Challenges to Internationalize Bangladeshi SMEs

Abstract

The Small and Medium Enterprises (SMEs) are considered as the engine of growth of Bangladesh economy. SMEs are generally labor intensive industries, generates employment with minimum capital investment. Therefore they are getting priority for employment generation and poverty alleviation in the least developed world. Governments are enacting SME friendly laws and policies to foster local SMEs. They are also establishing specialized institution for the promotion and development of SMEs in respective countries. Various international agencies as well as development partners are inspiring entrepreneurship development and small business promotion for employment generation, economic growth and poverty alleviation. SMEs used to grow faster local market but their entrance to international market is happing rarely. Analyzing causes of SME’s poor performance in international market is the main focus of this paper. We would like to know the challenges for the internationalization of Bangladeshi SMEs and recommend few initiatives to undertake by different stakeholders including the government for facilitating internationalization of SMEs.