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Cabinet okays SME policy for supporting 78 lakh entrepreneurs
Published : Tuesday, 10 September, 2019 at 12:00 AM Count : 909
The Cabinet on Monday approved the draft of the 'Small and Medium Enterprises Policy, 2019' to boost up industries and increase its contribution to the GDP up to 32 per cent by 2024 from the existing 25 per cent.
The approval was given in principle at the regular weekly Cabinet meeting held at the Prime Minister's Office (PMO) in the city with Prime Minister Sheikh Hasina in the chair. Later, Cabinet Secretary Mohammad
Shafiul Alam briefed media about the meeting at the Secretariat.
"The Cabinet, in principle, approved the draft of The Small and Medium Enterprises (SME) Policy, 2019, which is first of its kind, in line with The Industrial Policy, 2016," he said, adding, "SMEs are now being run under a strategy of 2005 as there is no SME policy."
The draft policy was formulated to achieve six targets ensuring access to finance, access to technology and innovation, access to market, access to education and training, access to business support services, and access to information for the SME entrepreneurs.
"The policy will ensure benefit for 78 lakh SMEs as the government wants to give them a strong footing as they are currently contributing 25 per cent to the GDP while small and cottage industries will also be treated as SMEs under the policy," he added.
He said the government has set a target to increase the SMEs' contribution to the GDP to 32 per cent from the existing 25 per cent.
"Under the policy, a 'SME Credit Guarantee Fund' will be introduced to simplify loan system for the entrepreneurs and no mortgage will be required for getting the loan," Shafiul informed.
It also proposed a "Startup Fund" for attracting unemployed people to start their own businesses and providing forward and backward linkage support to give the industries a strong footing, he said.