Policy reforms and political voice key to sustainable growth for MSMEs: Experts
They said the MSME sector, despite its significant contribution to the economy, has long suffered from neglect
The country's Small and Medium-sized Enterprises (MSMEs) urgently need supportive policies, affordable financing, effective market access, and political representation to ensure their sustainable growth, experts said at a discussion event in the capital today (29 June).
They said the MSME sector, despite its significant contribution to the economy, has long suffered from neglect. They warned that ignoring the sector could have detrimental long-term consequences for the national economy.
The event, held at the Bangladesh Investment Development Authority (Bida) auditorium, was jointly organised by the SME Foundation and the ILO Bangladesh's ProGRESS Project to mark International MSME Day that falls on 27 June.
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Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD), stressed the need to harmonise the SME definition and gradually formalise informal businesses. Bhattacharya also emphasised that while access to credit is often discussed, tax structure is equally, if not more, important. He called for a focus on tax structures that benefit MSME entrepreneurs.
He said, "Neglect and, in many cases, disregard towards the MSME sector have become a cause of national loss for us."
Nabin Karna, specialist at ProGRESS Project, presented on the structural challenges facing MSMEs. He noted that approximately 60% of MSMEs still operate informally, primarily due to complex registration, licensing, tax management, and insufficient information regarding government schemes and support.
Md Mushfiqur Rahman, chairperson of the SME Foundation, highlighted that despite there being almost 1 crore CSME entrepreneurs, the foundation still lacks its own building. He stressed the need for the SME Foundation to enhance its own capacity to boost entrepreneurs' digital capabilities.
Other notable speakers at the event included Lutfey Siddiqi, special envoy to the chief adviser, Bida and Bangladesh Economic Zones Authority (Beza) Executive Chairman Chowdhury Ashik Mahmud Bin Harun, Industries Secretary Md Obaidur Rahman, SME Foundation Managing Director Anwar Hossain Chowdhury, and International Labour Organization (ILO) Bangladesh Acting Officer Pedro Jr Bellen.
