SMEs Face 60-70% Sales Dip

The Dhaka Chamber of Commerce and Industry (DCCI) has proposed increasing the loan limit for cottage, small, and medium enterprises (CSMEs) led by female entrepreneurs from Tk 50 lakh to Tk 2 crore. DCCI President Ashraf Ahmed highlighted that women entrepreneurs often have limited personal wealth, making it challenging to secure substantial loans due to insufficient collateral and documentation issues.

The slow implementation of Bangladesh's SME Policy 2019 is attributed to insufficient funding and poor coordination among organizations, according to Ashraf Ahmed, president of the DCCI. He called for the policy to align with industrial goals and be included in budget planning.

A total of 434 industrial units under the Bangladesh Small and Cottage Industries Corporation (BSCIC) are either financially distressed or shut down, with some not operating at full capacity and others completely idle. Key issues include financial difficulties, loan defaults, operational costs, and legal disputes, including inheritance-related conflicts.

The SME Foundation will disburse Tk 450 crore in loans to small and medium enterprises (SMEs) under a government stimulus package and its own fund. Entrepreneurs can borrow between Tk 1 lakh and Tk 50 lakh at a 6% interest rate, repayable in 48 monthly installments over four years. An agreement with 23 banks and financial institutions was signed for this purpose on 11 June. The loans will be collateral-free,

Entrepreneurs at the SME Fair 2024 secured purchase orders totaling Tk 200 million and recorded sales of around Tk 130 million. Additionally, approximately 1000 micro, small, and medium entrepreneurs submitted loan applications to banks and non-bank financial institutions following the event held at the Bangabandhu International Conference Center in Agargaon.

At an entrepreneurs' meeting held at the Prothom Alo office in Karwan Bazar, various SME entrepreneurs highlighted the importance of prioritizing product quality for the long-term sustainability of businesses. They emphasized that ensuring proper standards extends beyond just the quality of products to encompass organizational documentation, marketing strategies, fair labour wages, and environmental protection measures.