Business Desk :
Experts suggested on Tuesday that structural reforms of loan disbursement process, less documentation process, establishing a specialised SME bank, and a comprehensive SME database will help flourish the cottage, micro, small and medium enterprise (CMSME) in the country.
They said policy reforms, bank-SME good relations, cash flow based loan sanction, considering working capital loan as term-loan and considering large and small investors equally will pave the way for CMSMEs to grow as the sector is the lifeline of the country’s economy.
The suggestions came in a virtual discussion meeting titled ‘Procedures of availing loan from SME stimulus package’.
The event was arranged by SME Foundation and Dhaka Chamber of Commerce and Industry (DCCI).
Professor Dr Md Masudur Rahman, chairperson of SME Foundation, joined as the chief guest at the event while Dr Md Mafizur Rahman, managing director of SME Foundation, joined as a special guest. DCCI President Rizwan Rahman, in his opening remarks, said that the contribution of CMSME to the GDP (gross domestic product) is only 25 per cent whereas it is 35-60 per cent in Philippines, Vietnam, Sri Lanka and China. According to a local study, overall income from the CMSME sector reduced to 66 per cent in 2020 and 76 per cent products remained unsold, he said.
He said according to a DCCI study, it was found that due to the pandemic 62 per cent CMSMEs had to cut their workforce and 90 per cent are continuing their businesses with less capacity.
“Some 73 per cent of the stimulus packages have been distributed but most of the CMSMEs are still deprived of that fund,” he said. He also said that medium enterprises have good relations with banks compared to small entrepreneurs because of a lack of documentation and confidence.
A CMSME-friendly fund and easy access to the loan management system is the demand of time now, he added. He said if Bangladesh Bank can give guidelines to the banks that they have to disburse a specific amount of loan to the CMSMEs then banks will have to comply with that.
Professor Dr Md Masudur Rahman, chairperson of SME Foundation, said SMEs are the lifeline of our economy and during the pandemic, we were able to uphold this image to the policymakers.
