SMEs' growth depends on removal of entrepreneurs' problems
Tuesday, 15 September 2009
FE Report
Speakers at a dialogue said Monday that the existing regulatory problems being faced by new entrepreneurs should be removed to allow the growth of more small and medium enterprises in the country for alleviation of poverty and employment generation.
They said that obtaining licences, financing, BSTI and environment certification, registering with tax and VAT, were all time consuming processes that hinders the growth of SMEs in the country.
The speakers and experts were discussing at a dialogue organised by the Small and Medium Enterprise (SME) at its office in the city.
Aftab ul Islam, SME Foundation chairman joined the programme as chief guest while acting managing director of the Foundation moderated the programme.
The speakers opined for the waiver of value added tax and other taxes imposed on the newly established SMEs to encourage more growth amid business friendly environment. They argued that many developed nations including India had waived taxes of the SMEs in those countries to ensure fast growth.
Addressing at the programme chief of the SME Foundation said Aftab ul Islam said that his organisation will start wholesaling loans through banks and financial institutions nationwide.
"The banks and the non-banking financial institutions will lend collateral free credit at minimum interest rate," he added.
He said the government is committed to develop the SMEs to ensure poverty free Bangladesh adding: "Japan had changed its lot through development of the SMEs.
"Despite the prevailing general, legal and regulatory framework, the policymakers as well as the entrepreneurs do not possess much information," Momtaz Uddin Ahmed, managing director of the SME Foundation said.
Presenting a paper, SME managing director said the outmoded, flawed and weak enforcement of laws in the overall legal and regulatory framework of the country are the major constraints for the development of the industry.
He identified the financing procedure as cumbersome combined with high interest rates charged by the banks varying from 11 to 13 per cent.
He claimed entrepreneurs in Turkey can secure lending rates as low as 4 per cent and in India 5 per cent.
K Siddique-e-Rabbani, professor of Department of Biomedical Physics and technology said that entrepreneurs should need to stress on the development of local technology to ensure a sustainable SME sector.
Speakers at a dialogue said Monday that the existing regulatory problems being faced by new entrepreneurs should be removed to allow the growth of more small and medium enterprises in the country for alleviation of poverty and employment generation.
They said that obtaining licences, financing, BSTI and environment certification, registering with tax and VAT, were all time consuming processes that hinders the growth of SMEs in the country.
The speakers and experts were discussing at a dialogue organised by the Small and Medium Enterprise (SME) at its office in the city.
Aftab ul Islam, SME Foundation chairman joined the programme as chief guest while acting managing director of the Foundation moderated the programme.
The speakers opined for the waiver of value added tax and other taxes imposed on the newly established SMEs to encourage more growth amid business friendly environment. They argued that many developed nations including India had waived taxes of the SMEs in those countries to ensure fast growth.
Addressing at the programme chief of the SME Foundation said Aftab ul Islam said that his organisation will start wholesaling loans through banks and financial institutions nationwide.
"The banks and the non-banking financial institutions will lend collateral free credit at minimum interest rate," he added.
He said the government is committed to develop the SMEs to ensure poverty free Bangladesh adding: "Japan had changed its lot through development of the SMEs.
"Despite the prevailing general, legal and regulatory framework, the policymakers as well as the entrepreneurs do not possess much information," Momtaz Uddin Ahmed, managing director of the SME Foundation said.
Presenting a paper, SME managing director said the outmoded, flawed and weak enforcement of laws in the overall legal and regulatory framework of the country are the major constraints for the development of the industry.
He identified the financing procedure as cumbersome combined with high interest rates charged by the banks varying from 11 to 13 per cent.
He claimed entrepreneurs in Turkey can secure lending rates as low as 4 per cent and in India 5 per cent.
K Siddique-e-Rabbani, professor of Department of Biomedical Physics and technology said that entrepreneurs should need to stress on the development of local technology to ensure a sustainable SME sector.