Development Of Small And Medium Enterprises In Bangladesh Economics Essay

There is great involvement in little and average endeavors ( SMEs ) as major tool of poorness decrease in Bangladesh. Government of Bangladesh formulated a comprehensive Industrial Policy-2005 by seting particular accent for developing Small and Medium Enterprises ( SMEs ) as a push sector for balanced and sustainable industrial development in the state to assist cover with the challenges of free market economic system and globalisation. With many-sided trade dialogues is frequently prima to bettering market entree and with developing states besides being a batch more willing than before to take part in globalisation, rich state authorities and the assistance bureaus have seemingly decided to concentrate on the SMEs as one of import ingredient of private-sector development. Small and Medium-sized Enterprises ( SMEs ) have been playing a polar function in footings of economic growing, employment coevals, poorness decrease and industrialisation ( e.g. through entrepreneurship development ) in Bangladesh. Industrialization ‘s nexus to poverty decrease is through – charging-up the growing rate of the state, sweetening of the productiveness of the worker ( s ) in employment, supplying employment to the unemployed, spread outing consumer disbursement and therefore the assurance degree by sharing lower costs from scale economic systems via lower monetary values. As a consequence SME in Bangladesh takes several schemes to turn itself & amp ; economic system of this state. Such as Market development scheme, merchandise development scheme, variegation scheme etc. The Government of Bangladesh constituted the taskforce to supervise and run Small & A ; Medium Scale Industries tardily in 2003. Present epoch is wholly engineering based ; there is no any range to run concern smartly without engineering. So each and every concern sector in developed states is utilizing modern engineering whereas our concern chiefly SME is utilizing ancient methods which are non consistent with present up lifting competition. Most of the little concerns in Bangladesh are non able to export goods to other states after run intoing the demand of ain state. But it is besides true that our SME sectors are developing twenty-four hours by twenty-four hours and it is lending more in economic sciences in Bangladesh than old clip.

Supervisor ‘s declaration

Certified that this research study titled “ The Development of Small and Medium Enterprises ( SME ) in Bangladesh ” is the confide work of Md. Farid Hossain Talukder, Id-179 who carried out the research under my supervising. Certified farther that to the best of my cognition the work reported herein does non organize portion of any other study or research the footing of which a grade or award was conferred on an earlier juncture on this or any other campaigners.

Dr. Musfiq Mannan choudhury

Assistant professor

Department of Management surveies

University of Dhaka

Table OF CONTENTS

Contented page

Letter of transmission

Recognition

Executive Summery

Supervisor ‘s declaration

Chapter One: Introduction

1

1.0 Background

1

1.1 nonsubjective

3

1.2 Restriction

3

Chapter two: Methodology

4

2.0 Sampling

4

2.1 Methods of roll uping informations

4

2.2 Analytic tools used

4

Chapter three: literature reappraisal

5

Chapter four: SME in Bangladesh

10

4.0 Definition

10

4.1Government policy

11

4.2 Scheme

13

4.3 Opportunity and challenges

15

4.4 Budgetary step

18

4.5 Role of SME in economic sector

18

Chapter five: present position of SME in Bangladesh

21

5.0 Analysis

21

5.1 Findingss

31

Chapter six: Recommendations & A ; decisions

33-35

Mentions

36

Appendix

37

List of Table

Table page

Scheme

13

Market development scheme

14

Budget

18

Analysis

21

Chapter -1: Introduction

1.1 Background of the study

There is no opportunity to deny the fact that Bangladesh needs a sustained degree of development of little and average endeavors ( SMEs ) in order to cut down poorness. Having predomination of agro-based economic activities, low degree of technological development, deficiency of handiness of extremely skilled labourers, little graduated table concerns have been appropriately developed in the state. Sing the state ‘s degree of economic growing, composing of resources or natural resources, degree of international integrating, and turning urbanisation, industrialisation there is immense range for developing diversified and new SMEs in agribusiness, fabrication, service sectors etc.

Scope of employment can be enlarged or widened both in rural and urban countries, which will assist to cut down income inequality between urban and rural countries by SMEs. SMEs ‘ part to the economic system is well-known.

Harmonizing to BSCIC ( 2009 ) , little and cottage industries accounted for 90.91 per cent of entire industrial constitutions in 20082009. About 90 per cent of entire employment and more than 55 per cent of entire fabricating value added originated from SMEs. In another estimation, there are around 66000 little industry units and 611,612 bungalow industry units, which provide employment of about 3.5 million people. When handlooms are added, the figure of bungalow industry units entirely shoots up above 700,000 ( BSCIC, 2009 ) .

SMEs achieved considerable growing in different sub-sectors like, paper, printing and publication ; non-metallic mineral merchandises ; metal merchandises ; chemical ; nutrient, drink baccy etc. SMEs growing in Bangladesh is comparable with the growing achieved in different big graduated table industries in Bangladesh. However, a figure of challenges have slowed down the development or growing of SMEs. In malice of its extended coverage in fabrication and service related activities, productiveness of SMEs is non good in our state.

In a figure of sectors, there is no well-structured value concatenation developed between upper watercourse and lower watercourse.

It is true that turning urbanisation in the state and lifting per capita income at urban degree have been making demand for comparatively ‘better ‘ quality merchandises at a higher monetary value, alternatively of ‘low ‘ quality merchandises at lower monetary value.

Presently, a larger portion of this demand has been met up by low-cost, low quality imported merchandises, because local SMEs are non able plenty to supply satisfactory sum of better quality merchandises.

Though SME is going bit by bit a lifting industrial sector in our state and lending more and more in export, this sector faces several jobs like- lake of proficient know-how, deficit of long term fiscal support, deficiency of skilled workers, selling nexus, research and development. Naturally, development of fight of local SMEs is the major challenge that has to be met in order to prolong and enlarge the growing of this sector.

The major aim of this study is to demo the development of SME, present position of SME, jobs faced by SME and authorities policies to run SME in our state.

1.2 Aims

The major aim of this study is to research the:

Current development position of SME in Bangladesh

Problems faced by SMEs

Government policies to run SME in our state

1.3 Restriction

Although it has been tried on the degree best to do this study based on facts and complete information available, there are some restrictions that are inevitable. They are following:

This survey is limited to merely the development of SME in Bangladesh ;

There was a clip restriction as three months internship period is non plenty to analyze the growing of SME ;

Primary informations is collected from different SMEs ‘ proprietors by questionnaires. So without trust on proprietors ‘ replies there is no any manner to warrant these replies.

Chapter -2: Methodology

To research the growing of SMEs in Bangladesh others footings such as current position of SME, jobs faced by SME, Government policies etc are described in this study. This study fundamentally focuses on the development of SME in Bangladesh.

2.1 trying design

Sampling size is 20

2.2 Methods of roll uping informations

For finishing this study informations is collected from two sourcesaˆ¦

primary

Secondary

Primary informations Beginnings:

Primary informations is collected by questionnaires from direct respondents ( little concern proprietors ) . Questionnaires are besides adjusted with this study.

Secondary informations beginnings:

Secondary information is collected from differentaˆ¦

News documents,

Web sites,

Different articles,

Report, etc.

2.3 Analytic tools

Simple equation is used to analyze this questionnaires.

Chapter -3 Literature reappraisal

In the concern universe, little and micro-businesses form an absolute bulk worldwide. Bangladesh as a developing state has started refocusing its attending on SME to heighten its economic stableness.

Though there is no any standard definition of SME in the universe, we can state that little concern is a concern which starts its activities with little sum of capital, little sum of land, few Numberss of employees & A ; to function little Numberss of clients it is known as little concern.

This paper sets out to analysis the little concern growing in Bangladesh. The footings “ growing ” , “ success ” are frequently really closely linked and are sometimes even used as equivalent word. Traditionally they are all measured by difficult fiscal steps, such as turnover, or by increased Numberss of Employees.

This study tries to demo the functions of SMEs for overall development of Bangladesh. Such as economic growing, poorness relief, employment coevals, and the growing dimensions in three major sectors – agribusiness, industry, and service. The survey besides shows the constrictions of SMEs and the consequence of globalisation on its development in Bangladesh to the success of SMEs in working, lasting, rapid globalisation of markets. In this paper the concluding chase is to develop a model to exemplify a sustainable concern solution that at the same time fight poorness and speed up economic growing through SMEs.

SME takes several schemes to turn itself & amp ; every bit good as economic development of Bangladesh. Such as Market development scheme, merchandise development scheme, variegation scheme etc. Small and Medium-sized Enterprises ( SMEs ) are playing a polar function in footings of economic growing, employment coevals, and industrialisation ( e.g. through entrepreneurship development ) .

Many writers expressed their sentiment about SME growing in developing state like Bangladesh. These are given belowaˆ¦

Beck, Kunt, and Levine ( 2005 ) in “ SMEs, Growth, and Poverty provinces that Cross-Country Evidence ” have found a strong association between SMEs development and Gross Domestic Product in per Capita.

Harvie ( 2004 ) in “ East Asiatic SME capacity Building, fight and Market Opportunities in a Global Economy ” postulates that developing economic systems are particularly seeing little concern as possible instruments for the relief of poorness.

Carl Liedholm, Michael, McPherson and Anyinna Chuta et Al show that “ The per centum of occupation growing coming from endeavor enlargement in rural countries is significantly higher than that of urban countries in developing state. ”

Above mentioned sentiments of different writers show the growing tendency of SME in developing state like Bangladesh.

Actually SME helps hapless people to develop their place. This study tries to demo that the SMEs ‘ activities & A ; its impact on our economic growing. For developing the sense about SME & A ; its impact this study is based on field study.

Though SME is an of import constituent of economic growing so it has to maintain relation with others factors such as cognition, capital mobilisation, creativeness, ability to take enterprises, record maintaining, fiscal control, industry & A ; direction experience, etc which are really of import to heighten economic growing of this state. This study besides focuses on these factors.

In our state bulk per centum of enterprisers take determinations by their ain sense. Small concern brings great chance for little capital proprietors. They can easy utilize this little capital & A ; can take poorness.

Though little concern proprietors are hapless, they need support from external and internal beginnings. Here relatives & A ; different fiscal establishments play of import functions in this instance.

Sing all these, the authoritiess of many developing and less-developed states are following separate SME policies. Bangladesh authorities has developed regulations & A ; ordinances to run the SME in Bangladesh. Tax discount, involvement of loan, location of this concern etc are chief factors have great impact on economic growing which taken by the authorities to run SME.

After the independency of Bangladesh authoritiess of different term of offices took a long clip to recognize the demand of entrepreneurship development. We may acquire the scenario if we analyze the development by regardful authorities term of office. aˆ¦aˆ¦ .

1972-1975 Time period:

During this period trade policy of the state was chiefly project-oriented. As the state was merely free from an bossy reign of Pakistani juntas and the industrial substructure was damaged by the war of release, so, authorities of the so period had no alternate but to originate by itself. Private engagement over the industrial sector was wholly stopped. Government initiated to set up big figure of nationalized industries. As a consequence entrepreneurship development construct was wholly lost.

1975-1982 Time period:

From this clip authorities realized the demand of entrepreneurship development for economic growing. Government started to privatise it ‘s seek industries and introduced deregulating policies in industrial sector. New private enterprisers were created with new enthusiasm. These authoritiess introduced assorted economic system.

1982-1990 Time period: Denationalization and deregulating policies started in some specific sectors. Selling the seek industries to private sector got momentous. Entrepreneurship was encouraged by explicating appropriate financial policies.

1991-2004 Time period: Governments of these periods introduced market economic system to a important extent. Initiated policies to liberalise the trade policies. Privatization board was constituted to research the environmental chances. Export-oriented denationalization policy was introduced. GATT, WTO established took up some issues in this state by the international policies and to supply some ways and schemes.

It is another factor that, how many Numberss of SME in our state it is non easy to state. So, no 1 knows for certain how many SMEs are in Bangladesh today. In 1975 BSCIC ( Bangladesh Small and Cottage Industries Corporation ) surveyed to happen out the existent Numberss of SME in our state, but until today existent Numberss of SME are non found out.

SME growing is besides affected by the environment -external & A ; internal. External environment is really of import to internationalise SME. Environment is major constituent of development without it development can non travel off. So SME has to keep the regulations and ordinance of environment.

To turn SME fiscal & A ; non-financial indexs are really of import. The combination of these two factors brings the economic success of a state.

To develop little concern there are many institutional agreements, which vary grades of effectivity in the undermentioned areasaˆ¦aˆ¦

Fiscal support: Long-run funding are by and large provided by Bangladesh Bank, other specialized bank and fiscal establishments. Commercial bank provide short term loan to concern endeavor regardless of the size in the signifier of general recognition, industrial recognition, rural recognition plan, micro recognition, particular recognition, etc at changing involvement rate of 11-16 % depending on the intent of development.

Human resource development: Small concern demands skilled work force for production, direction and histories. A figure of organisations are engaged in these activities such as BUET, BIT, Polytechnic and Vocational Training Institutes, etc for doing skilled work force.

Policy instruments: Government has been back uping little concern through assorted policy preparations and their execution. Ministries of industry, Ministry of Finance and Planning, Ministry of Commerce and Bangladesh Bank have developed necessary policy to develop SME.

Business development Services: Business Development Services are designed to assist micro, little and average endeavors overcome these barriers to increased productiveness, profitableness and entree high value markets so that they can recognize their possible aid to hapless people work their manner out of poorness, turn local economic systems and creates occupations.

In Bangladesh SME faces many jobs. As a underdeveloped state these jobs should be overcome. Otherwise our SME sectors will non be able to see the success. To get the better of these jobs & A ; to develop little concern in our state in future below mentioned factors should be accepted:

Training, motive, Loan installations, application of regulations, appropriate location, etc

Chapter-4 SME in Bangladesh

4.1 Definition of SME

Small concern is any concern that independently owned and operated, is non dominant in its ain field and does non prosecute in any new or advanced patterns. It is an built-in portion of the entire concern scene in any state. It means the size of which is non large – the size once more depends on the yardstick one uses to mensurate.

Harmonizing to industrial policy

For fabricating industries, the Taskforce recommends that, an endeavor should be treated as little if, in today ‘s market monetary values, the replacing cost of works, machinery and other parts/components, fixtures, support public-service corporation, and associated proficient services by manner of capitalized costs ( of turn-key consultancy services, for illustration ) , etc, were to up to Tk. 15 million ;

an endeavor would be treated as medium if, in today ‘s market monetary values, the replacing cost of works, machinery, and other parts/components, fixtures, support public-service corporation, and associated proficient services ( such as turn-key consultancy ) , etc, were to up to Tk. 100 million ; from both definitions above, land is excluded.

For non-manufacturing activities ( such as trading or other services ) , the taskforce defines:

An endeavor should be treated as little if it has less than 25 workers, in full-time equivalents ;

An endeavor would be treated as medium if it has between 25 and 100 employees ; from both definitions above, land and constructions, one time once more, are excluded.

4.2 Government policies of SME in Bangladesh

As a developing state to develop its economic position and to cut down the poorness rate, SME is really of import sector in Bangladesh. But unluckily, until today Bangladesh could non do separate SME policy to run this sector significantly. Some really simple constabularies are included in the industrial policy in 2005. These areaˆ¦

The Industrial Policy-2005 provinces: “ the SME sector has been given precedence as a privileged sector ” .

The PRSP provinces: “ The Government will prosecute an employment intensive industrialisation with accent on SMEs and export-oriented industries ” .

The Small and Medium Enterprise Cell ( SMEC ) was created in the Ministry of Industries ( MOI ) in 2003, and was tasked to take specialist involvement in SMEs ‘ development.

October 2003 saw the fundamental law of the SME Taskforce ( SMETF ) , with the Principal Secretary to the Prime Minister as the convener. The SMETF blended the Government, the private sector, academe and the civil society as participants.

The Taskforce ‘s study was approved by the Government early in 2005. On the footing of the study of the SME Taskforce, “ the Government of Bangladesh issued Small & A ; Medium Enterprise Policy Strategies, 2005 ” to supply a model for intercessions and policy schemes for the development of SMEs.

The Government constituted a Small & A ; Medium Enterprise Advisory Panel ( SMEAP ) as an independent and meritocratic brains-trust for the MOI for all developmental, proficient and structural advisories in the name of SME development.

Harmonizing to Industrial Policy 2005, there are particular financial inducements for SMEs. Since

Industries will bask revenue enhancement vacation installation for a period of 5 to 8 old ages depending on the locations ;

Agro-processing and computing machine package industries will have income revenue enhancement alleviation for a fixed period ;

Industrial endeavors engaged in the production of RMG will have revenue enhancement installation at a decreased rate of 10 per cent on their export income ;

Particular gross installations will be provided to industries marked as “ thrust sectors ” , SMEs and bungalow industries ;

Industrial endeavors registered with the Board of Investment need non pay any transportation fee ;

The Government is committed to develop industrialisation led by the private sector amid a concern environment that can convey out the best among all SME stakeholders

It is besides pointed out in the industrial policy that Bangladesh authorities has taken enterprises to do separate SME policy. But when this policy will be made and implemented it is a large inquiry today. Without appropriate SME policy SME sector will non be able to lend more on economic system in Bangladesh.

4.3 Strategy for Small Business development in Bangladesh

Four schemes we can follow to turn the Small Business in our state. These are given belowaˆ¦

Table: Scheme

Penetration scheme

Merchandise development scheme

Market development scheme

Diversification scheme

Penetration scheme

A Penetration scheme focuses on the house ‘s bing merchandise in its bing market, and enterprisers try to develop the merchandise and market by promoting bing client to purchase the more of the house ‘s current merchandise.

Market development Strategy

It is a scheme which grows little concern by selling the house ‘s bing merchandise to the new clients.

There are several schemes under the market development scheme these areaˆ¦

Market

Development

Scheme

Geographic

Market

Demographic

Market

Merchandise usage

B.1 ) Geographic Market: This merely suggests selling the bing merchandise in new location.

B.2 ) Demographic market: demographics are used to qualify clients based upon their income, where they live, their instruction, age, and sex ; and so on.

B.3 ) Merchandise usage: An enterpriser might happen out that people use its merchandise in a manner that was non expected. This new cognition of merchandise usage provides insight into how merchandise may be valuable to the new group of purchasers.

C ) Product development scheme

Merchandise development scheme for growing involve developing and selling new merchandise to people who are already buying the house ‘s bing merchandise.

Diversification scheme

This scheme involves selling a new merchandise to a new market.

4.4 Opportunity and challenges for SME of Bangladesh

Opportunities:

Bangladesh is an agricultural state. 85 % populations of Bangladesh are Farmer. So agricultural gets the precedence all times. But today people are going aware of industry. In this circumstance little concern has immense chance to develop itself in our state. Some of import chances of SME are described in belowaˆ¦

Education rate:

The instruction rate of Bangladesh is increasing twenty-four hours by twenty-four hours. Educated people are ever tried to make something new, and they are non afraid of taking hazard. So, new concerns are being launched twenty-four hours by twenty-four hours.

Industrial policy:

Industrial policy aid people to make concern right and it provides many installations to new concern proprietors. So, little concern is seeing new Sun of success.

Handiness of resources:

In our state there are many resources to develop and run little concern significantly.

Foreign market potency:

Small concern of Bangladesh produces many goods which have demands in foreign market, and can gain immense foreign currency. So, little concern is developed twenty-four hours by twenty-four hours.

Honest profession:

Many people imagine that Small Business is really esteemed profession. So, immature people are developing little concern twenty-four hours by twenty-four hours.

Environment:

Environment of Bangladesh is appropriate for concern. Those concerns are non appropriate in ice-land country these are appropriate in our state.

Growth of domestic merchandise

GDP of a state is really of import to mensurate the growing of SMEs. In our growing rate is going good twenty-four hours by twenty-four hours. Current GDP ( 2010-2011 ) growing in our state is 6 % .

Without supra mentioned chances there are many other grounds for which Small Business is developing successfully twenty-four hours by twenty-four hours.

Problems of SME in Bangladesh:

There is a great chance of SME in Bangladesh. It plays a polar function in the economic development of this state but SME of Bangladesh faces many challenges in different areaaˆ¦

Absence of clear cut authorities policy

Absence of incorporate bundle aid

Inadequate handiness of natural stuffs

Irregular and unequal supply of power

Lack of skilled technicians & A ; workers

Failure to acquire loan

Neglected human factor

Lack of information or Information spread

Infrastructural job

Selling job

Unskilled labour

Awareness of installations

Training installations

Incentive step

Loan installations

Security

Womans entrepreneurship

Small capital, etc

Above mentioned points are considered as strong barriers of SME development in Bangladesh. So it can be said that to increase the part of SMEs on Bangladesh economic system authorities, NGOs, commercial Bankss, others fiscal establishments have to set great emphasize on SMEs sector in Bangladesh.

4.4 Government budgetary steps for the development of SME in 2010

Table: Budget 2010-2011

Sectors

Taka ( chromium )

%

Fiscal twelvemonth

Economy & A ; industry

1219

1.07 %

2010-2011

Business

185

0.16 %

2010-2011

Bangladesh is agriculture based state. So chief precedence is given to this sector ever, but relatively concern sector ever gets small precedence, though it has great part on our economic system. To develop the SME sector Bangladesh authorities has to give great precedence to this sector.

4.5 Role of SME on economic development of Bangladesh

The function of little and average endeavors ( SMEs ) to economic development of a state is good organized. Across the Earth it is strongly perceived that SMEs do play critical function in the industrial development, economic development of a state. Bangladesh is non dawdling far behind in this regard. SME has great chance in this state. Environment, inexpensive labour, concern scheme etc are the cardinal characteristics of SME.

In position all the favourable factors ; there is an pressing demand in development of SME in Bangladesh as a underdeveloped state.

SMEs are characterized on the footing of size, investing and employees in most states across the universe.

Here are little concern are those which have employees less than 50 individual and have an investing of less than tk. 250 million.

On the other manus, medium endeavors are those which have investing between tk.250 million and tk. 500 million with the figure of employed workers runing to 50 and 99.

By and large, manus loom, nutrient processing, lather and tannery, ceramic, light technology, electric and electronic, handcraft, specialized fabric and garments etc are fall in the class of little and average endeavor.

Information from MIDAS suggested that, around 88 % of county ‘s entire industrial work force is employed in the SMEs and the sector manufactures over 33 % of industrial value added goods. It can be said that more goods came from little and average endeavors and immense employees are working in this sector to gain money.

Although there is no concrete information about figure and types of SME in Bangladesh, an estimation of the Bangladesh little and bungalow industries corporation ( BSCIC ) says that, there are over 42000 bungalow industries in Bangladesh.

There are besides 10s of 1000s of little industries and a big figure of manus loom and power loom industries in this state.

Despite holding immense potency to boom, the growing of SME sector in Bangladesh is being impeded by many-sided job, both at micro and macro degrees.

Inadequate cognition of many enterprisers about the bing loaning system and absence of necessary preparation installations for little endeavor, widespread corruptness and extortion and high rate of value added revenue enhancement and unneeded torment from taxvat functionaries, jurisprudence hatchet man etc are besides seen as hindrances for the growing of SME.

On the other manus absence of modern engineering transportation policy, deficiency of substructure and support like port, power, gas, hapless jurisprudence and order, unequal legal frame work, policy have been identified as the cardinal macro degree job. Bangladesh SMEs ‘ have no adequate exposure to international market.

Sing the above all state of affairs, Bangladesh authorities along with givers support took some steps over the twelvemonth to back up the development of SMEs.

Assorted establishments including the BSCIC, BOI ( Board of investing ) Commercial Bankss, other fiscal establishments are working to advance the MSE sector, but their services and support are still unequal.

Experts argue that all the establishments have to construct up capacity and upgrade their attitudes to supply appropriate and speedy service to entrepreneurs.

The authorities has already given particular attending to the publicity of SMEs sectors. Though authorities and others fiscal establishments have given particular attending to the publicity of SMEs sector, the part of non-government organisation in this sector is still hapless.

So it can be said that to increase the part of SMEs on Bangladesh economic system authorities, NGOs, commercial Bankss, others fiscal establishments have to set great emphasize on SMEs sector in Bangladesh.

Chapter 05: Present position of SME in Bangladesh

5.1 Analysis:

This portion is based on study through questionnaires.

Calculation:

Number of respondent: frequence

A-100

Question 01: Age of enterprisers

Table -01

Responses

20-25

26-30

31-35

36-40

41-more

Entire

Number of respondent

02

04

08

04

02

20

Percentage

10 %

20 %

40 %

20 %

10 %

100 %

From the above tabular array we can province that, 31-35 old ages people are more interested to make ain concern like SME. Different age ‘s people are besides making concern but non every bit like as 31-35 ages people.

Question02: Owners of SME are male or female

Table-02

Responses

Female

Male

Entire

Number of respondent

7

13

20

Percentage

35 %

56 %

100 %

From above information we can reason that male is more interested than female. Very few female are runing little concern in Bangladesh.

Question 03: Marital position of enterprisers

Table 03

Responses

Married

single

Entire

Number of respondent

12

8

20

Percentage

60 %

40 %

100 %

From the above tabular array we can province that, more little concern proprietors are married. Young ( age: 20-25 ) use their money in capital market. More immature in this age are apathetic and they do what they want to make.

Question 04: Educational making

Table 04

Responses

Class one to five

Class six to ten

HSC or tantamount

Diploma

University alumnus

Entire

Number of respondent

3

5

2

3

7

20

Percentage

15 %

25 %

10 %

15 %

35 %

100 %

Though in early period uneducated people were proprietor of different concern but today educated people like concern more. From this tabular array we can province that, university alumnuss are going interested to make little concern more than any old clip.

Question 05: experience of enterprisers

Table 05

Responses

0 -years

One-five old ages

Six-ten old ages

Eleven- 15

More than 15

Entire

Number of respondent

11

4

2

2

1

20

Percentage

55 %

20 %

10 %

10 %

5 %

100 %

Educated people do n’t fear the hazard. So from this tabular array we can see that without any experience people are establishing little concern. They do n’t wait for garnering experience.

Question 06: startup capital of concern

Table 06

Responses

20,000-60,000

61,000-100,000

100,001-160,000

161,000-200,000

More than 200,000

Entire

Number of respondent

5

6

4

3

2

20

Percentage

25 %

30 %

20 %

15 %

10 %

100 %

From above informations it can be concluded that, more little concern proprietors in Bangladesh start concern by tk.61, 000-100,000. Because, most of the clip they use their ain beginnings and acquire really few loan from bank.

Question 07: Monthly turnover

Table 07

Responses

5000-10,000

10,000-15,000

16,000-20,000

21,000-25,000

More than 30,000

Entire

Number of respondent

3

6

5

3

3

20

Percentage

15 %

30 %

25 %

15 %

15 %

100 %

In our state little concern proprietors start concern by little sum of money, so return is non really good. More return is tk.10, 000-15,000. Low earners are prosecuting with others occupation to gain more.

Question 08: Number of employees

Table 08

Responses

No employees

Two

Three

Four

More than 4

Entire

Number of respondent

03

07

05

03

02

20

Percentage

15 %

35 %

25 %

15 %

10 %

100 %

From above informations it can be concluded that more little concern proprietors have two employees. Most of the concerns are nutrient, Mobile accoutrements oriented. So, more employees are non needed. But SMEs are cut downing the unemployment jobs in Bangladesh.

Question 09: Facing job

Table 09

Responses

Political

Economic

Training

Transportation system

All

Entire

Number of respondent

8

5

3

2

2

20

Percentage

40 %

25 %

15 %

10 %

10 %

100 %

Political influence is playing a critical function as briers of little concern development. In every topographic point now political relations is severely used. Without political job others jobs like economic job, preparation are besides really strong barriers to develop little concern in Bangladesh.

Question10: Beginning of capital

Table 10

Responses

Own

Relatives

Fiscal establishments

Own and relations

All

Entire

Number of respondent

6

3

4

3

4

20

Percentage

30 %

15 %

20 %

15 %

20 %

100 %

Harmonizing to this information it can be said that little concern proprietors start their concern with ain capital. It is common scenario in our state that, People provide loan to travel to abroad but non to make concern. Financial establishments do n’t supply loan to hapless concern work forces because they have no power to make anything.

Question 11: Types of concern

Table 11

Responses

Retailer

Whole marketer

Manufacturer & A ; retail merchant

Manufacturer & A ; jobber

Retailer & A ; jobber

Entire

Number of respondent

7

4

3

2

4

20

Percentage

35 %

20 %

15 %

10 %

20 %

100 %

A­A­A­A­A­More little concern in Bangladesh is prosecuting with retail concern. Because whole sell concern requires immense money and proprietors have no immense money to make it. Through retail concern enterprisers can gain more moneys.

Question 12: Type of invention in your company

Table 12

Responses

Technology

Merchandise

Procedure

Service

Entire

Number of respondent

05

08

03

04

20

Percentage

25 %

40 %

15 %

20 %

100 %

Majority per centum of little concern in Bangladesh are merchandise based. Business of engineering or processing or service requires immense money. So people produce simple merchandise by passing little sum of money. Entrepreneurs in Bangladesh have no immense proficient cognition to introduce engineering based merchandise.

Question 13: If merchandise invention, type of merchandise

Table-13

Responses

Food

Stationary

Cosmetic

Cloth

Entire

Number of respondent

08

03

03

06

20

Percentage

40 %

15 %

15 %

30 %

100 %

From above information we can state that in instance of merchandise invention little concern tendencies to bring forth nutrient point instead than stationary, decorative, cloth etc. It is easy to bring forth nutrient point and with little sum of money nutrient merchandise can be produced.

Question 14: If engineering invention, types of merchandise

Table 14

Responses

Mobile accoutrements

Computer accoutrements

Machineries

Others

Entire

Number of respondent

8

4

3

5

20

Percentage

40 %

20 %

15 %

25 %

100 %

From above information we can state that in instance of engineering invention little concern tendencies to make concern of nomadic accoutrements instead than computing machine accoutrements, machineries etc. because nomadic accoutrements requires little sum of money.

Question 15: If service invention, types of service

Table 15

Responses

Health service

Legal service

Tours & A ; travels

others

Entire

Number of respondent

9

4

4

3

20

per centum

45 %

20 %

20 %

15 %

100 %

From above information we can state that in instance of service invention little concern tendencies to make concern of heath service instead than legal service, tours & A ; travels, etc.

Question 16: Number of subdivision ( s )

Table 16

Responses

No subdivision

Two

Three

Four

More

Entire

Number of respondent

06

04

04

03

03

20

Percentage

30 %

20 %

20 %

15 %

15 %

100 %

More little concern in Bangladesh has no any subdivision. Harmonizing to this information it can be said that merely 20 % little concern has two subdivisions.

Question 17: Family background of concern proprietor

Table 17

Responses

Business

Non-business

Entire

Number of respondent

8

12

20

per centum

40 %

60 %

100 %

Majority per centum of SME proprietors came from “ non-business ” household. If proprietors get more advantages from concern many enterprisers will come from different households.

Question 18: Target market of little concern proprietor

Table 18

Responses

Domestic market

Foreign market

Both

Entire

Number of respondent

16

3

1

20

Percentage

80 %

15 %

5 %

100 %

From above informations it can be concluded that 80 % little concerns are prosecuting with domestic concern activity. They do n’t prosecute with foreign concern, because it is really complicated. So SME sectors in Bangladesh are far behind to foreign money in Bangladesh.

Question 19: Ability of proprietor to develop concern program

Table 19

Responses

Able

Unable

Entire

Number of respondent

4

16

20

Percentage

20 %

80 %

100 %

Harmonizing to this informations 80 % proprietors of little concern are unable to fix concern program.

Question 20: Entry scheme manner

Table 20

Responses

Yes

No

Entire

Number of respondent

3

17

20

Percentage

15 %

85 %

100 %

From above mentioned informations it can be concluded that 85 % proprietors do n’t cognize the entry scheme mode like- franchising, licensing, joint venture etc. For this ground SME sector ca n’t enlarge its ego and besides ca n’t capture the foreign market.

5.2 findings

Contentss

Percentage ( % )

Remarks

Age of little concern proprietors

40

More SME proprietors are 31 to 35 old ages old.

Gender

56

More SME proprietors are male.

Marital position

60

More SME proprietors are married.

Educational making

35

Educated people are prosecuting mostly with SME.

Experience

55

More proprietors of SME are inexperienced.

Start- up capital

30

Numerous little concern in Bangladesh at first is inaugurated by one lac or below one lac tk.

Monthly turnover

30

Majority per centum turnover is below 15,000 taka.

Employees

35

More SME has no any employee.

Problem

40

About 40 % concern work forces faces political job.

Beginning of capital

30

Majority per centum of capital came from ain beginning of proprietor.

Business type

35

Majority per centum of concern are retail concern.

Type of invention ( merchandise )

40

Majority per centum of SME are merchandise oriented.

Merchandise invention ( nutrient )

40

Majority per centum of merchandise oriented SMEs are nutrient oriented.

Technology invention ( nomadic accoutrements )

40

Majority per centum of engineering oriented SME are

Mobile accoutrements oriented.

Service invention ( wellness service )

45

Majority per centum of service oriented SME are wellness oriented.

Branch

30

Majority per centum of SME have no any subdivision.

Family background

60

Majority per centum of proprietors have come from “ non-business ” household.

Target market

80

More SME are domestic concern oriented.

Ability to do concern program

80

Majority per centum proprietors are non capable to do concern program.

Entry scheme manner

85

Majority per centum proprietors have no any thought about entry scheme manner.

Chapter -Six: Recommendations & A ; Decisions

Recommendations:

Womans entrepreneurship:

All the minute adult females enterprisers are limited in Numberss. Entrepreneurs are confronting many jobs in every measure. So bulk per centum of adult females are non interesting to make little concern As such, policy should be designed to promote adult females to be involved in entrepreneurial enterprises in our state.

Education:

Educated people are prosecuting with SME non for better place of SME in Bangladesh but for unemployment state of affairs. To pull the educated people more the construction, policy, installations of SME should be good organized and updated.

Training

Periodic preparation class should be arranged for proficient staff of SMEs. Furthermore, developing in direction of little endeavor and efficient selling should besides be provided. Training or workshop should be organized for the development of SMEs capablenesss to get enhanced cognition about how to take, utilize modern engineering. This preparation must assist entrepreneur to garner experience in every measure of SMEs ‘ development. There is no deficiency of enterprisers in Bangladesh but deficiency of experient enterprisers. To pull experient enterprisers developing and others brainstorming plan should be organized.

Political job

Entrepreneurs in Bangladesh face many jobs in every footfall. Here political jobs play critical function as barriers of SME development. So, Political power should be used to develop this sector non to destruct or non to acquire installations unethically.

Beginning of capital

More capital in SME are provided by ain beginning of enterprisers in Bangladesh. Majority per centum of little concern ‘ proprietors do n’t acquire any fiscal installations from bank and others fiscal establishments. So, many SMEs fall down and do n’t see the visible radiation of success. Government and others non authorities fiscal establishments should be more enthusiasm to assist the SMEs sector.

Production

Majority per centum of SMEs in Bangladesh are merchandise oriented. Others sectors like-service, engineering do n’t acquire precedence every bit like as merchandise. So authorities should do some constabularies to promote enterprisers to take service sectors, engineering sectors. Product oriented SMEs are fundamentally nutrient oriented, so in nutrient market competition is really high. To get the better of the rivals entrepreneurs sometimes utilize unhealthy ingredients with nutrient points. So to cut down the competition in nutrient sector others sectors should be good organized and facilitated more.

Business program

All most 80 % enterprisers are non capable of doing concern program in Bangladesh. The poorest portion of the planning is done in little houses is the scene of overall ends. Most of the enterprisers do n’t fix concern program and do n’t gauge hereafter. So they are non familiar to concern program. It is non good mark for SME development in this state. Workshop, seminar should be organized to promote enterprisers to utilize concern program.

Entry scheme manner

Most of the enterprisers do n’t cognize the entry scheme mode like-franchising, licensing, joint ventures etc. they should be more enthusiasm to make concern in foreign market by utilizing any manner.

By implementing above mentioned suggestion SMEs sectors can develop its ego significantly.

Decision

After all it can be concluded that little sized concern drama an of import function in the economic development of a state. Like large endeavors little endeavors attempts to lend a batch in GDP ( gross domestic merchandise ) and in societal and community development of Bangladesh. SME provides major portion of employment in the entire employment of Bangladesh.

But little concern is less hierarchal, systemized, and compartmentalized than the big company so it ca n’t lend more similar large concern in GDP. So above mentioned recommendation should be implemented every bit shortly as possible to get the better of all jobs and to develop SME sector like such a manner that it can lend in economic development of Bangladesh.