10% rise in micro-entrepreneurs' participation in public procurement can create 1m jobs: SME Foundation

A 10% increase in the participation of micro, women-led, and new entrepreneurs in public procurement could create nearly one million new jobs in Bangladesh, SME Foundation Chairperson Md Musfiqur Rahman said today (26 November).

Citing global research, he noted that even a 1% rise in such participation generates 30,000–50,000 new jobs. "If participation increases by 10%, around one million new employment opportunities can be created."

Musfiqur made the remarks while presiding over a seminar held at the Bangladesh Institute of Management (BIM) auditorium in the capital's Sobhanbag.

"Increased participation of women-owned enterprises also contributes to a more equitable economy and boosts household income. Opening up market access for new enterprises encourages innovation, technology adoption, and expansion of local industries," he added.

Musfiqur Rahman also emphasised the need for a unified national registration platform containing information of all SME entrepreneurs. "With financial support from BPPA, SME Foundation can develop such a platform, which will serve as a reliable sourcing database for all public and private procuring entities across the country," he said.

The seminar also highlighted that several countries have already advanced significantly in integrating SMEs into public procurement. Indonesia reserves 40% of its public procurement for SMEs, while the quotas are 33% in the UK, 30% in Kenya, 25% in India, 23% in the US, and 20% in Brazil.

These countries have demonstrated that strong SME participation can drive national economic dynamism.

Bangladesh Public Procurement Authority (BPPA) Chief Executive Officer SM Moin Uddin Ahmed attended the event as the chief guest.

A panel discussion featured UNDP Regional Head Mamta Kohli and Asian Development Bank (ADB) Country Head Nasheeba Selim.