Global economic shocks and international trade disruptions have significantly impacted SMEs. Despite government support during the pandemic, Russia’s invasion of Ukraine has introduced new challenges. Rising interest rates and forex instability are increasing debt repayment costs for heavily indebted SMEs. Bangladesh’s foreign reserves have fallen due to soaring global oil and commodity prices, leading to restrictions on non-essential imports and a reduction in dollar supply to banks.
SMEs involved in import-based businesses are facing financial constraints due to the forex crisis, hindering their ability to import essential materials and impacting production and competitiveness. Access to finance is limited as banks tighten lending, affecting day-to-day operations and growth investments. To survive, SMEs must diversify their product range, explore local markets, implement cost-cutting measures, and optimize operational efficiency. The government has introduced financial support programs, trade promotion initiatives, and capacity-building programs to aid SMEs.
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