Coordination, structural reforms must for SME sector development: Speakers
Coordination among agencies concerned and structural reforms have become crucial for the development of the SME sector, said speakers at a discussion today (19 October).
They also stressed that a better policy in this regard must be formulated and implemented properly on time.
Policymakers and business leaders shared their observations during the discussion, titled "Reform of SME Policy-2019 for Sustainable Growth and Innovation", organised by the Dhaka Chamber of Commerce and Industry (DCCI) at its office in the capital's Motijheel.
A small and medium enterprises (SME) policy was introduced in 2019 with a five-year validity period. Although its term ended in June this year, the policy has not been fully implemented.
Addressing the need for reforming this policy, Md Salim Ullah, additional secretary (Policy, Law and International Cooperation) of the industries ministry, said they will develop an international standard policy after consulting with stakeholders and incorporating necessary amendments to the existing policy.
Many valuable suggestions were put forward during today's discussion and they will be integrated into the new policy, which will reflect the requirements of all stakeholders for the betterment of the SME sector, he said.
Export Promotion Bureau (EPB) Vice Chairman Md Anwar Hossain said EPB's main task was to promote export-oriented industries including SMEs.
"Although excellent policies have been made for SMEs, they are not being implemented. There are many inconsistencies in time-bound programmes.
"For example, BSCIC and the SME Foundation have been assigned to add new market growth and export opportunities to the SME policy, but EPB has not been included. There is also a need to create some standards for SME products and services. This will improve product quality and efficiency, and enhance competitiveness in the global market."
He also highlighted the need to strengthen backward linkages in the SME sector and suggested simplifying the tax filing process, especially for CMSMEs.
Addressing the discussion, SME Foundation General Manager Md Nazeem Hassan Satter said that although SME policies and action plans were formulated, the necessary funding from the government was not allocated. "Despite repeated requests to the Ministry of Finance, funds have not been disbursed. How can a policy be implemented without funds?"
"There is no coordination among the relevant institutions for implementing the SME policy. One institution is unaware of what the other is doing," he added.
Echoing his concerns, Bangladesh Small and Cottage Industries Corporation (BSCIC) Director (Skills and Technology) Kazi Mahabubur Roshid suggested strengthening the SME Foundation and BSCIC and said that a clear delineation of responsibilities among organisations should be outlined in the new policy.
Presenting the keynote, DCCI President Ashraf Ahmed emphasised that the economy must move beyond agriculture to industrialisation and expand the export of the service sector.
He said if promoted and helped to grow, the CMSME sector can generate enough jobs in the country, especially for the five lakh graduates entering the job market annually.
Ashraf recommended redefining the SME criteria across government agencies, including Bangladesh Bank, to facilitate loan access.
He also emphasised easy access to finance and technology, adoption of electronic nano-financing and channelling, automation of the licensing process, high skills availability, intellectual property protection, high-speed broadband internet, and addressing non-tariff measures for the SME sector's development.
Additionally, the DCCI president proposed a "National Industrial Standard" to ensure product quality for the international market and a comprehensive SME database to bring the informal sector into the formal sector.