Present Scenario of Small and Medium Enterprises (SMEs) in Bangladesh: An Evaluation

Abstract

SMEs all over the world have been playing a vital role in promoting economic development, structural change, hunger and poverty reduction, potential contribution to the overall industry, employment generation, achieving millennium development goals, eradication of gender inequality, and women empowerment. In the economic development effort in Bangladesh, the SME sector plays an important role. The SME sector employs 25% of the total labor force. The SME sector requires lower energy supply and infrastructure facilities, which imposes less environmental risk. They contribute towards better utilization of local resources and skills that might otherwise remain unutilized. Our major objective is to identify the contribution of banks to the development of the SME sector. We also try to find out the current status of banks in the development of the SME sector. By preparing the report we gain depth knowledge about SME banking. SMEs are considered to be the seedbed for the development of entrepreneurial skills and innovation. The small capital requirement makes easy entry and exit possible and private sector entrepreneurial activities have many important spillovers and positive externality effects.