Essay Small and Medium Enterprise in Bangladesh

1979 Words Jun 16th, 2011 8 Pages
The Small and Medium Enterprises worldwide are recognized as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labor intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages. Out of 11% employment of the civilian labor force provided by the manufacturing sector, about two thirds are estimated to be provided by the small and cottage industries sector. Again, development of small industries facilitates the effective mobilization of capital and labor resources. They also help in raising standards of living. …show more content…
(d) Credit Distribution Package: It has been announced by the SME Cell that 80% of total resources available for SME would be allocated specially for small enterprises. (e) Lead Bank: It has also been decided by the SME Cell that in the short run BASIC Bank and BRAC Bank will be working together as lead banks and will be responsible for distribution of the credit and venture capital fund. These two banks will closely work with the previously mentioned Advisory Panel. Over the medium term, this responsibility will devolve to the SME Foundation. (f) SME Foundation: Asian Development Bank has expressed its interest to support the government to set up a Small and Medium Enterprises (SME) Foundation as part of its country assistance strategy. Some other development partners will support the SME foundation and it can be an apex body for these industries. The SME is one of the Manilabased lender’s priority sectors and the bank would ready to channel more fund if the disbursement and utilisation of existing funds become faster. Over the medium term and beyond (a time-frame of 18 or so months from now), the Government shall have to form an SME Foundation as a pivotal platform for the delivery of all planning, developmental, financing, awareness-raising, evaluation and advocacy services in the name of all SME development as a crucially-important element of poverty alleviation. The functions of the Foundation would be to provision one-window delivery of all

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