Table of ContentsSummaryIntroductionLiterature ReviewPolicies and Strategies of SMEs in BangladeshData Analysis and FindingsConclusionSummarySmall and Medium Enterprises (SMEs) are playing an increasingly important role as drivers of economic growth in many countries, including Bangladesh. SMEs provide low-cost employment opportunities and bring flexibility to the economy. Small and medium-sized enterprises (SMEs) play an indispensable role in overall economic development. Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the Original EssaySince this sector requires a lot of labor in a short period of time, it is capable of increasing national income as well as quickly generating jobs; achieve the Millennium Development Goals (MDGs), particularly the eradication of extreme poverty and hunger, gender equality and the empowerment of women. The SME sector has played a vital role in the economic development of some prosperous countries in Asia, in the national economy of Bangladesh. SMEs play a vital role in creating industrial enterprises, providing employment to industrial workers and contributing to more than a third of industrial value. added to the gross domestic product (GDP) and quickly adapt to changing market situations, generate employment, contribute to the diversification of economic activities and also make a significant contribution to exports and trade. The economic efficiency and overall performance of SMEs depend to a large extent on the political environment and the specific promotion policies pursued in their favor. Therefore, policies and initiatives to develop SMEs and increase their competitiveness are a priority for Bangladesh.IntroductionSmall and medium enterprises (SMEs) play an increasingly important role as drivers of economic growth in many many countries. The structural arrangements of industries in Bangladesh include specialized textile industries, hand welding, food processing and food bonding industries, leather, ceramics, light engineering including automobile, metallurgy basic, small scale chemical engineering, rubber industries, paper printing and publishing, small scale manufacturing, batteries, electricity, electronics, handicrafts, food processing industries, multilateral jute products , silk industries, fruit processing, poultry farming, fishing, tea cultivation and processing, vegetable seed cultivation and printing industries, construction industries, transportation (including automobile), cinema and photography, pathological laboratories, cold storage, furniture, fast food, frozen food, etc., in service industries, and many other sectors are included in SMEs. But there are 11 sectors for strengthening SMEs in Industrial Policy 2005 which are electronics and electrical, software development, light engineering and metallurgy, food processing/agro-industry/agriculture specializing in plantation agriculture/tissue culture and allied activities, leather manufacturing and leather goods, knitwear and ready-made garments, plastics and other synthetic products, healthcare and diagnostics, pharmaceuticals/ cosmetics/toiletries and personal effects, clothing and fashion-rich consumer goods. When it comes to Bangladesh's SME sector, expertsforeigners and nationals have undertaken certain studies. The Small and Medium Enterprise Foundation, IFC, Dhaka, Bangladesh, states that the problem in question is the transition from micro to small and medium enterprises. Literature Review Methodology: The study is mainly based on secondary data. The data was collected from different published documents such as publications of Bangladesh Bank, Ministry of Industries, different SME policies of South Asian countries and relevant writings of some researchers. To conduct our research, we conducted both exploratory and descriptive research. We conducted exploratory research because we need to obtain information to conduct our research. We also conducted descriptive research to analyze the policies and recommend some suggestions for the improvement of SMEs in Bangladesh. 2 Population size: all South Asian countries. Non-manufacturing activities (such as trade or other services): Non-manufacturing activities can be divided into two categories; Small business: A business must be considered small if it has fewer than 25 workers. , in full-time equivalents. Medium-sized company: A company must be considered medium-sized if it has between 25 and 50 employees. (Source: Saha Summon, 2012 “A Comprehensive Study on SMEs of Bangladesh: Constraints and Prospects”) SME Policies and Strategies in South Asian Countries: SMEs are the backbone of South Asian economies and have become an engine of growth, to increase production. , exports and employment, and therefore income generation. These countries implement their SME development strategy, generally in the following six key areas: Business environment; Entrepreneurship; Access to financing; Innovation and technology; Business development strategy and market access strategy. such as Chambers of Commerce and Industry, for capacity building of SMEs. Policies and Strategies of SMEs in Bangladesh A policy is a set of principles or rules guiding decisions intended to achieve rational outcomes. Thus, any government policy must be respected by all government ministries and agencies. Otherwise, the rational result may not be achieved. The government adopted a separate policy for small and medium enterprises (SMEs) in 2005. The government's policy towards SMEs has been detailed in this policy document titled "Policy Strategies for the Development of Small and Medium Enterprises (SMEs) ). 2005. Policy strategies for SMEs-2005 identified 11 sectors to be promoted. These place particular emphasis on the development of small and medium-sized enterprises (SMEs) as a driving sector for balanced and sustainable industrial development in the country, with the vision of meeting the challenges of the market economy and globalization through donor financial resources made available specifically to help. Implementation of the SME policy set out here would only be allocated to competitively selected businesses within the supporting sectors prescribed here. Of the total resources available, a maximum of 20% can be reserved for medium-sized businesses, while the remaining 80% will be reserved for small businesses. The Ministry of Industry and the SME Advisory Committee/Foundation, as the case may be, will determine the modalities for the implementation of the credit fund and the venture capital fund. Within the framework of the advisory committee, the projects financed by the venture capital fund will be evaluated by a team of experts which will be formed in theframework for the implementation of policy in favor of SMEs. The SME Development Policy Strategy 2005 has contributed greatly to the development of SMEs in Bangladesh. The contribution of the industrial sector to GDP (gross domestic product) increased from 15.76 per cent in 2001-02 to 19.01 per cent in 2011-12. The salient elements of the policy are: The general objectives of the policy should be as follows: · Accept SMEs as an indispensable player in accelerating growth and reducing poverty, worthy of its great potential and commitment in the formulation and execution of the required overall policy; SME policy strategies must be integrated, in a broad and integrated manner; Encourage and incentivize the development of the private sector and promote the growth of FDI, develop a code of ethics and establish good governance, ICT-based knowledge management and customer supremacy in the markets; Identify and establish an appropriate physical and ICT infrastructure network and institutional delivery mechanism that facilitates the promotion of SMEs; Reorient the existing tax and regulatory framework and government support institutions towards facilitating the achievement of SME policy objectives; Nurturing and involving civil society. establishment(s) having credible management teams in terms of provision of necessary services, leadership, induction, counseling, mentoring and tutoring; etc ; Create innovative but meritocratic arrangements so that deserving small businesses with desired entrepreneurial track records and/or promise can be offered financial incentives within prescribed sectors on well-agreed bases; Help implement dispute resolution procedures that proactively protect small businesses, particularly from harsh legal requirements. costs and insidious harassment, if any; Take steps to create ways to raise debt without corresponding collateral (either using debt guarantee schemes or transforming intellectual property capital into pseudo-venture capital) to help small businesses make facing their ever-present problems. lack of access to financing; Systematically prioritize small businesses over medium-sized businesses, within government resources. Leverage information and communications technologies, Internet Protocol (IP)-based infrastructure and e-governance to maximize regulatory services, all types of useful information and mentoring inputs, focusing on increasing the viability of SMEs in all sectors of the economy.Data Analysis and ResultsThe contribution of SMEs to the total economy varies from country to country. SMEs in Bangladesh contribute 20-25% to the total GDP, while in India, 80% of the GDP comes from SMEs. In Pakistan, only 15% of GDP comes from SMEs. 80% of the total businesses in Bangladesh are SMEs. 97. 60% of the total enterprises are SMEs, whereas in Pakistan, SMEs constitute only 60% of the total enterprises. Workforce employed in SMEs: Bangladesh employs 40% of its workforce in SMEs. Pakistan employs 80% of its workforce in SMEs. In India, it’s 40%. Credit Limit: In Bangladesh, priority is given to small entrepreneurs like SMEs. For small entrepreneurs, the credit limit will be between Tk. 500,000 to Tk. 5,000,000. In India, bank loans are up to Rs. 5,000,000. 5 crores per borrower/unit is provided to SMEs. In Bhutan, only 48 entrepreneurs (less than 20% of the 258 graduates of the full course.