Prospects and Future of SMEs in Bangladesh

Abstract

Small and Medium Enterprises (SMEs) are recognized globally as key drivers of economic growth, employment, and innovation. In Bangladesh, SMEs are playing a transformative role in shaping the national economy by accelerating industrialization, creating employment, and contributing significantly to GDP and export earnings. SMEs account for approximately 45% of manufacturing value addition, 80% of industrial employment, and 90% of total industrial units, with a substantial portion of these enterprises located outside the major metropolitan centers. This report explores the current status, economic contributions, and regional distribution of SMEs in Bangladesh. It also examines the Industrial Policy 2019, which emphasizes enhancing domestic production, reducing import dependency, and fostering sustainable industrialization through coordinated efforts between the public and private sectors. The development of SMEs is presented as a central pillar for achieving long-term industrial growth and economic resilience in the country.