Entrepreneurs engaged in cottage, micro, and SMEs in Bangladesh are grappling with the challenges of meeting timely bank loan repayments amid the ongoing economic crisis.
Some entrepreneurs have resorted to borrowing from friends and family to avoid further escalating their debt burden with financial institutions.
The SME sector, considered a vital component contributing approximately 25 per cent to the country’s gross domestic product (GDP), is facing significant hurdles.
According to the Economic Census 2013 by the Bangladesh Bureau of Statistics, there were 78.8 lakh business establishments in the country. Of these, 87.52 per cent were categorised as cottage, 1.33 per cent as micro, 10.99 per cent as small, 0.09 per cent as medium, and 0.07 per cent as large enterprises.
Small-scale enterprises in Bangladesh are experiencing a notable decline in sales, exacerbated by inflationary pressures that have led to increased production costs.
Entrepreneurs highlight that consumers are purchasing fewer products due to the escalating costs of daily necessities and economic uncertainties stemming from various crises.
Moreover, many small-scale enterprises are witnessing a substantial reduction in profits, primarily attributed to elevated raw material and transportation costs.
This financial strain has compelled some businesses to resort to laying off employees in an effort to endure the challenging economic conditions.
