CMSMEs needs all services under one roof

All services including registration, financing, and business development of the Cottage, Micro, Small & Medium Enterprises (CMSME) sector in Bangladesh need to be under a single organisation, experts have suggested. 

Besides, separate policies are needed for cottage, micro and small enterprises and separate one for medium industries, they said at an event titled "National Policy Dialogue on Priorities for SME Development in Bangladesh" held in Dhaka on Sunday. 

Most Asian countries have a unified organisation for CMSME sector development, but in Bangladesh, entrepreneurs face service gaps due to poor inter-agency coordination, according to the keynote of the seminar, jointly organised by ILO Bangladesh and SME Foundation.

Therefore, to streamline CMSME operations, and unify registration, approval, and tax payment processes under a single organisation, it said.

The seminar also suggested setting up of common facility centres and separate CMSME export development organisations to provide various services including quality control, and waste management in export potential SME clusters.

Attending as the chief guest, Industries Minister Nurul Majid Mahmud Humayun said banks favour lending to large entrepreneurs but are cautious with micro and small entrepreneurs. "However, big borrowers are often the defaulters."

He said it should be noted that SME entrepreneurs can get loans easily so that they can get their finances in an easy way.

The minister remarked that the number of bank directors and entrepreneurs remains stagnant, with no new entrants emerging, despite dedicated efforts.

He emphasised that SMEs drive economic growth and development, crucial for achieving Bangladesh's national goals, including graduation from LDC status by 2026, fulfilling sustainable development goals by 2030, and becoming a developed country by 2041.

He mentioned that in Bangladesh, over 90% of businesses are SMEs, providing over 64% of non-agricultural rural employment, accounting for 80-85% of industrial jobs and 25% of civil employment, and contributing over 25% to the GDP.

FBCCI President Mahbubul Alam said female entrepreneurs are often asked to provide a male guarantor when seeking loans. "This practice needs improvement, especially for small marginalised entrepreneurs."

ILO Bangladesh SME Development Specialist Gunjan Dallakoti and SME Foundation General Manager Md Nazeem Hassan Satter presented keynotes at the event held in Dhaka. 

Labour secretary Md Ehsan-E-Elahi was the special guest at the event, presided over by Masudur Rahman, chairperson of SME Foundation. 

ILO Bangladesh Country Director Toumo Poutiainen and SME Foundation Managing Director Md Mafizur Rahman also spoke at the seminar.