SME sector needs specific allocations from revenue budget: Stakeholders

Bangladesh must make specific allocations for the country's small and medium enterprises (SMEs) under its revenue budget every fiscal year to ensure continued development of this sector, speakers said on Sunday.

Addressing a webinar organised by the SME Foundation to mark the International Micro, Small and Medium-sized Enterprises (MSMEs) Day, they also urged the authorities to make sure that both small and big businesses get equal access to the Covid-19 stimulus funds.

Chairing the event, SME Foundation Chairperson Professor Dr Masudur Rahman said, "The foundation has successfully distributed Tk100 crore within 24 June as part of the second phase of the government's Covid-19 incentives.

"With this move, we have stood shoulder to shoulder with the small businesses in their fight for survival amid the novel coronavirus pandemic."

He then pointed out that the SME Foundation needs specific allocations under the revenue budget to increase its manpower and financial capabilities, which in turn will help boost development activities centring entrepreneurs.

Speaking in favour of the idea, Industries Minister Nurul Majid Mahmud Humayun said, "SME Foundation – under the Ministry of Industries – carries out a number of activities, such as supporting entrepreneurs in product manufacturing, creating market for those products, and facilitating skill development.

"Alongside ensuring technological development, the government will take necessary steps to increase the financial capacity of this foundation. I believe that such measures will strengthen our efforts to create more skilled entrepreneurs across the country."

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Md Jashim Uddin said, "SME entrepreneurs failed to get the government's stimulus package because they did not have sufficient relationships with banks.

"So, this industry needs an alternative financing method. Alongside the big businesses, smaller ones should also get access to the stimulus fund."

Jashim urged the government to make utility allocations in different areas across the country to help facilitate the disbursement of Covid-19 stimulus package through SME Foundation. He also spoke in favour of establishing SMEs in economic zones through this allocation.

SME Foundation's Managing Director Dr Md Mofizur Rahman said, "In a bid to help the SME entrepreneurs recover their losses, we are working to build an online product display platform that will showcase and market their products.

"We are also supporting female entrepreneurs, and working towards a cluster-based development of the sector."

He continued, "In the upcoming fiscal year, the government plans to formulate a five-year (2021-2025) strategic development vision, distribute another Tk200 crore under the stimulus package, and organise one national and 16 division/district level SME fairs.

"The government also plans to establish two Business Incubation Centres – one in Dhaka and another in Chattogram, and develop the skills of thousands of entrepreneurs during this period."

At the event, State Minister for Industries Kamal Ahmed Majumder said, "The SME sector contributes around 25% to our economy. As per the SME Policy 2019, the government seeks to increase this sector's contribution to 32% by 2024.

"More than 99% of the 78.13 lakh industrial establishments in Bangladesh are cottage, micro, small and medium enterprises (CMSMEs)."

State Minister for ICT Division Zunaid Ahmed Palak said, "The country's youth are not looking for jobs, they are now working to generate employment instead. Bangladesh's SME sector is working behind the driving force of this economy."

He added that the government is working to generate 30 lakh more employment opportunities in the ICT sector by 2025.

UNIDO's Regional Representative for South Asia Van Berkel Rene showcased a comparison of SME sectors from different countries in South Asia at the webinar. "Bangladesh's SME sector is performing very well and this has boosted the country's GDP.

"I look forward to working with the SME Foundation in future."