Long-term pragmatic business policy needed

A recent government survey showed that around 60 per cent businesspeople think the growing imperfect competition has been forcing them to shutdown. The study conducted by the General Economics Division of the Finance Ministry on 824 industrial establishments stated that due to low price or demand, producers eventually change their perspective in terms of upcoming production schedule, which influences the supply side of the market. Conversely, high prices of raw materials further intensify the disorder as they eat the profit margin. Access to capital can be termed as another barrier for sectors to flourish as they cannot expand beyond a certain level.
In terms of reforms, 45.99 per cent of the survey respondents called for an inclusive financial system. The highest expectation is for low interest rates or easy terms and conditions for loans. The businesses called for incentive or subsidy, reduced tax rate or licence fee, and business-friendly administration and law enforcement agencies. In order to function more efficiently, the survey respondents sought marketing assistance for manufactured goods and services, help with enhancing supply of local, quality raw materials and aid for eliminating raw material crisis.
Greater focus on small and medium-sized enterprises is appreciating which have contributed significantly to economic growth and employment generation in East and Southeast Asian countries. Giving SMEs access to the hundreds of Economic Zones that the government has planned can solve many of the problems they currently face, as well as creation of one-stop SME service where speedy solutions for the SME-related problems can be provided.
In terms of favourable business atmosphere, Bangladesh for the first time achieved eight-place leap forward in the World Bank’s Ease of Doing Business 2020. Even so, the overall state of business and initiating enterprise in the country is still challenging though many start-up platforms floated in the recent years. Local enterprises are shrinking while India and China have posed great threat for expansion of domestic industries. There is no way for the government but to take a long-term pragmatic business policy to tackle this situation. But first of all, it needs to curb the corruption at zero level.