A lack of necessary funding and coordination among the affiliated organisations has been one of the main reasons for the slow implementation of the SME Policy 2019, leaving many provisions unrealised, said Ashraf Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI).

The goals and objectives of the SME policy should be determined in conjunction with the industrial policy and the five-year plan should be set targeting the future goals of the entire industrial sector, he said.

The SME Policy for 2019 expired in June this year and the latest policy should be included in the budget and work plan formulation activities of different organisations, the Dhaka chamber president said.

He made the comments at an event, titled "Reform of SME Policy-2019 for Sustainable Growth and Innovation", at its office in the capital's Motijheel yesterday.

An agro-based economy will not alone be sustainable for the overall economy, rather the country should go for industrialisation, he said.

Service sector export should also be enhanced, he added.

It will not be possible for many SMEs to survive without increasing the flow of liquidity, Ahmed said.

He also highlighted new models of financing, such as electronic nano-financing, electronic channelling, automation of licensing and its renewal, availability of high-level skills, intellectual property protection, and high-speed broadband internet for the development of the SME sector.

Moreover, he suggested a comprehensive database of SMEs so that the informal sector can be brought into the formal sector.

There is a lack of coordination among government agencies, said Mirza Nurul Ghani Shovon, president of the National Association of Small and Cottage Industries of Bangladesh.

If the government does not arrange the required funds for the implementation of the new SME Policy, it will remain unimplemented again, he said.

He also suggested keeping the arbitration system and bringing the informal SME sector under the new SME policy, he said.

The government is trying to formulate an SME policy of global standards and for that cooperation from all stakeholders will be needed, said Salim Ullah, an additional secretary for policy, law, and international cooperation of the industries ministry.

All the shortcomings of the previous policy will be addressed, and the new one will try to reflect the requirement of all stakeholders for the betterment of the SME sector, he said.

There is a need to have various refinancing schemes and credit guarantee schemes because there are different types of SME entrepreneurs, and their needs are also different, said Nawshad Mustafa, director of the SME and special programmes department of the Bangladesh Bank.

He also stressed the need for having a common facility centre to promote small and cottage entrepreneurs across the country. Anwar Hossain, vice chairman of the Export Promotion Bureau (EPB), reiterated the importance of automation in all client service activities of the government.

The EPB is also trying to make its services automated soon, he said, adding that the backward linkage industry should be strengthened, especially the SME sector.

The National Board of Revenue (NBR) should consider introducing a simplified tax filing process, especially for the cottage, micro, small and medium enterprises (CMSMEs), as too much documentation process is a burden for them, Hossain said.

The SME sector will not develop without the government's patronisation, said Mosharref Hossain, associate professor at the Bangladesh Institute of Bank Management.

He suggested establishing an SME innovation lab where small innovators will get a place to flourish.

The SMEs should also get easy access to finance and the government should have a separate seed fund or venture capital or startup fund for the SME entrepreneurs, he said.

A roadmap is also needed to implement the policies, Hossain added.