Ensuring access to finance vital for sector’s growth

Ensuring access to finance, proper certification, tax management, and enforcement of competition laws are vital for the growth of engineering small and medium enterprises (SMEs) in the country.

The observation came at a roundtable discussion on the identification of cottage, micro, small and medium enterprises (CMSMEs) organised by the Bangladesh Chamber of Industries (BCI) at its office in the city's Tejgaon on Saturday.

BCI President Anwar-ul Alam Chowdhury (Parvez) presided over the event while BCI Secretary General Dr Helal Uddin moderated it. Representatives from the engineering sector took part in the event to identify and find a solution to different sector-based problems. Leaders of different trade bodies and BCI directors also attended it.

Speaking on the occasion, Mr Parvez said the BCI has been working to foster entrepreneurship and support micro and small-scale industries across the country, with particular focus on light engineering, agro-based industries, halal products, the blue economy, and leather products.

He emphasised that issues like access to credit, environmental certification, challenges faced by women entrepreneurs in obtaining loans and market management are essential to promote SMEs.

Bangladesh Aluminum Manufacturers Association President Obaidur Rahman underscored the need for diversification of export items. The light engineering sector has potential in this regard, often offering higher value addition than the apparel sector, he observed.

SME Owners Association of Bangladesh President Ali Zaman said SMEs should be redefined, especially medium enterprises, as they grab most of the facilities intended for the entire SME sector.

Bangladesh Engineering Industry Owners' Association (BEIOA) President Abdur Razzak said there is no alternative to establishing a dedicated industrial park to fully harness the potential of light engineering sector. Proper implementation of policies is essential for the development of this sector, he said, adding that higher interest rate is one of the obstacles in the way of its development.

Bangladesh Die and Mold Manufacturers Association (BDMMA) President Utpal Kumar Das said their sector is highly import-dependent, but face various problems in importing necessary items. Besides, the sector is burdened by challenges in the tax system, he said, adding that the country may follow various models adopted by Japan for the development of the engineering sector.

Ismat Zerin Khan, a woman entrepreneur, pointed out that the traditional guarantor system poses a significant barrier for them in accessing loans.

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