DHAKA, Oct 19, 2024 (BSS) – Speakers at a focus group discussion today said that coordination among agencies, structural reforms and good management are crucial for sustainable growth of Small and Medium-sized Enterprises (SME) in the country.

They made the remarks at a focus group discussion on “Reform of SME Policy-2019 for Sustainable Growth and Innovation” organized by the Dhaka Chamber of Commerce & Industry (DCCI) at the DCCI auditorium here.

DCCI President Ashraf Ahmed presented the keynote paper at the discussion, according to a press release issued by DCCI here.

Md. Salim Ullah, Additional Secretary (Policy, Law & International Co-operation), Ministry of Industries said that the government was trying to formulate an international standard SME Policy and thus sought cooperation from all stakeholders in this regard.

“All the shortcomings of the previous policy will be addressed and the new one will try to reflect the requirements of all stakeholders for the betterment of SME sector as a whole,” he added.

Md. Anwar Hossain, Vice Chairman, Export Promotion Bureau (EPB), said that the main task of EPB was to promote export-oriented industries including SMEs.

He reiterated the importance of automation in all client service activities of the government as EPB is also trying to make its all services automated soon.

Anwar said that they need to strengthen the backward linkage industry especially the SME sector and NBR should consider simplifying tax filing process especially for CMSMEs as too much documentation process would be a burden for them.

“Besides ISO certification, we need to set our own standard for our exportable products so that we can improve our products competitiveness in the global market,” he added.

DCCI President Ashraf Ahmed said that agro-based economy alone will not be sustainable for the overall economy rather there is a need to go for industrialization. Besides, export of service sector should be enhanced.

He said that CMSME sector is a large sector that has the capacity to create adequate employment opportunities in the country.

The DCCI president said about half a million graduates come into the job market every year and if the CMSME sector can grow, then they will be able to create enough employment creation for these educated unemployed graduates.

He suggested redefining the definition of SME and also uniqueness of the new definition for all government agencies including Bangladesh Bank.

The DCCI president put emphasis on easy access to finance, new model of financing like electronic nano-financing model, electronic channeling, automation of licensing and its renewal, high skills availability, intellectual property protection, high-speed broadband internet facility, addressing non-tariff measures and access to technology for the development of SME sector.

He proposed for setting up a ‘National Industrial Standard’ for ensuring quality of products focusing to international market.

Mirza Nurul Ghani Shovon, President, National Association of Small and Cottage Industries of Bangladesh (NASCIB), said there is a lack of coordination among the agencies. If the government does not arrange required fund for implementation of new SME Policy, it will also remain unimplemented again, he added.

Md. Mahbubur Rahman Palash, Executive Vice President & Division Head, MSME & Emerging Business, Dhaka Bank PLC said that the government was going to reform the existing SME Policy 2019 after five years.

He suggested that in the new policy, trading sector, which is also a big sector should not be ignored.

Md. Mosharref Hossain, Associate Professor, Bangladesh Institute of Bank Management said without government’s patronization, the SME sector will not be developed.

He suggested for establishing a SME innovation lab where small innovators will get a place to flourish. They should also get easy access to finance, he added.

Md. Kyser Hamid, CEO & Managing Director, Bangladesh Finance Limited said all the financing organizations, either it is bank or NGO or MFIs, want to give loans to SMEs, but due to current financing model the disbursement ratio is bit low.

He suggested for including renewable energy sector in the new SME policy and thus incentivize the sector.

Nawshad Mustafa, Director, SME & Special Programmes Department (SMESPD), Bangladesh Bank said that there is a need for having various refinancing schemes and credit guarantee schemes because there are different types of SME entrepreneurs and their needs are also different.

He urged for a common facility centre to promote small and cottage entrepreneurs across the country.

Mohammad Yakub Hossain, Executive Director (Regulation, Research), Microcredit Regulatory Authority suggested easier documentation process for the SME entrepreneurs to get easy access to loan.

He said there is no alternative but to go for automation to avoid corruption. He later suggested that the SME Foundation should expand their operations up to the Upazila level.

Kazi Mahabubur Roshid, Director (Skills & Technology), Bangladesh Small & Cottage Industries Corporation (BSCIC) said that industries should not be established outside the economic zones.

Khondoker Mostak Hosaien, AVP, Lanka Bangla Finance PLC said that direct engagements of financing institutions with the entrepreneurs would strengthen bondage and facilitate their growth.