Lack of additional financing and capacity holds further development of micro, small and medium Enterprise sectors
Speakers at a seminar suggested using appropriate and modern technology and developing skills of employees for overcoming the existing challenges of micro enterprises in the country.
The micro enterprises are trapped in the use of primitive technologies and low skill levels of their employees; in consequence, the market for the products of the microenterprise of the country are limited within local areas, said the speakers.
Micro enterprises should use appropriate and modern technology in their production process so as to come up with quality products in wider national and international markets, which would enhance their production efficiency and profitability, as well, said the speakers at the seminar.
The seminar was organized by the Palli Karma Sahayak Foundation (PKSF) titled “ Promoting Micro enterprises in Bangladesh: Current Status and Future Prospects”, held at the Bangabandhu International Conference Center (BICC) on Wednesday.
Qazi Kholiquzzaman Ahmad, Chairperson at the PKSF,presided over the seminar, while the State Minister for Information Murad Hasanand Fazle Kabir, governor of the Bangladesh Bank, attended the seminar as the chief guest and special guest, respectively.
Fazlul Kader, deputy managing director at the PKSF, presented the key note paper.
In his keynote paper, he mentioned that the contribution of micro enterprises to GDP is around 25%, representing 57% of the country’s total employment. On the other hand, the contribution of Ready Made Garments (RMG) to the GDP is 11%.
“There is a little scope to enhance productivity in RMG sector, as it has flourished in Bangladesh based on cheap labors. Another major driver of country's economy is remittance, earned by unskilled and semi-skilled laborers in abroad that has been quite inspiring in last few decades,” Fazlul Kader said.
According to the paper, technological advancement and forth industrial revolution will gradually decrease the demand for cheap and unskilled labor of Bangladesh in international markets in this backdrop, Bangladesh needs to focus on promoting micro enterprises to sustain the present economic growth.
Lack of additional financing and capacity holds further development of micro, small and medium Enterprise sectors.
Financial services which are currently available through micro finance institutions and other financial institutions are not suitable for meeting growing demand of enterprises. Equity or quasi-equity financing should be provided to fulfill the demand of growth oriented business.
Another crucial issue in the marketing of enterprises products is branding but there are no adequate testing facilities in the country to certify product quality.
Bangladesh Bank Governor Fazle Kabir said Bangladesh would be able to take advantage of the demographic dividend through the involvement of young people by expanding various small initiatives across the country.
“Bangladesh Bank is working in the favor of financial inclusion of MSMEs," he added.
State Minister for Information Murad Hasan said the government took various initiatives for the development of young generations.