Editorial
SME potential untapped
Remove the impediments
Despite the fact that the small and medium enterprises (SM) are contributing impressively to the growth of the country's economy, a number of impediments still thwart the utilisation of the sector's full potential. Among them are lack of bank finance, lack of security, lack of utility services and infrastructure facilities. For instance, they are depending largely on self-finance, whereas, bank finance accounts for only 10 percent of their capital. These and more interesting facts on SMEs have been revealed by experts in a seminar on "Local Business Dynamics: Ground Realities and Policy Challenges, held in the city on Friday. We are happy to learn that not only an 'entrepreneurship culture' is growing in the country at local levels, as many as 41 percent of the entrepreneurs were found to be new entrants in business. We believe infusion of new blood would bring diversity and dynamism in the entire business sector. But, it appears from the seminar findings, a great deal more remains to be done to keep the upward trend going. First and foremost, the impediments need to be removed. There are the licensing authorities that are unnecessarily making patenting formalities complex. There is the problem of security and toll collection by the local goons. Then the sector could do with a preferential tax structure something similar to those offered to big time investors. The sector also needs institutional support through networking with others including the local bodies. The major recommendation that came from the seminar was establishment of an SME foundation, which would make financial assistance available for the entrepreneurs. If we look at the phenomenal growth of China and Malaysia, we would find how SMEs primarily made it possible. Today, some countries are showing interest to relocate their industrial units in Bangladesh. We feel our entrepreneurs should lose no time to make the best use of this opportunity for the overall development of the country. We hope the relevant authorities would help remove the obstacles that deter many worthwhile initiatives.
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