Investor Presentaiton
POLICY DIALOGUE
SMEs in Bangladesh: Importance and ①
Challenges
CENTRE FOR
SMEs in Bangladesh contributes 25 per cent of the GDP and 45 per cent
of manufacturing value addition and 90 per cent of total industrial units
(Ministry of Planning, 2019 and ADB, 2015).
SME is a labour intensive sector: accommodates about 25 per cent of the
total labour forces and 80 per cent of industrial employment (Ministry
of Planning, 2019).
A number of studies reveal that the high cost of capital and access to
financing from formal banking channel is the major obstacle to SME
growth in Bangladesh (Hassani-Mahmooei & Parris, 2012; Cattaneo et al.,
2019; Rahman & Majumder, 2020).
The allocation, implementation and disbursement processes of GoB's
COVID stimulus package for CMSMEs has once again demonstrated the
extent and gravity of SME's challenges in accessing finance from the
formal channels; it has highlighted both demand and supply side
constraints.
Dialogue on Establishing A Blended Finance Mechanism in Bangladesh
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