Creative SME ideas not working for lack of leadership, training

Highlights:

• Experts said creative ideas in the SME sector have not been working due to a lack of
• leadership qualities in the entrepreneurs,
• trained manpower,
• connectivity
• weaknesses in the education curriculum,
• deficiency in the flow of information
• ADB consultant and incubation center expert Hulya Tetik presented a draft strategy on setting up and managing business incubation centers on Saturday.
• She proposed setting up a "National Coordination Committee" headed by the SME Foundation to manage and operate business incubation centers nationwide
• He said representatives from various ministries, agencies and universities would work under the committee.
• The committee would serve as a national platform to maximize effectiveness of business incubation centers in developing entrepreneurs and increasing employment.
• The National Coordinating Committee will work to
• facilitate funding for new entrepreneurs, ensure tax benefits, taxation,
• provide cash assistance
• recognise successful entrepreneurs

While there is potential for new businesses in the small and medium enterprise (SME) sector in Bangladesh, there is a lack of proper planning. Although there are necessary resources, there is also a deficiency in the flow of information.

Creative ideas in this sector are not working for a lack of leadership qualities in the entrepreneurs and trained manpower, poor connectivity, and weaknesses in the education curriculum, said experts at an event on Saturday.

Frustration over the country's SME sector was expressed during the ceremony, organised by the Small and Medium Enterprises (SME) Foundation to publish a draft strategy on setting up and managing business incubation centers.

They said new entrepreneurs face difficulties in preparing the proper paperwork due to a lack of information.  They need various technical support, including use of office. The incubation centers have a role to play in solving these issues, said the experts.

The strategy on business incubation centers is being formulated for the creation and development of new entrepreneurs under the "Second Small and Medium Sized Enterprise Development Project (SMEDP-2)." The SME Foundation and the Bangladesh Bank are implementing the SMEDP-2 project with funding from the Asian Development Bank (ADB).

ADB consultant and incubation center expert Hulya Tetik presented the draft strategy at the online event. 

She proposed setting up a "National Coordination Committee" headed by the SME Foundation to manage and operate business incubation centers across the country.

She said representatives from the Ministry of Industries, Ministry of Finance, Ministry of Posts, Telecommunications & Information Technology, Bangladesh Small and Cottage Industries Corporation, National Association of Small and Cottage Industries of Bangladesh, Export Promotion Bureau, Bangladesh Industrial Technical Assistance Center, and various universities would work under the committee.

Hulya Tetik further said the committee would serve as a national platform to maximize the effectiveness of business incubation centers in developing entrepreneurs and increasing employment.

The National Coordinating Committee will work to facilitate funding for new entrepreneurs, ensure tax benefits, taxation, provide cash assistance and recognise successful entrepreneurs.

State Minister for Industries Kamal Ahmed Majumder, the chief guest at the event, said the SME sector has been playing an important role in implementing the government's election pledges. Further expansion of the contribution of cottage, small and medium enterprise sectors is critical to strengthening the economy.

SME Foundation Managing Director Md Mofizur Rahman moderated the event, which was presided over by the foundation's Chairperson Prof Md Masudur Rahman.

Masudur Rahman said the SME Foundation will provide all manner of support to entrepreneurs for the implementation of the SME Policy 2019. 

He also mentioned that the SME Foundation is working as a center of excellence for the development of the SME sector in Bangladesh.

Speaking as the special guest, Additional Secretary of Financial Institutions Division, Arijit Chowdhury said the SME Foundation and the Bangladesh Bank are successfully implementing two phases of the Small and Medium Sized Enterprise Development Project, funded by the ADB.

He also said the implementation of the project has been closely overseen by the Financial Institutions Department.

Advising the relevant officials to increase the use of information technology in industrialisation, he said it would not have been possible to conduct support activities to protect the economy from the Covid-19 crisis without proper use of information technology.

Md Mofizur Rahman said the SME Foundation is set to launch two business incubation centers in Dhaka and Chattogram to create new entrepreneurs and increase employment. There are similar plans to set up such centers across the country in phases.

The business incubation center in Dhaka will be run under the management of the SME Foundation, while the centre in Chattogram will be operated under management of the Chattogram Women Chamber of Commerce and Industry. The SMEDP-2 project will provide technical assistance to both centres.

Entrepreneurs will get advice and assistance from these incubation centers in preparing the paperwork necessary to start a business, as well as in providing office space and technical support.