Emphasis must be given on the SME sector for employment creation

THE role of the small and medium enterprises (SME) sector is essential in the economy of any country.

This sector contributes significantly to expanding trade and commerce, creating employment, and bringing dynamism to the economy.

Since independence, SME entrepreneurs have played a significant role in various fields, including rural poverty reduction.

Although there have been discussions about the SME sector, no visible and effective steps have been taken.

Only large corporations and the oligarchic class were receiving huge loans and government incentives from banks and the financial institutions and were enjoying the freedom to loot.

As they laundered the country’s money abroad, employment did not increase much.

The SME sector, which could have been a major source of employment, was languishing due to the lack of necessary state and institutional support. A major reason behind the mass uprising of 24 was also the lack of employment.

A large number of young people are entering the workforce every year in the country, but there are no limited jobs for them. The SME sector can be a good source of decentralization of the economy and employment.

Bangladesh is striving to graduate from LDC status in 2026. Developing and middle-income countries have moved forward with emphasis on the SME sector alongside large industries.

Apart from this, the SME sector also plays a role as a supporting sector for large and heavy industries. Such a scenario can be seen when looking at China and Thailand.

Unfortunately for Bangladesh, the SME sector is facing various obstacles instead of support. Starting from obtaining business licenses, unequal tax rates, to the crisis of getting easy credit, the sector is not developing.

The SME sector can play an important role in reducing the influence of oligarchs in the country’s economy. For the past decade and a half, the country has been driven by an oligarch-dependent growth model. GDP has grown, but there has been no real development.

Employment has not been created in line with GDP growth. Unemployment has not decreased either. Apart from loans, SME entrepreneurs also face difficulties in business registration, raw material import and marketing, among others.

The concerned authority must keep in mind that in the present era, free flow of information plays a supporting role in the expansion of any sector. There is no option to increase efficiency in the competitive market.

Therefore, it is expected that ensuring favorable conditions for the development of the SME sector will complement the further development of this sector.