One of the main constraints for SME’s development is easy access to low-cost financing
The local cottage, micro, small and medium enterprises (CMSMEs) should get prioritised in the industrial policy for an inclusive, sustainable socioeconomic development, experts said at a webinar on Sunday.
They made the observation at the webinar on constraints and prospects of industrial policy arranged by the Dhaka Chamber of Commerce and Industry (DCCI).
Industries Minister Nurul Majid Mahmud Humayun joined the webinar as the chief guest while PKSF Chairman Dr Qazi Kholiquzzaman Ahmad and former Bangladesh Bank Governor Dr Atiur Rahman joined as special guests.
Chairman of SME Foundation Dr Md Masudur Rahman joined as a guest of honour while DCCI President Shams Mahmud chaired the webinar.
Nurul Majid Mahmud Humayun said an inclusive development of economic improvement of the cottage, micro and small enterprises is important.
“30 per cent of the stimulus package announced for the CMSMEs has been disbursed up to October 15th.
We need to increase the contribution of CMSMEs to GDP which is 25 per cent now as well as strengthening backward linkage industries to reduce import dependency,” he added.
He said the government is facilitating women entrepreneurs giving various incentives. “We have a big local market. We must utilize our own skilled workforce in the BSCIC industrial units,” he added.
He also said that the government is considering a separate threshold for the cottage, micro and small from the medium enterprise in the next industrial policy.
Creating new entrepreneurs, strengthening backward linkage industry, employment generation, reducing discrimination between urban and rural economy will get priority in the next industrial policy, he added.
Mahmud in his welcome remark said that in 2019-20 the contribution of industry to GDP was 35.36 per cent, that increased by 6.48 per cent.
“During the last three decades, Bangladesh’s industrial growth was mainly RMG centric. But, for the sake of diversification of industry as a whole Shams Mahmud urged for the development of leather, jute, agro-processing, ship-building, light engineering, pharmaceuticals and non-traditional items,” he added.
He said one of the main constraints for SME’s development is easy access to low-cost financing even in the case of loans under government’s stimulus.