Complex tax structure main hurdle for SME entrepreneurs: Study
51% of entrepreneurs view the additional costs associated with trade licenses as a major hurdle
A staggering 57% of small and medium-sized enterprise (SME) entrepreneurs identified the complex tax structure as the primary obstacle to doing business in compliance with the law, according to a study by the SME Foundation.
It also shows 54% of entrepreneurs considered trade licence renewal process to be a hindrance, while 51% cited the additional costs associated with these licences as a nuisance. Some 44% cited the complexity of government laws and regulations as another key obstacle.
Prof Melita Mehjabeen of Dhaka University presented the study findings today (24 November) at a seminar titled "Informal SMEs in Bangladesh: Formalisation Challenges and Way Forward" held in Dhaka.
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The main article presented detailed information on the research and further stated that more than 74% of the country's SME entrepreneurs want to do business in compliance with the laws and regulations of the state.
The research was conducted on 304 entrepreneurs from Dhaka, Chattogram, Sylhet, Khulna and Rajshahi.
According to the 2013 Economic Survey of the Bureau of Statistics, there are more than 7.8 lakh CMSME establishments in the country, employing about 2.5 crore people. However, most of these institutions are informal or outside the government's laws, regulations and tax framework.
The seminar was organised by the SME Foundation and the German development agency Friedrich-Ebert-Stiftung (FES). It was chaired by Anwar Hossain Chowdhury, managing director of SME Foundation.
Industry Adviser Adilur Rahman Khan attended the seminar as chief guest while Industries Secretary Zakia Sultana was special guest.
SME entrepreneurs, representatives of various ministries and departments, SME chambers and associations, banks and financial institutions, researchers, economists and relevant stakeholders participated in the seminar.
The entrepreneurs said that while in India only seven certificates are required from various government departments to do business in compliance with the law, in Bangladesh they need certificates from at least 34 departments.
The SME Foundation is implementing various programs in accordance with the government's National Industrial Policy 2022, SME Policy 2019, UN SDG 2030 and government directives to develop the SME sector through economic, social and environmental protection of the country.
Since its establishment in 2007, about 20 lakh small and medium entrepreneurs in the country have been beneficiaries of various programmes of the SME Foundation.
