SME definition needs revision: DCCI
The definition of the small and medium enterprises (SMEs) needs to be revised in the next industrial policy for easing the formulation of financial policies for different industrial sectors, said the Dhaka Chamber of Commerce and Industry (DCCI) yesterday.
The DCCI proposed to redefine the SMEs and bring the medium category out of cottage, micro and small ones and add it to the large category of industries in the upcoming industrial policy. The DCCI feels it would bring ease for the cottage, micro and small enterprises to get financial and policy benefits, the DCCI said in a statement.
The chamber also recommended establishing a National SME Cluster Development Authority which would foster the sector specific cluster to ensure more productivity and diversification.
DCCI President Rizwan Rahman handed over 25 recommendations to secretary to the industries ministry, KM Ali Azam, on February 16, 2021.
After the graduation from least developed country (LFC) status, Bangladesh may lose duty and quota free access in different markets. In order to sustain a presence in the export market, the DCCI suggested that the government start signing free trade agreements (FTA) or preferential trade agreements (PTA) with potential countries.
Due to the fourth industrial revolution, 3.9 million new jobs will be created. To grab this opportunity, the DCCI suggested taking up re-skilling and up-skilling initiatives from now.
A balanced taxation structure will expedite local and foreign investment in the country. The DCCI also urged the government to bring about technology adaptation and establish dissemination centres to increase product diversity and quality.
Specific guidelines were also sought to strengthen logistic support in order to make the e-commerce sector effective.
The DCCI also feels that separate incentive packages should be allocated for import substituting SMEs in the special economic zones. The chamber proposed to form an SME bank in the country to give easy access of credit to the SMEs. It also recommended to allocate a crisis mitigation fund under the central bank.