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In Bangladesh, 90 per cent of the private sector enterprises are SMEs and about
70-80 per cent of non-agricultural workforce is working in the sector. The SMEs contributed up to 25 per cent of GDP last year including about 40 per cent of gross manufacturing output and around 25 per cent of the total labor force. Economic progress and well-being of the people hinges largely on the development and sustenance of a strong and vibrant industrial sector which in turn depends on rapid growth of small and medium enterprises (SMEs). It is also play a key role in driving sustainable economic growth, employment creation and poverty reduction, especially in developing countries like Bangladesh. It also contributes to the social, cultural and environmental capital of nations. Small and Medium Enterprises (SMEs) are the dominant form of business organization in all countries, typically accounting for over 95% of the business population. It also recognized as engine of economic growth and employment generation for sustainable industrialization in both developed and developing countries of the world. In context of Bangladesh, there is no alternative of small and medium enterprises for rapid industrialization and national economic growth through lower capital investment and employment generation. An attempt has been made in this paper to identify major contribution and impact by SMEs in Bangladesh economy and suggest some initiative to expedite the growth of SME. Furthermore, this research paper also attempt to analyses productivity and performance of the SME sector in Bangladesh based on historical data. It also makes an assessment of best way for substantial development of this sector in Bangladesh. Indeed, Small and medium enterprises
(SMEs) are a significant contributor to GDP (gross domestic product), employment generation and self-employment creation of any economy. Because micro or cottage enterprises are home-based and have too many limitations, SMEs are comparatively better than the micro or cottage enterprises, despite the fact, development of SME is not reach expected level yet and which can be tackled by appropriate policies, government initiatives and infrastructural enhancement for further development of SME sector.
Key words: SME, SME Refinance, Employment, GDP, Productivity, Poverty
Md. Qamruzzaman
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, Lecturer, School of Business Studies, Southeast University, House#64, Road # 18, Block - B,
Banani, Dhaka, Bangladesh.
Email: qzamanfindu@gmail.com
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