Bangladesh's micro, small and medium enterprise sector is being held back less by a lack of financing than by poor access to reliable information, cumbersome licensing procedures, limited market access and inadequate entrepreneurial skills, according to experts.
They said business-related information remains scattered across multiple institutions, forcing entrepreneurs to spend time and resources navigating complex procedures.
They called for a one-stop digital licensing system and a verified information platform to simplify access to services.
The observations came at a programme marking the International Day of Micro, Small, and Medium-sized Enterprises 2026 jointly organised by the SME Foundation and the International Labour Organization at the Bangladesh Investment Development Authority auditorium in Dhaka yesterday.
The event also saw the launch of a portal named "Business Development Services," developed by the SME Foundation with ILO support.
The portal is a centralised digital platform that provides entrepreneurs with verified information on financing, markets, technology and business support services.
Addressing the event as the chief guest, Industries, Commerce, Textiles and Jute Minister Khandaker Abdul Muktadir said the government has prioritised entrepreneurship development and business-friendly policies since taking office.
He added that the FY27 budget gives special importance to MSME development as part of efforts to boost industrialisation, productive investment, infrastructure and energy supply.
Peter Pedro Bellen, chief technical adviser of the ILO's ProGRESS Project, said entrepreneurs often view finance, technology or market access as the biggest barriers to growth, but quality information is equally critical.
Without reliable information on financing, markets, technology and business management, entrepreneurs cannot make informed decisions or expand their businesses, he said.
Bellen said the business portal will provide updated information on available loan products and financial institutions while also helping entrepreneurs connect with suppliers and other producers. This will allow smaller firms to make joint purchases of raw materials and improve their competitiveness.
"It allows businesses to become big while remaining small," he said.
Ferdaus Ara Begum, chief executive officer of Business Initiative Leading Development, highlighted the complexity of the country's licensing process.
She said a study found that businesses in the plastic waste management sector require 31 licences supported by around 235 documents, while light engineering firms need 35 licences and more than 200 documents, with 50-60% of the paperwork being repetitive.
Brac Bank Additional Managing Director Syed Abdul Momen said women entrepreneurs face challenges beyond financing, including licensing, market access, access to information and business management capacity.
He said the bank helps women entrepreneurs complete licensing formalities and is working with Alibaba to support their entry into international markets.
Women Entrepreneurs Association of Bangladesh President Nasreen Fatema Awwal said Bangladesh has around 10 million male entrepreneurs but only about 700,000 women entrepreneurs.
Increasing women's participation would boost employment, household incomes and inclusive economic growth, she said.
SME Foundation Managing Director Anwar Hossain Chowdhury said the organisation has served more than 2.2 million entrepreneurs since its establishment, including over 250,000 direct beneficiaries, 60% of whom are women.
Fashion Entrepreneurs Association of Bangladesh President Azharul Hoque Azad called for a one-stop digital licensing system, easier access to finance, tax incentives and stronger policy support for creative industries and local brands.
Micro, Small, / small / and medium enterprises (MSMEs) / Expert / industry
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