Monday, 15th July, 2024
Monday, 15th July, 2024

Contribution of SMEs to industrial employment is over 80pc: Study

More than 98 percent of the total business enterprises in Bangladesh are SMEs and their contribution is 80 to 85 percent in the country’s industrial employment, according to a research.

According to the research, among the SME enterprises, over 84 percent SMEs are located in villages while more than 80 percent are cottage industries.

SME Foundation conducted the research, titled ‘Development of SMEs in Bangladesh: Lessons from German Experiences’.

The study was supported by the German organization Friedrich-Ebert-Stiftung (FES) Bangladesh.

Prime Minister’s Adviser on International Affairs Dr Gowher Rizvi was the chief guest at the research publishing function while SME Foundation Chairperson Dr Md Masudur Rahman presided over the virtual event.

Bangladesh Ambassador to Germany Mosharraf Hossain Bhuiyan and German Ambassador to Bangladesh Peter Fahrenholtz were special guests.

Managing Director of the SME Foundation Md Shafiqul Islam and Resident Representative of FES Tina Bloom, among others, spoke on the occasion.

According to the research, obstacles to the development of SME sector in Bangladesh are, including lack of financing, high interest rate on loans, shortage of skilled and unskilled workers, lack of connectivity with technical education institutes, lack of effective business network, lack of information hampering production and marketing.

In his speech, Gowher Rizvi said Germany’s advancement on the SME sector is undoubtedly encouraging.

The contribution of SME enterprises is only 40 percent to the country’s economy, so it is necessary to focus on skill development in this sector, he added.

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