For a growing economy such as ours, small and medium scale businesses are key factors in the march towards progress.
This is especially true given that, due to both number and influence, small and medium scale enterprises often have a bigger mark on the bottom line than huge conglomerates. As such, it is a matter of great concern that our SMEs have barely received 67% of the total stimulus they were promised to aid their survival and continued growth during the Covid-19 crisis. Out of the promised Tk20,000 crore, the industry collectively has barely received Tk13,000cr.
What is further discouraging is that small borrowers have been the most badly impacted due to the pandemic, and yet banks favour big borrowers over smaller ones. SMEs often have to face complications in applying officially and they often have no choice but to appeal to comparatively less safe methods to meet their credit needs.
When one looks at the height of the Covid-19 pandemic and our current post-pandemic recovery, it becomes clear that the myriad SMEs have either have to scale back and close down completely.
This cannot be the status quo.
Smaller entities need all the help they can get. On that note, the government has to focus its operations to help such entities not just survive but thrive. There is also the need for a notice from the central bank that ensures smaller entities are given the proper support they require.
Given that smaller scale entities play a huge role in employment, alongside enticing the middle class to inject more cash into the economy, these steps are absolutely paramount.
Most of the giant conglomerates of today started their career in a much smaller scale. If we want our local businesses to succeed, then we must facilitate their growth.