According to a study by the SME Foundation, around 57% of SME entrepreneurs mentioned the tax structure as the main obstacle to doing business within the law, while 54% of entrepreneurs consider the process of renewing business licenses like an obstacle.

The study also highlights that 51% of entrepreneurs consider additional costs associated with business licenses as a major obstacle, while 44% cite the complexity of government laws and regulations as another major obstacle.

Professor Melita Mehjabeen from the University of Dhaka presented these findings today (November 24) at a seminar titled “Informal SMEs in Bangladesh: Formalization Challenges and the Way Forward.”

The main article presented the detailed information of the research and further stated that more than 74% of SME entrepreneurs in the country are willing to do business in accordance with government laws and regulations.

However, in this case, it is necessary to simplify government rules and regulations or introduce one-stop services, increase collateral-free loans, and increase facilities for doing business in accordance with the law.

This research was conducted among 304 entrepreneurs from Dhaka, Chattogram, Sylhet, Khulna and Rajshahi.

The entrepreneurs said that while in India only 7 certificates are required from various government departments to be able to do business according to law, in Bangladesh they need certificates from at least 34 departments.

According to the 2013 Economic Survey of the Bureau of Statistics, there are more than 7.8 million CMSME establishments in the country, employing approximately 25 million people.

However, most of these institutions are informal or outside the legislative, regulatory and fiscal framework of the government. In this situation, the experts recommended that the government prepare a comprehensive strategy document to subject these institutions to the law, regulations and fiscal framework, formalize them step by step, simplify the rules and regulations and provide financial and financial incentives. non-financial to entrepreneurs. .

SME entrepreneurs, representatives of various ministries and departments, SME chambers and associations, banks and financial institutions, researchers, economists and relevant stakeholders participated in the seminar.

The SME Foundation implements various programs in line with the Government’s National Industrial Policy 2022, SME Policy 2019, United Nations SDG 2030 and government directives aimed at developing the SME sector through economic, social protection and environmental issues of the country.

Since its inception in 2007, around two million small and medium-sized entrepreneurs in the country have benefited from various programs of the SME Foundation.

The seminar, organized by SME Foundation and German development agency Friedrich-Ebert-Stiftung (FES), Bangladesh, was held at the Agargaon Tourist Building. The event was chaired by Anwar Hossain Chowdhury, Managing Director, SME Foundation.

Industrial Advisor Adilur Rahman Khan was the chief guest while Industry Secretary Zakia Sultana was the special guest.