MSMEs face financing gap of $2.8 billion

Micro, Small, and Medium Enterprises (MSMEs) Day 2025 will be observed in Bangladesh today (Friday) along with the rest of the world.

Recognising the critical role of MSMEs worldwide, the United Nations (UN) announced June 27 as the International MSME Day in 2017.

The theme of the MSME Day 2025 is "Enhancing the role of MSMEs as drivers of Sustainable Growth and Innovation".

The MSMEs Day 2025 provides an opportunity to acknowledge the pivotal role MSMEs play in fostering economic growth, generating jobs, and making the nation resilient and competitive.

In Bangladesh, Cottage, Micro, Small, and Medium Enterprises (CMSMEs) are essential for economic development. They significantly contribute to national income, create jobs, and help achieve Sustainable Development Goals (SDGs) like eradicating poverty, promoting gender equality, and empowering women. The government recognises CMSMEs as a key driver of industrialisation.

With approximately 7.9 million SMEs in Bangladesh, CMSMEs contribute about 25 per cent to the national economy and generate 40 per cent of overall employment, according to sources. They account for nearly 80 per cent of total industrial employment and about 90 per cent of industrial units in the country, adding 45 per cent value to the manufacturing sector. Despite their vital role, CMSMEs face a financing gap of US$ 2.8 billion, with only 10 per cent accessing bank finance.

ILO Director-General Gilbert F. Houngbo highlighted the crucial role of MSMEs in creating jobs and advancing social justice.

He calls for bold, coordinated action to empower MSMEs through inclusive policies, better access to finance, skills, innovation, and decent work.

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