Policy Research Institute - PRI Bangladesh

The Policy Research Institute of Bangladesh (PRI) is a private, nonprofit, nonpartisan research organization dedicated to promoting a greater understanding of the Bangladesh economy, its key policy challenges, domestically, and in a rapidly integrating global marketplace.

Experts for unified definition of SME with main focus on jobs

News Published: Monday, Nov 12, 2012

Experts for unified definition of SME with main focus on jobs

Published : Monday, 12 November 2012

FE Report

A unified definition of the small and medium enterprise (SME) sector, based

entirely on employment that is consistent with International Labour Organisation (ILO) practice in convergence with that of the Bangladesh Bureau of Statistics (BBS) since 2001, should be adopted for facilitating proper growth of the units in the sector.

This point was highlighted in a concept paper presented Sunday at a 'dissemination'

workshop, organised in Dhaka jointly by SME Foundation (SMEF) and Policy Research Institute (PRI), Bangladesh.

Presenting the paper following a six-month long thorough study on the sector at the workshop, Dr. Zaidi Sattar, Chairman of Policy Research Institute (PRI), said: "While defining the SMEs afresh to fit with the modern world, employment should be at the center, and then asset can be a supplementary base."

Industries Minister Dilip Barua spoke as the chief guest at the event -- the dissemination workshop on "The Current State and Future Direction for Small and Medium Enterprises in Manufacturing Sector in Bangladesh". SMEF Managing Director (In-Charge) ABM Khorshed Alam was the special guest at the workshop.

The PRI's concept proper suggested that the Ministry of Industries should re-evaluate or review the definition it proposed for the SMEs under the National Industrial Policy Order 2010. This will make the existing data on the sector from 2001-03 in Economic Census and the 2006 Survey of Manufacturing Industries redundant, it noted.

In his address to the workshop, Industries Minister Dilip Barua said the government wants to increase the contribution of the SME's to the country's gross domestic product (GDP) from 25 per cent to 40 per cent.

"The SMEF and the Ministry of Industries have taken several steps to help attain the target of raising the share of the SMEs to the GDP to 40 per cent. Such measures includes measures to help improve the quality of SME goods, assistance to obtain various international certifications, patronage to upgrade their technology etc.," he said.

Much of the government's development initiative, the minister noted, is not well-planned and well-organized due to lack of proper and effective survey and research, before undertaking projects.

"If we would have taken development steps following proper studies and surveys, it would have been possible to change the entire scenario of Bangladesh," he said.