DHAKA, May 18, 2026 (BSS) - Stakeholders at a validation workshop have emphasized the need for coordinated policy support, simplified export procedures, and improved access to facilitation mechanisms to enhance the export competitiveness of Bangladesh's small and medium enterprises (SMEs).

The observation came today at a workshop titled "Study and National Conference on SME Competitiveness and Export Growth" organized by the Business Initiative Leading Development (BUILD), bringing together representatives from the Ministry of Industries, Bangladesh Bank, Export Promotion Bureau (EPB), SME Foundation, sector associations, entrepreneurs and development partners.

The workshop presented findings of a BUILD study covering SMEs in the home textile, footwear, light engineering, furniture, agro-processed food and plastic packaging sectors. 

The study found that SME participation in exports remains limited due to institutional bottlenecks, lack of awareness about Bonded Warehouse facilities and SRO-384, complex customs procedures, financing constraints, and weak compliance support.

According to the survey of 107 SMEs across six non-RMG sectors, only 13.1 percent of firms were engaged in exports, while none had used Bonded Warehouse facilities.

Awareness of SRO-384 was found to be extremely low at 1.87 percent, with more than 82 percent of respondents unaware of both SRO-384 and Bonded Warehouse facilities.

The study further noted that administrative complexity, high compliance costs, geographic restrictions, and collateral-based lending requirements continue to restrict SME access to export markets.

However, around 48.4 percent of non-exporting SMEs expressed willingness to enter export markets if duty-free raw material access and simplified compliance systems are ensured.

Entrepreneurs from different clusters highlighted sector-specific challenges, including high duties on raw materials, lack of skilled manpower, limited access to Common Facility Centres (CFCs), high VAT, rising lending rates, electricity shortages and weak access to export facilitation services.

Speaking at the event, Sultana Yasmin, Joint Secretary of the Ministry of Industries, stressed stronger policy coordination and the need for a comprehensive SME database and SME index to support effective implementation.

Export Promotion Bureau (EPB) Director General-1 Baby Rani Karmakar underscored the need to promote value-added SME products in global markets, adding that EPB is supporting SMEs and women entrepreneurs through training, visa assistance, and participation in international trade fairs. 

She also highlighted ongoing efforts to improve one-stop service support and institutional coordination.

Representatives from the SME Foundation said a revised SME policy is under preparation and assured that stakeholder recommendations would be incorporated into the reform process.

Bangladesh Bank Executive Director Hosne Ara Shikha said the central bank is continuing refinance support for SMEs, women entrepreneurs, startups and industrial clusters. 

She noted that banks have been instructed to allocate 25 percent of lending to CMSMEs, but actual utilization remains below target, with SME lending declining to 18 percent last year.

She added that Bangladesh Bank provides SME refinancing at 7 percent interest and women entrepreneurs at a concessional 5 percent rate, with total refinancing support amounting to BDT 679 billion.

However, only 6.7 percent of the targeted support for women entrepreneurs was achieved last year, indicating the need for greater inclusion and outreach.

The workshop concluded with a consensus on the need for simplified export procedures, reform of bonded warehouse facilities, improved access to finance, enhanced compliance support, and stronger inter-agency coordination to unlock SME export potential in Bangladesh.