Dhaka – Bangladesh on Monday approved in principle a policy aiming at flourishing small and medium enterprises that currently contribute 25 per cent of the gross domestic product.
The weekly meeting of the cabinet headed by Prime Minister Sheikh Hasina approved the draft policy styled The Small and Medium Enterprise or SME policy 2019, said government spokesman Mohammad Shafiul Alam.
Alam, the cabinet secretary, while briefing reporters after the meeting, said the policy was formulated in line with Bangladesh’s 2016 Industrial Policy.
The new policy will help enterprises access to finance, technology and innovation and market. It will also assist the entrepreneurs to access to education and training, access to business support services, and access to information for small and medium enterprises.
The policy, first such kind in Bangladesh, also targeted that the SMEs would contribute 32 per cent in the gross domestic products by 2024.
More than 7 million small firms across Bangladesh will be benefited from the policy as a ‘SME Credit Guarantee Fund’ will be introduced to simplify the loan system for the entrepreneurs.
No mortgage will be required for getting the credit to run the small industries, the cabinet secretary said,
A ‘Startup Fund’ for attracting unemployed people to start their own business will also be created. It will help giving forward and backward linkage support to the industry a strong footing.
Special emphasis will be given to women entrepreneurs so that they can get more benefit through training and necessary loan to run their firms, Alam said.
Two separate committees — a 37-member committee headed by the Industries Minister and a 29-member committee headed by the Industries Secretary– will be in place to implement the policy between 2019 and 2024.