Bangladesh is home to millions of small and medium enterprises (SMEs), constituting 97% of the country's enterprises, according to an ADB study and playing a vital role in promoting economic development.
According to the SME Foundation, there are about 7.8 million SMEs in Bangladesh, employing around 24 million people1.
Among those, about 5.6 million SMEs are established in rural areas, whereas 2.2 million SMEs are found in the urban areas.
Being a key driver of employment growth, the sector contributes to 25% of the country's GDP and generates a wide array of products and services for domestic and international consumption.
These SMEs also help unleash the potential of the rural economy and enable these communities -- especially the women and youth - to become employable and exit the cycle of poverty and socio-economic deprivation.
However, the small and medium businesses will need some support to navigate the brutal impacts of the Covid-19 pandemic, international conflicts and the climate crisis.
Numerous SMEs in rural areas are shutting shop as they lack the digital skills and tools to take advantage of the evolving digital and connected landscape, where consumers are choosing cards, mobile phones and ecommerce to pay, over cash.
According to a recent study from the UN Capital Development Fund (UNCDF) and Visa, there are substantial gaps in the digital and financial literacy levels of entrepreneurs in Bangladesh.
The research stated that over 50% of small and micro-businesses (SMBs) had poor understanding of how digital and financial services could help their businesses.
Notably, the financial literacy gaps were even more pronounced for women entrepreneurs.
To help narrow this gap, Visa has introduced innovative e-learning initiatives to fill the financial literacy gaps of less-advantaged entrepreneurs in the country.
Since last year, Visa has worked with partners such as Aspire to Innovate (A2i), ekShop and ShopUp to develop e-learning modules, including a resource platform, audio-visual and app-based tools for small businesses to partake and learn from.
Those modules helped to build the capacity of entrepreneurs to use digital tools to expand their businesses.
As part of this continuous effort, Visa has recently partnered with Daraz Bangladesh, the country's leading e-commerce platform, to impart practical business skills to SME sellers through Daraz University.
This partnership with Daraz is aimed at uplifting SMEs and helping them make confident, informed decisions to grow their businesses, which in turn will accelerate economic growth.
Practical Business Skills, an initiative by Visa, aims at providing first-hand information to sellers on shop management and seller tools, access to exclusive services, and a support center with resources.
Utilizing the collaboration with Daraz, Visa will use the digital platform to enable SMEs to gain access to the right resources and knowledge that are pivotal to drive inclusive, sustainable, and equitable growth in the long run.
In Pakistan, this program has already benefited more than 40,000 entrepreneurs since its establishment in 2018, who have received free-of-cost education from Daraz University to accelerate their business.
In a developing economy like Bangladesh, the MSME sector promises to provide the necessary levers for a growth economy by generating low-cost employment opportunities, enhancing locally available inputs and technologies, and implementing forward integration with large-scale industries.
Empowering and enabling them with knowledge, skills and resources will only give them more firepower to drive inclusive growth and economic empowerment.
The author is country manager for Bangladesh, Nepal and Bhutan at Visa Inc