Cluster-based SME financing mooted

FE Report | Published: February 23, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

Speakers at a discussion on Sunday stressed the need for enhancing capacity of the SME Foundation, cluster-based financing and an industry and entrepreneur-friendly policy to help the small and medium enterprises (SMEs) flourish.
The industrial policy should be formed in such a way that it can encourage young entrepreneurs, they opined suggesting inclusion of some sectors including Agor, plastic, garment accessories and local fashion industry in the proposed industrial policy 2015 as important ones.
Their recommendations also included reducing the ceiling defined for SMEs, evaluation of the industrial policy 2010 and sector and research-based suggestions.
The view exchange meeting on the 'Micro, Small and Medium Industry Entrepreneurs Expectation: National Industrial Policy 2015' was organised by the SME Foundation in the city.
SME Foundation managing director Syed Ehsanul Karim presided over the meeting while representatives from plastic, garment accessories, local fashion and clothing industry, Agor and printing sectors were present there.
"The annual budget for financing is only Tk 100 to 150 million. It is insufficient to provide funds to the SMEs," Mamunur Rahman, deputy general manager of SME Foundation, said while presenting his keynote paper.
Political commitment, access to finance at a single digit rate, SME clusters, training and a business-friendly policy were the pre-requisite for new entrepreneurs, he added.
He also recommended increasing capability of the SME Foundation.
Ashraf Hossain, a local Agor manufacturer demanded 30 per cent cash incentive for them. He said the Agor was now being exported to different countries. They collect all the raw materials locally.
Khondaker Golam Moazzem, additional research director at the Centre for Policy Dialogue, suggested sector-based recommendations, steps for skill development in the supply chain management and mentioning the financing source in the proposed policy.
The speakers also recommended formulating a venture capital policy, skilled manpower at the mid level management, government policy support including cash incentive and tax rebate to encourage new entrepreneurs.
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