The country’s cottage, micro, small and medium enterprises (CMSME) play a vital role in the economy. Along with other crucial economic sectors, the CMSME sector has also been hit hard by COVID 19 pandemic and therefore measures should be taken immediately for the revival of the sector.
The Central Bank has already disbursed a loan of Tk 10,000 crore refinancing scheme for the CMSME sector. However that is not proving to be enough because CMSME enterprises with small capital need more support from the refinancing scheme.
To reach the entrepreneurs of CMSME sector, digital financing platforms can be used and in that context, the government should not hassle the borrowers with complex paper works or documents for getting loans. Banks should also co-operate properly in distributing the government’s stimulus package for this sector.
Banks should also co-operate properly in
distributing the government’s stimulus
package for this sector
The Central Bank should also give more emphasis to the CMSME sector. The loan distribution procedure should not be complex. Micro finance institutions should be involved in this process so that CMSMEs will get timely loans.
The government and Central Bank have executed various strategies to offer monetary support to the CMSME sector. However, in the long run, a sustainable approach has become the need of the hour so that CMSME can run smoothly in the market on their own which ultimately will lead to trifling intervention from the government.
This is because the dilemmas of the CMSME sector are nothing new and without proper sustainable approach, the effects of short-term government interventions will disintegrate. Therefore, it is exigent that an all-inclusive tactic is implemented, which will combine both short term direct interferences from the government and furthermore adequate support from the private sector to the CMSMEs as part of the sustainable business paradigm.