Technology Challenges Hinder SMEs

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.

Women entrepreneurs advocated for tax incentives for SMEs, higher tax-free ceilings, and a flexible approach to participation in trade fairs during a pre-budget meeting with the National Board of Revenue (NBR). The Bangladesh Women's Chamber of Commerce and Industry (BWCCI) and the Women Entrepreneurs Development Network (WEND) presented these proposals.

Small and medium enterprises (SMEs) face a severe setback in imports due to challenges in opening letters of credit (LCs) amidst a US dollar shortage, aggravated by reduced inflows. Larger businesses receive priority from banks, leaving SMEs struggling with high-margin demands and limited access to finance.

The industrial printing park project in Munshiganj, initiated by Bangladesh Small and Cottage Industries Corporation (BSCIC) in 2016, has made minimal progress, prompting the need for an extension until June 2026 and a budget increase to Tk 457.95 crore, a 73% rise.