Dhaka: Finance Adviser Dr. Salehuddin Ahmed today emphasized the need for enhanced financial access, technological integration, and global market connectivity to bolster the country’s Small and Medium Enterprise (SME) sector. “The country’s economic growth continues to rely heavily on the SME sector, which also generates the highest employment. The days of hammer and chisel are over. Some SMEs are already using technology, but the scope needs to be expanded further,” he noted.
According to Bangladesh Sangbad Sangstha, Dr. Ahmed made these remarks while speaking at the ‘SME Foundation-ERF Media Award’ ceremony as the chief guest, held at the Economic Reporters’ Forum (ERF) office in the city. A total of 21 journalists were recognized for their exceptional reporting on SME-related issues.
Dr. Ahmed reiterated that the SME sector remains the backbone of Bangladesh’s economy, contributing only 26 percent to the GDP, which he deemed insufficient compared to other nations where this figure can reach up to 60 percent. He dispelled the misconception that developed countries solely rely on large industries, citing examples from Japan and the production of Rolex watches by SMEs.
The adviser highlighted the sector’s potential for inclusivity, particularly in empowering women. “SMEs provide significant opportunities for women’s participation. Empowering women means more than just talk; it requires enabling them to work, and the SME sector is creating that space,” he said.
Addressing financial challenges, Dr. Ahmed pointed out the bias of bankers towards large loans over SMEs, urging a change in mindset among bankers and policymakers. He also discussed the expansion of the Bangladesh Bank’s refinance scheme for SMEs, suggesting that if fuel subsidies can be provided, similar allocations should be possible for SMEs.
Dr. Ahmed proposed the creation of a digital database for the SME sector, with potential funding from the finance ministry, to attract foreign investors who seek digital access to information. He encouraged the SME Foundation to emulate the Palli Karma-Sahayak Foundation (PKSF) model, maintaining financial transparency to attract donors like the World Bank and IFAD.
He concluded by stressing the importance of connecting the SME sector with both domestic and international markets and diversifying exports. Commenting on the national budget’s reduced size, he attributed it to efforts to minimize wasteful expenditures from previous government projects.