The main Barriers / Constraints to the
promotion of the SME Sector in Bangladesh are:
Lack of capital support: A majority
of our small and medium industry entrepreneurs belong to the lower class or
lower middle class. They are hard workers, innovators, and-challenge-takers,
but cannot get funding from commercial banks due to their inability to provide
collaterals.
Absence of policy for transfer of modern technology: The sector is suffering from lack of technological support for
upgrading the product quality.
Unavailability of appropriate infrastructure facilities: An Infrastructure facility as water, electricity and gas hampers
industrial activities.
Lack of marketing opportunities: SME
sector includes a wide range of small and medium industries, but they do not have
marketing knowledge and capability to promote their products.
definitions
of SMEs. Government may take necessary initiatives to make it uniform.
Lack of exposure to international markets: Our SME sector is producing handicrafts and decorative and household
items having high demand in the developed market, but having the demand women
entrepreneurs are unable to attend international markets due lack of exposure
and promotion.
Law and order situation: The members
of the business community, especially those involved in the SME sector, suffer
because of the law and order situation
Illegal imports and non-tariff barriers: Both illegal import and non-tariff barriers are threats to our SME
sector. If banned products are smuggled into the country domestic production
will be harmed. Our SME products are facing many non-tariff barriers in
different markets.
Lack of adequate investments:
High rate of interest on bank loans:
Inadequate availability of raw materials:
Fierce competition:
Lack of
skilled technicians and workers:
Lack of research
and development facilities: