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SMEs struggle with complex policy and market access
Bangladesh’s small and medium enterprises are demonstrating remarkable resilience and innovation, but rising costs, export barriers, limited manpower, and policy constraints continue to pose major challenges, entrepreneurs said at the SME Product Fair 2025...
www.newagebd.net
SMEs struggle with complex policy and market access
Staff Correspondent 13 December, 2025, 23:49
Bangladesh’s small and medium enterprises are demonstrating remarkable resilience and innovation, but rising costs, export barriers, limited manpower, and policy constraints continue to pose major challenges, entrepreneurs said at the SME Product Fair 2025.
‘Starting was never easy, and sustaining growth without proper policy and financial support is even harder,’ said Farzana Islam Moury, a business graduate from Ahsanullah University of Science and Technology, founder of handicraft brand Craftimation, while speaking to New Age on the sidelines of the fair.
The SME fair, organised by the SME Foundation, which began at the Bangladesh-China Friendship Conference Centre in Dhaka’s Agargaon on 7 December, featuring over 350 SME enterprises, with nearly 60 per cent of participants being women entrepreneurs, will continue until 14 December.
Moury said, ‘Our goal is to preserve and present Bangladeshi heritage authentically. Anyone should be able to look at our products and instantly recognise the story, culture, and tradition behind them.’
Craftimation, founded in 2020, began its journey during the early days of the Covid-19 pandemic with an investment of only Tk 3,000.
Today, Craftimation employs around 20–22 permanent workers, along with additional project-based artisans for large orders.
Despite steady growth, Moury said high export costs and the absence of external investment remain significant barriers.
While the company exports products through third-party channels, mainly targeting Bangladeshi expatriates, fluctuating demand and logistics expenses make overseas expansion difficult for small businesses.
Currently, retail sales generate an average monthly turnover of Tk 4–5 lakh, while export and wholesale sales often exceed Tk 1 lakh.
Agribusiness ventures also highlighted market-building struggles.
Mushroom Palli, owned by 40-year-old Md Otiur Rahman Milon, attracted large crowds with mushroom-based products including soup, pickles, chutney, jelly, and dried mushrooms.
However, Milon said changing consumer perception was one of his biggest early challenges.
‘If people can afford to spend money on Cigarettes, why wouldn’t they eat mushrooms?’ he said.
Starting mushroom cultivation in 2019 on 20 decimals of land in Bauphal Upazila of Patuakhali with an investment of Tk 8 lakh, Milon faced ridicule from locals who referred to mushrooms as ‘frog umbrellas’.
In 2021, the collapse of his cultivation house nearly shut down the business, but he rebuilt it. Today, his enterprise generates sales of around Tk 1.5 lakh per month.
Still, he said, access to export markets and technical support remains limited. He plans to train 200 mushroom farmers by 2026 and develop a sustainable export pipeline.
Women entrepreneurs also stressed structural barriers.
Forty-five-year-old Sirajum Munira, a research officer at LAMP Hospital and founder of jute-based brand Sutar Kabyo, received the SME Foundation Award this year.
Starting eight years ago with Tk 10,000, her initiative now employs about 200 rural artisans in Parbatipur, Dinajpur, with monthly sales of Tk 18–20 lakh.
Munira said export certification requirements, such as ISO and Sedex, are major hurdles for small enterprises.
She said, ‘Certifications require significant investments that small businesses can’t afford. Without policy support and patronage, global scaling is extremely challenging.’
Although her products are already exported to Italy, Kuwait, and the United States, she called for government assistance to simplify export compliance.
Banks at the fair highlighted financing challenges faced by SMEs.
BRAC Bank relationship officer Oly Ahmed said many entrepreneurs lack information about suitable loan products.
He noted that the bank offers SME loans at 13.5 per cent interest, while women entrepreneurs under the TARA programme can access loans at 5 per cent interest.
Technology-driven SMEs raised concerns over funding and regulatory gaps.
Chief operating officer Md Mahfujul Haque of Dubotech Digital Ltd, a deep-tech company that recently won the National SME Award, said long R and D cycles, lack of specialised suppliers, and absence of clear import guidelines for oceanographic equipment remain major obstacles.
‘Building underwater robotics requires sustained research funding, regulatory clarity, and skilled manpower,’ he added.
Originating from the BRAC University research initiative BRACU DUBURI in 2017, the company went on to become Bangladesh’s first dedicated underwater robotics firm and achieved World Runner-Up at the international RoboSub competition.
He further said that Dubotech aims to develop autonomous underwater vehicles and expand inspection services for ports and energy infrastructure.
However, Haque stressed that without long-term R and D grants, innovation-friendly procurement policies, and low-interest financing, scaling such high-impact technology will remain difficult.
Despite diverse sectors and scales, entrepreneurs at the SME Product Fair 2025 shared a common message: innovation alone is not enough.
Without targeted policy support, affordable finance, and market access, the growth potential of Bangladesh’s SMEs will remain constrained.
Staff Correspondent 13 December, 2025, 23:49
Bangladesh’s small and medium enterprises are demonstrating remarkable resilience and innovation, but rising costs, export barriers, limited manpower, and policy constraints continue to pose major challenges, entrepreneurs said at the SME Product Fair 2025.
‘Starting was never easy, and sustaining growth without proper policy and financial support is even harder,’ said Farzana Islam Moury, a business graduate from Ahsanullah University of Science and Technology, founder of handicraft brand Craftimation, while speaking to New Age on the sidelines of the fair.
The SME fair, organised by the SME Foundation, which began at the Bangladesh-China Friendship Conference Centre in Dhaka’s Agargaon on 7 December, featuring over 350 SME enterprises, with nearly 60 per cent of participants being women entrepreneurs, will continue until 14 December.
Moury said, ‘Our goal is to preserve and present Bangladeshi heritage authentically. Anyone should be able to look at our products and instantly recognise the story, culture, and tradition behind them.’
Craftimation, founded in 2020, began its journey during the early days of the Covid-19 pandemic with an investment of only Tk 3,000.
Today, Craftimation employs around 20–22 permanent workers, along with additional project-based artisans for large orders.
Despite steady growth, Moury said high export costs and the absence of external investment remain significant barriers.
While the company exports products through third-party channels, mainly targeting Bangladeshi expatriates, fluctuating demand and logistics expenses make overseas expansion difficult for small businesses.
Currently, retail sales generate an average monthly turnover of Tk 4–5 lakh, while export and wholesale sales often exceed Tk 1 lakh.
Agribusiness ventures also highlighted market-building struggles.
Mushroom Palli, owned by 40-year-old Md Otiur Rahman Milon, attracted large crowds with mushroom-based products including soup, pickles, chutney, jelly, and dried mushrooms.
However, Milon said changing consumer perception was one of his biggest early challenges.
‘If people can afford to spend money on Cigarettes, why wouldn’t they eat mushrooms?’ he said.
Starting mushroom cultivation in 2019 on 20 decimals of land in Bauphal Upazila of Patuakhali with an investment of Tk 8 lakh, Milon faced ridicule from locals who referred to mushrooms as ‘frog umbrellas’.
In 2021, the collapse of his cultivation house nearly shut down the business, but he rebuilt it. Today, his enterprise generates sales of around Tk 1.5 lakh per month.
Still, he said, access to export markets and technical support remains limited. He plans to train 200 mushroom farmers by 2026 and develop a sustainable export pipeline.
Women entrepreneurs also stressed structural barriers.
Forty-five-year-old Sirajum Munira, a research officer at LAMP Hospital and founder of jute-based brand Sutar Kabyo, received the SME Foundation Award this year.
Starting eight years ago with Tk 10,000, her initiative now employs about 200 rural artisans in Parbatipur, Dinajpur, with monthly sales of Tk 18–20 lakh.
Munira said export certification requirements, such as ISO and Sedex, are major hurdles for small enterprises.
She said, ‘Certifications require significant investments that small businesses can’t afford. Without policy support and patronage, global scaling is extremely challenging.’
Although her products are already exported to Italy, Kuwait, and the United States, she called for government assistance to simplify export compliance.
Banks at the fair highlighted financing challenges faced by SMEs.
BRAC Bank relationship officer Oly Ahmed said many entrepreneurs lack information about suitable loan products.
He noted that the bank offers SME loans at 13.5 per cent interest, while women entrepreneurs under the TARA programme can access loans at 5 per cent interest.
Technology-driven SMEs raised concerns over funding and regulatory gaps.
Chief operating officer Md Mahfujul Haque of Dubotech Digital Ltd, a deep-tech company that recently won the National SME Award, said long R and D cycles, lack of specialised suppliers, and absence of clear import guidelines for oceanographic equipment remain major obstacles.
‘Building underwater robotics requires sustained research funding, regulatory clarity, and skilled manpower,’ he added.
Originating from the BRAC University research initiative BRACU DUBURI in 2017, the company went on to become Bangladesh’s first dedicated underwater robotics firm and achieved World Runner-Up at the international RoboSub competition.
He further said that Dubotech aims to develop autonomous underwater vehicles and expand inspection services for ports and energy infrastructure.
However, Haque stressed that without long-term R and D grants, innovation-friendly procurement policies, and low-interest financing, scaling such high-impact technology will remain difficult.
Despite diverse sectors and scales, entrepreneurs at the SME Product Fair 2025 shared a common message: innovation alone is not enough.
Without targeted policy support, affordable finance, and market access, the growth potential of Bangladesh’s SMEs will remain constrained.
