Some 57 percent of SME entrepreneurs mentioned the tax structure as the main obstacle to doing business in compliance with the law while 54 percent of entrepreneurs consider the trade license renewal process as an obstacle. Some 51 percent of entrepreneurs see the additional cost of trade licenses as an obstacle whereas 44 percent say that the complexity of government laws and regulations is also one of the obstacles. This information has emerged from a study by the SME Foundation. Prof Dr Melita Mehjabeen of Dhaka University presented these findings on Sunday at a seminar titled ‘Informal SMEs in Bangladesh: Formalization Challenges and Way Forward’. The seminar, organised by SME Foundation and German development agency Friedrich-Ebert-Stiftung (FES), Bangladesh, was held at the Agargaon Tourism Building. The event was chaired by Anwar Hossain Chowdhury, Managing Director of SME Foundation. Industry Adviser Adilur Rahman Khan was the chief guest while Industries Secretary Zakia Sultana was the special guest. Bangladesh’s ADP implementation rate at five-year low Dr. Felix Gerdes, Resident Representative of FES Bangladesh, and Gunjan Dallakoti, Program Head of International Labor Organization in Bangladesh, also spoke at the session. Md. Nazim Hasan Sattar, General Manager of SME Foundation, delivered the welcome speech at the seminar. The main article presented the detailed information of the research and further stated that more than 74 percent of the country's SME entrepreneurs want to do business in compliance with the government's laws and regulations. However, in this case, there is a need to simplify the government's rules and regulations or introduce one-stop services, increase collateral-free loans and increase the facilities for doing business in compliance with the law. This research was conducted on 304 entrepreneurs from Dhaka, Chattogram, Sylhet, Khulna and Rajshahi. The entrepreneurs said that while in India only 7 certificates are required from various government departments to do business in compliance with the law, in Bangladesh they need certificates from at least 34 departments. According to the 2013 Economic Survey of the Bureau of Statistics, there are more than 7.8 lakh CMSME establishments in the country, employing about 25 million people. However, most of these institutions are informal or outside the government's laws, regulations and tax framework. In this situation, experts have recommended the government to prepare a comprehensive strategy paper to bring these institutions under the law, regulations and tax framework, formalize them step by step, simplify the rules and regulations, and provide financial and non-financial incentives to entrepreneurs. SME entrepreneurs, representatives of various ministries and departments, SME chambers and associations, banks and financial institutions, researchers, economists and relevant stakeholders participated in the seminar. The SME Foundation is implementing various programs in accordance with the government's National Industrial Policy 2022, SME Policy 2019, UN SDG 2030 and government directives to develop the SME sector through economic, social and environmental protection of the country. Since its establishment in 2007, about two million small and medium entrepreneurs in the country have been beneficiaries of various programs of the SME Foundation.  

Bangladesh Chamber of Industries (BCI) has tied up with SME Foundation to jointly work towards development and capacity building of the small and medium enterprises across the country. A memorandum of understanding (MoU) was signed between the two organizations at a function at the SME Foundation office at Agargaon on Thursday. BCI president Anwar-ul Alam Chowdhury (Parvez) and SME Foundation managing director Dr Md Mofizur Rahman signed the deal on behalf of their respective sides. SME Foundation Chairperson Dr Md Masudur Rahman was present on the occasion. Also read: BCI demands simplification of taxation system Addressing at the function, Anwar-ul Alam Chowdhury said that BCI has been the sole chamber in the country body representing the entire industrial sector. “It has been working towards removing all sorts of bottlenecks against industrialization. BCI has already launched an initiative to create new entrepreneurship, develop micro, small and medium industries and improve the light engineering and agro-based industries. He said the lack of skilled manpower and efficient managers have become the major obstacles in the development of the industrial sectors.  Also read: BCI seeks German GIZ cooperation to create skilled manpower in industrial sector “Most of the new entrepreneurs have to leave their venture within the first 2-3 years because of the lack of efficiency in marketing and due to inadequate financial credit support,” he said adding that the BCI will now provide training to the entrepreneurs to improve their efficiency and capability.  He said the BCI believes that through the partnership with the SME Foundation, it will be possible to raise the contribution of the industrial sector to 60-70 percent to the economy. The Chairperson of SME Foundation said, "We appreciate the initiative of the BCI. Read SME Foundation to hold fair in 6 divisions to promote local products “The partnership between the BCI and SME Foundation can work together to eliminate existing problems in the SME sector with development and capacity building,” he added. This MoU will further accelerate the work of the BCI and SME Foundation in development and capacity building of the small and medium industrial sector, he hoped. BCI director Nazmul Anwar, secretary general Dr Ordhendu Shekhar Roy and Deputy Management of SME Foundation Salahuddin Mahmud, Md Nazim Hasan Sattar, general Manager Farzana Khan and other officials of both sides were present on the occasion. Read SME Foundation disburses Tk300 crore stimulus loans to 3,106 entrepreneurs

The 4th edition of ‘Heritage Handloom Festival 2022’ will begin on Wednesday at Gulshan Shooting Club in the capital. SME Foundation has organised the 4-day fair in collaboration with the Ministry of Cultural Affairs and Association of Fashion Designers Bangladesh (AFDB). A press conference on the occasion was held  at SME Foundation office  in Agargaon on Tuesday. Read 8th Dhaka International Mobile Film Festival begins Dr. Md. Mofizur Rahman, managing director of SME Foundation, Mantasha Ahmed, President of AFDB,  spoke at the press conference highlighting various aspects of the festival. Speaker of the Jatiya Sangsad Dr. Shirin Sharmin Chaudhury will inaugurate the festival as the chief guest. Industries Minister Nurul Majid Mahmud Humayun will be present as the special guest. Read Swayong's Storytelling Festival 2022 deconstructs social norms, taboos State Minister for Cultural Affairs KM Khalid and Parliamentary Standing Committee Chairman on Power, Energy and Mineral Resources Ministry Waseqa Ayesha Khan will also be present in the opening ceremony of the festival.

The SME Foundation has disbursed Tk300 crore of stimulus loans ahead of the government’s declared schedule time to offset the loss of Covid-19 pandemic. The loan was disbursed among 3,106 CMSME entrepreneurs at the marginal level on easy terms and at low interest, said the Foundation on Sunday. The stimulus loans have been given to cottage, micro, small and medium enterprises (CMSMEs) under the government's second phase incentive package to accelerate the country's economic recovery in the face of coronavirus to improve the living standards of marginalized people in rural areas. Also read: BB fixes 15pc installment for CMSME to avoid loans classifying In the second phase, it announced an incentive package of Tk 1,500 crore, of which Tk 300 crore was allocated in favour of the SME Foundation. In the fiscal year 2020-21, the finance department released Tk 100 crore in favor of SME Foundation and in the fiscal year 2021-22, the finance department released Tk 200 crore. Of this, the SME Foundation distributed Tk 200 crore, six months ahead of schedule for the current financial year. The SME Foundation has distributed the entire amount in just four and a half months in two phases. Around 26 per cent of the loans disbursed to women entrepreneurs and remained 74 per cent loans disbursed to men entrepreneurs. Among the loaned entrepreneurs, 1462 are from the trading sector, 1167 from the manufacturing sector and 477from the service sector. Around 50 per cent of entrepreneurs have received loans of less than Tk 5 lakh. Also read: We need to strengthen SMEs, agro-businesses for expanding economy: Tipu Munshi The SME Foundation has signed loan disbursement agreements with 12 banks and financial institutions in the first phase and 19 banks and financial institutions in the second phase. Banks and financial institutions are Brac Bank, Bank Asia, BASIC Bank, The City Bank, Mutual Trust Bank, Dhaka Bank, NRB Commercial Bank, Premier Bank, Social Islami Bank, One Bank, Prime Bank, Karmasangsthan Bank, United Commercial Bank, Eastern Bank, Southeast Bank, Rajshahi Krishi Unnayan Bank, Bengal Commercial Bank, IPDC Finance, IDLC Finance and Lankabangla Finance. Entrepreneurs have received loans at 4 per cent interest under the stimulus package. In the first phase, the amount of loan at the entrepreneurs’ level ranged from a minimum of Tk 1 lakh to a maximum of Tk 75 lakh. However, in the second phase, a maximum loan limit was set at Tk 50 lakh to bring more entrepreneurs under the loan scheme.

Women entrepreneurs will be provided with plots in the Bangladesh Small and Cottage Industries Corporation (BSCIC) on priority basis, said Industries Minister Nurul Majid Mahmud Humayun on Sunday.

KM Habib Ullah, chairperson of Small and Medium Enterprise (SME) Foundation, died of cardiac arrest at a hospital in India early Wednesday.   He  breathed his last around 2:30 am while undergoing treatment at a hospital in Kolkata in India, said Morshed Alam, assistant general manager of  SME Foundation.   He had been suffering from kidney problem and admitted to the hospital on March 10.   Industries Minister Nurul Majid Mahmud Humayun, State Minister for Industries Kamal Ahmed Majumder, Secretary to the Industries Ministry KM Ali Azam, Managing Director of SME Foundation Mohammad Shafiqul Islam expressed deep shock at the demise of Habib Ullah.

The National SME Products Fair 2020 will kick off Wednesday in the capital to promote products made in Bangladesh in both local and international markets.