It's the micro and compact enterprises that hold essential to job creation

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The MSEs take into account some 35 % of total employment in Bangladesh (21 million jobs in 2016-17), making them the second-largest source of employment after agriculture

Even before COVID-19 hit Bangladesh, the job challenge have been intensifying due to the stagnation of fresh job creation in the production sector, especially garment.  

The garment sector created some 4 million jobs between 1990 and 2012, mostly for female workers.  Between 2012 and 2019, job creation in the sector remained almost unchanged as the adoption of capital-intensive technology resulted in factory consolidation and low-skill worker redundancy.  

Garment efficiency and export earnings increased substantially, but employment did not. 

More generally, since 2012 job creation slowed found in manufacturing, structure and organised services. 

COVID-19 intensified the employment problem by lowering both global and local demand for Bangladeshi products. 

Abroad employment options are actually virtually closed and several workers have came back. The domestic solutions sector, which traditionally acts as the employer of final resort, not only didn't create new jobs it shed labour in transportation, trade, hospitality industry, and personal solutions as demand fell. 

The federal government has undertaken stimulus packages to protect demand and jobs.  They are beginning to work but recovery is still a way to go. On top of that, the pre-COVID structural concerns for task creation remain.
 
What is just how out? The region that holds out most potential customers for rapid recovery of demand and careers may be the micro and tiny enterprises sector (MSEs).  

The MSEs take into account some 35 per cent of total employment in Bangladesh (21 million jobs in 2016-17), making them the second-largest way to obtain employment after agriculture.  

However, the MSE sector isn't very dynamic and is suffering from low value-addition, low labour efficiency and low earnings. 

This is because MSEs suffer from many constraints, including a severe financing constraint, poor product quality, insufficient product diversification, low technology, low investment, weak integration with the national and global value chains, weak managerial capabilities, weak technical and labour skills, lack of marketing capabilities and absence of effective government support. 

In sharp contrast to the Bangladesh situation, MSEs in Taiwan, Korea, China and Vietnam have performed remarkably well, learning from Japan that confirmed the way learning to make the MSE sector even more dynamic. 

The MSEs in these countries are key resources of exports and employment, thereby providing an employment and income buffer that facilitated the transition from the rural agricultural economy to the present day medium and large production and the skill-intensive organised services.  

This missing MSE web page link in Bangladesh is a major reason behind the growing intensity of the employment problem in Bangladesh. 

The federal government has traditionally emphasised the MSE sector but results have already been dismal.  

There are several known reasons for this policy failure.   

First, having less seriousness is reflected simply by the actual fact that to date there is no updated database in MSEs on actually such basic variables just as composition and composition, value-added, career, capital stock, technology, merchandise type and markets. 

Second, the government lumps together moderate enterprises with little enterprises. 
Source: https://www.dhakatribune.com

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