67% of SMEs forced to shut businesses because of Covid-19

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48% of cottage and micro, 30% of small and medium, and 23% of large farms, were vulnerable to a business  shutdown, or a partial shutdown of their  businesses next three months

About 67% of Small and Medium Enterprises (SME) in the united states face a turn off of their business procedures because of Covid-19, finds a Business Initiative Leading Development (Build) survey.

Build Chief Executive Officer Ferdaus Ara Begum presented the survey report in a virtual meeting on Tuesday. Build and the United Nations Industrial Development Organization (UNIDO) jointly conducted the survey in April this season.

The report said monetary activities worldwide were severely disrupted because of Covid-19 where cottage, micro, small and medium enterprises (CMSMEs) were the worst affected in Bangladesh.

In line with the survey, 75% of cottage and micro, 58% of small and medium, and 44% of large enterprises in the united states were likely to face greater than a 50% revenue shortfall in comparison to last year.

48% of cottage and micro, 30% of small and medium, and 23% of large farms, were at risk of a business   shutdown, or a partial shutdown of their operations within the next 90 days.

To beat this crisis, enterprises were now counting on loans to combat cash flow shortage, and 86% of large companies rely upon commercial banks because of their funding, said the report.

Ferdaus Ara recommended an instant and straight forward loan processing system for the private sector and   versatility in distribution conditions to ensure that banks felt secure in disbursing government announced stimulus packages.

She commended  the Bangladesh Bank for extending all manner of support and the issuance of several circulars to help ease the lending process.

Speaking as co-chair, the Deputy Governor of Bangladesh Bank, Ahmed Jamal, said that already Tk18,500 crore have been disbursed under the working capital loan stimulus package for the large industries and services sectors.

"Governor of the central bank has also asked the banks to disburse the complete allocation of the stimulus package for small scale entrepreneurs within October this season, '' he added.

All the speakers taking part in the event discussed the stimulus packages and better usage of them to combat the pandemic.

Professor Jahangir Alam Chowdhury from the Finance Department of the University of Dhaka put focus on the balance between your demand and supply of stimulus packages.

He said loans ought to be assigned to actual enterprises in order that proper usage of the packages is ensured.

BUILD Chairman Abul Kasem Khan urged the Bangladesh Bank to consider their suggestions for better usage of the packages.
Source: https://www.dhakatribune.com

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