Development of SMEs: Replicating Top Foreign Models

5 Pages Posted: 3 Oct 2014

Date Written: July 24, 2014


The Bangladesh economy has the strong support of its dependable SME sector. SMEs have been the engine of growth. There are about six million SMEs in the country. About 90 per cent of all industrial units are SMEs generating about 25 per cent of the GDP (gross domestic product), employing about 31 million people and providing 75 per cent of household incomes. Various categories of SMEs together contribute between 80 per cent and 85 per cent of industrial employment and 23 per cent of total civilian employment in Bangladesh.

About 60-65 per cent of SMEs are located outside the metropolitan areas of Dhaka and Chittagong. These are providing job opportunities to about 70-80 per cent of the non-agricultural labour force. The SME share in manufacturing value addition to GDP varies between 28-30 per cent. The services sector is primarily composed of SMEs responsible for the bulk of employment growth. Their contribution to national export is significant through different industries such as ready-made garments, jute, and leather, etc.

By producing exportable surpluses of commodities together with fulfilling local demands, SMEs are making significant contribution to the economy of Bangladesh. This sector is a potential one in terms of local value additions and creation of employment opportunities.

Keywords: Small and Medium Enterprises, SMEs of Bangladesh, SME Development

Suggested Citation

Abdin, Md. Joynal, Development of SMEs: Replicating Top Foreign Models (July 24, 2014). Available at SSRN: or

Md. Joynal Abdin (Contact Author)

DCCI Business Institute (DBI) ( email )

DCCI Building (11th Floor), 65-66 Motijheel C/A
Dhaka, 1000

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