Key Challenges and Barriers Facing Small and Medium Enterprises (SMEs) in Bangladesh

Abstract

In Bangladesh, SMEs play a dominant role in the national economy as well as contributing to gross domestic product [2, 3]. The government has already taken some initiatives to support SMEs such as establishing SME foundation, dealing with SME sectors’ problems and facilitating and promoting SME development. However, there are many factors that SME foundations are unable to perform due to inadequate resources and policies. Therefore, this brief paper is aiming to highlight these factors at the present time facing SMEs in the country. The paper is mainly dependent on a secondary research through screening key publications in the literature to determine those factors. The paper has included a general overview of these factors including insufficiency of resources and information, employee turnover and low levels of productivity, poor physical infrastructure and utility support, interest rates and bank loans, availability of appropriate technology, skilled manpower, lack of government support, and external changes. This brief paper opens key considerations for researchers in the field to further explore these factors and to enhance further understanding, and provide key solutions to overcome these challenges to be considered by SMEs, entrepreneurs, and policy developers in the country.