The percentage of Dhaka’s allocation for helping small and medium enterprises (SMEs) in the total COVID-19 stimulus funds is less compared to that set aside for the same in regional peers, says a recent study. While India allocated 38 per cent of such funds for SMEs, Thailand 33 per cent and Malaysia 24 per cent, Bangladesh's allocation was just 22 per cent.
The findings of the study, titled ‘The Future of SMEs after the Coronavirus Crisis: Challenges and Opportunities’, were released at a webinar, jointly organised by the SME Foundation and Friedrich-Ebert-Stiftung, Bangladesh.The percentage of Dhaka's allocation for helping small and medium enterprises (SMEs) in the total COVID-19 stimulus funds is less compared to that set aside for the same in regional peers, says a recent study. While India allocated 38 per cent of such funds for SMEs, Thailand 33 per cent and Malaysia 24 per cent, Bangladesh's allocation was just 22 per cent.#
Considering the situation, participants suggested that the government should increase the incentives for SMEs and pay special attention to the sector, according to Bangla media reports.
"The revenue of the local SME sector has fallen by 66 per cent due to the ongoing coronavirus crisis as 76 per cent of their products remain unsold," said Atiur Rahman, former governor of Bangladesh Bank.
Besides, 42 per cent of those employed by SMEs are receiving partial payments while 4 per cent have not been paid at all, he added.
Therefore, the former central bank governor suggested that at least Tk 20,000 crore more should be allocated to help SMEs recover from the COVID-19 fallout.
Participants also suggested implementation of the SME Policy 2019, cluster-based SME development, credit disbursement process verification initiatives, creation of digital dashboards, development of bank-customer relations, and giving priority to export-oriented SMEs, women-entrepreneurs and eco-friendly SME institutions.
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