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6m small businesses at stake due to capital crisis

Published : Friday, 5 June, 2020 at 12:00 AM  Count : 115
Walid Khan

Businesses have opened across the country after the lifting of the lockdown at the end of Eid-ul-Fitr holidays but traders are unhappy with the lack of buyers.
Business leaders fear that if the situation continues like this, about 6 million small business owners across the country will lose their existence due to capital crisis.
According to experts, if proper care is not taken of the small and medium enterprises the economic wheels will stop moving. That's why the government needs to allocate Tk 25,000 crore to the medium and small enterprises.
Bangladesh Shop Owners' Association President Helal Uddin said our businessmen import goods before Eid, but this year due to coronavirus pandemic import and export activities have across the world.
Mentioning many products are stuck at the port due to low clearance capacity Helal Uddin said, "That is why the supply of goods in our market is decreasing and the prices are increasing. If the supply to the market does not start within the next 2 to 3 months, the prices of the products will go up further.'
Helal Uddin said, "The development has taken place in our country in the last 10 years has benefited some of the upper class people. Low-income people have not been able to enjoy the benefits of that development. Moreover, the low-income group of people had to spend their capital during the Corona epidemic."
 "Now importers are importing much-needed goods, not fancy items. I think 6 million businessmen will lose their entity due to the economic crisis due to the coronavirus pandemic," Helal Uddin added.
Jute handicraft entrepreneur and owner of Nil Madhob Kakoli Sarkar said, "We are not able to sell our products as the country's markets and haats are also closed. Moreover, the products I made for export are also being wasted."
Expressing disappointment Kakoli said, "I cannot pay salary to my workers that is why most of my skilled workers are leaving my factory."  
Prof Dr MM Akash of Dhaka University Economics Department said, "The government has allocated Tk 25,000 crore for small and medium businesses at low interest. But handing over this allocated money to the traders is a big challenge."
Noting that the loan should be made easier, he said many small traders do not have bank accounts. They will not even be able to show the deposit required to take the loan.
Therefore, the government has to distribute these loans at risk because some businessmen may not repay these loans. He said that in order to make the country's economy dynamic, it is necessary to help small traders with this risk.
Abdul Malek, owner of Akib Shoes Store at Fulbaria Market, said, "Almost all shops in our market opened before Eid-ul-Fitr. But business was not as expected. So many shops did not open after Eid-ul-Fitr."
Khairul Hasan owner of Alim Traders at Bangshal said sales of motorcycle parts have dropped sharply due to the closure of Ride Sharing services. Moreover, the buyers at the district level are not coming now he complained.

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