• Sunday, Dec 05, 2021
  • Last Update : 10:15 am

Experts: Bailout for CMSMEs impossible without government support

  • Published at 06:24 pm November 24th, 2021
SME
Representational photo Syed Zakir Hossain/Dhaka Tribune

58% entrepreneurs lost their capacity to invest in their existing projects

Experts at a seminar on Tuesday said that the government should extend necessary policy support to the cottage, small and medium-sized enterprises (CMSMEs) to help overcome cumulative losses and survive the competitive market amid the Covid-19 pandemic.

Some 25% CMSMEs have closed during the first five months of the pandemic that hit the country last year, said Md Manzurul Haque, chief faculty member of BSCIC.

The remarks were made at a seminar titled “From Challenges to Creativity and Innovation: Enhancing CMSME’s Resilience in the Context of Covid-19" at a city hotel on Tuesday.

Manzurul Haque also said some 60% industries incurred losses to the tune of nearly 75%. 

He also added that 58% entrepreneurs lost their capacity to invest in their existing projects and 29% enterprises could give 50% salary to their employees.

CMSMEs are particularly can generate huge employment in countries like Bangladesh  with lower investment, said  President of National Association of Small and Cottage industries of Bangladesh (Nascib) President Mirza Nurul Ghani Shovon, also a CIP.

To promote new entrepreneurs and encourage self-employment to around 20 lakh new entrants per annum in the employment market, the startup funds by the Bangladesh Bank and scheduled banks should be raised to minimum Tk20,000 crore to be operated by the central bank in partnership with the respective stakeholder line agencies and private sector, said Shovon

The Nascib president also proposed to expedite a cost effective and commercially viable power sector business structure to ensure uninterrupted and incremental power supply at most economic and competitive rates in order to minimize labour and raw material waste.

The country has 600,000 enterprises, with cottage 8.52%, micro 1.33%, small 10.99% and large 0.08%.

The MSME sector (including cottage industries ) employs 2.1 crore people directly and indirectly. All these organizations provide 60-70% industrial employment.

To boost the process of integration of CMSMEs with the global value chain and compete with global e-commerce, Bangladesh like China, India, Vietnam and others should take up PPP pilot projects to set up warehouses and distribution networks, services in destination markets in order to ensure easy and regular delivery of products to the wholesalers, retailers and consumers, proposed the Nascib president.

The seminar also proposed to rationalize tax and tariff regimes to integrate Bangladeshi businessmen most effectively with the global value chain and also strengthen a rational, transparent and efficient revenue policy and trade facilitation system.

Experts at the seminar also proposed to develop a multi-modal transport network to reduce time and real cost of transport and integrate itself with the regional and global transport networks to derive the benefits of growing regional and international trade.

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