The government has embarked on massive initiatives to facilitate the countries Small and Medium Enterprises (SMEs) and raise the sector’s contribution to GDP from present 25 percent to 32 percent by 2024.
The initiatives will also help the government to reach the city facilities to village.
To this end, the industries ministry has prepared a draft SME policy. To increase the SME sector’s contribution to country’s GDP, the policy focuses on increasing the number of SME participators, loan facility without mortgage, establishing SME bank, formation of credit guarantee fund and many more. Besides, a separate Women Development Fund will also form to facilitate women entrepreneurs.
The draft policy basically implying on three issues like - helpful policies and suitable environment, sustainable and active organization, and financial help and business support to potential entrepreneurs.
According to ministry information, to formulate the policy initiatives and prepare the action plan, a 23-member National SME Taskforce will be formed under the industries secretary. The taskforce will conduct a meeting after every three months. Based on problems, the committee will take fastest steps to resolve the problem and if required, it will also form sub working committees.
The draft is going to add facilities to ensure easy business for the entrepreneurs. From this month to 2024, advance income tax, VAT, tax holiday and others will be ensured for the SMEs. SME export will get all kinds of financial incentives too. Besides, business registration, licensing and clearance process will make easier for the sector.
Moreover, to ensure financial facilities for the small and medium entrepreneurs, the government will identify one bank in each district as lead bank, and establish a separate SME bank by 2024.
Industries ministry sources said since there are adequate human resources and intellectual capabilities in the country, the SME sector has huge potentialities to grow more in the coming days. At present, there are 78 lakh micro, small, medium and cottage industries in the country.
Through this sector development, the government can fulfill its target to reach the city facilities to village level, they said.
Seeking anonymity an industries ministry official told this correspondent that SME could reduce the urban migration in the capital and other major cities, increase cash flow in rural areas, and thereby enhance the standard of living of the rural people. SMEs are widely spread all over the country which means developing SMEs will play a major role in bridging the urban-rural income gap and contribute towards inclusive growth.
However, industry insiders said to accelerate the pace of the sector’s development, the government should take proper planning. The plan should ensure financial sources, technology and innovation, market expansion, training, business support service and necessary information.
Currently, different government and non-government authorities such as Bangladesh Small and Cottage Industries Corporation (BSCIC), SME Foundation, Bangladesh Bank, Women entrepreneurs association and many others are working on the overall development and expansion of the SME clusters.
Mentionable, local products, such as jute, agriculture, leather, electrical and electronics items, light engineering items, IT products, plastic and synthetics items, handicrafts, and design and fashion wear are now widely updating by the SME’s enterprise.
