01 bus-620-reportv. final 2

8/18/2019 01 bus-620-reportV. Final 2

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North South University

[Small and Medium Enterprises(SMEs)]

Prepared By

Group -2INNER SPHERENAME I

Fouzia Akther 1430653060Asfaq Ahmed 1530932660Saria Sharmeen

Barsha 1531234660

Sujon umar Saha 15311!2660"d#$ahedu% &aque 132191'660

S!BMI""E "#$

(A)* +F S,B"-))-+.22.( "A/& 2016

Pro%& 'air


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)a%e of ontents

"ale o% *ontents +

A*,N#.EGEMEN"S /

E0E*!"I1E S!MMAR 3

#B4E*"I1ES #5 "HE S"! 6History o% SM5 5oundation$ 7

(enitions###########################################################################################'

(enition of S"*s##############################################################################10

/eenue and nania% -nenties######################################################10

"8e role o% Small and Medium Enterprises (SMEs) 5oundation++

SME re9nan:in; %or small enterprise$ +<

E:onomi: e=elopment: +6

+thers ro%e at Sma%% and "edium *nterrises 7S"*s8#######################1!

1ision > Mission 2?ision:################################################################################################20

"ission###############################################################################################20

#@e:ti=es 2+

*ore 1alues 22

Mana;ement Stru:ture 23

*orporate Strate;y Goals o% SME 5oundation 2<

A*"I#N P.AN o% dierent INGs SME 5oundation 27

B,S-.*SS S,;;+/) S*/-* /*(-) S*/-*S############################################################29&,"A. /*S+,/* (**?+;"*.)


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!# Aess to "arket and %ak of aCareness reardin the imortane of

marketin too%###################################################################################40

'# ?ak of ommitment to innoation and ustomer satisfation######40

9# Bureaura##################################################################################41

10# ?ak of qua%it assurane############################################################4111# ?ak of researh and dee%oment fai%ities###############################41

5olloDin; spe:i9: :omponents s8ould e t8e inte;ral part o% t8e

strate;y$ 3/

Strate 1: Aess to Finane############################################################44

Strate 2: (ee%oment of tehno%o############################################45

Strate 3: ,se of -nformation##########################################################46

Strate 4: (ee%o entrereneurshi##############################################4!

Strate 5:


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At the er einnin Ce Cou%d %ike to eEress our deeest ratitude to

A%miht A%%ah for iin us the oortunit Cith strenth and atiene toarr on this Cork# -n ondutin this stud Ce hae reeied enerous

he% from man quarters Chih Ce %ike to mention Cith ratitude and

reat %easure#

First and foremost Ce are hih% ratefu% to m suerisor "r# $akir

&ossain Fau%t "emer .orth South ,niersit# &is suestion and

omment hae reat% insired us to reare this assinment suessfu%%#

Fina%% Ce eEtend our thanks to a%% of our Ce%%Cishers for their he% durin

this Cork#

Sinere% ours

Fouzia Akther 1430653060Asfaq Ahmed 1530932660Saria Sharmeen Barsha 1531234660Sujon umar Saha 15311!2660"d#$ahedu% &aque 132191'660

*G*,)-* S,""A/@


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Sma%% and "edium sized *nterrises 7S"*s8 hae draCn a %ot of interest

amon o%i makers aademis usinessmen and eo%e in enera%#

)here is a road onsensus that a irant S"* setor is one of the

rinia% driin fores in the dee%oment of the eonom of Ban%adesh#S"*s stimu%ate riate oCnershi and entrereneuria% ski%%s and an adat

quik% to hanin market situation enerate em%oment he% diersif

eonomi atiities and make a siniant ontriution to eEorts and

trade# )herefore o%iies and initiaties to dee%o S"*s and to inrease

their ometitieness are a riorit for Ban%adesh#

-n Ban%adesh there are tCo ita% %aers named S"* Foundation and

;SF 7;a%%i armaSahaak Foundation8 are doin reat jo sine 1990 and

those tCo major driers are suessfu% enouh to a%%eiate oert and

enerate hue em%oment oortunit in Ban%adesh# But S"*

Foundation anHt ut remarka%e sin than ;SF# Sine S"*s are ased on

re%atie% sma%% inestment their suria% deends on readi% aai%a%e

market Cith eas aess# -n this onteEt aess to nane market

dee%oment and eEansion as Ce%% as remoa% of other ott%eneks are a

ha%%enin task Chih requires oordinated eIorts indiidua% usinessenterrises and the oernment#

)he urose of this reort is to hae an ana%sis of the marketin

strateies of S"* Foundation omared to other suessfu% %aers

Corkin in this area on Chih S"* Foundation an do etter oeration

and sta%e their foot rints on Ban%adesh Cith stron o%iies and

rorams#


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reieC onsu%tation researh and renement# )his roess has ui%t uon

the suesses of the =oernment in maroeonomi dee%oment and

sma%% usiness romotion Chi%e resondin to the onerns raised

stakeho%ders Cithin oernment the riate setor 7eseia%% the sma%%usiness setor8 oranized %aor and ii% soiet#


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+BD*)-*S +F )&* S),(@

)he ojeties of the researh are to identif the fators that inKuene the

dee%oment and roCth of the S"* setor# )hus the sei ojeties of

the stud are as fo%%oCs:

+& )o araise the resent situation of S"*s in Ban%adesh#

2& )o identif the nanin ro%ems of S"*s in Ban%adesh# /eardin

the identiation of nanin ro%ems Ce hae tried:

a. )o nd out Chether %ak of inestment and oeratin funds

hinder the roCth of the S"* setor

b. )o nd out Chether %ak of modern tehno%o hinders the

roCth of the S"* setor

c. )o nd out Chether oor hsia% infrastruture and hih

transortation ost undermine the ometitieness of S"*s

d. )o nd out Chether shortae of ski%%ed Corkfore hinders the

dee%oment of S"*s#

/& )o identif the roset of S"*s in Ban%adesh#

3& )o reommend so%utions to the ro%ems


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hater 1


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&istor of S"F Foundation:

Sma%% and "edium *nterrises 7S"*s8 hae historia%% een one sta%es

of the enterrise %andsae Cithin eonomies %oa%%# *seia%% roCth

Cith %ear enets for oert redution uts a remium on interatinrodutie% and rota% sma%% and medium enterrises in the er

roess of eonomi roCth# )he Sma%% > "edium *nterrise Foundation

Cide% knoCn as S"* Foundation is a %imited oman %iensed the

"inistr of ommere as a not for rot oranization and reistered under

the omanies At 7At GG---8 of 1994# -t is runnin under the uide%ine

as stated in the "emorandum and Arti%es of Assoiation# S"* Foundation

is esta%ished the =oernment of Ban%adesh under "inistr of

-ndustries as an aeE institution for S"* dee%oment in the ountr#

)he major atiities of S"* Foundation are im%ementation of S"* ;o%i

Strateies adoted the Ban%adesh =oernment o%i adoa and

interention for the roCth of

S"*s

Fai%itatin nania% suorts for S"*s

roidin ski%% dee%oment and

aait ui%din trainin fai%itatin adatation Cith aroriatetehno%oies and

Aess to -) roidin usiness suort series et#

-t is mentiona%e here that the Foundation is Corkin for the dee%oment

of enterrises and entrereneurs Cho e%on to miro sma%% and medium

ateories as er -ndustria% ;o%i 2010# Besides the enera% suorts to

the dee%oment of S"*s and entrereneurs the Foundation is roidin

diersied suorts to the eEistin and otentia% Comen entrereneurs in

order to osition them into the mainstream usiness ommunit#

efinitions

Small and medium enterprises s8all e :ate;oried

usin; t8e %olloDin; de9nitions$

(iIerent ountries and oranizations dene S"*s diIerent%# )he

=oernment of Ban;lades8 has ateorized S"*s into tCo road %asses

"anufaturin enterrises


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.on"anufaturin atiities

(a) Manu%a:turin; enterprises

"anufaturin enterrises an e diided into tCo ateories:

Small enterprises : an enterrise is treated as sma%% if in

urrent market ries the re%aement ost of %ant mahiner

and other artsLomonents Etures suort uti%it and

assoiated tehnia% series Ca of aita%ized osts 7of

turnke onsu%tan series for eEam%e8 et eE%udin %and

and ui%din are to u to )k#15 mi%%ionJ

Medium enterprises : an enterrise is treated as medium if

in urrent market ries the re%aement ost of %ant

mahiner and other artsLomonents Etures suort uti%it

and assoiated tehnia% series Ca of aita%ized osts 7of

turnke onsu%tan series for eEam%e8 et eE%udin %and

and ui%din are to u to )k# 100 mi%%ionJ

() Non-manu%a:turin; a:ti=ities 7suh as tradin or other series8

.onmanufaturin atiities an e diided into tCo ateoriesJ

Small enterprises$ an enterrise shou%d e treated as sma%% if it

has

%ess than 25 Corkers in fu%%time equia%entsJ

Medium enterprises$ an enterrise shou%d e treated as

sma%% if it has etCeen 25 and 100 em%oees

MAN!5A*"IRING

N#N-M

AN!5A*"I

RI

NG


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efinition of SM Es

SI Type of Industry The amount of investment

(Replacement cost and value of

fixed assets, excluding land and

factory buildings)

Number of

employed worers

1. !ottage Industry Below 5 lakh number of workers

not exceed 10

2. "icro Industry 5 lakh to 50 lakh 10 to 24

3. Small

Industry

Manufacturing 50 lakh to 10 crore 25 to 99

er!ice 5 lakh to 1 crore 10 to 25

4. "edium

Industry

Manufacturing 10 crore to 30 crore 100 to 250

er!ice 1 crore to 15 crore 50 to 100

5. #arge

Industry

Manufacturing More than 30 crore More than 250

er!ice More than 15 crore More than 100

Revenue an d f inancial Incentives

)he industria% enterrises identied in the -ndustria% ;o%i2005 as

)hrust Setors in%udin sma%% and medium enterrises 7S"*s8 Ci%%enjo seia% sa% and nania% inenties#

(enition of Sma%% *nterrise: Sma%% *nterrise refers to the rmLusiness

Chih is not a u%i %imited oman and om%ies the fo%%oCin riteria:

Seria%

.o#Setor

FiEed Asset other than ?and and

Bui%din 7)k#8

*m%oed "anoCer

7not aoe801# Serie 500005000000 2502# Business 500005000000 25

03# -ndustria% 5000015000000 50


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(enition of "edium *nterrise: "edium *nterrise refers to the

esta%ishmentLrm Chih is not a u%i %imited oman and om%ies

the fo%%oCin riteria:

Seria%

.o# Setor

FiEed Asset other than

?and and Bui%din 7)k#8

*m%oed "anoCer

7not aoe801# Serie 5000000100000000 5002# Business 5000000100000000 5003# -ndustria% 15000000200000000 150

)he ro%e of Sma%% and "edium *nterrises 7S"*s8 Foundation

)he ro%e of Sma%% and "edium *nterrises 7S"*s8 is indisensa%e foroera%% eonomi dee%oment of a ountr artiu%ar% for dee%oinountries %ike Ban%adesh# Sine this setor is %aor intensie Cith short

estation eriod it is aa%e of inreasin nationa% inome as Ce%% asraid em%oment enerationJ ahiein "i%%ennium (ee%oment =oa%s7"(=s8 eseia%% eradiation of eEtreme oert and huner enderequa%it and Comen emoCerment# S"* setor has %aed a ita% ro%e ineonomi dee%oment of some roserous ountries of Asia# +urneihorin ountries hae a%so ien due imortane on S"*# )erminS"* as Mem%oment eneratin mahineH the stressed on S"*dee%oment for hiher eonomi roCth narroCin the a of inomeinequa%it and oert a%%eiation# )he resent oernment has a%so utmuh emhasis on the dee%oment of S"* setor onsiderin it as Mthedriin fore for industria%izationH#

"8e ma@or a:ti=ities o% t8e 5oundation in:lude

(i) im%ementation of S"* ;o%i Strateies adoted theBan%adesh =oernment

(ii) o%i adoa and interention for the roCth of S"*s(iii) fai%itatin nania% suorts for S"*s roidin ski%%

dee%oment and aait ui%din trainin(iv) fai%itatin adatation Cith aroriate tehno%oies and aess

to -)

(v) ;roidin usiness suort series et# )he Foundation isintended to Cork as a onesto serie de%ier CindoC for S"*s#

)here is noC Ce%% esta%ished reonition of the ro%e Sma%% > "ediumSized *nterrises 7S"*s8 %a in dee%oin nations eonomies# S"*sroide outut ains and a roadenin of em%oment oortunities thatin omination he%s imroe Cea%th distriution# -n addition the S"*setor roides a steinstone for more amitious miroenterrisesoCners %oa% su% hain enaement for more esta%ished omanies

and in some imortant instanes Ci%% at as an inuator for %arerenterrises to Kourish#


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*miria% studies shoC that Chere dee%oin ounties hae hea%th S"*setors then the distriution inome for oth %aor and aita% is imroedunderinnin more a%aned roCth mode%s# =enera%% S"*s Ci%% em%ointermediate tehno%oies and tend to enerate siniant em%oment

oortunities Cith modest aita% inuts# )he Ci%% often a%so eEhiit 7i8reater usiness KeEii%it 7ii8 a tenden to a% tehno%oia% adanesand 7iii8 drie enera% rodution and distriution eNienies#

A%thouh oernments reonize the enets of a hea%th roCin S"*setor their o%iies are not a%Cas est a%ined to roide otimumsuort# )hese fundamenta% suort inredients in%ude:

)aE o%iies that shou%d e neutra% or s%iht% in faor of S"*sJ

reonizin their needs ut at the same time aoidin miromanaement

?aor o%iies that he% ensure that miro and sma%%enterrises are

not faed Cith 7i8 an arriers to addin to em%oment or 7ii8addin urdensome administratie requirements on rms Cith%imited manaement resoures

(ee%oin a suita%e infrastruture frameCork in%udin Corkfore

eduation thus imroin inuts to the S"* setor

Additiona%% aess to aroriate nane in the form of det

equit and se%etie rant aid is a ita% e%ement in the ae of S"*dee%oment# Business oCners require knoC%ede of:

Soures of nane and Chat is most suita%e for the needs of their

usinesses# 7in%udin Chere the an otain information andadie8


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rates hae een dereasin in Ban%adesh ut sti%% remain hih reiona% and %oa% standards#

5i;ure +$ Po=erty Rates (!pper .imit i&e& !SJ2 per day) inBan;lades8

Source: Government of Bangladesh

S"*s an make a siniant ontriution to reduin oert eause of the imortane of S"*s to the Ban%adesh eonom# )he estimatednumer of S"*s in Ban%adesh aries from 6m 7an estimate from theA(B8 to the 3#3m reistered S"*s in the ountr# S"*s make u 25O of the tota% %aor fore '0O of industr em%oment and 90O of a%%enterrises in Ban%adesh#

)heir tota% ontriution to eEort earnins aries etCeen !5O and '0Oaordin to a reent eonomi ensus# -n terms of =(; S"*s ontriute

a quarter in Ban%adesh# )he ontriution eah usiness setor isshoCn e%oC# )he ontriution of ariu%ture to =(; is simi%ar to thatmade S"*s Cith some oer%a as shoCn# &oCeer man of theariu%ture enterrises are sma%%er ein either miroentrereneurs orsusistene farmers#


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Figure 2: Sectoral contribution to GDP by SME

Source: Government of Bangladesh

&oCeer in some ountries the rate an e muh hiher# Suroto Som

=%oa% &ead of S"* Bankin at Standard hartered Cas quoted 7(ai%Star 14 .oemer 20118 as sain: P)he S"* setor is the akone of eonomies# (eendin on the ountr the setor an ontriuteanChere from 30 to !0O of =(;Q# )his suests that the otentia% forS"*s to drie the eonomi enine of Ban%adesh is far from fu%%eE%oited#

S"* renanin for sma%% enterrise:


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To overcome the financial constraints of the SME sector and induce banks and Financial

Institutions to provide credit facilities to SME, Bangladesh Bank introduced a refinancing

scheme for SMEs in 200 using three sources of funds!

Sl. Institute Fund

. Bangladesh Bank T"# $00 million

2. I%& 'under the

Enterprise (ro)th and

Bank Moderni*ation

+roect-

.S /20 million

!. &%B .S /0 million

A renane sheme of BB named Sma%% *nterrise Fund 7S*F8 Cithamount of )aka 6#0 i%%ion has een roidin suort for thedee%oment of sma%% enterrises in the ountr# )he sheme CaseEtended for the anks and nania% institutions at ank rateaainst their nanin to the sma%% entrereneurs# )he sheme

demonstrated a hih market demand# /eoer aainst renaned%oan is ein used as a reo%in fund for nanin S"* setor# Anamount of )aka 20#0 i%%ion 7in%udin Comen fund8 has eenrenaned to 22 anks and 22 nania% institutions unti% the end of Dune 2014 to suort 22321 enterrises#

2& Enterprise GroDt8 and Ban Moderniation Pro;ram(EGBMP) 5und$-n 2004 the -(A


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/& AB 5und-+$

PSma%% and "edium *nterrise Setor (ee%oment ;rojetQ Cas%aunhed in 2005 naned A(B1 fund# Asian (ee%oment Bankinitia%% roided an amount of ,S( 30#0 mi%%ion for nanin thesheme under a %oan areement Cith the =oernment of Ban%adesh to strenthen the S"* setor in Ban%adesh# An amountof )aka 3#4 i%%ion Cas roided to Banks and F-s under the rst A(Bfund unti% Setemer 2009 aainst 3264 enterrises# (isursementfrom this fund Cas om%eted in Setemer 2009#,nti% end Dune2014 )aka 3#3 i%%ion has een reoeredJ and )aka 0#01 i%%ionremains outstandin Cith the F-s#

3& AB 5und-2$

)he Sma%% and "ediumSized *nterrise (ee%oment ;rojet7S"*(;8 roided redit fai%it for enhanin medium to %on termnanin to e%ii%e S"*s# )he tota% fund of the S"*(; 7A(B28 Cas,S( 95#0 mi%%ion# +ut of that A(B roided ,S( !6#0 mi%%ion fromits seia% fund and =oB 7BB8 roided ,S( 19#0 mi%%ion Chih Castransferred from the a%ane of the ear%ier A(B1 7S"*S(;8 fund#(isursement from this fund Cas om%eted in (eemer 2013 and )aka !#5 i%%ion Cas roided to anks and F-s aainst

13645enterrises# At the end of Dune 2014 )aka 2#6 i%%ion has eenreoeredJ and there )aka 4#' i%%ion remains outstandin Ciththe F-s#

Economic Development!

The SME pla1s a vital role in our developing econom1# Some charismatic advantagesstimulate the entrepreneurs to set up small and medium enterprises# These are as follo)s!

)o start a sma%% enterrise one need not %are inestment usin S"*%oan one an start a usiness#

2& 5a=orale Go=ernment poli:y$+ur oernment o%i is a%Cas faora%e to sma%% medium enterrises#arious fai%ities and inenties are roided oernment to S"*setor#

/& *8eap laor$

. "o# invest$ent:


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?aor is hea and aai%a%e in our ountr#


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Bangladesh Small and Cottage Industries Corporation [BSCIC]

BS- is a susidiar oranization under the "inistr of -ndustr# -t Casesta%ished an at of the ;ar%iament in 195!# )he main resonsii%ities of this susidiar in%ude

• dee%oment of industria% estate

• imartin entrereneurshi ski%% dee%oment

trainin romotin suontratin and

• /unnin redit roram#

)he Sma%% and ottae -ndustries )rainin -nstitute 7S-)-8 Cas set u in19'5 under BS-# )his is the on% -nstitute in the ountr to suort theentrereneurs in S"* setor and their em%oees in the dee%oment of their entrereneuria% > manaeria% ski%%#

Bangladesh Bank:

Ban%adesh Bank has a%read introdued seera% shemes and;rorammers to Kourish and eEand S"* *nterrises# /enaneSheme funded Ban%adesh Bank -(A and A(B has eenFai%itated for the dee%oment of S"* Setor#

Besides to ensure institutiona% nania% fai%ities under eas onditions

Ban%adesh Bank has taken dierse stesJ %ike oenin of R(ediated

(eskR for S"* and RS"* Serie entreR in the anks and seia% fai%ities

for the Comen entrereneurs# But rea%it is that eEeted outome has

not een ahieed so far in this setor# -n the ak dro of reent %oa%

reession and haned irumstanes it has eome essentia% to in%ude

a%% sements of eo%e in the roCth roess throuh fai%itatin redit to

the setors Chere %ess attention has een ien due to resent market

mehanism seia%% in ariu%ture and S"* setor#


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1ision ;romote Sma%% and "edium *nter6rises 7S"*s8

for a%%e4iatin 6o4ertB eneratin em6%oBmentand thereB a55e%eratin e5onomi5 roCth#

ission

Assist for 6romotin the roCth of sma%% andmedium enter6rises of a%% the 6rodu5ti4e andser4i5e oriented enter6rises of the nationa%e5onomB for fa5in the 5ha%%enes of freemarket e5onomB and %oa%ization#

ision > "ission

Vision:

Mission

+jeties

)he Sma%% > "edium *nterrise Foundation Cide% knoCn as S"*

Foundation is a %imited oman %iensed the "inistr of ommere as a


23/62

not for rot oranization and reistered under the omanies At 7At

GG---8 of 1994# S"* Foundation is esta%ished the =oernment of

Ban%adesh under "inistr of -ndustries as an aeE institution for S"*

dee%oment in the ountr#

)he major atiities of S"* Foundation are im%ementation of S"* ;o%i

Strateies adoted the Ban%adesh =oernment o%i adoa and

interention for the

• roCth of S"*s

• fai%itatin nania% suorts for S"*s

• roidin ski%% dee%oment and

• aait ui%din trainin fai%itatin adatation Cith

aroriate tehno%oies and aess to -)

• ;roidin usiness suort series et#

-t is mentiona%e here that the Foundation is Corkin for the dee%oment of enterrises and entrereneurs Cho e%on to miro sma%% and medium

ateories as er -ndustria% ;o%i 2010# Besides the enera% suorts to the

dee%oment of S"*s and entrereneurs the Foundation is roidin

diersied suorts to the eEistin and otentia% Comen entrereneurs in

order to osition them into the mainstream usiness ommunit#

A%ined Cith the "emorandum of Assoiation the ojeties of S"*F ou%d e

%isted as e%oC:

a) )o romote suort strenthen and enourae the roCth and

dee%oment#


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) )o %an roram and nane interentions for de%ier riate

setor#

:) )o institute S"* ACards in order to romote ometitieness

amon the S"*s#

d) )o fai%itate S"* aess to nane reatin and suortin

aroriate strateies and institutions#

e) )o rationa%ize u%i setor aroahes and suort strutures for

dee%oment#

%) )o identif and reort o%i anoma%ies market and institutiona%

fai%ures that are rejudiia% to the %eitimate interests of S"*s#

;) )o enourae in ui%din %inkae amon the nationa% and

internationa% institutions Corkin for S"* dee%oment#

8) )o dee%o aait of u%i and riate setor S"* serie

roiders#

ore a%ues

-n ahiein its ision and fu%%%in its mission S"* Ci%% oerate on the

fo%%oCin ore a%ues:

;roide series for Chih there is a demand and fous to ui%d S"*

ometitieness# &oCeer S"* sha%% in its dee%oment ro%e stimu%ate and

reate markets for the Business (ee%oment and Finania% Series

roduts#

S"* sha%% osition itse%f to ahiee the hihest ossi%e %ee% of se%fnanin

and attrat other artners to suort the initiatie in est raties#

S"* Ci%% a%so use in de%ierin some of the series to ensure hih outreah#

a& Rele=an:e

& Sustainaility

*& Hi;8 outrea:8

& Impa:t :reation


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S"* Ci%% ut more emhasis on series and serie areas that are %inked to

distrit reiona% and nationa% eonomi dee%oment strate that are %ike%

to rin hih imat to eo%e and to the eonom#


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hater 3"anaement Struture


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"anaement Struture

General Body

S"* Foundation has a =enera% Bod to roide oera%% diretions for smooth

funtionin of the Foundation# )here are 53 memers in the =enera% Bod at

resent# Aordin to the Arti%es of Assoiation the =enera% Bod in%udes

memersL reresentaties from ministries u%i aeniesL oranizations

diIerent hamer of ommere S"* re%ated assoiations enera% and

tehnia% uniersities rofessiona% and researh oranizations anks and

nania% institutions et#

Board o% ire:tors

S"* Foundation has a Board of (iretors Cith 16 memers# )he main

resonsii%it of the Board of (iretors is to roide neessar o%i

deisions and uide%ines to the atiities of S"* Foundation# Aordin to the

Arti%es of Assoiation the hairerson is reruited the oernment#

Besides oernment a%so reruits 4 (iretors# -t ma e mentioned here that

there are reresentaties from riate setor researh and rofessiona%

oranizations in the Board of (iretors# ;resent% there are 14 memers in

the Board of (iretors#

#r;aniation stru:ture and mana;ement o% SME5

As er oranoram there are 56 eEeutie and staI ositions in S"*

Foundation at resent omrisin the "anain (iretor 1 (eut

"anain (iretors 3 =enera% "anaer 6 (eut =enera% "anaers '

Assistant =enera% "anaers 12 ;roram "anaers 15 ;roram +Ners 24

Assistant ;roram +Ner ' omuter +erators ' (riers 12 +Ne


28/62

eputy Mana;in; ire:tors

=enera% "anaer

DeputyGeneralManager sGenera

lManager


lManager

Assistant=enera%

"anaers

=enera% "anaer


lManager


lManager

Assistant=enera%

"anaers

General"anaer


lManager


lManager

Assistant

=enera%"anaers

ia;ram$ #r;aniation stru:ture and mana;ement o% SME5

ororate Strate =oa%s of S"* Foundation

As an aeE institution for S"* dee%oment in Ban%adesh the S"*F has itsoCn ision mission and ojeties for S"* dee%oment# Based on the

ision mission and ojeties three stratei oa%s hae een identied in

order to determine S"*FHs stratei diretions for miro sma%% and medium

enterrise dee%oment#

Goal es:ripti=e

A Ae%eratin sustaina%e eonomi roCth throuh S"*

dee%oment#

B =eneratin em%oment throuh ino%in unem%oedunderem%oed and oun eo%e in the forma% S"*s

reatin ena%in usiness enironment for the S"*s#

-t is usefu% to refer to the shemati diaram 7aendiE --#A8 Chih frames a%%

the omonents Chih ontriute to the S"*Fs Stratei ;%annin roess#


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-n a%inment Cith these stratei oa%s the Strateies for (ee%oment of

"iro Sma%% and "edium Sized *nterrises for F@ 2013201' of S"*F hae

een identied# )he determination of eah of S"*FRs strate omines i8

stakeho%ders reommendationsJ ii8 an ana%sis of oernment o%iiesJ iii8 an

ana%sis of re%eant seondar reorts and i8 an ana%sis of S"* setors and

the S"*F#

-n ursuane of its ision and mission the S"*F has a%ined its strateies [ 1

to 10 T Cith those of the "emorandum and Assoiation and in omination

shou%d o%%etie% %ead to a mission to ahiee the aoe mentioned oa%s##

)he S"*F


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-in;s o% SME 5oundation

B!SINESS S!PP#R" SER1I*E -ING

5INAN*E > *REI" SER1I*ES

H!MAN RES#!R*E E1E.#PMEN" -ING

IN5#RMA"I#N AN *#MM!NI*A"I#N"E*HN#.#G2 -ING

P#.I*2 A1#*A*2 -ING

RESEAR*H -ING

"E*HN#.#G2 E1E.#PMEN" -ING

-#MEN EN"REPRENE!RSHIPE1E.#PMEN" -ING

P!B.I* RE.A"I#N -ING

BUSIESS SU!!O R" SERVI#E $I%

1# ;romotion of S"*s throuh .ationa% S"* Fair

2# +ranizin /eiona% S"* ;rodut Fair

3# +ranizin S"* ;rodut Fair for the )ria% *ntrereneurs

4# ;artiiate in *kushe Book Fair Cith S"*F ;u%iations

5# S"* ;rodut (iretor

6#


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!# "arket ;ro%e ;rearation 7-nternationa%8 7,sin -)Hs "arket Ana%sis

)oo%s8

'# (ee%oin S"* ;rojet ;ro%e 74 +utsoured8 7arr forCard from

reious sa% ear8

9# Strenthenin the Adisor Serie enter of S"* Foundation

10# "onitorin > ea%uation of the rorams

11# Finane and redit Series

&I'#E #RE I" SERVI#ES

1# S"* Finanin Fair and Bankin ACard

2# S"* *ntrereneursBanker "athmakin ;roram

3# *sta%ishment of S"* redit -nformation and Fai%itation (esk

4# +ne Bank &undred *ntrereneurs Finanin ;roram

5# ;rearation of (oumentar on redit


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!# +ranize Ski%% (ee%oment )rainin on DuteL?eatherL

&andiraftsLDeCe%r et# for the +Cners and


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5# "emershi > +Ne "anaement Sstem for S"* Assoiation

6# )rainin ;roram on P*"arketin for S"* ;rodutsQ 06 .os# 7(haka

hittaon hu%na /ajshahi S%het8

!# )rainin ;roram on P*ntrereneurshi dee%oment throuh

outsourinQ 01 .os# 7(haka8

'# "onitorin > ea%uation of the rorams

!O*I#+ ' VO#'#+ $I%

1# ;reudet disussion and rearation of S"* ena%in Budet

;roosa%s

2# -nstitutiona% ?inkae Cith .ationa% and -nternationa% oranizations

3# oordination and Adoa for settin u PS"* Foa% ;ointQ in diIerent

oernmentL nonoernment aenies

4# Suort P,radation of S"* ;o%i StrateQ

5# Adoa for S"* %uster (ee%oment

6# Adoa for S"* ensus BBS

!# Adoa for in%usion of S"* ision in the P!th Fie @ear ;%an of

Ban%adeshQ#

'# Fai%itatin the *sta%ishment of PBan%adesh -nstitute of ;%asti

*nineerin > )ehno%o 7B-;*)8#Q


RESE'R# $I%

1# ondut .eeds Assessment of %usters#

2# Setor Stud on SoftCare (ee%oment 7ontinued8



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"E#O*O%+ EVE*O!ME" $I%

1# ACareness of S"*s throuh the (issemination of *Nient )oo%s and

)ehniques of =ood "anufaturin ;raties 7=";8#

2# ;romotin the "anufaturers of -mort Sustitute Sare ;arts of ?iht

*nineerin Setor#

3# )ehno%o , radation throuh the -m%ementation of Food Safet

"anaement Sstem 7FS"S8 for -S+ 22000:2005

7ontinued from 2013148#

4# ;rodutiit *nhanement of S"*s throuh the -m%ementation of

A-$*. 7ontinued from 2013148#

5# Stok takin the eEistin tehno%o of: 7a8 ?iht *nineerin SetorL

-ndustries# 78 *%etria% > *%etroni -ndustries# 78 Aroroessin

-ndustries

6# ;rojet ;ro%e (ee%oment of se%eted rodut of: 72 nos#8

7a8 ?iht *nineerin SetorL;%asti > +ther Sntheti Setor 71 no#8

78 ?eather oods and footCear SetorLAro;roessin t Setor 71 no#8

!# *n%istment of *Eistin )estin Fai%ities in Ban%adesh#

'# ;rofessiona% (ee%oment ;roram on: 7a8 Food Safet "anaement

Sstem for -S+ 22000:2005 for S"*s 78 *ner "anaement Sstem

9# "onitorin > ea%uation of the roramsV

$OME E"RE!REEURSI! EVE*O!ME" $I%

1# reatin -) *ntrereneurs in o%%aoration Cith Aess to -nformation

7a2i8 ;roram of ;rime "inisterHs +Ne and Ban%adesh


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4# .ationa% S"*


36/62

S


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• )here are aout 44 fu%% time staIs urrent% Corkin in thefoundation# )he ame Cith dierse akround fromenineerin to soia% siene# -t ena%es the foundation toundertake a ho%isti aroah for the dee%oment of

S"*s#

$ea-ness

)ota% nania% resoure aai%a%e to the foundation is inadequate and a%soo%ati%e# )he foundation reeied an endoCment fund of )k# 200 ore#-nterest earned on this fund is the so%e soure of endoCment fund of )k# 200ore# )he earnin on this endoCment is inadequate to undertake diIerent

atiities the foundation as mandated in the oernment azette#

)ota% roeed earned from the endoCment fund deends on the market rateof interest Chih aries oer time# )his makes the oera%% %annin diNu%tfor the foundation#

!" Inadequate legal backing

A%thouh S"* foundation Cas enisioned as Mone sto serieH roider in theoriina% %annin it is not roided Cith the adequate %ea% authorit oer

other re%eant oranizations %et a%one rin them under one umre%%a#

A%thouh the foundation has the mandate and is etter %aed to undertakeertain atiities these are taken u other oranizations Cithout ino%inthe foundation# )he redit Cho%esa%in is one eEam%e#

)he foundation is etter informed aout the S"* %usters and theiromosition and need for redits# But it is not ino%ed in the redit roramadministered Ban%adesh Bank Chih %aks the setora% knoC%ede#

Opportunities

)he imortane of S"* setor is Ce%% reonized in a%% %annin douments#Startin from the 2005 o%i enhane roCth and oert a%%eiation in theountr# )he formation of the S"* foundation itse%f reKets the ommitment

+& InadeKuate 9nan:e1. Inadequate finance

2& InadeKuate le;al a:in;

+& AdeKuately sensitied en=ironment and politi:al


38/62

of the oernment to the dee%oment of a irant S"* setor# A%% theseroide a faora%e round for S"* foundation to ursue its mandate#

+& Adeuately conducted background !ork

.otCithstandin its %imited resoures the foundation has onduted areasona%e amount of akround Cork to identif the ro%ems androset of the S"* setors# )he foundation has identied diIerent natura%%dee%oed S"* %usters Cith diIerent needs for further dee%oment# Anumer of ations hae a%so een identied ased on these studies# A%% thefoundation needs is to enhane the eIorts and suessfu%% im%ement theseatiities %eadin to some eEam%e of suess#

"hreat

A%thouh the S"* foundation Cas set u in 200! Cith a numer of ojetiesas its mandate it is et to mark nota%e suess# )he required institutiona%reform and suort required for an eIetie and funtiona% are not foreseen#-f this situation ontinues the foundation Ci%% not e a%e to aom%ish theojeties of dee%oin a irant S"* setor as enisioned in diIerent%annin douments of the oernment#

2& AdeKuately :ondu:ted a:;round Dor


39/62

hater 4


40/62

"ajor ro%emsLha%%enes for S"* Foundation

At resent S"* setor is fain a %ot of ro%ems in Ban%adesh# Some majorro%ems are as fo%%oCsJ

-n Ban%adesh sarit of raC materia%s hinder the ai%it of S"* to e eEortoriented and %imits its ai%it to reah more adaned staes of internationa%usiness# )he S"* setor in Ban%adesh has %imited aess to nane due to the

fo%%oCin fators: the setor is ereied as a hih risk oneJ inai%it of the

S"* oerators to fu%%% the o%%atera% requirementsJ most anks do not

oerate an S"*s nanin CindoCJ some of the anks oerate in %imited

eorahia% areasJ ineEeriene of Bank StaI in issues re%ated to "iro

naneJ %ak of a uarantee sheme to ak u anks nanin S"*sJ hih

ost of sreenin and administerin sma%% %oans sread oer i areas and

inai%ities of orroCers to reare and resent a%iations that meet ankRsrequirements#

(ue to %imited aan of S"* most of the ski%%ed oun andidates do notet oortunit to S"*s#

+ne of the main arriers for the dee%oment of S"* in Ban%adesh is

inadequate tehno%oies# )ehno%o adanement and transfer are

imortant asets for S"*s dee%oment# S"*s hae %imited aess to

tehno%o dee%oment art% eause the %ak the re%eant information#

)he ro%em is further omounded the eEistene of industria% suort

institutions Chih are Ceak and do oerate in iso%ation Cithout fousin on

the atua% requirements of the S"* setor# Furthermore tehno%oies

aai%a%e are not disseminated to the otentia% %ients# -n addition S"*s

annot aIord the series roided the re%eant institutions# As a resu%t of the aoe S"*s ontinue to ho%d on oor and oso%ete tehno%oies#

./ "esource scarcit

0/#ack of $e! ob & ortunit

1/ Absence of modern technolo

2/#imited use of information


41/62

-n this mi%%ennium information has eome a rime moer of a%% eonomi

undertakins# &oCeer the situation of S"*s in Ban%adesh is that of %imited

aess to information aused %ak of aCareness on its imortane and the

rohiitie osts of aquirin the same#

"iah 720068 has osered that S"*s hae er %imited use of informationtehno%o 7-)8# Aountin akae is used 12O of the S"*s# )he use of omuters is reea%ed sa 15O of the S"*s Chi%e the use of the -nternetfor usiness uroses a%ies to sa '10O of S"*s#

onseratie attitude toCards risk %ak of ision ai%it to make %an andim%ementin those hinder the roCth of S"* in Ban%adesh#Ban%adesh is endoCed Cith a rih natura% resoure ase# *en then Cith a%%

these resoures Ban%adesh is sti%% a %east dee%oed ountr# )he ha%%ene%ies in the ai%it to transform eNient% and eIetie% the resoures into

oods and series that an e aai%ed to the market at ometitie ries#

+ne of the major %imitin fators is the %ak of entrereneurs at diIerent

%ee%s# Some of the traditions eretions and a%ues hae tended to reate

a u%ture that is antientrereneuria%# Furthermore ast o%iies %imited

indiidua% entrereneurshi initiaties# -n addition the eduation sstem has

tended to reate em%oment seekers rather than jo reators#

*qua%it of oortunit is a major ro%em for S"*# Fema%e entrereneurs aretreated disriminate%# )he are not Ce%% reresented in usinessoranization# =oernment does not roide adequate institutiona% assistanefor Comen entrereneurs#

For S"* oCin a retai% sae is er eEensie in the major ities inBan%adesh# As a resu%t man ustomers are not interested to u rodutsand series from S"*s# Beause the anHt jude the qua%it unti% thehsia%% eEamined the rodut#"ost of the ases S"*s in Ban%adesh are not a%e to use the -nterated"arketin ommuniation 7-"8 too%s# But these too%s %a the ro%e of imortant stimu%us to motiate the ustomers and retain them# )he ountr

3/ *ac- of entreprene urship s-il ls

4/ !articipation of 5omen entreprene urs

6/ 'ccess to Mar- et and lac- of a5arene ss re,ardin,

the impo rtance of ma r-etin, tool


42/62

does not hae enouh marketin aai%it and resoures to inest inmarketin#

*rnesto 720058 stated that to kee in ae Cith internationa% ometitionrms of a%% size are ha%%ened to imroe and innoate their rodutsroesses onstant%# But in Ban%adesh S"*s are sti%% not re%atin theimortane of satisfin and retainin ustomers oIerin noe% anddesired enets#

( is sti%% ne%ii%e in#

7/ *ac- of comm itment to innovation and customer

8/ Bureaucrac9

./ *ac- of ;ualit9 assurance

../ *ac- of research and development facil it ies

hater 5


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Fo%%oCin sei omonents shou%d e the intera% art of the strate:

)he rea%ization of the Strate shou%d fai%itate the ahieement of thefo%%oCin stratei ojeties: -mroement of the usiness enironment -mroement of nania% suort

Strenthenin of S"* ometitieness and romotinentrereneurshi Suort for einners in usiness startus

=oernment needs to undertake a threeste strate to suort the

dee%oment of the S"* setor of the ountr#

o )he rst ste re%ates to the onso%idation of the natura%% dee%oed

aai%ities main% serin the domesti market#

o )he seond ste re%ates the fai%itation of their entr into the eEortmarket#

o )he third ste re%ates to the enhanement of aaities to thrie into

the %oa% market#

)he rst ro%e of the roosed strate is rotetionJ rotetin the natura%%

dee%oed aai%ities# )he ro%e in the seond and third strate is

romotiona%J romotin the aaities of the S"*s to enetrate into the

eEort market and thrie Cithstandin the %oa% ometition# ,nder this

road themati


45/62

0 h a % % a n A e s

"esource scarcity

Absence ofmodern

technology

#imited use ofinformation

#ack ofentrepreneurship

skills

#ess 'articipationof !omen

entrepreneurs

A::ess to Mar(et

#ack ofinno(ation and

customersatisfaction

Bureaucracy

#ack of ualityassurance

S

t r a

t e

A

B

A55ess to Finan5e

Ada6tation ofte5hno%oies

,se of

-nformation

0reat*ntre6reneurshi6

Bui%d Comenem6oCerment

"arketin

*n4ironmenta%0onsiderations

?ea% and

/eu%atorFrameCork

;hsi5a%-nfrastru5ture

Business )rainin

" a r ; e t

)o de4e%o6 %oan6rodu5ts

)o su66orte5onomi5

de4e%o6mentstrateAies

0a6a5itBstrenAtheninA

ser4i5es

0reate 2usinesses

S6reat S"* in the5ountrB#

*n5uraAe more5ustomer to in4est

)he S"* setor in Ban%adesh has %imited aess to nane due to the

fo%%oCin fators: the setor is ereied as a hih risk one# 0he current

reforms have resulted in li,eraliation of the -nancial sector to a great

#utput

Strate,9 .: 'ccess to &inance


46/62

"ar;et )o de4e%o6 %oan 6rodu5ts that re%ate

etter to s6e5i35 tB6e of 5redit neededin S"*s#

etent. 0his has led to esta,lishment of a num,er of ,an/s including the

Micro &inance Ban/+ li,eraliation of -nancial rates and esta,lishment of a

stoc/ echange mar/et. 3n spite of all these+ the SM$ sector is facing a ma4or

constraint in accessing -nance. 0his limits their capacity to survive+ increase

capacity+ upgrade its technologies and even in many cases+ epand their

mar/ets and improve management or raise productivity and eventually increase incomes.

5olicy Statement:

)he =oernment Ci%% enhane nania% reforms aimed at further %iera%ization

of the nania% setor and the reation of nania% intermediaries to ater for

S"*s

Strategies: )o take are of this onern the fo%%oCin strateies Ci%% e im%emented:

;romote transferrin %essons and ood raties from traditiona% nanin mehanisms

into suita%e nania% roduts for nanin S"*s

Fai%itate oenin u of S"* CindoCs in nania% -nstitutions#

;romote innoatie nania% roduts for S"*s suh as hire urhase sheme %easin

inentor nanin enture aita% S"*s and Sain and redit Shemes#

;romote imroin aess of S"*s to ank nanin throuh sim%iation of

roedures

"oi%ize resoures and romote dee%oment of neC nania% institutions for nanin

S"*s#

Strate,9 0: evelopme nt of technolo,9


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"ar;et

(e4e%o6 te5hno%oies to su66orte5onomi5 de4e%o6ment strateies andui%d

reat 5om6etit4e market Cithin 201'

)oCards this end tehnia% assistane and inestment are oth urent%

needed to aroriate% aent the trainin and motiationa% enironment in

these institutions so that the an eome dura%e Etures of tehnia% and

manaeria% ski%%s in a format of u%iriate artnershi#

5olicy Statement: )he =oernment Ci%% fai%itate aquisition and adatation of tehno%oies as

Ce%% as enhane netCorkin etCeen />( -nstitutions and S"*s in a id to

urade tehno%oies so as to raise the rodutiit and ometitieness of

the setor#

Strategies:

)he fo%%oCin strateies hae een desined to hand%e tehno%oia% aset

of S"*s#

i# *sta%ish mehanism for enhanin netCorkin etCeen S"*s and

tehno%o roiders#

ii# Fai%itate joint entures aimed at enhanin tehno%o uradin

and transfer#

iii# Fai%itate aait ui%din of -ndustria% Suort +ranizations

7-S+s8 and other serie roiders#

i# Fai%itate esta%ishment of inuators#

S"*s in Ban%adesh is %ak of %imited aess to information aused %ak of

aCareness on its imortane and the rohiitie osts of aquirin the same#

;o%i Statement:

)he =oernment Ci%% fai%itate and suort rorammers aimed at inreasedaess of information ertinent to the dee%oment of S"*s#

Strateies: )he measures to e undertaken in%ude:

i# Set u of usiness enters so as to ensure that S"* oerators at a%%%ee%s hae aess to information at aIorda%e osts#

Strate,9 1: Use of Information


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"ar;et =roCth to e rea%ized as a resu%t of

5a6a5itB strenthenin ser4i5es Ci%% eoser4ed throuh in4estment sa%esand em6%oBment of S"*s#

"ar;et )o 5reate usinesses that hire

6eo6%e in S"*# )o ui%din a so%id foundation for the

future 6%an of S"*#

ii# Suort trainin on information tehno%o e## *ommere#iii# *sta%ish a data ank for the S"*s in%udin a nationa% Cesite for

S"*s and a diretor of serie roiders#i# ondut a ensus for S"*s

;o%i Statement: )he =oernment Ci%% romote entrereneurshi dee%oment throuh

fai%itatin imroed aess of S"*s to nania% and nonnania% series

Strateies:-n order to oerome this situation the fo%%oCin measures Ci%% e

undertaken:

i# -nu%ate throuh eduation trainin and other rorammers a%uesand attitudes that are onduie to dee%oment of entrereneurshi#

ii# /eieC shoo% urriu%a to aommodate entrereneurshidee%oment#

iii# -ntrodue entrereneuria% rorams in oationa% and tehnia%

trainin#i# Fai%itate entrereneurshi dee%oment rorams for se%eted taret

rousLsetors e# shoo% %eaers## Fai%itate aait ui%din in entrereneurshi dee%oment

Strate,9 2: evelop entrepreneurship


49/62

"ar;et )o re6resent a sma%% 6ortion of the

o4era%% numer of usinesses in the5ountrB in future#

)his Cin Corks to rin the Comen entrereneur to main stream

dee%oment roess# Fai%itatin them for Comen emoCerment is one of

the rioritized atiities of S"* Foundation# "ain atiities in%ude

institutiona% aait ui%din of Comen hamers and trade odies

formu%atin ender ation %an enourain ankers to nane Comen

entrereneurs ondutin stud on Comen entrereneurs and oranizin

Comen entrereneur onferene nationa% S"* Comen entrereneurshi

aCard S"* rodut fair for Comen entrereneurs et#

Poli:y Statement$"ake a ommon (iretor for a%% usiness Comen and their oCn usiness

ro%e

Strate;ies$i# *sta%ish a ermanent )rainin -nstitute at S"*F head Wuarter for

oIerin A rade )rainin to


50/62

i# ;romote usiness %inkaes etCeen %are and sma%% enterrises#ii# Strenthen marketin aenies and institutions that suort S"*s#iii# reate S"*s u%k roision sstems throuh a ooeratie

mehanism#i# Fai%itate S"*s artiiation in %oa% and internationa% markets

throuh trade fairs and missions## *sta%ish S"*s eEhiition enters#i# Fai%itate S"*s to meet standardsii# Fai%itate trainin on trade issues i#e# mu%ti%atera% tradin sstems

and reiona% tradin arranementsiii# Fai%itate S"*s enet from oernment rourement needs and

atiities

?atest dee%oments in enironmenta% issues hae tended to reate%imitations to the dee%oment of S"*s in terms of %ea% requirements and

om%eEities in om%iane to hanin reu%ations# )he demand

enironmenta%% friend% tehno%oies that are eEensie %ear Caste

disosa% tehniques and sstematized Caste manaement# Furthermore

enironmenta% %aC and reu%ations require enironmenta% imat assessment

and do imose ena%ties for nonom%ian to %aid doCn reu%ations# A%%

these require resoures Chih are not Cithin the reah of S"*s# )his is more

omounded the %imited aCareness of S"* oerators on the

enironmenta% issues#

Poli:y Statement$

)he =oernment Ci%% ensure that enironmenta% onsiderations are ien due

emhasis in a%% S"* dee%oment interentions

Strate;ies$

*nironment at the moment is a major onsideration in a%% asets of

dee%oment# )o fai%itate enironmenta%% friend% S"* dee%oment the

fo%%oCin strateies are desined:

a# Fai%itate reation of aCareness on enironmenta% issues to S"*s

and their serie roiders## Fai%itate sim%iation of enironmenta% imat assessment

roedures#

# *nourae roer Caste manaement in%udin re%in

tehniques#

d# Fai%itate rodution of tehno%oies Chih a% reneCa%e ener#

Strate,9 6: Environmental #onsiderations


51/62

"ar;et *n5ourae more 5ustomer toin4est in S"*

(esite of arious interentions aimed at imroin the usiness

enironment in Ban%adesh the %ea% and reu%ator frameCork is

ureaurati ost% and entra%ized# )hese harateristis of the %ea% and

reu%ator enironment aIet a%% sizes of usinesses aderse%# &oCeer

S"*s are further onstrained in this enironment in omarison to %arer

usinesses due to the disroortionate% hea osts of om%iane arisin

from their size# As a resu%t most of informa% enterrises hae fai%ed to

forma%ize and miro enterrises hae een una%e to roC and raduate intoSma%% and "edium *nterrises# )he taE reime in Ban%adesh is a%so

unfaora%e for S"*s dee%oment# )aEes are man rather hih and

o%%eted arious authorities in%udin Ban%adesh /eenue Authorit and

the ?oa% =oernment Authorities# Furthermore entrereneurs are inorant

of taE matters and the ost of om%in Cith taE reu%ations is onsidered

hih#


52/62

)he oor infrastruture in Ban%adesh in%udin Corkin remises roads

o%d rooms Carehouses oCer Cater and ommuniation aderse% the

dee%oment of the S"*s# *en Chere these series are aai%a%e the

su% is unre%ia%e and ost%# Seried %and or usiness remises are in

short su% in most of the ities and toCns eseia%% for industria% use# )he

er oor state of infrastruture makes it diNu%t to attrat een %oa%

inestors to the rura% areas Chere a%most '0O of Ban%adeshis %ie# )his has

een an osta%e in romotion of S"*s eseia%% in rura% areas#

Poli:y Statement$

)he =oernment Ci%% ontinue to imroe the hsia% infrastrutures and

roision of uti%ities in o%%aoration Cith ?oa% Authorities riate setor and

dee%oment artners#

Strate;ies$

)he fo%%oCin strateies are desined to address infrastrutura% requirementsin reset to S"*s:

i# ?oa% Authorities to a%%oate and dee%o %and for S"*s

ii# (ee%o industria% %usters and trade enters

iii# -dentif and a%%oate underuti%ized u%i ui%dins to S"*s

S"* oerators in Ban%adesh hae rather %oC usiness ski%%s and seem not to

areiate the imortane of usiness eduation# +n the other hand thequa%it of trainin roided eEistin usiness trainin institutions and

osts ino%ed has tended to e unattratie and unaIorda%e to the

otentia% eneiaries#

Strateies$-n order to imroe the usiness ski%%s of S"* oerators the fo%%oCin

strateies Ci%% e ursued:

-# *mark on aait ui%din of usiness trainin institutions aimed atimroin qua%it of series roided

--# Fai%itate tai%ormade usiness trainin rorams for startus and forstrenthenin eEistin usinesses#

Strate,9 .: Business "rainin,


53/62

Other Strate,ies to evelop SM ES

Selecti(e approach to SM) de(elopment

An essentia% e%ement of a strate for the dee%oment of the S"* setor in

Ban%adesh Ci%% ino%e identifin nihes Chere sma%% and medium

enterrises hae omaratie adantae and hiher roCth otentia%# )his

Ci%% mean eE%orin market oortunities on a sustained asis and moi%izin

the required suort series for the romotion of these industries one suh

nihes are identied# o%%etion and ana%sis of the re%eant industr re%ated

information Ci%% e an essentia% rerequisite for suh stratei %annin# -t is

Cith this urose that the oernment has set u the S"* Foundation Chosemandate is to Cork out suh dee%oment strateies for the S"* setor in

Ban%adesh on a ontinuin asis in %ose tandem Cith the riate setor#

)he aait and atiities of the S"* Foundation needs to e strenthened

to this end#

Creating an enabling en(ironment for pri(ate in(estment

onstraints that ontriute toCards a Ceak ena%in enironment for riate

inestment an e roued under three road headins: 7i8 o%i indued

onstraints 7ii8 strutura% onstraints and 7iii8 onstraints arisin out of oorusiness suort series and Ceek oernane# -n fai%itatin dee%oment

of the riate setor and S"* the rimar ro%e of the oernment Ci%% hae

to e to reate inestment friend% %aC and order situation suortie %ea%

and reu%ator frameCork and aroriate maroeonomi o%iies# )hese

Ci%% need to e om%emented rioritized u%i inestment desined to

ease arious strutura% ott%eneks ertainin to hsia% and infrastrutura%

fai%ities ener and tehno%o# -n addition the qua%it of oernane Ci%%

hae to e imroed to ensure re%ia%e su% of asi series on Chih

honest and eNient usinesses deend#

A di*erentiated and hassle free indirect ta+ system for SM)s

=ien the strutura% diIerene etCeen the S"*s and their %aresa%e

ounterarts there is a ase for a diIerentiated sstem of indiret taE for the

S"*s that Ci%% ena%e them to a the indiret taE free from harassment# A

raduated sstem of turnoer taE an e desined for the S"*s for this

urose# ritis arue that a diIerentiated sstem Ci%% disourae S"*s to


54/62

roC %arer in a id to aoid ettin under the A) net and that a sstem of

turnoer taE makes them %ess attratie su%iers of inuts to other rms

Cho need A) ertiate for inut to adjust their oCn A) %iai%ities#

&oCeer if the utoI size %imit is suNient% %are to in%ude a%% S"*s and

the turnoer taE is aroriate% raduated than the ro%em of roCth

disinentie Ci%% not e a serious one# +n the other hand the ro%em of A)ertiate ma e reso%ed reatin a notiona% A) equia%ene of the

turnoer taE#

)asier access to imported inputs

After the initia% raid ae of %iera%ization in the ear% 1990s the roess

s%oCed doCn and durin the ast deade Cide sread use of ara tariI

reerted to some eEtent the enet S"*s ained initia%%# A strate for the

dee%oment of the S"* setor in Ban%adesh therefore needs to e

remised on further trade %iera%ization measures Cith a ieC to roidin

S"*s easier aess to imorted inuts#

,argeting public e+penditure to!ards augmenting demand

+ne imortant fator aIetin the roCth of S"*s has een the trend in

domesti demand# )hus the raid roCth of the onstrution setor seems

to hae ontriuted to the eEansion of S"*s roduin nonmeta%%i minera%

roduts artiu%ar% riks strutura% %a and ement roduts# ;u%i

eEenditure direted artiu%ar% toCards the ariu%tura% and the rura% setor

Cou%d raise the urhasin oCer of the rura% eo%e# Sine the demand

struture of this sement of the ou%ation is more oriented to %oa%

roduts it Cou%d at as a stimu%us to roCth and eEansion of S"*s#

-uman resource de(elopment

)o address the ro%em of ski%%ed manoCer for S"*s the sstem of tehnia%

and oationa% eduation in the ountr needs to e reamed# -n %ine Cith

suessfu% internationa% eEerienes the oernment shou%d roideomu%sor state funded eduation u to the ae of fourteen and artia%%

statefunded omu%sor hiher seondar eduation u to the ae of 1' or

19# )he institutiona% aait to imart aroriate tehnia% and oationa%

eduation needs to e strenthened# For this %ose assoiation of the

otentia% em%oers in dee%oin the riht urriu%um Cou%d e imortant#

-ndiaHs -ndustria% )rainin -nstitutes Chih are manaed -nstitute


55/62

"anaement ommittees 7-"s8 omrisin of %oa% industr

reresentaties ou%d e an eEam%e in this reard#

Formu%ation of a akae of aaitui%din and trainin

a# Spe:ialied pro%essional epertise$ Seia%ized rofessiona%eEertise in arefu%% hosen nihes that the S"* Adisor ;ane%reommends has otentia% for a roadased re%iation# Suh traininan e so akaed to suh hih standards that the reiients fee%motiated to a u user hares hoCeer minima%#

# Re-sillin; oot :amps$ /eski%%in oot ams Cou%d need to e

oranized for eah of the ooster industries rotation Cith a ieC toroide eriodi tehno%o roundin in eNaious ski%%s amon Corkersin S"*s#

# Institutional :apa:ity %or trainin;$ Ban%adesh Sma%% and ottae-ndustries ororation 7BS-8LSma%% and ottae -ndustries )rainin-nstitute 7S-)-8 Ban%adesh -nstitute of "anaement 7B-"8 Ban%adesh-ndustria% )ehnia% Assistane enter 7B-)A8 and .ationa% ;rodutiit+ranization 7.;+8 Chere a %ot of equiment infrastruture -nartiu%ar the ski%%s and ometenies needed to ena%e S"* ho%d theiroCn in the oosterindustries in the haned %oa% usiness enironment

shou%d e reemhasized in the ensuin reamin of these institutions#

d# *apa:ity %or :oordination amon; multiple institutions$ Se=eralpuli: institutions (su:8

as )he Atomi *ner ommission 7A*8 Ban%adesh ouni% of Sienti -nestiation > /esearh 7BS-/8 ?eather )ehno%o-nstitute 7?)-8 the )eEti%e o%%ees the eramis /esearh -nstitute theu%i uniersities et8 hae siniant aait for oth rodut androessinnoation of rea% a%ue for S"* dee%oment#

e# "e:8ni:al assistan:e and in=estment$ )oCards this end tehnia%

assistane and inestment are oth urent% needed to aroriate%aent the trainin and motiationa% enironment in these institutions sothat the an eome dura%e Etures of tehnia% and manaeria% ski%%sin a format of u%iriate artnershi#

f# Pri=ate-puli: :ollaoration$ )he se%etion of suh trainin oursesand then the de%ier of suh trainin is an imortant instane of u%iriate o%%aoration and sha%% e uti%ized roer% and eIetie%#


56/62

# R > Dit8 potentially 8i;8-impa:t pro9les$ / > ( that %ead torototes Cith a soe for re%iation in otentia%% hihimat rodutnihes 7e in the e%d of moi%e ames 3( animation or iootis orthe manufature of omuterontro%%ed industria% and media%

a%ianes or surrin the use of resin in neC rodution a%iationset#8

h# *urri:ulum de=elopment %or =o:ational trainin;$ urriu%um of oationa% trainin institutes sha%% e reised and reieCed to make it S"*dee%oment friend%#

+era%% +utome throuh Strate

)he imat Ci%% e ontinued eonomi roCth and oert redution

throuh the dee%oment of the S"* setor outside the metroo%itan areas of

(haka and hittaon a%ined Cith the S"* Strate ;aer for the

oernmentHs forthomin Seenth Fie@ear ;%an# )he outome is inreased

in the numer and size of ommeria%% ia%e S"*s as Ce%% as em%oment

in the S"* setor#

#utput +$

-nreased medium and %onterm redit eseia%% to S"*s S"* %usters

and BS- estates in rura% areas# S"*(;2 Ci%% omrise a redit %ine of X200

mi%%ion for oostin aess to medium and %onterm nanin throuh ;F-sfor e%ii%e S"*s 7and e%ii%e S"*s oranized as S"* %usters and BS-

estates8 outside the metroo%itan areas of (haka and hittaon# )he redit

%ine Ci%% enhane redit de%ier in artiu%ar to riorit setors onsistent

Cith the nationa% industria% strate for romotin eEorts and hih a%ue

added industries# )he strate tarets S"*s in the rura% areas and Ci%% hae

tCo omonents:

omonent AYomrisin tCothirds of the redit %ine 7X133#3 mi%%ion8 and

aterin to the sma%%er rms of the setor e## ottae industries and miro

enterrises# ,nder this omonent 15O Ci%% e earmarked for %endin toComen%ed S"*s#

omonent BYomrisin the a%ane 7X66#! mi%%ion8 the roeeds of Chih

Ci%% e on%ine the ;F-s to mediumsized enterrises#

#utput 2$


57/62

Strenthened aait of S"* entrereneurs to aess ank nanin# )his

outut under the aait dee%oment )A Ci%% suort the esta%ishment of

inuation fai%ities at eduationa% institutions to romote entrereneurshi

7i8 identifin areas 7industr andLor setor8 for suort from inuation

fai%ities 7ii8 dee%oin a ountr strate Cith detai%ed ation %ans 7and

ost estimates8 for inuation fai%ities 7iii8 desinin uide%ines for the

se%etion and raduation of entrereneurs a%in for

Business inuation series and 7-8 esta%ishin a seEdisareated

erformane monitorin sstem for inuation fai%ities#

#utput /$

Strenthened manaeria% and tehnia% aait of sma%% and medium sized

enterrise suort institutions 7Ban%adesh Bank S"* Foundation and

BS-8 and artiiatin nania% institutions for sma%% and mediumsized

enterrise %uster nanin# )his outut of the )A Ci%% he% dee%o S"*

%usters and BS- estates o%sterin the akCard and forCard %inks of

S"*s to the %arer more forma% setors suh as the eEort industr# aait

dee%oment of S"* suort institutions Ci%% fai%itate %uster nanin

ui%din u S"*s ai%it to form a%%ianes and %usterin so that sma%% rms

Ci%% roC and ooerate Cith %arer rms and sensitizin ;F- oNia%s to

romote %oans to S"* %usters and BS- estates#

#utput 3$

*nhaned Comen%ed sma%% and mediumsized enterrisesH aess to ank

nane and nania% series# )his outut of the )A Ci%% oost the aait of

Comen entrereneursH dee%oment units at Ban%adesh Bank head oNe

and nine ranhes and dediated ComenHs desks at ;F-s 7i8 standardizin

;F- roedures 7ii8 fai%itatin dia%oue and rossferti%ization of raties

amon ;F-s and 7iii8 monitorin of roress in ComenHs aess to and use of

nania% resoures and series# )he outut Ci%% ui%d the aait of Comen

entrereneurs suortin the dee%oment of an informa% netCork of ;F-s

Comen entrereneursH dee%oment units and ComenHs usiness

assoiations Cith a fous on aess to nane and ood raties#


58/62

;rosets of S"*Hs at Ban%adesh

#o!er amount of capital in(estment to start business

)o start S"*s it requires a sma%% amount of fund# So eo%e Cith a %itt%eaita% ma start their usiness# =roCth of S"*s ma hae a ositieimat on the oera%% eonomi dee%oment of Ban%adesh#

#o! risk in(ol(ement

aita% requirement is %oC in S"*s# S"*s are a%so diersied in nature#As a resu%t S"*s are onsidered as %oC risk oranizations#

#o! cost products in domestic market

S"*s are roidin a diersied rane of roduts at a %oCer rie in

%oa% market# Peo%e are ettin S"* roduts at a %oCer rie#

Accelerated gro!th of SM)s-t has een osered that in the %ast deade a%most eer ear S"*setor has eEeriened ositie roCth rate in eah ear# )he ear%roCth rate is aout 'O#

ood reco(ery rate


59/62

"ukti of *astern Bank ?imited ;rothoma /in of Bra Bank and .okshiof )he it Bank# )hrouh these shemes Comen entrereneurs mastart their oCn usinesses# )his Ci%% he% a %ot of Comen entrereneursto eome se%fdeendent#

on%usion

Sma%% and medium enterrises 7S"*s8 at as a ita% %aer for the eonomi

roCth oert a%%eiation and raid industria%ization of the dee%oin

ountries %ike Ban%adesh# S"*s are siniant in under%in ountrHs

eonomi roCth em%oment eneration and ae%erated industria%ization#

=oernment of Ban%adesh has hih%ihted the imortane of S"* in the

-ndustria% ;o%i2005# S"* has identied the "inistr of -ndustries as a

Mthrust setorH# As the S"* setor is %aor intensie it an reate more

em%oment oortunities# For this reason oernment of Ban%adesh has

reonized S"* as a oert a%%eiation too%# S"* a%so foster the

dee%oment of entrereneuria% ski%%s and innoation# A%on Cith oert

a%%eiation S"* an redue the uran miration and inreased ash KoC in

rura% areas# As a resu%t it Ci%% enhane the standard of %iin in rura% areas#

;erformane of S"*s in Ban%adesh is siniant% found e%oC the %ee% of

internationa% standard# A%thouh oernment of Ban%adesh has taken some

initiatie to ensure the roCth of S"* ut those stes are not enouh at a%%#

But oernment shoCs its ositie attitude toCards this setor# Ban%adesh

oernment shou%d ontinue to ie more fouses on some areas suh as

arranement of nane roide infrastruture fai%ities frame aroriate

%ea% frameCork esta%ish nationa% qua%it o%i et#

From the sequene of our ana%sis it seems that for the eonomi

dee%oment of Ban%adesh S"* an %a a ita% ro%e#


60/62

roidin infrastruture fai%ities framin aroriate %ea% frameCork

esta%ishin nationa% qua%it o%i et#


61/62

/*F*/*.*S

1# A%am "#S# and ,%%ah "#A# 720068 S"*s in Ban%adesh and )heir

Finanin:

2# An Ana%sis and Some /eommendations 0he 6ost and Management

o%# 34 .o#3

3# Banks et sh to take u S"* Finanin 7200' Danuar 1!8 0he

&inancial $press

4# hoCdhur F# 7200!8 6ustomied &orm of &inance for SM$s Seminar

;roeedins.ationa% S"* (ee%oment ;roram for +- "emer

ountries FB- (haka#

5# *rnesto /#


62/62

AendiE

Su$$ary o% Man&o#er

Sl. no Na$e o% the Post No.

Managing %irector $

2 %eput1 Managing %irector $

! (eneral Manager

' %eput1 (eneral Manager

( &ssistant (eneral Manager 3

) Manager $2

* %eput1 Manager $4

+ &ssistant Manager 2

, +rogram &ssistant 3

- %river 3

5ffice 6orker7 Messenger7 +eon $2

2 5ffice guard7night guard

! 8leaner

otal -*

#r;ano;ram$

01 bus-620-reportv. final 2

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