The Ministry of Industries has released the draft of the National SME Policy 2025, seeking feedback from stakeholders, with a target to increase the Small and Medium Enterprises (SME) sector's contribution to GDP to 35 percent by 2030.
The draft policy outlines six strategic objectives and ten implementation strategies to boost the sector's performance and impact. Stakeholder input is being sought before finalization.
According to the Bangladesh Bureau of Statistics (BBS), there are 7.8 million micro, small, and medium enterprises (MSMEs) in the country, including cottage industries. These enterprises provide direct and indirect employment to over 2 million people.
At present, the industrial sector contributes over 37 percent to the national economy, of which SMEs account for about 28 percent. Under the National Industrial Policy 2022, the government aims to raise the industrial sector's share of GDP to 40 percent.
The draft policy highlights the SME sector's vital role in socio-economic development and employment generation, particularly for a densely populated and resource-constrained country like Bangladesh. One of the government's core priorities is to reduce inequality, and the SME sector is expected to be instrumental in narrowing income disparities.
The draft outlines ten implementation strategies including establishing a policy framework for inclusive SME growth, enhancing skills and innovation capacity, promoting market expansion and competitiveness, strengthening financial inclusion and investment readiness, developing the startup ecosystem, implementing sector and cluster-based SME development to reduce rural-urban disparity, driving digital transformation and Industry 4.0 adaptation, promoting women empowerment and gender equality, fostering sustainable development and climate resilience and formalizing and mainstreaming the informal MSME sector.
Notable action points include simplifying legal and administrative procedures for SME operations, rationalizing the tax system, offering incentives for export-oriented SMEs, strengthening institutions like BSCIC and the SME Foundation, preparing updated national SME statistics, rolling out tailored training programmes, supporting service sector SMEs and building linkage industries, branding SME products and awarding successful entrepreneurs, expanding refinancing schemes and credit access and developing rural infrastructure and transport networks.
The policy will cover all cottage, micro, small, and medium industries as defined in the Industrial Policy 2022. The Bangladesh Small and Cottage Industries Corporation (BSCIC) and the SME Foundation will be responsible for implementing the strategic goals and action plans.
They will work in coordination with the Bangladesh Bank, Bangladesh Investment Development Authority (BIDA), Bangladesh Economic Zones Authority (BEZA), and other relevant government institutions. Collaboration with private sector organizations will also be ensured.
The draft also includes proposals to strengthen the National SME Development Council and the National SME Task Force, enhancing their scope and structure to facilitate effective policy implementation.
