Small and medium-sized enterprises (SMEs) in Bangladesh are grappling with loan repayments as the economic crisis deepens. Many entrepreneurs find it challenging to meet their bank loan obligations on time due to a significant drop in sales and rising production costs.
Inflationary pressures, increased expenses, and economic uncertainties have led consumers to cut back on spending. Entrepreneurs are resorting to borrowing from friends and family to avoid adding to their bank debt. The SME sector, comprising about 25% of the GDP, plays a vital role in Bangladesh’s economy. However, the current economic challenges may force businesses to scale down operations if political stability is not restored.