Discussion on Policy

1. SME Policy 2019
Md Salim Ullah
Senior Assistant Secretary
Ministry of Industries

2. Session Objectives
 In this session we will discuss about
– A brief overview of SME Policy 2019
– Vision, Mission, Goal, Policy Objectives
– Prominent Strategies to achieve Goals
– Implementation Strategies
– Monitoring and Evaluation mechanism of
the Policy
– Time Bound Action Plan
– Conclusion

3. Dream Trajectory of Bangladesh
VISION
2021
SDGs
2030
2041
DEVELOPED
COUNTRY
2071
100 YEARS of
INDEPENDENCE
2100
DELTA PLAN
Middle
Income
Country
Development
Junction
Prosperous
Nation
Resilient Delta
DEPENDS on our ability to
translate the vision
3

4. Importance of SME Policy in Bangladesh
Growth of the manufacturing sector suffered for energy shortage, reduced availability
of bank credit, poor inflow of FDI labor unrest and poor law and order conditions no
less responsible are the inconsistent policies.
Public policy needs to focus basically on supplying lacking inputs: physical
capital, skills, and technology etc.
Industrial Policy and Investment Policies are complement to each others
Service inputs like education, skilled labour, utilities, infrastructure etc are some
other factors needs policy coordination and consistencies
There is what amounts to a “private sector failure”, when a firm’s goal of making
profits (or raising share value) conflicts with national development.
It may make good commercial sense for a private firm to pull out of one country and
move to another that offers.
Well-managed Policies is the reply of all queries-SME Policy is thus one of the
main vehicles for industrial growth and development

5. Overview of SME Policy 2019
 SME has been declared as the main pillar of
industrial development in National Industrial
policy 2016.
 The base documents for SME Policy 2019 are:
 SME Strategy 2005
 National Industrial Policy 2016
 Seventh Five-Year Plan
 Vision 2021
 SDG 2030 and
 Vision 2041.

6. Six Main elements That broadly addresses through SME policy
2019
1. Access to Finance
2. Access to Technology and Innovation
3. Access to Market
4. Access to Education and Training
5. Access to Business Support Services
6. Access to Information

7. 2.1 Vision
Creating a vibrant SME sector in Bangladesh.
2.2 Mission
Strengthening SME sector by enhancing efficiency,
improving business environment, providing easy access to
finance, ensuring better marketing facilities, upgrading
technology and innovative capabilities and creating
employment opportunities.
2.3 Goal
Increase the contribution of the SME sector to the GDP
from existing 25 % to 32% .
Vision/ Mission/ Goal

8. 2.5.1 Improving business environment and institutional
framework;
2.5.2 Increasing scope of the SME sector to receive
institutional funding facility;
2.5.3 Support to increase competitiveness capability
and access to SME products market;
2.5.4 Support short-term, low cost SME business
support services to the start-ups;
Implementation strategies
2.5

9. Implementation strategies
2.5.5 Develop and expand SME Cluster-based Business
Network;
2.5.6 Increase use of ICT and other technologies;
2.5.7 Expansion of skill developing education and
training programs for entrepreneurs;
2.5.8 Expanding women entrepreneurship development
programs and providing specialized services;
2.5

10. 2.5.9 Establish SME as a backward and
forward linkage enterprises to the
large industries and ensure protection
of SME products;
2.5.10 Establish environment-friendly SME
industries and develop better
capacity for waste management;
2.5.11 Institutionalize SME statistics and
conduct research and development activities
Implementation strategies
2.5

11. Implementation Strategies:
The Role of Core Organizations
Role of Government
Role of the Ministry of Industries
Take lead role for the implementation of this policy
Provide necessary assistance to create a favourable environment
and increase necessary infrastructures
Take necessary steps to increase loans, credit risk reduction and credit
transaction
Create opportunities for strengthening the training programs
overall responsibilities of monitoring implementation of SME Policy 2019
Ministry of Industries will establish a SME data bank
MOIND will coordinate activities of all SME related organizations.

12. Role of BSCIC, SME Foundation and relevant
Trade Bodies: Implementing Agency
Responsibility for overall implementation of
strategic goals and action plans described in the
SME Policy 2019 to BSCIC and SMEF
BSCIC will implement its own strategic action
plans in collaboration with other implementing
agencies subject to the approval of MOIND
The SME Foundation will inform Ministry of
Industries about its own yearly strategic action plan
and implement it in collaboration with implementing
agencies.

13. Coordination with other agencies
BSCIC and SME Foundation will coordinate with the other
relevant government organizations including:
 Bangladesh Bank;
 Bangladesh Investment Development Authority (BIDA);
 Bangladesh Economic Zones Authority (BEZA);
 Investment Promotion Agency (IPA);
 Bangladesh Industrial Technical Assistance Centre (BITAC);
 Bangladesh Council of Scientific and Industrial Research (BCSIR);
 National Productivity Organization (NPO);
 Bangladesh Institute of Management (BIM)

14.  Federation of Bangladesh Chamber of Commerce and Industries
(FBCCI);
 National Association of Small and Cottage Industries Bangladesh
(NASCIB);
 Bangladesh Agro Processing Association (BAPA);
 Metropolitan Chamber of Commerce and Industries (MCCI);
 Dhaka Chamber of Commerce and Industries (DCCI);
 Chittagong Chamber of Commerce and Industry (CCCI);
 Bangla Craft;
 Business Initiative Leading Development (BUILD);
Collaboration with others

15. Monitoring and evaluation of policy strategies
Two important policy-coordination committees
1. National SME Development Council
Chaired by Minister of Moind
2. National SME Task Force.
Chaired by Secretary Moind
Working Committees
Committee on Business Environment Development;
Committee on SME Funding;
Committee on SME Skills Development;
Committee on ICT and Technology Development;
Committee on Marketing of SME Products;
Committee on Women Entrepreneur Development and
 Committee Policy Advocacy, Research and SME Database.
Technical Committee
Under the leadership of Additional Secretary SME Wing of Moind

16. Time Bound Action Plan

17. 17
Visions to Grow
GDP (USD) 335 Billion 2,580 Billion
GDP Growth 8% 8%
GDP Per Capita (USD) 2,000 12,600
Investment to GDP 34.4% 36.0%
Share of Industry to GDP 34.0% 40.0%
FDI (USD) 9.56 Billion 153 Billion
Export earnings (USD) 70.0 Billion 350 Billion
Infra. Investment (USD) 100 Billion 1,150 Billion
VISION 2021 VISION 2041

18. Thank you so much
for your cooperation