SME sector poised for going digital

The Small and Medium Enterprise (SME) sector, a key driver of Bangladesh's economy, is on the verge of a major digital transformation as more businesses adopt technology to streamline operations and expand market reach. Contributing over 25 percent to the country's GDP and employing millions, SMEs are increasingly turning to e-commerce, cloud-based accounting, and mobile payment platforms to improve efficiency.
Industry experts note that the COVID-19 pandemic accelerated this shift, pushing even traditional businesses to embrace online sales channels. Government initiatives, such as the "Digital Bangladesh" vision and access to low-interest loans for tech adoption, have further boosted confidence among entrepreneurs.
However, challenges remain. Many SME owners cite limited digital literacy, cybersecurity risks, and insufficient infrastructure as barriers to full-scale transformation. Analysts suggest that targeted training programs, coupled with improved rural internet connectivity, could unlock the sector's full potential.
If these hurdles are addressed, Bangladesh's SMEs could not only enhance productivity but also compete more effectively in regional and global markets. With the right support, the sector's digital journey may well define the next phase of the nation's economic growth.
Md. Osman Goni
Student
North South University
osman.goni@northsouth.edu