Financial crisis boon for SMEs
The global financial crisis may brighten prospect for small and medium enterprises (SMEs) in Bangladesh, speakers said yesterday.
The financial meltdown will create demand for low-cost products where Bangladesh has an edge over its trade rivals, the speakers said at a seminar on "export dynamism in SMEs: Challenges and opportunities" in Dhaka.
As consumers in developed countries face financial constraints in the present circumstances, they are now settling for low-cost products, said Rokia Afzal Rahman, president of Bangladesh Federation of Women Entrepreneurs.
Bangladesh exports mainly low-cost products, she said, referring to the country's export trend.
"An increase in labour wages in China has hiked the prices of Chinese products, which will also help Bangladeshi products create a strong position in the global market," said Rahman, also a former caretaker government adviser.
Although there is a broad prospect for local SME products, Bangladesh should underscore research and development to diversify SME products and explore new export markets, she added.
Yeameen Akbory, deputy general manager of SME Foundation, emphasised that SMEs have broader global markets that Bangladesh should explore.
On the financial meltdown, she said: "We will have to counter the financial crisis with the same strength as we face floods time and again."
Speaking as chief guest at the function, Export Promotion Bureau Vice Chairman Shahab Ullah said SMEs play an important role in export earnings.
"There is no heavy industry in the country and most of the industries here fall into the SME category," he said.
At the seminar at the EPB Auditorium, Shahab Ullah urged SME entrepreneurs to develop skills to increase competitiveness in the global market.
Momtaz Uddin Ahmed, managing director of SME Foundation, said developed countries improved their conditions by developing their SME sector.
By contrast, the sector in Bangladesh is much neglected and the export policy of the country does not even have the word, SME, or anything related to SME, he said.
M Abdur Rahman, director (policy) of EPB, presented a keynote paper in which he highlighted export markets and export products of the country.
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