Bangladesh small and cottage industries corporation

1. Welcome to our
presentation

2. This is Black Rose Group
Members are:-
Maria Islam Lipi 37
Naznin Akter Toma 203
Md. Royel Hossain 143
Shohel Rana 02
Borhan Uddin 52

3. Bangladesh Small
and Cottage
Industries
Corporation

4. Introduction
Bangladesh small and cottage industries corporation
(BSCIC) is the prime mover organization of the
development of small and cottage industries in
Bangladesh. It provides support service to small rural
and cottage industry in Bangladesh in the small and
cottage industries sector. BSCIC is to provide facilitates
to the existing and new entrepreneurs to expand and
develop their markets and to stay and sustain in the
competitive market. It was created through an Act of
parliament in 1957. The main role of BSCIC is to assist
the promotion of small manufacturing enterprises by
developing infra-structural facilities and providing
technical assistance.

5. Definition of Small and
Cottage industry
Small Industry:
 It means an industry in which the value cost of durable
resources other than land and factory buildings is in between
(05 to 15 million) taka and employment generation is not
more than 50 persons.
 A small scale industry is a project or firm created on a small
budget or for a small group of people. It produces its goods
using small machines, less power and hired lobor.

6. Cottage industry:
Cottage industry means family an industry in
which members are engaged part time or
full time in production and service
oriented activities.
According to Merriam Webster,
 An industry whose labour force consists of
family units or individuals working at home
with their own equipment.
 A small and often informally organized
industry.

7. Historical Background
Bangladesh small and cottage industries corporation is
a public sector enterprise with autonomous character.
It is the successor organization to the former east
Pakistan small industries corporation(EPSIC) which was
established by an act of the parliament in 1957. After
independence EPSIC was renamed as BSCIC by president
order no 156( 2nd amendment) in1972. In october1973,
the government by a gazette notification No. 28
bifurcated BSCIC into two separate corporations
namely: Bangladesh cottage Industries
corporation(BSIC) and Bangladesh small industries
corporation(BCIC).Later these two corporations were
unified in 1975.

8. Historical Background
continued....
After its birth in 1957, the then EPSIC started
functions with commercial activities like
import of plant and machineries, raw
materials and distribution of the same to the
private sector entrepreneurs. BSCIC’s
industrial estate programme has been
contributing to the process of industrialization
since 1960.Upto April 2009, a total number
of3352 industries has been established in 74
industrial estates in different districts. BSCIC
started implementing special programmes in
the Chittagong hill tracts region since1974.

9. Objectives of BSCIC
 Increase of industrial production and productivity in
the SCI sector.
 Creation of employment opportunities.
 Poverty alleviation
 Balanced regional growth
 Ensure optimum utilization of economic and human
resources.
 Accelerate overall economic growth of the country
through SCI.

10. Function of Bangladesh small and
cottage industries corporation
 Promotion and registration of small and cottage
industries.
 Conducting advisory and industrial promotion services
including training of entrepreneurs.
 Skill development for artisans and craftsman.
 Creation of jobs for SCIs
 Construction and development of industrial estates
with necessary infrastructural facilities for SCI.
 Development of linkages between SCIs and large and
medium sized industries.

11. Continued.......
There are other major functions of BSCIC
 Pre investment counselling
 Post investment extension services
 Technical information
 Marketing information
 Infrastructural facilities
 Skill development training
 Entrepreneurship development training
 Credit facilities

12. Current Status of BSCIC
Bangladesh small and cottage industries corporation
has developed a total of 74 industrial estates
throughout the country to foster the growth of SCIs in a
balanced manner and also construction for a number of
estates including special type like Tannery, API(active
pharmaceutical ingredients)and garments park are
under execution.

13. Some types of cottage industries in
Bangladesh:
1.Pottery
2. Bamboo
and cane
industries
3. Jute
goods
4. Textile
and Weaving
factories
5.
Embroidered
Quilts
6. Cool Mat
7. Ornaments

14. Pottery
 Pottery is a family and community based collective work localized on the
basis of availability of row materials
 According to a survey conducted by BSCIC, There were 666 pottery villages in
Bangladesh, where about 76 thousand people belong to 18 thousand families
had to earn their livelihood from this traditional occupation.
 The total capital investment in the sector was 106 million taka and goods
worth 367.4 million taka was produced during 90s period.. Most of the
artisans engaged in this industry hereditarily and most of them belonged to
the Hindu community.

15. The people related to pottery ,known as kumbhokar (potter or clay-
modelle).
Major works:
They make dolls, statues of gods and goddess,household goods, sculpture,
tally, flower vases, pots for offering worship, fancy kitchen pots made of
clay.
Pottery localities in BD
Bijaypur of Comilla, Madanpura of Patuakhali, Champaknagar of Feni,
Kartikpur of Shariatpur and Royerbazar in Dhaka are the most remarkable
and leading pottery localities.

18. Bamboo and cane industries:
The survey of BSCIC (1985) suggested that 122 thousand
artisans were engaged in the country's 42 thousand
bamboo and cane crafts making units. At that time raw
materials worth 224 million taka were used per year to
produce items worth 500 million taka.
Major Products:
Major items of this category are cane products, partition,
mat, fishing trap, hand fan, sofa set, table-mat, wall-
mat, tray, flower vase, ash tray etc.
Localities:
They are mainly produced in Comilla, Sylhet,Chittagong
and Noakhali.

21. Jute goods:
Sika, a netted product of twisted jute ropes of
various indigenous designs and motifs, table mat,
shataranji and carpet, fancy handbag and bag of
jute are produced in four thousand cottage
industries by about eleven thousand craftsmen.
Items worth 30.4 million taka were produced per
year with the annual investment of 20 million
taka.
Major Products:
Table mat, shataranji and carpet, fancy handbag
and bag

23. Textile and Weaving factories:
In 1978, about one million weavers, artisans and workers were
engaged in 437 thousand handlooms and pure looms of 198 thousand
weaving and textile factories of Bangladesh.
Major Products
Clothing like sharee, lungi, dhuti, muslin, jamdani, katan, malmal
and traditional handloom products of different tribes, gamcha,
mosquito nets and towels. Traditional cloths of tribal weavers,
muslin, jamdani, malmal taroyo sharee, sharees of Pabna and Tangail
origin, Silk and Khadi lengths.
Localities
Narshingdi, Roypura, Demra, Tangail, Shahjadpur, Bera, Kumarkhali,
Magura, Rajshahi, Khadimnagar, Mirgarh and Nasirnagar are very
famous places of origin of these products.

25. Embroidered Quilts
 The most famous stitch work of Bangladesh is embroidered
quilts, known as Nakshi-Kantha.
 Thirteen different types of high quality Nakshi-Kantha are
stitched everywhere in Bangladesh, but those of Rajshahi,
Nawabganj, Rangpur, Faridpur and Kushtia are very special
in terms of traditional and exclusive design.

26. Cool Mat
A special type of mat made by bark of a tree named morta.
The mat, very soothing and cool to lie upon. About 15
thousand artisans produce cool mats of 50 million taka
per year
Localities:
Rajnagar, Balagonj, Baralekha and Mollarbazar area of
Sylhet, Sonagazi and Raipur of Noakhali, Swarupkathi and
Neelgati of Barisal and Shatech of Faridpur.

28. Ornaments
Ornament-making is one of the most fine and remarkable
cottage based artisanship belonging to the mainstream
anthropological art of Bangladesh.
According to BSCIC, there are 12,250 ornament-making
units and 27 thousand professional goldsmiths in
Bangladesh.
Localities:
Dhaka, Chittagong, Comilla, Sylhet and Faridpur region.

29. Brass and bell-metal
Cottage industries producing brass and bell-metal
utensils are very much involved with the culture and
tradition of Bangladesh. There are 390 brass and
bell-metal production units and about two thousand
highly skilled brass and bell craftsmen are in
Bangladesh. They make brass and bell-metal goods
of 333.7 million taka per year.
Localities:
Dhamrai and Savar of Dhaka, Nawabgonj, Islampur
of Jamalpur, Rangpur, Tangail and Shariatpur.

31. Some small scale industries
in Bangladesh:
1.Food
Processing
Company
2. Rice
Farming
3. Textile and
Garment
Manufacturing
4.Open a Micro
– Finance Bank
5. Fruits
Plantation
6. Seafood
and Fish
Business
7. Freight
Forwarding
Business

32. Importances of Cottage and Small
Scale Industries
There is a shortage of capital and technical skill in
subcontinental. It is not possible to establish the heavy industries.
While it is very easy to increase the number of small scale
industries.
Following are the main advantages of small scale industry in
subcontinental :
1.Increase in Industrial Products
There is a shortage of manufactured goods in our area. We spend
a lot of foreign exchange on the import of these goods every year.
So we should increase the small scale and cottage industry to
remove the shortage of these goods.

33. 2. Increase in Employment
The rate of unemployment is increasing day by day. To
control unemployment it is necessary that we should
increase the small scale industries because these are
labour intensive. Our farmer can also easily work in
small scale scale industry. It is not possible to provide
Govt. jobs to all the unemployed people. It may also
increase the self employment.
3. Increase in Foreign Exchange Earnings
The various kinds of goods like carpets and sports
sold in the international market. We earn a lot
of foreign exchange by exporting these goods.

34. 4. Use of Industrial waste :-
The waste of large scale industries like cotton and steel
can be used by the small scale industry. In this way we
can save a lot of capital.
5. Provides Employment to Women :-
Our women is engaged in the cottage and small scale
industry and increasing the production. Because in our
society women can not work with other men in the
factories. We should increase the number of cottage
industries to make the female sector a real asset of the
nation.

35. 6. Increase in The Income :-
Increase in the production of goods on small scale increase the income of the
people. The rise in income improves the standard of living. In rural areas
there is great need of small scale industry.
7. Cheaper Production :-
The small scale industry is labour intensive while labour is cheap in
subcontinental, so the production of small scale industry is cheaper. Due to
low prices people purchase more goods and market expands.
8. Proper Distribution of Wealth :-
The small scale industry increases the income of the people and reduces the
gap between rich and poor. We can reduce the poverty by expanding the small
scale industry.

36. 9. Establishment With Small Capital :-
We can establish these industries with
small capital. In subcontinental most of
the people are poor, so they can start the
production with small capital.
10. Development of Backward Areas :-
We can develop backward areas by establishing
the small scale industry in these areas. It will
remove poverty from backward areas.

37. 11. Reduction of Population Pressure :-
The development of small scale industry reduces
the pressure of population on land and increases the
income of the people.
12. Reduction in Migration :-
The unemployed labour force is migrating to the
other countries. If we expand the small scale
industry, it can serve the nation instead of serving
the other countries.

38. Women Entrepreneurs in Bangladesh
Rural women are involved in cattle and poultry rearing, rice husking,
spice making, imitation ornament trading, pickle making and other micro
businesses. Urban women are mostly involved in block printing and
boutiques, bakery and fast food, doll making, tailoring, fabrics paint,
interior decoration, etc. Women entrepreneurs prefer to start their
business in sectors where female employment is concentrated. The choice
of the sector is limited by various factors such as resource constraint,
female aversion to risk-taking, etc.,

39. which forces them to engage in activitieswith low entry
barriers and low financial risks such as food processing and
or clothing and textilesector. Hence female businesses have
smaller employment and sales than male business. Majority
are micro and small enterprises, employing less than 10
persons. Most of them are soleproprietors. Participation of
women as entrepreneurs has also improved their quality of
life andtheir households. They serve as a role model for
young generation for self-employmentopportunities.

40. The Role of Bangladesh Small
and Cottage Industries
Corporation(BSCIC) in
poverty Reduction in
Bangladesh

41.  A total of 91 workers are surveyed who work in BSCIC estates and Non-BSCIC
manufacturing firms in the south west region of Bangladesh. BSCIC significantly
influences household consumption and poverty reduction.
 1 percent increase in income from BSCIC will increase the yearly household
consumption by 0.73 percent ,whereas it is only 0.36 percent in case of Non-BSCIC
income.
 The impact of income increase on consumption is more than double for the BSCIC
group household in comparison with Non BSCIC group household.

42. The Role of Bangladesh
Small and Cottage
Industries Corporation
In Women
Entrepreneurship
Development Program.

43. Women are regarded as unpaid family workers,
They seldom get a share of the income or
involved in matters of family decision making
.The main constraint related to the development
of entrepreneurship:
 1.Illiteracy
 2.Lack of technical skill
 3.Social and cultural inhabitants
 4.inadequate and ineffective training facilities

44.  In order to improve this position of women in Bangladesh
,particularly the rural women ,Bangladesh small and cottage
industries corporation proposed a project called “women
entrepreneurship development program (WEDP). Which got its
approval in second five year plan (1980-85) to be implemented
in collaboration with the USAID.
 The WEDP project concept is basically linked with poverty
alleviation of rural disadvantaged group of women.

45. Barriers of
Small and
Cottage
Industry

46. 1.Economic
2.Environmental
3.Cultural
4.Political
5.Lack of Skill labor
6.Lack of Proper Management

47. Economic Barriers
Lack of capital
Lack of raw materials
Lack of Loan facility
Lack of Insurance security
Lack of proper banking service
Lack of proper use of capital

48. Cultural Barriers
Bangladesh is a cultural based country
. It’s small and cottage industry
depend on cultural so we see that Tat
Shilpo is taken place in Tangail ,
Cane industry is taken place in
Comilla , Mrit Shilpo is taken place
in Jessore etc . For this reason we do
not see the same small and cottage
industry in Bangladesh.

50. Political Barriers
 Political instability of our country is another
reason for developing the small scale
enterprises rate slow. Political environment of
our country is not suitable enough to run the
efficient business in our society.
 Public moral is getting down means most of
our people are loosing their moral and for this
reason developing small scale enterprises in
Bangladesh is not so easy lik the other
country of the world.

51. Lack of skill labor
 Decisions are taken at one point
 Little or no delegation of authority
 Verbal communication
 Independently run/managed
 All risks borne by the owner
 Extension of the entrepreneurs’
personality
 No separate entity

52. Lack of proper
management
 Mostly owner financed and limited
borrowed funds with no excess to the
share market [no public issue
 No scope for specialist service
 Little emphasis on long term planning
 Close labor –owner/management
relations.
 No or limited innovative production
/marketing

53.  Business is housed in small establishments
 Rational cost control possible
 Maximum possible safety of business secret
 Local market and limited non-local market
 Size of investment is relatively smaller
 Volume of sales relatively smaller [limited market share]
 Unable to adopt modern technology
 Mostly handicraft with no use of electricity
 Requirement of minimum legal formalities

54. Removing the
Barriers of Small
and Cottage
Industry in
Bangladesh

55.  Government should take the necessary initiatives to develop this
sector.
 Government should have a clear policy about the small scale
enterprises in Bangladesh.
 Loan and this short of facility should be make available.
 Control the inflow of importing such product which have the
opportunities to produce in Bangladesh.
 Adopt extra tariff on importing the product which are producing in
our country.
 Make the political situation stable as much as possible.

56.  Make the economic situation stable.
 Provide both social and economic securities to the people.
 Improve the human resources.
 Making more entrepreneurs through proper training and loan facilities.
 Make the people interested to start their own or family business.
 Provide possible support to the small scale enterprises in Bangladesh.
 Combine the smaller enterprises into one through the cooperatives and so on.
 Developing small scale enterprises in Bangladesh through a proper long term
planning.
 Make arrange to export home made product or domestic product into foreign
countries

57. Problems of cottage and small
scale industries:
Lack of Finance :-
The cottage and small scale industry is facing the problem of
capital shortage. The financial institutions are not ready to
provide the credit on low rate of interest. It is an obstacle in the
ways of small scale industry development.
Competition :-
There is a stiff competition between the large scale industry and
small scale industry and usually small scale industry suffers a
loss.

58. Import Policy :-
The import [policy of the government is also not favorable for
the small scale industry. It discourages the small scale industry.
Smuggling :-
Smuggling of large scale consumer goods from Russia, Iran and
Singapore has also discouraged the small scale industry.

59. Problem of Raw Material :-
The owner of the small scale industry can not get enough raw
material what he wants. Poor quality of raw material is provided
on higher prices to the small industry.
Old Methods of Production :-
Small industries use old machines and old methods of
production. Due to this the quality of small scale industries
product is very poor. So they are helpless to sell the product at
low rate.

60. Lack of Marketing Facility :-
The marketing facilities are inadequate in the country. The small
and cottage industries are selling their product at the low prices
in the hands of middleman. Even they can not advertise their
product on T.V because they have not sufficient capital for this
purpose.
Lack of Qualified Staff :-
The cottage industries can not employ the qualified engineers
and economists. It reduces the quality of product.

61. Shortage of Electricity :-
There are a large number of villages where electricity is no
available. The non availability of electricity is an obstacle in the
way of small scale industries.
Breakdown of Electricity :-
The regular break down of electricity has also affected the
production of small scale industry adversely. Prices of
electricity are also rising day by day. Higher prices has
increased the cost of production.

62. The role of state in
solving the problems of
cottage and small scale
industry:

63. Any government can take advantages by their
cottage and small scale industries if they take
some important steps for this industry. We
discuss the important measures to solve the
problems of cottage and small scale industries
under these headings :

64. Credit Facilities :-
The government should provide the credit to small and
cottage industries at lower rate of interest. Further
commercial banks are also providing loan to develops
the industries.
Industrial Estates :-
The government has set up the number of industrial
estates in the different cities. These areas have been
provided various facilities like, roads, banking, and
transport facilities to encourage the small scale
industries.

65. Testing Laboratories :-
The government has established the testing
laboratories to maintain the prescribed standard of
cottage industries product.
Supply of Designs :-
The government also provides the new models and
designed to producers to improve the qualify of
cottage industry.
Publicity :-
The government has set up the display centers and
show room,s inside and outside the country to increase
the sale of cottage industry product.

66. Facility of Raw Material :-
The government imports the raw material for the cottage
industries from abroad and provides them at lower price to
encourage them.
Purchase of Cottage Industry Product :-
The government also purchases finished products from them
and sells it at show room. Govt display centers in side and out
side the country are creating the demand.
Protection Against Foreign Competitions :-
The government has also provided protection to home industry
by imposing heavy duties on the imports. Still there is a need
of further protection. Smuggling should be also controlled.

67. Establishment of Training Institutions :-
The government has set up various institutions like
industrial, vocational, commercial and polytechnic
institutions to provide the qualified workers to the
cottage and small scale industries.
Carpet Centers :-
For the training of weavers the small corporation
have set up carpet training development centers.
These are working very usefully.

68. Handicraft Centers :-
Handicrafts development centers have
been set up to promote the handicrafts.
Advisory Services :-
The small scale industries advisory
services has been set up in each province
to provide guidance to the new comers in
small scale industry.

69. References:
1.Marketing Strategies of Small and Medium Scale Industry
By Dr. Gajendra Sing
2.Profitable Small ,Cottage and Home Industries
By Niir Board
3.Rural Entrepreneurship and small- scale and cottage
industries in Bangladesh.
By Emiko Kobayashi, 1989.
4. Bangladesh Small and Cottage industries Corporation
5.Ministry of Industry.bd