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A Report on SME Activities of Bangladesh Development Bank Limited

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A Report on SME Activities of Bangladesh Development Bank Limited
CHAPTER ONE
INTRODUCTION

SME (Small & Medium Enterprise) is an Enterprise that is independently owned an operated and is not dominant in its field of operation. Most of the countries of the world defined small & medium enterprises (SMEs) depending on the size and the size is measured by annual turnover, the number of employees and the balance sheet, i.e. the value of enterprise’s assets.

According to Industrial Policy Order 2010, micro enterprises consist of those having assets worth Taka 5.0 million and/or offering employment opportunities 10 to 24 or less workers, while those, being small ones, are worth Taka 5.0 million to 100 million and/or employ 25 to 99 workers at the individual enterprise level and medium enterprises are worth Taka 100 and 300 million and/or employ 100 to 250 workers each.

Bangladesh Bank and Ministry of Industry defined SMEs in line with the Industrial policy 2010 as follows:
Table

Value(replacement cost) of fixed assets excluding land and building
No. of employees
Small Industry Enterprise
Manufacturing
BDT 50 lac to 10 crore
25 to 99

Service
BDT 5 lac to 1 crore
10 to 25

Trading
BDT 5 lac to 1 crore
10 to 25
Medium Industry Enterprise
Manufacturing
BDT 10 crore to 30 crore
100 to 250

Service
BDT 1 crore to 15 crore
50 to 100

Trading
BDT 1 crore to 15 crore
50 to 100
Micro Industry Enterprise
Manufacturing
BDT 5 lac to 50 lac
10 to 24 or less

Service
Less than BDT 5 lac
Less than 10

Trading
Less than BDT 5 lac
Less than 10

Brief Scenario of SMEs in Bangladesh:
With a view to achieving its millennium development goal such as eradication of extreme poverty, developing a global partnership for development etc. the government of Bangladesh has given highest preference toward the development of small and medium enterprises (SMEs) in Bangladesh. At present SMEs in Bangladesh provide its 80% employees. SMEs are in fact very back bone of the economy of Bangladesh to generate



References: 7. Bangladesh Economic Survey, 2011.

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