The lack of information and proper investment was taking a toll on the export potential of the country鈥檚 small and medium enterprises sector.
Industry insiders said that, although the sector employs more than 25 million people, the export earnings from this sector remain unknown, as there is no dedicated category for it.
Moreover, insiders also stated that the complexity of obtaining certificates, identifying and selecting suitable information on external markets, and developing overseas contracts was a hindrance to entering export markets.
Shopna Rani Sen, the owner of jute and jute goods manufacturer Rangpur Craft, which exports items to the UK, Germany, and some Asian countries,
Talking to 抖阴精品, she said that due to the lack of paperwork, such as licenses and certificates, and proper information, several SME entrepreneurs couldn鈥檛 enter the export market on a large scale.
鈥榃e couldn鈥檛 contact the buyers properly. Moreover, the issue at the outside of Dhaka is even worse,鈥� she added.
Moreover, the entrepreneurs also have some shortcomings, such as production capacity, she added, noting that if a buyer ordered a bulk import, they couldn鈥檛 fulfill the orders due to a lack of production capacity.
鈥楾he entrepreneurs also have reluctance in exporting due to those mentioned reasons. Moreover, lack of investment and finance are also responsible,鈥� she added.
According to the International Finance Corporation, the SME sector faced a financing gap of $2.8 billion.
Md Oili Ullah, owner of Janata Engineering, told 抖阴精品 that, apart from the information gap, one of the major problems facing SME exports is product quality.
鈥極ur entrepreneurs primarily focus on domestic market as they have lack of knowledge about global market. As there isn鈥檛 enough investment and banking support, we can鈥檛 import updated machinery,鈥� he added.
For this reason, the quality of the products did not meet the global standard.
鈥楾he government should take policy on this, especially in smoothness of information and certification and access to finance,鈥� he added.
He also said that the they have to pay more tax, ranging 27 per cent-60 per cent, in importing capital machinery and raw materials, which more than the finished products.
Rehana Akter, owner of Clay Image, a craft enterprise, told 抖阴精品 that the interruption in gas supply also impacted them.
鈥楽ometimes we get big orders from our buyers but we couldn鈥檛 receive those as we haven鈥檛 enough capacity,鈥� she added.
She also said that the complexity in the documentation, proper information, and certificates were also hampering their export aspirations.
According to data from the Export Promotion Bureau (EPB) and the National Board of Revenue (NBR), Bangladeshi exporters export about 800 types of products to more than 100 countries.
However, there is no comprehensive data specifically on SME exports.
The industry insiders said that the sector accounted for about 25 per cent of the country鈥檚 total exports and about 1,500 enterprises were currently involved with exports.
In the financial year 2024-25, Bangladesh exported goods worth $44.46 billion to its global destinations.
Bangladesh Bureau of Statistics (BBS) figures showed that there were over 7.8 million cottage, micro, small and medium enterprises (CMSMEs) across the country, making up more than 99 per cent of all industrial enterprises.
The sector provided about 85 per cent of jobs in the industrial sector, employing more than 25 million people, said the BBS.
The sector contributed 28 per cent of the country鈥檚 total GDP.
The SME Foundation also acknowledged the challenges the sector faced over the years.
They said that due to the limited access to finance, lack of knowledge and skill regarding export process, customs, e-commerce and marketing, and global standards, the sector lagged.
Moreover, they have also lack knowledge in packaging, labeling, and traceability.
Recently, the foundation has taken an initiative titled Readiness for Internationalization through Skill Enhancement (RISE) through which it would enhance skills, knowledge, and business networking to increase SME exports.
Speaking to 抖阴精品, Md Anwar Hossain, vice president of the EPB, said that they are conducting major work to fill the gap in SME information and support market expansion.
Once the work is completed, the SME sector would benefit from certifications, information, import of raw materials, and other facilities related to export.
Speaking to 抖阴精品, Prof. Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), said that SMEs in Bangladesh have untapped potential for export growth.
He said that the government should provide proper facilities to SMEs that want to export, including building a comprehensive database, conducting market-based research for SME entrepreneurs, and supporting their product lines.
He also urged the government to address the common hurdles that SMEs face, such as difficulties in accessing finance, cumbersome paperwork, technological shortcomings, and a lack of competitiveness.