Business report :
The Dhaka Chamber of Commerce and Industry (DCCI) has suggested increasing the loan amount for cottage, small and medium enterprises run by female entrepreneurs to Tk 2 crore from Tk 50 lakh.
The leading chamber made the recommendation on Saturday at an event titled “Reform of SME Policy-2019 for sustainable growth and innovation,” at its head office in the capital on Saturday.
“Women entrepreneurs have less personal wealth. As a result, they cannot borrow significant amounts,” said Ashraf Ahmed, president of the DCCI.
He stated that women entrepreneurs face considerable difficulties securing loans, as many lack the assets required for collateral and encounter issues with necessary documentation.
These challenges limit their ability to access financing, he pointed out.
“If we want to increase the number of women entrepreneurs, we need to create a more accessible environment for them to obtain loans,” Ahmed emphasised.
He further mentioned that there is a lack of coordination among relevant institutions in implementing the SME policy, leading to a slow or an incomplete execution of policy.
SMEs are the backbone of Bangladesh’s economy, contributing over 28 percent to the country’s GDP, 45 percent of manufacturing value addition, and accounting for 90 percent of private sector jobs, according to the DCCI.
Ahmed stated that SMEs play a crucial role in strengthening the country’s economic resilience, especially during difficult times and are essential for poverty reduction, improving living standards and supporting large industries.
However, he stressed the need for enhancing SMEs’ export readiness, which is vital for driving economic growth, increasing competitiveness, and achieving national goals.
“As we move toward transitioning into a middle-income economy and graduating from LDC status, it is essential to revisit and update our SME policy framework to ensure sustainable growth and improve competitiveness,” Ahmed further added.
He further noted that while the SME Policy 2019 laid a solid foundation, rapidly changing global market dynamics, digital transformation, and recent economic disruptions require a fresh approach.
“SMEs still face challenges such as limited access to finance, lack of technological expertise, inadequate infrastructure and regulatory hurdles, all of which constrain their full potential.”