Small business literally means those where the total workers are less than hundred and the capital is also less than a million. This definition varies from country to country but the key point is that it indicates the small scale business or personal business. The small businesses account more than fifty percent of the GDP for a country. Therefore each country put a lot of its concentration in the development of the small businesses. But there is still a problem that every entrepreneurs face at the initial stage, that is finding a start up business loan.

For a young entrepreneur, raising a fund is the most crucial part. This is because most of the people can come with the creative business ideas but when the question is the investment, more than ninety percent entrepreneur does not have the ability to fund the start up cost. And for them the most common solution is the bank loan. But the worst thing is although there are many schemes offered by the banks and other financial institution, getting a loan is still hard like before.

When a person apply for the start up business loan, the bank authority show little respect about his small business ideas and act like that the person will never going to pay the loan. This kind of obstacles often makes the situation hard for the young entrepreneur.

On the other hand, other resources for funding are also limited. Most of the people do not have enough money or property of their own to be self funded. There are different financial organization but, they have a higher rate which is not favorable for the small business. Therefore the bank loan is the most suitable for funding the small businesses.

The SME loans of different banks should be easier to get for the young entrepreneurs. And also more attractive offer should be created from both the bank and the government to aid the small businesses. This will be beneficial for the economy because according to the record, the new employment rate is higher in the small business industries. Also the revenue is also higher from the small and medium businesses.