SME entrepreneurs can get a prize of $40,000 or about Tk49 lakh taka for coming up with an innovative idea of ​​insurance to address financial risks.

This information was shared at the inaugural ceremony of the 'Innovation Challenge Fund' competition organized by the SME Foundation and UNDP at a ceremony held at Purbani, Motijheel, in the capital on Thursday, January 15, 2026.

A maximum of two organizations will be given this prize.

This initiative has been taken to help entrepreneurs affected by climate change in particular.

The ceremony was presided over by SME Foundation managing director Anwar Hossain Chowdhury, with Industries Secretary and SME Foundation chairperson Md Obaidur Rahman as chief guest.

Bangladesh Bank deputy governor Nurun Nahar, Insurance Development and Regulatory Authority member Mohammad Abu Bakar Siddique and UNDP Resident Representative Stephen Liler attended as special guests.

Nazim Hasan Sattar, deputy managing Director of SME Foundation, delivered the welcome speech.

At the event, SME Foundation and UNDP signed a Memorandum of Understanding to work together for the development of CMSME entrepreneurs in the country and this sector.

Anwar Hossain Chowdhury, managing director of SME Foundation, and Stephen Lillar, resident representative of UNDP, signed the MoU on behalf of SME Foundation.

Industries Secretary and Chairperson of SME Foundation, Md. Obaidur Rahman said that this fund will encourage regulator-approved innovative insurance solutions, increase the use of digital technology and new distribution channels, and work to protect CMSME entrepreneurs, especially in climate-vulnerable and rural areas.

Although the MSME sector contributes about 30% to the economy of Bangladesh, only 10% of the entrepreneurs out of more than 11.8 million CMSME entrepreneurs in the country receive direct bank loans. Another 14% receive loans through microfinance institutions.

The remaining 77% of entrepreneurs are still outside the scope of credit.

This initiative of SME Foundation and UNDP is to prepare these entrepreneurs to face financial risks to bring them under the scope of credit facilities.

Applications can be made on the Facebook page and website of SME Foundation and UNDP to participate in this competition.

The SME Foundation is implementing various programs to develop the SME sector through economic, social and environmental protection of the country.

Since its establishment in 2006, the SME Foundation, an organization under the Ministry of Industries, has benefited about two million small and medium entrepreneurs from its various programs, 60% of whom are women entrepreneurs.