Present scenario and stratagem to SMEs development in Bangladesh.

Abstract

In the context of Bangladesh, Small and Medium Enterprises (SMEs) have assumed special significance for poverty reduction programs and potential contribution to the overall industrial and economic growth as well as lowering unemployment rate. The birth rate of SME refers to high rate of entrepreneurship skill, free flow and well distribution of available resources, technical innovation that turn to the rapid industrialization. This article reveals that SMEs have received disproportionately smaller support from the government in terms of policy or fiscal incentives. The contribution of SMEs in the development of Bangladesh economy has been significant, both in terms of contribution to GDP and creation of employment opportunities. But activities of SMEs of Bangladesh especially in terms of quality assurance, allocation of fund, marketing efforts have been found significantly below from the international standard. The study thus investigated the performance of the SMEs in the economy of Bangladesh, its problems and prospects and recommended measures to make the sector virile and vibrant in order to play the crucial role it is expected to play.