Understanding the Concept of SMEs in Driving Economic Growth and Development in Bangladesh

Md. Manir Hossin; Md. Shah Azam; Md. Shamim Hossain

doi:10.56225/ijfeb.v2i3.147

Authors

Md. Manir Hossin Institute of Bangladesh Studies, University of Rajshahi, Bangladesh
Md. Shah Azam Department of Marketing, University of Rajshahi, Rajshahi, Bangladesh
Md. Shamim Hossain Department of Management Studies, University of Rajshahi, Bangladesh

DOI:

https://doi.org/10.56225/ijfeb.v2i3.147

Keywords:

SMEs present status, SMEs contribution, Bangladesh's economy

Abstract

Small and Medium Enterprises (SMEs) play a vital role in Bangladesh's economy and have been recognized as a significant catalyst for poverty reduction programs and economic growth. Therefore, it is essential to have a comprehensive understanding of the concept of SMEs and their role in driving economic growth and development. Consequently, this study endeavors to explore the definition of SMEs, their present status, and their contributions to the development of Bangladesh’s economy. Using a quantitative research method, the study performed a descriptive statistics analysis on data gathered from diverse sources, including academic, governmental, and private institutions, as well as pertinent literature from researchers, academics, and scholars. The study has found that the definition of SMEs in Bangladesh has undergone changes over time. The study findings also revealed that the growth of SMEs has had a significant impact on various economic indices in Bangladesh, contributing positively to the country's economic development. Hence, the findings of this study can provide valuable insights to readers seeking a comprehensive understanding of SMEs in the context of Bangladesh. Moreover, policymakers can utilize these findings to introduce well-suited policies and initiatives that will foster the future development of the SME sector.

Author Biographies

Md. Manir Hossin, Institute of Bangladesh Studies, University of Rajshahi, Bangladesh

Md. Shah Azam, Department of Marketing, University of Rajshahi, Rajshahi, Bangladesh

Vice-Chancellor, Rabindra University, Shahzadpur, Sirajgonj, Bangladesh. (On-deputation, Professor, Department of Marketing, University of Rajshahi, Rajshahi, Bangladesh)

References

Ahmed, K., & Chowdhury, T. A. (2009). Performance Evaluation of SMEs of Bangladesh. International Journal of Business and Management, 4(7), 126–133. https://doi.org/10.5539/ijbm.v4n7p126

Alam, M. S., & Ullah, M. A. (2006). SMEs in Bangladesh and their financing: An analysis and some recommendations. The Cost and Management, 34(3), 57–72.

Ali, M. R., & Islam, M. A. (2018). Present status of SMEs and SME financing in Bangladesh: An overview. Journal of Science and Technology, 8(1), 55–71.

Andalib, T. W., & Halim, H. A. (2019). Convergence of Conceptual Innovation Model to Reduce Challenges Faced by the Small and Medium Sized Enterprises’ (SMEs) in Bangladesh. Journal of Open Innovation: Technology, Market, and Complexity, 5(3), 1–63. https://doi.org/10.3390/joitmc5030063

Andrianaivo, M., Skamnelos, I., & Ndiaye, A. (2018). Financing Solutions for Micro, Small, and Medium Enterprises in Bangladesh. The World Bank.

Asian Development Bank. (2021). Asia small and medium-sized Enterprise Monitor 2020-volume I country and regional reviews. In Asian Development Bank.

Banerjee, P., & Rahman, M. (2019). Contributions of Agriculture, SMEs and Non-SMEs toward Poverty Reduction in Bangladesh. International Review of Business and Economics, 3(1), 81–108. https://doi.org/10.56902/IRBE.2019.3.1.2

Bangladesh Bank. (2017). Bangladesh Bank. Retrieved from Bangladesh Bank: Https://Www. Bb. Org. Bd/En/Index. Php/Mediaroom/Circular, 2(1), 6–150.

Bangladesh Bureau of Statistics. (2013). District statistics 2011. Ministry of Planning, Government of The People’s Republic of Bangladesh, 6(1), 3–144.

Bangladesh Statistics. (2012). Survey of manufacturing industries (SMI) 2012.

Bangladesh Statistics. (2018). Bangladesh Bureau of Statistics.

Begum, L. A., Talukder, M. S., Rahman, M. M., Das, R. C., Bhattacharjee, P., & Miah, M. N. (2022). Estimating the contribution of SMEs output on GDP growth in Bangladesh-A VECM Approach (Special Research Work-SP 2022-02). Research Department Division-4, Bangladesh Bank. 1-16.

Chowdhury, M. A., & Salman, M. A. G. (2018). A comparative analysis on sector-based SMEs in terms of loan disbursements by financial institutions in Bangladesh. International Journal of SME Development, 4(1), 41–58.

Chowdhury, M. S. A., Azam, M. K. G., & Islam, S. (2013). Problems and Prospects of SME Financing in Bangladesh. Asian Business Review, 2(2), 109–116. https://doi.org/10.18034/abr.v2i2.111

Dafflon, B., Moalla, N., & Ouzrout, Y. (2021). The challenges, approaches, and used techniques of CPS for manufacturing in Industry 4.0: a literature review. The International Journal of Advanced Manufacturing Technology, 113(7–8), 2395–2412. https://doi.org/10.1007/s00170-020-06572-4

Ghadimi, P., O’Neill, S., Wang, C., & Sutherland, J. W. (2021). Analysis of enablers on the successful implementation of green manufacturing for Irish SMEs. Journal of Manufacturing Technology Management, 32(1), 85–109. https://doi.org/10.1108/JMTM-10-2019-0382

Hossin, M. M., Azam, M. S., & Hossain, M. S. (2022). SMEs in Bangladesh: Concept, Status, and Contribution in Economic Development. Journal of Nawabganj Govt. College, 2(1).

Islam, M. A., Igwe, P. A., Rahman, M., & Saif, A. N. M. (2021). Remote working challenges and solutions: Insights from SMEs in Bangladesh during the COVID-19 pandemic. International Journal of Quality and Innovation, 5(2), 119–140. https://doi.org/10.1504/ijqi.2021.117186

Islam, M. E., Rahman, M. M., & Rikta, N. N. (2008). A Note on the Contribution of Small and Medium Enterprises to GDP in Bangladesh. In Policy Paper.

Islam, M. R., Khan, M. S. R., & Siddiqua, K. A. (2013). Present Scenario and stratagem to SMEs development in Bangladesh. Jagannath University Journal of Business Studies, 3(1 & 2), 1–13.

Islam, S., & Hossain, F. (2018). Constraints to small and medium-sized enterprises development in Bangladesh: Results from a cross-sectional study. The European Journal of Applied Economics, 15(2), 58–73. https://doi.org/10.5937/EJAE15-17015

Jahur, M. S. (2020). SMEs in Bangladesh-prospects and challenges. Journal of Business and Society, 9(1), 16–43.

Khalily, M. A. B., Uddin, M. J., & Tareq, M. (2020). Development of SMEs in Bangladesh: Lessons from the German Experience. Friedrich-Ebert-Stiftung (FES) Bangladesh.

Khan, R. Z., & Ibraheem, N. A. (2012). Hand gesture recognition: a literature review. International Journal of Artificial Intelligence & Applications, 3(4), 1–161.

Khandker, A. (2014). Constraints and challenges of SME development in the developing countries: A case study of India, Pakistan and Bangladesh. International Journal of SME Development, 1(1), 87–118.

Miah, M. A. (2006). Key Success Factors for National SME Development Program; Lessons for OIC Member Countries from Bangladesh Experience. In SME Foundation.

Mintoo, A. A. (2006). SMEs in bangladesh. CACCI Journal, 1(1), 1–19.

Mujahid, N., Begam, A., & . N. (2019). SMEs Output and GDP Growth: A Dynamic Perspective. Journal of Asian Business Strategy, 9(1), 53–65. https://doi.org/10.18488/journal.1006.2019.91.53.65

Rahman, M., Nesa, M., & Ghose, D. (2018). The prospects and causes of failure of small and medium enterprises (SMEs): A case study of Bangladesh. Journal of Green Business School, 1(1), 91–108.

Rahman, S. A., Ahmad, N. H., & Taghizadeh, S. K. (2019). On the road to SME sector development in Bangladesh: a guideline based on current challenges and opportunities. In Socio-Economic Development: Concepts, Methodologies, Tools, and Applications (pp. 480–499). IGI Global.

Rouf, D. M. A., & Islam, M. (2015). An opinion survey of SME banking systems: problems and prospects in Bangladesh. American Journal of Economics, Finance and Management, 1(3), 223–228.

Roy, I. (2016). The socio-economic contribution of women entrepreneurs in Bangladesh. Global Journal of Management and Business Research, 16(5), 13–19.

Sarker, M. R., Rahman, S. M. A., Islam, A. K. M. H., Bhuyan, M. F. F., Supra, S. E., Ali, K., & Noor, K. M. A. (2022). Impact of COVID-19 on Small- and Medium-sized Enterprises. Global Business Review, 17(4), 13–26. https://doi.org/10.1177/09721509221093489

Shahnewaz, S. T. (2019). Current scenario of SME sector in Bangladesh: Performance, problems and prospects. Canadian Journal of Researcher’s Society, 9(1), 1–19.

Taha, H., & Kamruzzaman, K. (2020). Priority areas for Bangladesh: Roadmap to 2041 as Developed Country. Archives of Community Medicine and Public Health, 6(2), 277–280. https://doi.org/10.17352/2455-5479.000121

Uz Zaman, A. H., & Islam, M. J. (2011). Small and medium enterprises development in Bangladesh: Problems and prospects. ASA University Review, 5(1), 145–160.

Yoshino, N., & Taghizadeh Hesary, F. (2016). Major challenges facing small and medium-sized enterprises in Asia and solutions for mitigating them. 18(4), 1–22.