BSCIC seeks Tk3,500cr stimulus fund for boosting CMSMEs | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
June 12, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JUNE 12, 2025
BSCIC seeks Tk3,500cr stimulus fund for boosting CMSMEs

Economy

Rafiqul Islam
01 August, 2021, 01:30 pm
Last modified: 01 August, 2021, 02:54 pm

Related News

  • Nutrition campaign held in Jamalpur on cooking demonstration
  • Stakeholders convene at BSCIC to discuss CMSM sector outlook
  • Two factories vandalised in Fatullah BSCIC area
  • Cenbank relaxes loan classification, provisioning rules for CMSMEs
  • Dissemination Workshop on Iodized Salt Act, 2021 Held in Rajshahi

BSCIC seeks Tk3,500cr stimulus fund for boosting CMSMEs

Around seven to eight lakh marginal entrepreneurs will benefit from the fund

Rafiqul Islam
01 August, 2021, 01:30 pm
Last modified: 01 August, 2021, 02:54 pm
BSCIC seeks Tk3,500cr stimulus fund for boosting CMSMEs

The Bangladesh Small and Cottage Industries Corporation (BSCIC) has sought a new stimulus package of Tk2,500 crore from the government at low interest to boost the hardest-hit cottage, micro, small and medium entrepreneurs (CMSMEs) in the country.

The corporation sought another Tk1,000 crore in favour of BSCIC as a loan – Tk500 crore for start-ups and Tk500 crore for women entrepreneurs.

BSCIC – the government agency geared to promoting the development and expansion of small and cottage industries – recently sent a letter to the finance ministry and the Bangladesh Bank seeking the stimulus and fund support, its Chairman Mostaque Hossain has said.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Small and cottage industries need more capital support to breathe right in the pandemic shock and if the government allows new packages, around 7-8 lakh entrepreneurs will be benefited, he added.

According to sources, BSCIC sought Tk2,000 crore from the government for CMSMEs and Tk500 crore for women entrepreneurs under a new stimulus package.

The loans may be similar to the previous incentive package at the rate of 4%.

BSCIC will take the Tk1,000 crore fund from the Bangladesh Bank and will supply them to the market through its own channel by its district offices.

Besides, the corporation has disbursed around Tk70-80 crore of its own funds among entrepreneurs throughout the country at a low-interest rate and mostly without collateral.

"The demand for loans in the market is around Tk5,000 crore among CMSMEs across the country. Small and cottage industry entrepreneurs are now facing capital shortage and all the SME entrepreneurs are moving to BSCIC for capital loan support," said Mostaque Hossain.

On 17 January 2021, the government approved a special stimulus package of Tk1,500 crore and engaged non-governmental organizations, including BSCIC, to disburse loans to marginal traders, entrepreneurs and farmers as part of financial support.

Though the corporation sought Tk600 crore for CMSMEs as they faced a crisis caused by a halt in production and products remaining unsold due to the pandemic, it got only Tk100 crore under that stimulus package.

BSCIC had received Tk50 crore in fiscal 2020-2021, which was disbursed among 1,416 entrepreneurs in Dhaka, Chattogram, Rajshahi and Khulna divisions.

According to data available with BSCIC, around 70% of the fund was availed by rural entrepreneurs from three divisions except for Dhaka division.

It is due to receive the remaining Tk50cr in fiscal 2021-2022.

"As there is a huge demand for loan support from entrepreneurs, the Tk50 stimulus was disbursed within seven days," said the BSCIC chairman.

Speaking to TBS over phone, Mostaque Hossain said, "The start-up fund of the Bangladesh Bank amounting Tk1,000 remains unused. The interest rate of the fund is very low. So, we sent a letter for the chance to be availed by new entrepreneurs from small and cottage industries."

Around 50% of small and cottage industries have been shut down and many of them have fallen into crises as their products have remained unsold, said Mirza Nurul Ghani Shovon, president of the National Association of Small and Cottage Industries of Bangladesh (NASCIB).

"SMEs need more cash support to overcome the crisis. BSCIC and SME Foundation are facilitating fund support under a stimulus package. But the support must be adequate," he added.

Industry brief

According to BSCIC, including cottages there are 78 lakh micro, small and medium industries in the country, 70% of which are in the rural areas.

SMEs' contribution to the gross domestic product (GDP) is 25%, according to a report by the ADB in 2015.

In the SME policy 2019, the contribution was targeted to be 32% by 2024.

Citing the data of Bangladesh Economic Review 2013, BSCIC said, among the 7.8 million industries in the country, cottage industries constitute 87.52%, micro 1.3%, small 10.99%, medium 0.09%, and large industries around 0.07%.

The SME industries manage around 70-80% of total industrial employment.

Top News

BSCIC / Bangladesh Small and Cottage Industries Corporation (BSCIC) / Bangladesh Small Cottage Industries Corporation (BSCIC) / CMSMEs / cottage, micro, small and medium entrepreneurs (CMSMEs)

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Wreckage of a Boeing 787 Dreamliner showing part of its registration "VT-ANB" in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
    Air India plane crash: Not all dead, one survivor identified, 204 bodies recovered
  • CA informs King Charles of Bangladesh's reform initiatives
    CA informs King Charles of Bangladesh's reform initiatives
  • News of The Day, 12 JUNE 2025
    News of The Day, 12 JUNE 2025

MOST VIEWED

  • Keir Starmer declines to meet CA Yunus: FT report
    Keir Starmer declines to meet CA Yunus: FT report
  • Wreckage of a Boeing 787 Dreamliner showing part of its registration "VT-ANB" in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
    Air India plane crash: Not all dead, one survivor identified, 204 bodies recovered
  • Saifuzzaman Chowdhury. Photo: Collected
    UK crime agency now freezes assets of ex-land minister Saifuzzaman: AJ
  • File Photo of Chief Adviser Muhammad Yunus: UNB
    Prof Yunus to receive Harmony Award from King Charles today
  • Infofgraphics: TBS
    DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Bangladesh considering settlements with tycoons over offshore wealth: Mansur tells FT

Related News

  • Nutrition campaign held in Jamalpur on cooking demonstration
  • Stakeholders convene at BSCIC to discuss CMSM sector outlook
  • Two factories vandalised in Fatullah BSCIC area
  • Cenbank relaxes loan classification, provisioning rules for CMSMEs
  • Dissemination Workshop on Iodized Salt Act, 2021 Held in Rajshahi

Features

Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

1d | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

2d | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

3d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

5d | Bangladesh

More Videos from TBS

Banks' estimates were wrong: Bangladesh Bank spokesperson

Banks' estimates were wrong: Bangladesh Bank spokesperson

13m | Podcast
What exactly happened to the ill-fated Boeing aircraft?

What exactly happened to the ill-fated Boeing aircraft?

1h | TBS World
Govt to set up Debt Office as loan burden to hit Tk29 lakh cr by FY28

Govt to set up Debt Office as loan burden to hit Tk29 lakh cr by FY28

1h | TBS Insight
Curfew imposed for second night in Los Angeles

Curfew imposed for second night in Los Angeles

2h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net