The recent appreciation of the U.S. dollar against the Taka is emerging as a serious threat to small businesses across the country. As the Taka continues to depreciate, the cost of importing goods and raw materials is rising rapidly. Since Bangladesh is heavily reliant on imports, this has placed immense pressure on small and medium enterprises (SMEs), which make up over 90 per cent of all businesses in the country.
These SMEs include stationery suppliers, online fashion retailers, electronics vendors, and various startups. Many of them depend on imported items such as packaging materials, fabrics, ink, paper, tech gadgets, or components to assemble products. As the exchange rate worsens, these imports become more expensive in Taka, eroding their already slim profit margins. These businesses are left with only two risky options: increase product prices or absorb the added cost. In either case, they face losing customers or collapsing under financial strain.
To make matters worse, major banks and financial institutions tend to prioritise large corporations over small businesses, making it difficult for SMEs to access loans, foreign exchange, or other financial support. As a result, many small firms are being forced to shut down or reduce their workforce, exacerbating unemployment and slowing economic growth. If this situation persists, it will discourage a generation of young entrepreneurs.
Urgent measures are needed to support these enterprises. The Ministry of Finance and Bangladesh Bank must take steps to stabilise the dollar rate. Special low-interest loans and financial support packages should be designed specifically for SMEs. Additionally, small firms must be given easier access to foreign exchange to import essential materials. Providing financial advice and training to entrepreneurs would also help them manage expenses more effectively.
SMEs are the backbone of Bangladesh's economy. If we want sustainable progress, we must support those who are working tirelessly to build businesses from the ground up. Failing to act now could result in more closures, greater job losses, and long-term harm to the economy. Supporting small businesses today means securing a stronger, more resilient future for the nation.
Shreya Saha
Student, BBA
North South University
shreya.saha2312@gmail.com
