Sustaining small and medium enterprises (SME) requires special policy support as a lack of close ties with banks is depriving these small-scale traders of benefits of the government's stimulus packages, said FBCCI President Md Jashim Uddin yesterday.
The focus is due because the SME sector is considered to be the economy's backbone and forms the backward linkage of the export industry, one of the sources of the country's foreign currency earnings, he said.
This also means that the sector has been one of the worst hit by the pandemic since March 2020, he told the inauguration of a 9th National SME Product Fair 2021 at Bangabandhu International Conference Center in the capital.
The fair comprises 325 stalls wholly showcasing local products, highly prioritising agriculture, food processing and agro machinery manufacturers, ICT, software, leather and leather products, light engineering, jute and jute products, plastics, handicrafts and imitation jewellery.
The event is open for all everyday from 10:00am to 8:00pm till December 12.
The entrepreneurs also face problems in obtaining bank loans for a lack of collateral alongside in traversing the complexities of loan applications, said the chief of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
The sector lacks product diversification and quality, adequate research and development, reliable statistics, attractive packaging, capital and knowledge of related information technology while being slapped with high customs duties and harassment in complex customs procedures, he added.
Coupled with these are limited raw material supplies and non-tariff constraints, he said, urging to lay emphasis on insurance coverage for the sector to counter any future disaster.
He said economic progress could be accelerated by addressing these issues in a coordinated manner utilising public-private partnerships with the FBCCI, SME Foundation, Bangladesh Small and Cottage Industries Corporation and the Export Promotion Bureau.
All concerned should ensure that products meet global standards to expand the country's export basket, urged the event's chief guest, Prime Minister Sheikh Hasina, joining virtually from her official Gono Bhaban residence, reports the UNB.
She emphasised using local raw materials and promoting agriculture and industrialisation, which would be beneficial for the country. "This will help create entrepreneurs as well as improve the competitive edge," she said.
The government is giving importance to agriculture and food-processing industries as their demand is constantly rising across the world, she added.
Many underdeveloped countries became developed in a short period of time in the last century prioritising advancement of the SME sector, said SME Foundation Chairperson M Masudur Rahman.
While many have reopened for business overcoming adversity, others are still going through difficult times, he said.
Industries Minister Nurul Majid Mahmud Humayun, on behalf of the prime minister, presented crests, certificates and cheques of a National SME Entrepreneur Award-2021 to four successful entrepreneurs for their contributions to the economy and society.
The awardees are Humaira Mustafa, Nazmul Islam, Mohammad Shoyeb Hasan and Mohammad Azizul Huq.
State Minister for Industries Kamal Ahmed Mojumder and Secretary to the ministry Zakia Sultana also spoke.
Source: https://www.thedailystar.net/business/economy/news/govt-moves-ease-collateral-requirements-2910716