
TA is “technical assistance.” SEDF provides TA for the growth of the SME sector in its mandated region. Please see the program areas for specific information on technical assistance projects.
What are LOI, MOU and TOR?
Letter of Intent (LOI) is signed between an organization and SEDF with whom SEDF intends to enter into a working relationship. This is the first step in the formalization of a partnership with SEDF.
Memorandum of Understanding (MOU) is signed between an organization and SEDF for specific tasks with clearly defined goals, deliverables, impact evaluation and cost sharing mechanisms.
Terms of Reference (TOR) is the document clearly defining the scope of work and deliverables for any task SEDF undertakes with any organization or individual.
How can one qualify and get the best benefit out of SEDF?
Please read through the website to understand various SEDF project components to see if there is any existing synergy between you and SEDF. SEDF welcomes information about new projects and possibilities.
What kind of organizations does SEDF work with?
SEDF works with individual companies, banks and non-bank financial institutions, trade associations, business development service providers, business schools, Government Departments and other agencies which focus on the SME sector.
How does SEDF choose which company/association/organization to work with?
SEDF makes its decision to work with any organization based on the business model of SEDF and the capacity of the organization to work as the facilitator of SEDF projects.
Does SEDF give special preference to Women Entrepreneurs?
SEDF actively seeks to encourage the participation of women in the SME sector. To encourage more women entrepreneurs, SEDF works closely with women Business Membership Organizations on organizational development, trade development and technical assistance
