Small and medium enterprises (SMEs) are the backbone of Dhaka’s economy, driving growth and employment despite facing significant challenges.
SMEs: The Engine of Economic Growth
According to the Bangladesh Economic Survey 2024, the SME sector contributes approximately 30% to the national GDP and employs around 7.8 million people. This underscores the sector’s vital role in the country’s economic framework. Source
Challenges Amidst Economic Strain
Despite their significance, SMEs in Dhaka are grappling with multiple challenges. Rising costs, market uncertainty, and financing hurdles have led to a notable decline in sales and operational sustainability. Entrepreneurs report a significant drop in business due to economic pressure and market instability. Source
Manufacturing Sector’s Dominance
The manufacturing sector is a major contributor to Dhaka’s economy, accounting for 56% of the district’s economic activities. Within this sector, the ready-made garment (RMG) industry leads with a 58.6% share, followed by food products at 13.4%. This dominance highlights the sector’s critical role in the city’s economic structure. Source
Initiatives to Support SMEs
Recognizing the challenges faced by SMEs, initiatives like the proposed ‘Dhaka Haat’ aim to provide dedicated spaces for local artisans and small businesses to showcase and sell their products. Modeled after successful markets in other countries, this initiative seeks to foster economic growth and encourage entrepreneurship. Source
Conclusion
SMEs are integral to Dhaka’s economic vitality, contributing significantly to GDP and employment. Addressing the challenges they face through supportive policies and initiatives is crucial for sustaining and enhancing their role in the economy.