\\\'Lack of planning, finance retard SMEs development in BD\\\'

Lack of planning, access to finance and land, market information and coordination among the SME supporting organisations are the major constraints in developing the SMEs in the country, speakers said Saturday.
They were speaking at a workshop on "New Technologies in Fashion Sector and Costing" under a joint 'Euro-Bangladesh Fashion Project' held in the city.
Under the project, a four-day training of mid-level management of knit factories started from Saturday organised by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and funded by the European Union.
The EU Ambassador to Bangladesh Pierre Mayaudon was present as chief guest while BKMEA first vice president AH Aslam Sunny presided over the programme.
"Bangladesh provides not only a cost-efficient labour force which is unbeatable but they are also unparalleled in stitching capability," Ferdaus Ara Begum, chief executive officer of BUILD, a sustainable public-private dialogue platform, said while presenting her keynote paper on policy induced constraints of SMEs.
There are a number of policy-induced constraints including turn over tax, duty draw back, certification mark, bonded warehouse, she explained adding that due to policy constraints, the SMEs are not always get the benefits.
She recommended upgradation of SME policy strategy 2005, proper implementation of differential benefits and the policies meant for SMEs, coordination among the supporting agencies, simplification of legal instruments and removing geographical gaps in financing them as SME loans disbursement in urban areas is high.  
The EU Ambassador said Bangladesh has immense potentiality to raise its export to the global world particular to the EU.
"Bangladesh has to ensure accountability and good governance for today and tomorrow," he said.
Regarding the Sustainability Compact, he said lots have been done but still much need to be done including the formulation of rules to implement the labour law and labour rights in the EPZs.
Regarding the GSP plus benefit, Mr Mayaudon reiterated that Bangladesh should work from now on in this regard.
As an LDC, Bangladesh now enjoys duty free and quota free facility in the EU, he said adding but it will lose the benefit being a Middle-income country by 2021.
GSP Plus is an incentive for the countries that have signed, ratified and are properly implementing 27 international core conventions in the areas of human rights, labour rights, environment and governance.
BKMEA's second vice president Mansoor Ahmed also presented another keynote paper.
Matthijs Crietee, deputy secretary general of International Apparel Federation (IAF), the implementing agency of the joint project, said the fashion system is under pressure leading to deadlock situations for both buyers and manufacturers.
The industry is faced with rising costs and lower prices, he said suggesting improving productivity through lowering costs not by moving production, making less that nobody buys or only buys at a big discount.

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