‘Informal sectors need closer attention’

Around 61% of the worlds employed population is in informal employment. But the informal sectors lack legal courage, formal recognition, access to market, and finance.

Also, the identification of informal enterprise is crucial as it is the first key to the transition to formality. So, the informal sectors need closer attention.

Speakers came up with the remark at “Definition of Cottage, Micro, Small and Medium Enterprises (CMSME) in Bangladesh” organised by Business Initiative Leading Development (BUILD) in collaboration with International Trade Centre (ITC) on Thursday.

Dhaka Chamber of Commerce and Industry Secretary Md Joynal Abdin called on the policymakers to visit the small and mid-sized enterprise (SME) clusters before preparing the National Industrial Policy 2021. “The real picture of the CMSMEs can be understood from the 177 SME clusters.”

International Labour Organization Senior Statistician Michael Froschs said the organisation does not have an official statistical definition of SMEs, but it has one for the informal enterprises.

Highlighting the need for a common definition of CSMEs, BUILD CEO Ferdaus Ara Begum said, “The nature of the cottage and micro enterprises is almost the same as most of these industries are involved in retail trading and the manufacturing sector. They are mostly informal and work as extending ancillary support to medium and large ones.”

“Given the similar nature of micro and small enterprises (MSEs), policy support for them should be same while policies for large and medium enterprises (LMEs) can be based on their distinct nature.”

“And most countries use the term MSME instead of CMSME,” Ferdaus Ara said.

ITC expert Olga Solleder said the criteria used in Bangladesh to define CMSMEs is similar to other countries.

“But different organisations, including the World Bank Group and the World Trade Organization only defined micro, small, and medium industries instead of CMSME and the term MSME is used most of the cases.”

“Harmonising the definition depends on nature and type of the country.”

Industries ministry Senior Assistant Secretary Md Salimullah said the ministry is about to formulate a new industrial policy and keen to incorporate all the rational proposals in the policy.

Source: United News of Bangladesh