...Introduction The Small and Medium scale Enterprise (SME) are recognized worldwide as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labor intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages. The case for fostering SME growth in Bangladesh is irrefutable as these industries offer bright prospects for creating large-scale employment and income earning opportunities at relatively low cost for the unemployed especially in the rural areas strengthening the efforts towards achieving high and sustained economic growth which are critically important prerequisites for triggering an exit from endemic poverty and socio-economic deprivation. These promotional arguments for the SMEs, while universally emphasized are often put forward by their ardent advocates in a small versus large context and thus arouse serious debates concerning their economic viability. Much of such controversies may, however breakdown if the intrinsic virtues specific to SMEs and unavailable to large-scale industries are correctly identified and carefully exploited. A combined interaction of the forces of product-mix, location factors, technological advantages and market advantages create opportunities for SMEs to grow and prosper at all levels of development which are often ignored...
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...Lecturer SB, IUB. Submitted by: Farzana Rubaya Id: 1230580 MGT (405) Sec: 01 Introduction : Small and medium-sized enterprises sometimes also called small and medium enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits. These are the most common businesses found across most of the world’s economies. The World Bank Review on Small Business Activities establishes the commitment of the World Bank Group to the development of the small and medium enterprise (SME) sector as a core element in its strategy to foster economic growth, employment and poverty alleviation. In the context of Bangladesh, the development of Small and Medium Enterprises (SMEs) can be considered as a vital instrument for poverty alleviation and ensure the rapid industrialization. So we can say that the role of Small and Medium Enterprises (SMEs) is indispensable for overall economic development of a country particularly for developing countries like Bangladesh. It has drawn a lot of interest among policy makers, academics, businessmen and people in general. Government of Bangladesh has highlighted the importance of SME in the Industrial Policy-2005. SMEs have been identified by the Ministry of Industries as a ‘thrust sector’. As the SME sector is labor intensive, it can create more employment opportunities. For this reason government of Bangladesh has recognized SME as a poverty alleviation tool. As a result they will enhance the standard...
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...Characteristics/Profiles of Bangladeshi Entrepreneurs Several studies were done in order to identify the characteristics or profiles of Bangladeshi entrepreneurs. Papanek (1969) observed psychological trait of risk taking among the people of the then East Pakistan(now Bangladesh). Farouk (1983) did a survey on Bangladeshi entrepreneurs and in this survey he focused on the biography of successful Bangladeshi entrepreneurs. He found that Bangladeshi entrepreneurs are generally hard working, honest, religious, trustworthy, reliable, and less educated and live simple lives. Most of the entrepreneurs in this survey had poor educational background and were not good students. Generally these entrepreneurs come from three groups: 1. Those families who have been in business or industry by tradition and their children Are now in business, 2. Retired government officers or politicians or their family members. 3. Those that began small but achieved considerable success by their personal efforts. Rahman (1989) found that Bangladeshi Entrepreneurs possess some characteristics that are similar to characteristics of entrepreneurs in other countries. He did an extensive survey on 5 living Bangladeshi entrepreneurs and found that they are hard workers, truthful, religious, simple living, honest, sincere, good leaders; task oriented and had capacity to influence others. The highest educational degree they achieved was the Bachelors degree. Most of them started their businesses...
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...Problems and prospects of our small industries Published : Saturday, 05 January 2013 Women working in a small industrial unit Md Atikur Rahman Every country wants to develop. We believe that industrial development can bring in faster development for any country. A well-conceived industrialization strategy, be it import substitution industrialization or oriented industrialization, can be useful in accumulating wealth. Many of the developing countries have achieved development through industrial development. Most developed countries are industrially developed countries. Europe and America's quick development came through industrial development. Japan, Korea, Taiwan, Hong Kong and Singapore became economically developed by having quick industrialization. In late 20th century some countries like Malaysia, Thailand, China, Indonesia and also Philippines developed by quick industrial development. So our government should concentrate more on industrial development in our country. On the other hand, many small industries play a pivotal role in the economic development of a country. Even countries like Japan and the USA that can boast of some of the largest industrial units in the world, had their rapid development and great prosperity thanks to their small industrial units. The most important single argument that can be advanced in their favour is their capacity to generate a large volume of the employment. In Bangladesh, capital is scarce, but cheap labour is abundantly...
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...Journal of Social and Development Sciences Vol. 1, No. 3, pp. 91-100, Apr 2011 Constraints of Manufacture based Small and Medium Enterprise (SME) Development in Bangladesh 1Business Feroz Ahmed1, *Md. Mizanur Rahman1, Monimul Haque2 Administration Discipline, Khulna University, Bangladesh 2Department of Finance and Banking, University of Rajshahi *mizanurku03@yahoo.com Abstract: Small and medium enterprises (henceforth, SMEs) play a key role in economic growth and industrial development of a country. They make vital contributions in improving economic and social sectors of a country through stimulating large scale employment, investment, development of indigenous skill and technology, promotion of entrepreneurship and innovativeness, enhancing exports, and also building an industrial base at different scales. SMEs worldwide have been benefited from the combined interactions of forces of product mix, location factors, and market advantages. However, evidences also suggest that there are cases of SME failures. Growth of SMEs is constrained by many factors. Many SMEs occasionally go on growing into large firms. This paper looks for identifying such constraints of manufacture based SME Development in Bangladesh. From the study, it has been identified that, lack of utility facilities, for example, electricity, gas and water, frequent changes of the prices of raw materials as well as shortage of raw materials, political unrest, high interest rate on borrowings, high transportation...
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...Submitted to Md. Shakhawat Hossain Lecturer, Department of Management Studies, Faculty of Business Administration and Management Submission date: 15/12/2011 Course code: MST326 Course title: Entrepreneurship development and Business Environment Submitted by GROUP: INNOVATION Level-3, Semester-II Session: 2008-2009 Faculty of Business Administration and Management Patuakhali Science and Technology University Dumki, Patuakhali-8602 Small Scale Industries of Bangladesh: A Case study of some small scale industries A report On ATTENDANCE SHEET Level: 3, Semester: II Course code: MST326 Course title: Entrepreneurship development and Business Environment Report title: Small Scale Industries of Bangladesh: A Case study of some small scale industries Roll. No. | Reg. No. | Name | Signature | 0803019 | 01881 | Dibakar Chandra Das(GL) | | 0803001 | 01862 | Farjana Khanom | | 0803003 | 01864 | Kazi Riasat Muntahi | | 0803011 | 01873 | Kamrun Nnahar Sila | | 0803018 | 01880 | Md.Nazmul Haque | | 0803021 | 01883 | Hasnain Ahamed Asif | | 0803023 | 01885 | Md. Ali Marjan | | 0803026 | 01893 | Md. Saidur Rahman Sajib | | 0803027 | 01894 | Atia Jahan Siddiqa | | 0803037 | 01906 | Tania akter | | 0803042 | 01912 | MD.Mahbub Alam | | | | | | Accepted by: …………………..………… EVALUATION SHEET Level: 3, Semester: II Course code: MST326 Course title: Entrepreneurship development...
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...the first time internationally, a means of empirically testing Nobel prize-winning ideas related to information asymmetry and capital rationing. The data provides a means of providing yet better guidance for public policy with respect to addressing potential capital market imperfections that might constrain growth and economic development of SMEs. As designed, the research initiative can and will provide valuable information about these issues. In summary, the baseline survey undertaken as part of the SME FDI is a potentially invaluable resource with respect to the design, targeting, implementation, and follow-up assessment of public policy approaches to nurturing SME growth and viability. The outcomes of this research process could help Industry Canada and its partners to provide Canadian SMEs with substantial competitive advantage through policy measures that are yet more precisely targeted, effective, and efficient. It is therefore essential that this valuable resource be used with appropriate and careful study. Analysis of these data may allow for the resolution of several long-standing contentious issues with which policy makers, researchers, lobby groups, and, indeed, SME owners have had to...
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...1.0 CHAPTER 1 1.1 Introduction In recent times, small and medium Enterprises (SMEs) have come into the forefront of development agenda due to the recognition of their contribution in fostering growth, sustaining global economic recovery, generating employment and reducing poverty (OECD, 2004). But this sector is facing severe problem in financing, regulatory aspects, access to non-financial inputs. Some recent trends show that Government policies have discriminated against small-scale enterprises. There is nothing wrong with a situation in which inexperienced entrepreneurs are unable to get institutional credit (Little, 1987). It shows that the relative decline of small-scale enterprises in most developing countries has been accelerated by the industrialization policies adopted in these countries. Protection, regulatory constraint, investment incentives, credit control, and the promotion of industry in the public sector have all discriminated against the small. The common idea that the cost of capital is very high for small enterprises is overly simple (Little, 1987). From A research of World Bank suggests the existence of financial constraint because formal banks do not lend to the smallest firms in most countries. It has also severe impact on the smallest firms (Levy, 1993). In Bangladesh, small and medium enterprises have been facing multifarious problems related to raw materials, power, land, marketing, transport, technical facilities and finance (Ranjit & Rashid...
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...Development, Problem, Prospects and Progress of Entrepreneurship development in Narayanganj Sadar Upazilla: A Short Case study Entrepreneurship - the process of starting a business; typically a startup company offering an innovative product, process or service is termed as entrepreneurship. The entrepreneur perceives an opportunity and often exhibits biases in taking the decision to exploit the opportunity. Entrepreneurship can be defined by describing what entrepreneurs do. For example: “Entrepreneurs use personal initiative, and engage in calculated risk-taking, to create new business ventures by raising resources to apply innovative new ideas solve problems, meet challenges, or satisfy the needs of a clearly defined market.” It refers to activities related to undertaking the efforts to set up an industry or business establishment. He who takes to establish business is the entrepreneur. Entrepreneurship is an entity of people with the ability to see an opportunity where necessary capital, labor & other inputs operating together & successfully along with know-how skill and have willingness to take the personal risk of success or failure. According to Jean Baptist Say, ‘Entrepreneur is an economic agent to unite all the means of production.’ An entrepreneur is an individual who takes moderate risks and brings innovation. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. According to...
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...4.1 Historical Background Bangladesh Small and Cottage Industries Corporation (BSCIC) is a public sector enterprise with autonomous character entrusted with entire task of promotion and development of small and cottage industries in Bangladesh. It is the successor organization to the former East Pakistan Small industries Corporation (EPSIC) which was established by an Act of the parliament in 1957. Main role has been to assist the promotion of small manufacturing enterprises by- (a) developing infra-structural facilities for industry, (b) providing technical assistance and counseling services, (c) financing industries in the private sector and (d) setting up industries for which private investors were reluctant. Under the direct or indirect initiative of BSCIC a plenty of entrepreneurs has been created and enterprises has been set up in the country. But the influence of globalization and the free economy impacts upon the traditional manufacturing enterprises. This situation for marketing of small and cottage industries products is a major constraints facing by the sector. BSCIC is to provide facilities to the existing and new entrepreneurs to expand and develop their markets and to stay and sustain in the competitive environment. The definition of small-scale industry has undergone a considerable change in Bangladesh from time to time under government industrial policies. During the period 1957-65, small scale industry in Bangladesh (the then East Pakistan) stood...
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...THE SMALL AND MEDIUM ENTERPRISES (SME) IN BANGLADESH: AN OVERVIEW OF THE CURRENT STATUS DR. MOMTAZ UDDIN AHMED VICE CHANCELLOR STATE UNIVERSITY OF BANGLADESH 1.0 The Case for the SMEs The SMEs1 worldwide are recognized as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labour intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages. The case for fostering SME growth in Bangladesh is irrefutable as these industries offer bright prospects for creating large-scale employment and income earning opportunities at relatively low cost for the un-and unemployed especially in the rural areas strengthening the efforts towards achieving high and sustained economic growth which are critically important prerequisites for triggering an exit from endemic poverty and socio-economic deprivation. These promotional arguments for the SMEs, while universally emphasized are often put forward by their ardent advocates in a small versus large context and thus arouse serious debates concerning their economic viability. Much of such controversies may, however breakdown if the intrinsic virtues specific to SMEs and unavailable to large-scale industries are correctly identified and carefully exploited. A combined interaction of the forces of product-mix, locational...
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...Financing in Bangladesh: Problems and Prospects SME Financing in Bangladesh: Problems and Prospects Prepared for Arafat Rahman Assistant Professor Institute of Business Administration Jahangirnagar University Prepared by Tanjila Sharmin 201301029 Md. Mourshed Uddin 201303006 Naim Ahmad 201403020 Sayeed Ishtiaque Ahmed 201403027 Md. Sazzad Hossain 201403034 Course Participant BUS 501: Managerial Communication (Section-02) WMBA Program Institute of Business Administration Jahangirnagar University December 20, 2014 Letter of authorization November 23, 2014 Course Participant BUS 501: Managerial Communication The purpose of this report is to familiarize you with the basic techniques and principles associated with writing a formal business report so that you can build and enhance this specific written communication skill. This formal report will be coordinated with a formal presentation session on the topic of the report. At a minimum, your report should include information related to the following issues: Introduction to the Industry/Sector/Area – What is the industry/sector/Area? What is the background of the industry/sector/Area in Bangladesh? Who are the major participants? You may show how the industry/sector/area is contributing to the economic development of the country. In this case, you must use industry-related data for the past three years (at least). In case of export-oriented industries, you must...
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...1. Introduction Bangladesh faces the challenge of achieving accelerated economic growth and alleviating the massive poverty that afflicts nearly two-fifths of its 135 million population. Strategies for meeting this challenge have included a shift away from state-bureaucratic controls and industrial autarky towards economic liberalization and integration with the global economy. These policy reforms were initiated in the mid-1980s against the backdrop of serious macroeconomic imbalances, caused in part by the declining level of foreign aid and in part by a preceding episode of severe deterioration in the country’s terms of trade. The policy reforms in the 1980s included the withdrawal of food and agricultural subsidies, privatization of state-owned enterprises, financial liberalization, and withdrawal of quantitative import restrictions. The beginning of the 1990s saw the launching of a more comprehensive reform program, which coincided with a transition to parliamentary democracy from a semi-autocratic rule. These later reforms were particularly aimed at moving towards an open economy – such as making the currency convertible on the current account, reducing import duties generally to much lower levels, and removing virtually all controls on the movements of foreign private capital. Besides, fiscal reforms were undertaken including the introduction of the value-added tax. During the 1990s, notable progress was made in economic performance. Along with maintaining economic...
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...SMALL and Medium enterprises (SMEs) have been playing a significant role for socio-economic development in all countries, particularly in the developing economies. In Asia, they play even a greater role as the sector constitutes about 98% of all enterprises, accounting for 30% of total employment and 30% of direct exports. However, SMEs face a plethora of challenges in terms of lack of access to information, technological disadvantages, lack of adequate finance and backdated marketing and managerial skills. Bangladesh, being one of the least developing countries and faced with several constraints, has not been able to meet the challenges in SME sector appropriately. This has deprived the country of the substantial benefits that could come from the SMEs through their contribution to overall development of the national economy. According to a study conducted by Canadian Integrated Development Association (CIDA), there are about 6.0 million SMEs in Bangladesh and among them only 27 thousand enterprises are ready to expand and export. SMEs contribute 50 per cent of total industrial output employing 82 per cent of industrial labour force. This statistics show that the productivity of labour is low as 82 per cent of workforce is producing only 50 per cent of output. Therefore, there is a high labour-capital ratio. Although Bangladesh is an overpopulated country with abundance of labour, a large portion of its total workforce still remains unskilled and semi-skilled. One of...
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...economic development Small and Medium Enterprises (SMEs) play a pivotal role in poverty alleviation and rapid industrialization of the developing countries like Bangladesh. In this paper we tried to appraise the Problems and Prospects of SMEs in Bangladesh. We observed from the research that non availability of adequate credit, complex loan granting procedure, inadequate infrastructure facilities, problems of collateral requirements, paucity of working capital, non availability of skilled work force, poor salary structure, lack of coordination among SME related organizations, lack of appropriate marketing strategies etc. are the major hindrances to the development of the SMEs in Bangladesh. In order to overcome the problems researchers have tried to provide some recommendations for the developments of SMEs in Bangladesh based on sound reasoning. Background of the Assignment Small and Medium Enterprises (SMEs) act as a vital player for the economic growth, poverty alleviation and rapid industrialization of the developing countries like Bangladesh. SMEs are significant in underlying country’s economic growth, employment generation and accelerated industrialization. Government of Bangladesh has highlighted the importance of SME in the Industrial Policy-2005. SMEs have been identified by the Ministry of Industries as a ‘Thrust sector’. As the SME sector is labor intensive, it can create more employment opportunities. For this reason government of Bangladesh has recognized SME...
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