Multiple barriers hinder CMSME exports, businesses seek govt support

Despite their export potential, the country's Cottage, Micro, Small, and Medium Enterprises (CMSMEs) face multiple challenges, including limited access to finance and markets, skills gaps, complex regulations, and a lack of technology adoption, all of which hinder their export growth. 

To develop the CMSME sector and get access to the international market, businesses at a focus group discussion in the capital today (29 September) urged the government to formulate proper and timely policies, and suggested that businesses obtain local and international licenses, capacity development, technology adoption and diversification. 

They said effective branding, proper marketing strategies and compliance are essential for boosting exports of CMSMEs.

The discussion on "Branding and Marketing Challenges for CMSMEs: Unlocking Export Potential" was organised by the Dhaka Chamber of Commerce and Industry (DCCI).

Speaking as the chief guest, Md Obaidur Rahman, secretary at the industries ministry, stressed the importance of branding and marketing for Bangladesh's CMSMEs. "The absence of strong national brands in global markets has prevented the country from achieving its desired level of exports, and this requires urgent attention," he said.

He noted that the government has already taken initiatives to modernise the National Industrial Policy 2022, which addresses issues linked to Artificial Intelligence (AI) and the Fourth Industrial Revolution. The National SME Policy 2019 is also being updated to reflect global trends and will be renamed the National MSME Policy 2025, he said, adding that the policy has been finalised and is expected to be placed before the Cabinet next week.

The industry secretary also pointed out that large domestic companies pose a significant challenge for smaller enterprises, as they often replicate products developed by SMEs. "If we had focused on building strong domestic brands, Bangladesh could have earned much more foreign currency."

US tariff pressure

In his keynote presentation, DCCI President Taskeen Ahmed said nearly 90% of Bangladesh's industrial sector is made up of CMSMEs, employing about 11.8 million people.

He warned that additional tariffs imposed by the United States, particularly on readymade garments, will increase production and export costs. To counter this, he urged entrepreneurs to enhance innovation and efficiency to remain competitive.

Ahmed further called for stronger support measures, including easier certification and compliance processes, skills training, incentives for sustainable technology adoption, branding assistance, cluster development, and a CMSME database. He also stressed the importance of attracting foreign investment to strengthen backward linkage industries and supporting start-ups.

Expanding digital presence

Md Saiful Islam, chairman of the Bangladesh Small and Cottage Industries Corporation (BSCIC), said the organisation is providing entrepreneurs with industrial parks, low-cost financing, and training programmes despite institutional constraints. He emphasised the need to increase Bangladeshi products' visibility on international digital platforms such as Amazon, eBay, and Alibaba.

Meanwhile, Export Promotion Bureau (EPB) Vice Chairman and Chief Executive Mohammad Hasan Arif announced plans to establish an Export Ecosystem Platform and a CMSME Help Desk to provide entrepreneurs with comprehensive support. Representatives from relevant government agencies will serve as focal points at the desk.

The discussion was also attended by Bangladesh Bank officials, leaders of industry associations, SME stakeholders, and entrepreneurs from across sectors.