Efficient SME sector 'to propel faster industrial growth'

FE Team | Published: June 11, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Formulation of a 'Basic SME Promotion Law' and formation of a policy making council are imperative for speedy industrialisation in the country, speakers said Sunday.
They said an efficient SME sector will propel a faster industrial growth in the country.
The remarks of the speakers came at a seminar on 'Promotion of SMEs for Industrialisation', organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), apex trade boy of the country, at the Federation Bhaban in the city Sunday.
Presided over by former secretary of the government SM Al-Husainy, among others, Md Nurul Amin, secretary of the ministry of Industries, and Mir Nasir Hossain, president of FBCCI, took part in the discussion.
Mustafizur Rahman, chairman of the Institute of Development Strategy, presented a keynote paper in the seminar.
Md Nurul Amin, Secretary of the Ministry of Industries, referring to the industrialisation of some western and South East Asian countries, underscored the need for an institutional network for capacity building and supporting the SMEs.
The network can be formed with government and private institutions and associations of entrepreneurs, he said.
Mentioning the limitation of SMEs in access to finance, industries secretary proposed that there should be seed capital, venture capital, debt finance, credit guarantee, mutual guarantee, and export credit guarantee scheme.
FBCCI president Mir Nasir Hossain said the structural bottlenecks that SMEs currently face for starting and operating businesses are not adequately addressed in the industrial policies and very little policy directions have been given towards elimination of these constraints.
The support that government provides for financing SMEs is not adequate, he said, adding more resources are needed to support new, emerging and potential SMEs to meet their financial requirements.
Presenting keynote paper, Mustafizur Rahman, chairman of the Institute of Development Strategy, proposed a 23-point recommendations including formulation of a Basic SME Promotion Law, establishment of dedicated new financial institution for SMEs and strengthening Bangladesh Small and Cottage Industries Corporation (BSCIC).