'Bangladesh's small entrepreneurs struggle with financial management, hindering growth'

Many cottage, micro, and small entrepreneurs in the country lack financial management skills, causing their failure to secure funding from formal lenders, which is a major challenge to their growth, speakers at a roundtable said on Monday.

Besides, small entrepreneurs face different challenges, including poor knowledge of business operations, lack of a skilled workforce, and poor adoption of new technology, they added.

They made these observations at a roundtable discussion titled  'Access to Finance and Technical Support for Small and Medium Enterprises: Current Scenario, Challenges, Policy Support, and Mitigations,' held at a city hotel on Monday evening.

The Global Alliance for Improved Nutrition (GAIN) in Bangladesh and the World Food Programme (WFP), in partnership with Bangladesh Agricultural University (BAU), jointly organised the event.

Bangladesh Small and Cottage Industries Corporation (BSCIC) Chairman Sanjay Kumar Bhowmick attended as the chief guest, while Additional Secretary to the Ministry of Industries Quamrun Naher Siddiqua was present as the special guest.

Portfolio Lead for Large Scale Food Fortification and Value Chain at GAIN Ashek Mahfuz moderated the discussion.

Speaking on the occasion, Sanjay Kumar Bhowmick said the country needs entrepreneurs in every household to become a developed nation by 2041. “It is imperative that the country pave the way for the flourishing of new entrepreneurs in different trades in line with its development goals,” he said.

Highlighting the role of BSCIC industrial estates across the country as the birthplace of many domestic conglomerates, Bhowmick said the government is also exploring new areas to promote SMEs. “A move is underway to establish three food processing industrial hubs in the northern part of the country,” he added.

Quamrun Naher Siddiqua said the food processing sector could become a vital opportunity for SMEs since Bangladesh offers a huge agricultural produce, a significant volume of which perishes. “Food processing along with innovative fortification through research can help address the country’s malnutrition problem,” she said.

Dr Abdullah Iqbal, a BAU professor of the Department of Food Technology and Rural Industries, made a presentation on a project implemented by BAU with the support of GAIN Bangladesh. Outlining the project activities which focused on nutrition, he recommended providing entrepreneurs with training on hygiene, food quality, and safety, and establishing more linkages with academicians and research institutes.

Mohammad Ashiqur Rahman, a Director of Bangladesh Bank's SME and Special Programs Department (SMESPD), said many SMEs cannot secure loans from banks despite the availability of funds under a refinance scheme of the central bank. “A good number of SMEs lack adequate knowledge on how to maintain their necessary documents,” said Rahman. He noted that affiliated banks and non-bank financial institutions do not find the right entrepreneurs to finance despite the availability of funds.

Country Director of GAIN in Bangladesh Rudaba Khondker, BAU Professor Dr. Md. Zainul Abedin, and Secretary General of the Bangladesh Restaurant Owners Association Imran Hasan spoke on the occasion, among others. Officials of different government and non-government organizations, academicians, representatives of lending institutions, and entrepreneurs joined the roundtable.