The Development Of SMEs In Bangladesh

There is fantastic affinity for small and medium corporations (SMEs) as major tool of poverty decrease in Bangladesh. Federal of Bangladesh designed a comprehensive Industrial Plan-2005 by placing special emphasis for producing Small and Medium Businesses (SMEs) as a thrust sector for well balanced and sustainable professional development in the united states to help package with the issues of free market current economic climate and globalization. With multilateral trade discussions is often leading to improving market access and with expanding countries also being much more willing than before to take part in globalization, rich country government and the aid agencies have apparently decided to focus on the SMEs as one important ingredient of private-sector development. Small and Medium-sized Businesses (SMEs) have been participating in a pivotal role in conditions of economic expansion, employment technology, poverty reduction and industrialization (e. g. through entrepreneurship development) in Bangladesh. Industrialization's connect to poverty reduction is through - charging-up the progress rate of the united states, advancement of the efficiency of the worker(s) in employment, providing job to the unemployed, extending consumer spending and therefore the self-confidence level by posting lower costs from scale economies via lower prices. Because of this SME in Bangladesh needs several ways of grow itself & overall economy of the country. Such as Market development strategy, product development strategy, diversification strategy etc. The Government of Bangladesh constituted the taskforce to screen and operate Small & Medium Range Industries late in 2003. Present time is very technology based; there is no any scope to use business vigorously without technology. So every single business sector in developed countries is using modern tools whereas our business mainly SME is using ancient methods that are not regular with present up rising competition. Most of the small businesses in Bangladesh cannot export goods abroad after get together the demand of own country. But it is also true our SME sectors are developing day by day which is adding more in economics in Bangladesh than past time.

Chapter -1: Introduction

1. 1 Background of the report

There is no chance to refuse the actual fact that Bangladesh needs a sustained level of development of small and medium businesses (SMEs) in order to reduce poverty. Having predominance of agro-based financial activities, low level of technological development, insufficient availability of highly skilled laborers, small scale businesses have been suitably developed in the united states. Taking into consideration the country's level of economic growth, structure of resources or natural resources, degree of international integration, and growing urbanization, industrialization there exists huge range for developing varied and new SMEs in agriculture, making, service sectors etc.

Scope of occupation can be enlarged or widened both in rural and urban areas, which will help to reduce income inequality between urban and rural areas by SMEs. SMEs' contribution to the current economic climate is well-known.

According to BSCIC (2009), small and cottage sectors accounted for 90. 91 % of total professional organizations in 2008\2009. About 90 per cent of total job and more than 55 % of total production value added comes from SMEs. In another estimate, there remain 66000 small industry models and 611, 612 cottage industry systems, which provide occupation of practically 3. 5 million people. When handlooms are added, the amount of cottage industry systems exclusively shoots up above 700, 000 (BSCIC, 2009).

SMEs achieved sizeable growth in different sub-sectors like, paper, printing and posting; non-metallic nutrient products; metal products; chemical; food, beverage cigarette etc. SMEs progress in Bangladesh can be compared with the expansion achieved in several large scale sectors in Bangladesh. However, a number of challenges have slowed down the development or expansion of SMEs. In spite of its comprehensive coverage in processing and service related activities, output of SMEs is not good inside our country.

In a number of sectors, there is no well-structured value string developed between upper stream and lower stream.

It holds true that growing urbanization in the country and increasing per capita income at metropolitan level have been creating demand for relatively 'better' quality products at an increased price, rather than 'low' quality products at cheap.

Currently, a more substantial part of the demand has been achieved up by low-priced, poor imported products, because local SMEs aren't able enough to provide sufficient amount of better quality products.

Though SME is becoming gradually a growing industrial sector in our country and adding more and more in export, this sector faces several problems like- lake of complex know-how, shortage of long-term financial support, lack of skilled employees, marketing hyperlink, research and development. Effortlessly, development of competitiveness of local SMEs is the major obstacle that needs to be met to be able to support and enlarge the growth of this sector.

The major purpose of this article is showing the introduction of SME, present status of SME, problems confronted by SME and authorities policies to operate SME inside our country.

1. 2 Objectives

The major aim of this record is to explore the

Current development status of SME in Bangladesh

Problems experienced by SMEs

Government policies to use SME inside our country

1. 3 Limitation

Although it has been tried on the level best to make this report based on facts and complete information available, there are a few restrictions that are unavoidable. They are pursuing

This study is limited to only the introduction of SME in Bangladesh;

There was a period limitation as three months internship period is insufficient to study the development of SME;

Primary data is gathered from different SMEs' owners by questionnaires. So without trust on owners' answers there is absolutely no in any manner to justify these answers.

Chapter -2: Methodology

To explore the expansion of SMEs in Bangladesh others conditions such as current position of SME, problems experienced by SME, Federal guidelines etc are described in this article. This report quite simply focuses on the introduction of SME in Bangladesh.

2. 1 sampling design

Sampling size is 20

2. 2 Methods of collecting data

For concluding this record data is collected from two options

primary

Secondary

Primary data Resources

Primary data is collected by questionnaires from immediate respondents (small enterprises). Questionnaires are also altered with this survey.

-

Secondary data sources

Secondary data is accumulated from different

News documents,

Web sites,

Different articles,

Report, etc.

2. 3 Analytical tools

Simple equation is utilized to analyses this questionnaires.

Chapter -3 Literature review

In the business world, small and micro-businesses form an absolute bulk worldwide. Bangladesh as a developing country has began refocusing its attention on SME to enhance its economic stability.

Though there is no any standard meaning of SME on the globe, we can say that small company is a company which starts off its activities with small amount of capital, little bit of land, few numbers of employees & to provide small numbers of customers it is recognized as small business.

This paper places out to analysis the tiny business progress in Bangladesh. The terms "growth", "success" are often very closely connected and are occasionally even used as synonyms. Usually they are all measured by hard financial steps, such as turnover, or by increased amounts of Employees.

This report tries showing the jobs of SMEs for overall development of Bangladesh. Such as for example economic progress, poverty alleviation, career generation, and the growth proportions in three major industries - agriculture, industry, and service. The study also shows the bottlenecks of SMEs and the effect of globalization on its development in Bangladesh to the success of SMEs in exploiting, making it through, speedy globalization of marketplaces. In this paper the final pursuit is to build up a construction to illustrate a lasting business solution that together deal with poverty and accelerate economic growth through SMEs.

SME can take several strategies to develop itself & as well as monetary development of Bangladesh. Such as for example Market development strategy, product development strategy, diversification strategy etc. Small and Medium-sized Enterprises (SMEs) are playing a pivotal role in terms of economic progress, employment technology, and industrialization (e. g. through entrepreneurship development).

Many authors expressed their view about SME development in producing country like Bangladesh. They are given below

Beck, Kunt, and Levine (2005) in "SMEs, Progress, and Poverty says that Cross-Country Facts" have found a solid association between SMEs development and Gross Domestic Product in per Capita.

Harvie (2004) in "East Asian SME capacity Building, competitiveness and Market Opportunities in a Global Overall economy" postulates that growing economies are especially seeing small company as potential instruments for the alleviation of poverty.

Carl Liedholm, Michael, McPherson and Anyinna Chuta et al show that "The percentage of job progress coming from venture expansion in rural areas is significantly higher than that of cities in growing country. "

Above mentioned views of different creators show the progress craze of SME in growing country like Bangladesh.

Actually SME helps poor people to develop their position. This report tries to demonstrates the SMEs' activities & its effect on our economic progress. For producing the sense about SME & its impact this survey is dependant on field survey.

Though SME can be an important element of economic growth so it must keep relationship with others factors such as knowledge, capital mobilization, creativeness, ability to have initiatives, record keeping, financial control, industry & management experience, etc which are incredibly important to enhance economic growth of the country. This survey also targets these factors.

In our country bulk percent of internet marketers take decisions by their own sense. Small company brings great chance of small capital owners. They can simply utilize this small capital & can remove poverty.

Though small business owners are poor, they want support from exterior and internal sources. Here relatives & different financial institutions play important jobs in this case.

Considering all these, the governments of several growing and less-developed countries are adopting separate SME guidelines. Bangladesh government has developed rules & restrictions to perform the SME in Bangladesh. Taxes rebate, interest of loan, location of this business etc are main factors have great impact on economic growth which used by the government to run SME.

After the freedom of Bangladesh governments of different tenures took a long time to realize the necessity of entrepreneurship development. We might get the scenario if we review the development by deferent federal tenure. .

1972-1975 Period:

During this period trade insurance policy of the united states was mainly project-oriented. As the country was just clear of an autocratic reign of Pakistani juntas and the commercial infrastructure was broken by the conflict of liberation, so, federal government of the then period experienced no alternate but to start alone. Private participation in the professional sector was totally quit. Government initiated to determine large number of nationalized industries. As a result entrepreneurship development strategy was totally lost.

1975-1982 Period:

From this time government realized the necessity of entrepreneurship development for economical growth. Government began to privatize it's seek industries and released deregulation procedures in commercial sector. New private business people were made up of new enthusiasm. These governments introduced mixed financial system.

1982-1990 Period: Privatization and deregulation procedures were only available in some specific industries. Selling the seek business to private sector acquired momentous. Entrepreneurship was inspired by formulating appropriate fiscal plans.

1991-2004 Period: Government authorities of these periods launched market current economic climate to a substantial extent. Initiated policies to liberalize the trade plans. Privatization table was constituted to explore environmentally friendly opportunities. Export-oriented privatization plan was presented. GATT, WTO founded used some issues in this country by the international guidelines and also to provide some ways and strategies.

It is another factor that, how many amounts of SME inside our country it is not easy to say. So, nobody knows for sure just how many SMEs are in Bangladesh today. In 1975 BSCIC (Bangladesh Small and Cottage Companies Organization) surveyed to find out the actual amounts of SME in our country, but until today actual amounts of SME are not discovered.

SME development is also damaged by the surroundings -exterior & internal. Exterior environment is vital to internationalize SME. Environment is major element of development without it development cannot move away. So SME must maintain the rules and rules of environment.

To grow SME financial & non-financial indicators are extremely important. The mixture of these two factors brings the economical success of a country.

To develop small company there a wide range of institutional plans, which vary examples of effectiveness in the following areas

Financial support: Long-term funding are usually provided by Bangladesh Lender, other specialized lender and finance institutions. Commercial bank provide short term loan to business enterprise regardless of the size by means of general credit, professional credit, rural credit program, micro credit, special credit, etc at differing interest of 11-16% depending on purpose of development.

Human source development: Small company needs skilled manpower for creation, management and accounts. Several organizations are employed in these activities such as BUET, Little, Polytechnic and Vocational Training Institutes, etc for making skilled manpower.

Policy tools: Government has been encouraging small business through various insurance plan formulations and their execution. Ministries of industry, Ministry of Fund and Planning, Ministry of Business and Bangladesh Loan provider have developed necessary policy to build up SME.

Business development Services: Business Development Services are designed to help micro, small and medium businesses overcome these barriers to increased output, profitability and access high value market segments so that they can realize their potential help to poor people work their way out of poverty, grow local economies and creates jobs.

In Bangladesh SME encounters many problems. To be a developing country these problems should be defeat. Usually our SME industries will not be able to see the success. To get over these problems & to build up small business inside our country in future below brought up factors should be accepted

Training, determination, Loan facilities, software of rules, appropriate location, etc

Chapter-4 SME in Bangladesh

4. 1 Classification of SME

Small business is any business that independently owned and operated, is not prominent in its own field and does not engage in any new or innovative practices. It is a fundamental element of the full total business scene in virtually any country. It means the size of which is not big - the scale again depends upon the yardstick one uses to assess.

According to industrial policy

For manufacturing companies, the Taskforce advises that, an venture should be cured as small if, nowadays prices, the replacement cost of seed, machinery and other parts/components, fixtures, support energy, and associated technological services by means of capitalized costs (of turn-key consultancy services, for example), etc, were to up to Tk. 15 million;

an venture would be cared for as medium if, nowadays prices, the substitute cost of vegetable, machinery, and other parts/components, fixtures, support electricity, and associated technical 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 venture should be cared for as small if it has less than 25 employees, in full-time equivalents;

An organization would be treated as medium if it has between 25 and 100 employees; from both meanings above, land and set ups, once again, are excluded.

4. 2 Administration plans of SME in Bangladesh

As a growing country to build up its economic position and to reduce the poverty rate, SME is vital sector in Bangladesh. But however, until today Bangladesh cannot make distinct SME policy to use this sector significantly. Some very simple polices are contained in the industrial insurance policy in 2005. These are

The Industrial Insurance plan-2005 states: "the SME sector has been given top priority as a privileged sector".

The PRSP state governments: "THE FEDERAL GOVERNMENT will pursue a jobs extensive industrialization with emphasis on SMEs and export-oriented industries".

The Small and Medium Venture Cell (SMEC) was made in the Ministry of Companies (MOI) in 2003, and was tasked to use specialist curiosity about SMEs' development.

October 2003 observed the constitution of the SME Taskforce (SMETF), with the main Secretary to the Best Minister as the convener. The SMETF combined the federal government, the private sector, academia and the civil contemporary society as participants.

The Taskforce's report was approved by the federal government early in 2005. Based on the article of the SME Taskforce, "the Government of Bangladesh released Small & Medium Enterprise Insurance policy Strategies, 2005" to provide a construction for interventions and plan strategies for the development of SMEs.

The Federal government constituted a little & Medium Business Advisory Panel (SMEAP) as an independent and meritocratic brains-trust for the MOI for those developmental, technological and structural advisories in the name of SME development.

According to Industrial Insurance policy 2005, there are special fiscal bonuses for SMEs. Since

Industries will love tax holiday facility for an interval of 5 to 8 years depending on the locations;

Agro-processing and computer software industries will obtain income tax comfort for a fixed period;

Industrial enterprises engaged in the creation of RMG will receive taxation service at a reduced rate of 10 % on the export income;

Special revenue facilities will be provided to sectors designated as "thrust sectors", SMEs and cottage sectors;

Industrial enterprises authorized with the Panel of Investment need not pay any transfer fee;

The Authorities is committed to develop industrialization led by the private sector amid a business environment that may bring out the best among all SME stakeholders

It is also described in the commercial policy that Bangladesh federal has used initiatives to make different SME policy. But when this coverage will be made and carried out it is a huge question today. Without appropriate SME insurance policy SME sector will never be able to add more on market in Bangladesh.

4. 3 Technique for Small Business development in Bangladesh

Four strategies we can follow to grow the Small Business inside our country.

Penetration strategy

A Penetration strategy targets the firm's existing product in its existing market, and business people try to develop the product and market by pushing existing customer to choose the more of the firm's current product.

Market development Strategy

It is a strategy which grows small business by selling the firm's existing product to the clients.

There are several strategies under the marketplace development strategy these are

B. 1) Geographical Market: This simply advises selling the prevailing product in new location.

B. 2) Demographic market: demographics are used to characterize customers centered upon their income, their current address, their education, get older, and sex; etc.

B. 3) Product use: A business owner will dsicover out that individuals use its product in a way that had not been expected. This new understanding of product use provides information into how product may be valuable to the new band of buyers.

C) Product development strategy

Product development technique for growth involve growing and advertising new product to individuals who are already purchasing the firm's existing product.

Diversification strategy

This strategy will involve selling a new product to a new market.

4. 4 Opportunity and troubles for SME of Bangladesh

Opportunities

Bangladesh is an agricultural country. 85% populations of Bangladesh are Farmer. So agricultural provides the priority all times. But today people have become alert to industry. In this particular circumstance small business has huge possibility to develop itself in our country. Some important opportunities of SME are defined in below

Education rate

The education rate of Bangladesh is increasing day by day. Knowledgeable people are always tried to take action new, and they are not worried of taking risk. So, new companies are being launched daily.

Industrial insurance policy

Industrial plan help visitors to do business correctly and it offers many facilities to new business owners. So, small company is viewing new sunlight of success.

Availability of resources

In our country there are numerous resources to build up and operate small company significantly.

Foreign market potentiality

Small business of Bangladesh produces many goods which have demands in overseas market, and can earn huge foreign currency. So, small business is developed day by day.

Honorable job

Many people suppose Small Business is very prestigious profession. So, young people are developing small business day by day.

Environment

Environment of Bangladesh is appropriate for business. Those businesses are not appropriate in ice-land area they are appropriate in our country.

Growth of home product

GDP of your country is very important to gauge the expansion of SMEs. Inside our growth rate is becoming good daily. Current GDP (2010-2011) expansion inside our country is 6%.

Without previously listed opportunities there are a great many other known reasons for which SMALL COMPANY is developing successfully day by day.

Problems of SME in Bangladesh

There is a great potential client of SME in Bangladesh. It plays a pivotal role in the financial development of this country but SME of Bangladesh encounters many challenges in several area

Absence of clear trim government policy

Absence of integrated package assistance

Inadequate option of raw materials

Irregular and insufficient way to obtain power

Lack of skilled technicians & workers

Failure to get loan

Neglected individuals factor

Lack of information or Information gap

Infrastructural problem

Marketing problem

Unskilled labor

Awareness of facilities

Training facilities

Incentive measure

Loan facilities

Security

Women entrepreneurship

Small capital, etc

Above mentioned tips are considered as strong barriers of SME development in Bangladesh. So it can be said that to improve the contribution of SMEs on Bangladesh economy government, NGOs, commercial lenders, others financial institutions have to put great emphasize on SMEs sector in Bangladesh.

4. 4 Federal government budgetary measures for the introduction of SME in 2010

Bangladesh is agriculture based mostly country. So main top priority is given to this sector always, but relatively business sector always gets little main concern, though they have great contribution on our current economic climate. To build up the SME sector Bangladesh federal government must give great concern to the sector.

4. 5 Role of SME on monetary development of Bangladesh

The role of small and medium businesses (SMEs) to financial development of a country is well organized. Across the globe it is strongly identified that SMEs do play vital role in the commercial development, economic development of a country. Bangladesh is not lagging way behind in this value. SME has great opportunity in this country. Environment, cheap labor, business strategy etc are the key top features of SME.

In view all the good factors; there is an urgent need in development of SME in Bangladesh as a expanding country.

SMEs are characterized on the basis of size, investment and employees in most countries across the world.

Here are small company are those which have employees significantly less than 50 person and have an investment of less than tk. 250 million.

On the other side, medium enterprises are those which have investment between tk. 250 million and tk. 500 million with the number of employed workers varying to 50 and 99.

Generally, palm loom, food processing, lather and tannery, ceramic, light executive, electric and electric, handicraft, specialized textile and clothes etc are land in the category of small and medium organization.

Information from MIDAS advised that, around 88% of county's total professional workforce is employed in the SMEs and the sector companies over 33% of industrial value added goods. It can be said that more goods came from small and medium businesses and huge employees are working in this sector to make money.

Although there is absolutely no concrete information about amount and types of SME in Bangladesh, an estimation of the Bangladesh small and cottage establishments organization (BSCIC) says that, there are over 42000 cottage industries in Bangladesh.

There are also tens of thousands of small establishments and a huge number of hands loom and electric power loom market sectors in this country.

Despite having huge potential to flourish, the growth of SME sector in Bangladesh has been impeded by multifarious problem, both at micro and macro levels.

Inadequate knowledge of many business owners about the prevailing loaning system and lack of necessary training facilities for small enterprise, widespread corruption and extortion and high rate of value added taxes and unnecessary harassment from tax\vat officials, law enforcer etc are also viewed as impediments for the progress of SME.

On the other hands absence of modern tools transfer policy, lack of infrastructure and support like port, electric power, gas, poor rules and order, limited legal shape work, coverage have been discovered as the key macro level problem. Bangladesh SMEs' have no enough contact with international market.

Considering the most importantly situation, Bangladesh authorities along with donors support required some options over the entire year to support the introduction of SMEs.

Various institutions including the BSCIC, BOI (Panel of investment) Commercial lenders, other finance institutions are working to promote the MSE sector, but their services and support are still inadequate.

Experts argue that the institutions have to develop capacity and update their attitudes to provide appropriate and quick service to enterprisers.

The government has recently given special attention to the advertising of SMEs industries. Though government while others finance institutions have given special attention to the advertising of SMEs sector, the contribution of non-government firm in this sector is still poor.

So it could be said that to improve the contribution of SMEs on Bangladesh current economic climate federal, NGOs, commercial bankers, others financial institutions have to place great emphasize on SMEs sector in Bangladesh.

Chapter 05: Present position of SME in Bangladesh

5. 1 Research

This part is dependant on study through questionnaires.

Calculation

Number of respondent: frequency

-100

Question 01: Get older of entrepreneurs

From these stand we can state that, 31-35 years people are more interested to do own business like SME. Different age's people are also conducting business but not as like as 31-35 age ranges people.

Question02: Owners of SME are male or female

From above data we can conclude that man is more interested than feminine. Very few female are operating small company in Bangladesh.

Question 03: Marital status of entrepreneurs

From these desk we can declare that, more small business owners are married. Young (years: 20-25) utilize their money in capital market. More young in this era are indifferent plus they do what they would like to do.

Question 04: Educational qualification

Though in early period uneducated individuals were owner of different business but today educated people like business more. Out of this table we can state that, university graduates are becoming interested to do small company more than any past time.

Question 05: connection with entrepreneurs

Educated people don't dread the risk. So out of this table we can see that with no experience people are launching small business. They don't wait for gathering experience.

Question 06: startup capital of business

From above data it could be figured, more small business owners in Bangladesh start business by tk. 61, 000-100, 000. Because, almost all of the time they use their own options and get hardly any loan from bank or investment company.

Question 07: Monthly turnover

In our country small business owners start business by little bit of money, so go back is of low quality. More go back is tk. 10, 000-15, 000. Low earners are participating with others job to earn much more.

Question 08: Quantity of employees

From above data it can be concluded that more small business owners have two employees. Most of the businesses are food, mobile accessories oriented. So, more employees are not needed. But SMEs are reducing the unemployment problems in Bangladesh.

Question 09: Facing problem

Political influence is participating in a vital role as briers of small business development. In every place now politics is terribly used. Without political problem others problems like economic problem, training are also quite strong barriers to develop small business in Bangladesh.

Question10: Source of capital

According to the data it could be said that small business owners start their business with own capital. It is common scenario inside our country that, People provide loan to go to abroad but not to do business. Finance institutions don't provide loan to poor business men because they haven't any capacity to do anything.

Question 11: Types of business

More small business in Bangladesh is interesting with retail business. Because complete sell business requires huge money and owners have no huge money to do it. Through retail business business owners can earn much more moneys.

Question 12: Type of advancement in your company

Majority percent of small business in Bangladesh are product structured. Business of technology or handling or service requires huge money. So people produce simple product by spending little bit of money. Internet marketers in Bangladesh haven't any huge technical knowledge to innovate technology structured product.

Question 13: If product development, type of product

From above data we can say that in case there is product innovation small company trends to create food item rather than stationary, plastic, towel etc. It is straightforward to produce meal and with small amount of money food product can be produced.

Question 14: If technology advancement, types of product

From above data we can say that in case there is technology innovation small company trends to do business of mobile accessories alternatively than computer accessories, machineries etc. because mobile accessories requires small amount of money.

Question 15: If service innovation, types of service

From above data we can say that in case there is service innovation small company trends to conduct business of heath service rather than legal service, travels & moves, etc.

Question 16: Amount of branch(s)

More small company in Bangladesh has no any branch. Matching to this data it could be said that only 20% small company has two branches.

Question 17: Family track record of business owner

Majority percent of SME owners originated from "non-business" family. If owners get more advantages from business many enterprisers should come from different family members.

Question 18: Target market of small company owner

From above data it could be figured 80% smaller businesses are participating with local business activity. They don't engage with international business, because it is very complicated. So SME industries in Bangladesh are much behind to overseas profit Bangladesh.

Question 19: Potential of owner to build up business plan

According to the data 80% owners of small company are unable to put together business plan.

Question 20: Admittance strategy mode

From previously listed data it could be figured 85% owners don't know the entrance strategy function like- franchising, licensing, jv etc. Because of this SME sector can't enlarge its home and also can't take the international market.

Chapter -Six: Recommendations & Conclusions

Recommendations
Women entrepreneurship

All the moment women business owners are limited in figures. Enterprisers are facing many problems atlanta divorce attorneys step. So majority percent of women aren't interesting to do small company As such, insurance plan should be designed to encourage women to be involved in entrepreneurial endeavors inside our country.

Education

Educated people are participating with SME not for better position of SME in Bangladesh but also for unemployment situation. To appeal to the educated people more the structure, insurance plan, facilities of SME should be well organized and up to date.

Training

Periodical program should be arranged for technical personnel of SMEs. In addition, training in management of small enterprise and productive marketing should also be provided. Training or workshop should be structured for the introduction of SMEs capabilities to get enhanced knowledge about how to choose, use modern technology. This training must help entrepreneur to assemble experience in every step of SMEs' development. There is no lack of internet marketers in Bangladesh but insufficient experienced internet marketers. To entice experienced enterprisers training and more brainstorming program should be planned.

Political problem

Entrepreneurs in Bangladesh face many problems atlanta divorce attorneys footstep. Here political problems play essential role as barriers of SME development. So, Politics power should be used to build up this sector not to destroy or not to get facilities unethically.

Source of capital

More capital in SME are provided by own way to obtain business owners in Bangladesh. Majority percent of small business' owners do not get any financial facilities from bank or investment company and others financial institutions. So, many SMEs collapse and don't start to see the light of success. Administration among others non government finance institutions should be more passion to help the SMEs sector.

Production

Majority percent of SMEs in Bangladesh are product oriented. Others areas like-service, technology don't get top priority as like as product. So authorities should make some polices to encourage entrepreneurs to choose service industries, technology sectors. Product oriented SMEs are fundamentally food oriented, so in grocery store competition is very high. To beat the competitors internet marketers sometimes use unhealthy ingredients with food items. So to lessen your competition in food sector others industries should be well organized and facilitated more.

Business plan

All most 80% business people are not capable of making business plan in Bangladesh. The poorest area of the planning is done in small companies is the environment of overall goals. A lot of the entrepreneurs don't put together business plan and don't estimate future. So they aren't familiar to business plan. It is not good signal for SME development in this country. Workshop, workshop should be arranged to encourage internet marketers to use business plan.

Entry strategy mode

Most of the internet marketers don't know the admittance strategy method like-franchising, licensing, joint ventures etc. they should be more passion to conduct business in foreign market by using any method.

By implementing above mentioned suggestion SMEs sectors can form its personal significantly.

Conclusion

After all it could be figured small size business play an important role in the economical development of a country. Like big corporations small enterprises tries to contribute a whole lot in GDP (gross domestic product) and in interpersonal and community development of Bangladesh. SME provides major show of employment in the total occupation of Bangladesh.

But small business is less hierarchical, systemized, and compartmentalized than the large company so it can't contribute more like big business in GDP. So previously listed recommendation should be put in place at the earliest opportunity to get over all problems and to develop SME sector like such a means it can contribute in economical development of Bangladesh.

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