We are in need of more research to build up the SME sector

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There is absolutely no denying the actual fact that to ensure that our small and medium enterprise (SME) sector to totally flourish, more research has to be done on demand, production, and marketing of SME products. Our Prime Minister possesses rightly stressed this urgent have while addressing a program in the administrative centre recently. As the PM asked experts to find answers to meet the demand for raw materials of SME goods, she also directed them to make sure that these are provided locally. Another important factor highlighted by her was that goods should be made considering the demand of the buyers.

Although small and medium enterprises have the potential to create countless jobs and increase contributions to the gross domestic product (GDP), the contribution of the sector to your economy is still negligible, a recently available study conducted by the International Cooperation Organisation for Tiny and Medium Enterprises in Asia, Japan, has found. The contribution of SMEs to the GDP is merely 20.25 percent in Bangladesh, whereas it stands at 80 percent in India and 60 percent in China. Some of the key explanations why the sector hasn't developed properly will be: scarcity of fiscal incentives, management problems, access to finance and bureaucracy. Another analysis done by the Globe Lender Group and the Policy Analysis Institute of Bangladesh last year found that access to financing for SMEs is bound in Bangladesh, compared to the typical in South Asia.

Since the barriers for SMEs to grow here have been completely identified, it is right now time for the government to address these issues and present the sector a raise. Although the sector presently makes up about 35.49 percent of the total employment in Bangladesh, if designed properly, the sector will certainly have the capability to create job opportunities for a sizable section of our unemployed youth. Compared to that end, we need to take proper policy initiatives, including increased exploration, in this sector.
Source: https://www.thedailystar.net

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