Remove barriers that hinder SMEs’ growth
The entrepreneurial spirit is often hailed as the backbone of economic growth, yet in Bangladesh, this spirit is stifled by a labyrinth of bureaucratic hurdles and unofficial costs.
A recent study by the SME Foundation reveals that a staggering 57 per cent of entrepreneurs identify tax structures as a primary obstacle to lawful business operations.
This is compounded by the complexities surrounding trade licence renewals and excessive costs, which 51 per cent of respondents highlighted.
The sheer number of required certificates—34 from various departments — compared to just seven in India, paints a grim picture of the bureaucratic burden that entrepreneurs must shoulder.
The implications of these challenges extend beyond individual businesses; they threaten the very fabric of Bangladesh’s economy.
As the country approaches its graduation from Least Developed Country (LDC) status in 2026, the World Trade Organization has warned of a potential 14 per cent decline in exports by 2027.
This forecast should serve as a wake-up call for policymakers to implement systemic reforms that facilitate rather than hinder entrepreneurship.
The President of the Small and Medium Enterprises Owners’ Association of Bangladesh aptly calls for a one-stop service to streamline the process and eliminate harassment at every stage.
Such a service could significantly reduce the time and resources spent navigating the bureaucratic maze, allowing entrepreneurs to focus on what truly matters: growing their businesses.
Moreover, the President of the National Association of Small and Cottage Industries of Bangladesh advocates for tangible support measures, including discounts on licence fees and tax holidays.
These initiatives could provide much-needed relief to new entrepreneurs, particularly women, who often face additional barriers in the business landscape.
The challenges faced by entrepreneurs in Bangladesh are not merely administrative inconveniences; they are significant barriers to economic growth and innovation.
The government and relevant stakeholders must take decisive action to reform the bureaucratic landscape, fostering an environment where entrepreneurship can thrive.
Only then can Bangladesh fully harness its potential and secure a prosperous economic future. We must admit the reality.