[πŸ‡§πŸ‡©] Cottage Industry/SME in Bangladesh

[πŸ‡§πŸ‡©] Cottage Industry/SME in Bangladesh
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Saif

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Cottage Industry​


Cottage Industry refers to the traditional artisanship of rural people of Bangladesh, who produce various household items with locally available raw materials and artistic skills inherited through ages. For their own use and for livelihood, they make those artistic products by hand depicting the design and motif of the nature of Bangladesh and its people, birds and animals, foliages, plants and trees, rivers, streams and sky. Cottage industry is called a synonym of handicrafts, artistic work in wood and metal, amateur artworks and rural artistry. At present the cottage industry has expanded to urban area.

According to Bangladesh Small and Cottage Industries Corporation (BSCIC), Cottage industry is a small-scale industrial unit run by the members of the same family either on full or part time basis. Its maximum number of workers should be limited within 20; it uses indigenous technology and is not run by power. If it uses power-run machinery, the maximum number of workers should be ten. The national board of revenue (NBR) considers the cottage industry as an industrial unit run by a maximum of 50 workers using local skills without adopting power-run mechanical equipment. The agriculture Census Report of 1983-84 defined the cottage industry as a household level manufacturing unit that produces goods manually. It has been mentioned in the Industrial Policy-2010 that the net asset of a unit of cottage industry without the land and the factory should be less than five hundred thousand taka and its maximum workforce should be ten and they would preferably be family members.

The history of cottage industry is very old. Moroccan traveller ibn batuta (1304-1377) in his travelogue mentioned the world famous product of muslin produced in Bengal which earned appreciation from all over the world for its extraordinary quality. In pre-British Bengal, the cotton industry was organised under the pure handcraft or the domestic system of production. During the Mughal rule in Bengal, Cottage industry used to be patronised by the government. Initially the European merchants and companies, from Britain and Holland, and the east india company, financed the weaver and artisans, and other handicraft makers for producing goods of export quality. Later, the employees of East India Company imposed a series of repressive steps on weavers, artisans and other craftsmen engaged in cottage industries. As a result the export of textile and handloom products reduced significantly. For instance, export earning from fabric, which was 13 million rupees in 1815 declined to one million rupees in 1832 and became nil in the following year. Contrastly, import of foreign made fabric, basically industrial product began in 1832. Only in that year, the East India Company compelled the domestic consumers to buy fabric worth 4 million rupees imported from England. The partition of 1947 caused further damages to the cottage industry in Bangladesh as many Hindu artisans and craftsmen left the country. So a vacuum was created in the trading of cottage industry during the initial stage of Pakistan era. There was no big capital investment in this sector in those days, although there were about 1600 highly skilled professional artisans and four hundred thousand weavers in the then East Pakistan. Handloom and textile products of those people could fulfill the demand of fabric in the local market till 1954, when the united front government took an initiative to revive the small and cottage industries. The East Pakistan Small and Cottage Industries Corporation (EPSIC) were established in 1957 by an Act to this end. During the war of liberation, the entire industrial sector including the cottage industries of Bangladesh was severely damaged. The government of Bangladesh took initiatives to rehabilitate and reorganise the cottage industries as an important sector for enhancing employment opportunities. EPSIC was reorganised and renamed as bangladesh small and cottage industries corporation (BSCIC). BSCIC stared providing financial and technical support and consultancy services to the artisans, craftsmen and entrepreneurs for promoting the traditional techniques beside modern technology. According to a survey conducted by BSCIC in 1981 there were 322 thousand cottage industry units in Bangladesh engaged in producing 160 different types of items.

According to a survey conducted in 2005, there were 7 lakh units of industries in Bangladesh of which large-scale industries were 6000, medium scale 5000, small industries 76, 000 and cottage industries 6 lakh 20 thousand. Earlier, during the fiscal year 1999-2000, 4085 new industrial units including 3240 cottage industries were registered. The total amount of investment in cottage industry in the year was 508 million taka and the sector provided job opportunity to 40 thousand artisans and craftsmen.

Classification of cottage industries According to the international standard of classification of industries, the cottage industries are catagorised into eight groups. These are: (1) Food, drinks, tobacco processing industries: milk products, fruit processing and canning, fish processing and canning, ginger drying, pulse grinding mills, flour mills, rice mills, oil mills, spice grinding factories, bakery, molasses making, fodder and poultry feeds, ice factory, salt plant, catechu making, sweet meat making, honey processing, bidi factory, apiculture, fish farming, poultry farming, flattened and puffed rice making; (2) Textile and leather factories: cotton yarn spinning, sericulture and making of silk products, handloom, cloth printing, zamdani weaving, stitching and embroidery, hosiery, socks and woolen goods making, coconut-coir products, jute yarn and rope making, netting, fishing net making, garments factory, leather processing, leather product making, batik printing, shataranji weaving and carpet making; (3) Timber and wooden furniture industries: boat making, wooden toy and furniture making, cane and bamboo goods and furniture making, sports goods production, musical instruments and hookah making, mat preparing, wood curving, wooden agricultural equipment like plough, house decorating materials and timber by-products making; (4) Printing, packaging and paper industries: recycling of old and wastage papers and making goods therefrom, printing press, book binding, paper based handicrafts, paper bags, paper-made flowers making etc; (5) Chemical and petroleum group of cottage industries:' allopathic, unani and ayurvedic medicine preparation, printing ink and dying industries, paints and polish items, auger and candles, cosmetics, soap factories, shoe-shiners, combs and buttons, pottery and glass factories, chalk making, slate and pencil, plastic toys and bags etc; (6) Non-metallic industries: limestone and snail-based lime, chalk powder and colour chalk, shell crafts including buttons and bracelets; (7) Metallic products machinery and equipment: steel furniture, electroplating, metallic nets, metal plate making and printing, nails, brass and bell-metal utensils, steel tanks, hair clips, machinery and agricultural equipment, electrical goods, jewelry products, light engineering and blacksmiths production and (8) Handicraft products and other cottage industry.


Pottery

Pottery According to a survey conducted by BSCIC, published in a book titled Karupalli in 1985, there were 666 pottery villages in Bangladesh, where about 76 thousand people belong to 18 thousand families had to earn their livelihood from this traditional occupation. The total capital investment in the sector was 106 million taka and goods worth 367.4 million taka was produced during that period. Pottery is a family and community based collective work localised on the basis of availability of row materials. Most of the artisans engaged in this industry hereditarily and most of them belonged to the Hindu community.
Known as kumbhokar (potter or clay-modeller), the title of this caste is pala and they make dolls, statues of gods and goddess, household goods, sculpture, tally, flower vases, pots for offering worship, fancy kitchen pots made of clay. Bijaypur of Comilla, Madanpura of Patuakhali, Champaknagar of Feni, Kartikpur of Shariatpur and Royerbazar in Dhaka are the most remarkable and leading pottery localities.


Cane furnitures

Bambao and cane industries The survey of BSCIC (1985) suggested that 122 thousand artisans were engaged in the country's 42 thousand bamboo and cane crafts making units. At that time raw materials worth 224 million taka were used per year to produce items worth 500 million taka. Major items of this category are cane products, partition, mat, fishing trap, hand fan, sofa set, table-mat, wall-mat, tray, flower vase, ash tray etc and they are mainly produced in Comilla, Sylhet, Chittagong and Noakhali.

Jute goods Sika, a netted product of twisted jute ropes of various indigenous designs and motifs, table mat, shataranji and carpet, fancy handbag and bag of jute are produced in four thousand cottage industries by about eleven thousand craftsmen. Items worth 30.4 million taka were produced per year with the annual investment of 20 million taka.


Textile products

Textile and Weaving factories In 1978, about one million weavers, artisans and workers were engaged in 437 thousand handlooms and pure looms of 198 thousand weaving and textile factories of Bangladesh. The average annual production capacity of these looms was 1045 million yards of indigenous clothing like sharee, lungi, dhuti, muslin, jamdani, katan, malmal and traditional handloom products of different tribes, gamcha, mosquito nets and towels.

Narshingdi, Roypura, Demra, Tangail, Shahjadpur, Bera, Kumarkhali, Magura, Rajshahi, Khadimnagar, Mirgarh and Nasirnagar are very famous places of origin of these products. Fashion and boutique houses are designing and making modern dress from traditional cloths of tribal weavers, muslin, jamdani, malmal taroyo sharee, sharees of Pabna and Tangail origin, Silk and Khadi lengths.


Embroidered Quilt

Embroidered Quilts The most famous stitch work of Bangladesh is embroidered quilts, known as Nakshi-Kantha.

Thirteen different types of high quality Nakshi-Kantha are stitched everywhere in Bangladesh, but those of Rajshahi, Nawabganj, Rangpur, Faridpur and Kushtia are very special in terms of traditional and exclusive design. According to BSCIC, 1500 cottage industries run commercially as promoters of stitch work have 3000 high-class artisans with a production capacity of goods worth 161 million taka per year.


Cool Mat

Cool Mat A special type of mat made by bark of a tree named morta. The mat, very soothing and cool to lie upon, is a traditional craft of Rajnagar, Balagonj, Baralekha and Mollarbazar area of Sylhet, Sonagazi and Raipur of Noakhali, Swarupkathi and Neelgati of Barisal and Shatech of Faridpur. Different designs and motifs of birds, animals and foliage from the nature and environment are portrayed by the artisans beautifully on the mat with red, blue, green, black and violet colours. About 15 thousand artisans produce cool mats of 50 million taka per year. Earlier in this country cool mats were made by silver and ivory.

Ornaments Ornament-making is one of the most fine and remarkable cottage based artisanship belonging to the mainstream anthropological art of Bangladesh. Womenfolk of the country love to increase their physical beauty by wearing fashionable ornaments in various parts of the body. Ornament makers are known as shwarnakar or goldsmith belonging to a particular caste of the Hindu. They had developed designs and motifs of foliage, fruits, flowers, birds, animals and stars mainly being inspired by the nature to make ornaments from generation to generation. According to BSCIC, there are 12,250 ornament-making units and 27 thousand professional goldsmiths in Bangladesh. Gold and silver ornaments of different variety to decorate the forehead and at the parting of the hair (sithi), ear, nose, neck, hand, waist and foot are made in Bangladesh. The leading ornament-making units are concentrated in Dhaka, Chittagong, Comilla, Sylhet and Faridpur region. The capital invested in this sector is estimated by BSCIC as 130 milion taka.


Brass and bell-metal utensil

Brass and bell-metal Cottage industries producing brass and bell-metal utensils are very much involved with the culture and tradition of Bangladesh. Dhamrai and Savar of Dhaka, Nawabgonj, Islampur of Jamalpur, Rangpur, Tangail and Shariatpur are famous for the concentration of such family-based workshops. There are 390 brass and bell-metal production units and about two thousand highly skilled brass and bell craftsmen are in Bangladesh. They make brass and bell-metal goods of 333.7 million taka per year.

Beside BSCIC, Ministry of Youth and Sports, Department of Youth Development, Ministries of Women and Social Welfare, various Non-Government Organisations ngos extend financial, technical and marketing support to the artisans and craftsmen for the promotion of cottage industry. The government established a specialised bank named basic bank limited in 1989 to support this sector.​
 

Untapped potential of cottage industries
Md Al Noman | Published: 00:00, Feb 06,2024

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IN THE intricate tapestry of Bangladesh’s economy, cottage industries stand as a testament to the artistry and resilience of its people. These industries, rooted in local raw materials and inherited skills, have a unique ability to infuse products with the personal touch of their creators. Unlike large-scale factories, cottage industries thrive on the artisan’s ability to shape beauty and individuality into their creations.

Cottage industries, often family-based or small enterprises, embody simplicity and local expertise. They operate in both rural and urban settings, utilising minimal capital to produce cost-effective goods. The Bangladesh Small and Cottage Industries Corporation, a state-owned enterprise, has been established for the development and supervision of small and cottage industries in Bangladesh.

Symphony of craftsmanship

AT THE heart of cottage industries lies a distinctiveness that sets them apart from the impersonal churn of machinery in larger factories. These enterprises weave products with the threads of inherited skills, transforming local raw materials into unique, artisanal creations. The artisan’s touch becomes a signature, imprinting individuality and charm on each piece.

Distinctive features define cottage industries, including their low capital requirements, home-based production, and the artistic imprint evident in each product. One of the characteristics of the cottage industry is that it reflects an impression of artistic talent. Craft can bring variety to the product. Moreover, the artist’s handmade products are beautiful to look at and last longer.

In a developing nation like Bangladesh, the artistic importance of cottage industries cannot be overstated. These industries hold the potential to drive economic progress by offering unique products that can compete on the global stage. Japan’s success with cottage industries serves as a beacon, demonstrating the transformative power of these enterprises in propelling a country towards prosperity.

According to a survey by the Small and Cottage Industries Association of Bangladesh, there are over 800,000 cottage industries in Bangladesh that can be divided into eight categories.

If Bangladesh can further expand its cottage industries, transforming them into a consumer goods industry, the nation can rise as an economic powerhouse in Asia.

Once, the industry was a marvel, with villages thriving as self-sufficient hubs of creativity.

Weavers, potters, and craftsmen produced a myriad of goods, including the renowned Bengal muslin. However, the mighty wave of the Industrial Revolution, led by European nations, swept away the once-vibrant cottage industry, leaving behind memories of a bygone era.

Current challenges and contributions

IN THE present landscape, cottage industries face challenges from large-scale factories and changing consumer preferences. Despite this, they persist, contributing significantly to the country’s GDP. As of June 2017, there were 8.48 lakh cottage industries engaging 37.53 lakh workers, showcasing a growth rate of 9.21 per cent.

The ever-evolving preferences of consumers, coupled with the efficiency of large-scale factories, pose formidable challenges. However, the resilience of cottage industries is evident in their continued contribution to the nation’s GDP and the employment of a significant labour force.

Future of cottage industry

BANGLADESH’S cottage industry has a bright future. As the country is going to graduate from being a least developed country soon and is now grappling with high inflationary pressure, Bangladesh urgently needs to diversify its exports and export markets to stabilise its economy. We need to emphasise cottage industries to create employment in rural areas and economic prosperity.

This will also create a circle of opportunities for many as the raw materials for the industry are being produced domestically, and the low production cost and labour availability lessen the economic risk in the industry.

However, it should be kept in mind that the long-standing problems of the cottage industry have to be overcome through a deliberate and constructive process.

Ways to revive cottage industries

CONSIDERING the potential positive impact of the cottage industry on the economy, various steps need to be implemented at the government and private levels to provide the necessary excellence of the cottage industry. The Bangladesh Small and Cottage Industries Corporation also has to take essential steps in the areas of training of artisans, improvement of production processes, market management, capital supply, etc.

In a poor country like Bangladesh, the need for cottage industries is immense. The cottage industry has the right to exist next to large-scale industries for its own sake. Just as handicraft products can meet the needs of the people, the country can become self-reliant by reducing the import of foreign goods. Moreover, the expansion of cottage industries will generate employment opportunities in both rural and urban areas. To mention, about 60 per cent of Japan’s exports come from cottage industries, and 30 per cent of the country’s labour force is engaged in small-scale industries.

In developed countries, cottage industries are proudly competing with large-scale industries. The traders of those countries are preparing a lot of products by installing small industrial machines and exporting them abroad after meeting their own needs.

The road ahead holds immense promise for cottage industries in Bangladesh. As the nation strives for economic stability, the revival of cottage industries emerges as a beacon of hope. With the potential to utilise local resources and create goods tailored for both domestic and international markets, cottage industries can play a pivotal role in steering Bangladesh towards prosperity.

Md Al Noman is a deputy junior officer at Pubali Bank PLC.
 

Ensuring growth of small and cottage industries​

28 May 2023 00:00:00 | Update: 27 May 2023 23:44:09
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According to pertinent observers when the economy of a country is in shackles, it is the large industries that face most of the problems while small and cottage industries can develop in the face of adversity. It is labour-intensive, employing about 87 per cent of the total labour force.

These enterprises are significant contributors to employment generation, poverty reduction, and economic growth.

The sector contributes immensely to the economic growth of Bangladesh. They have a multiplier effect on the economy, as they create jobs, generate income, and contribute to tax revenue. According to the World Bank, the sector contributes around 25 percent of Bangladesh’s GDP. These industries are also significant contributors to Bangladesh’s export earnings.

As indicated earlier the sector provides employment opportunities to a significant portion of the population in Bangladesh. According to the Bangladesh Bureau of Statistics, CMSMEs employ around 87 per cent of the industrial workforce and 48 per cent of the total labour force in the country. The majority of these enterprises are located in rural areas, where they create employment opportunities for women and youth. As per the statistics of the SME Foundation, there are more than 7.8 million CMSMEs in Bangladesh where 7.3 million people are engaged.

And it is a misconception that small or cottage industries remain small but there are many success stories where they have ended up as macro-enterprises.

However for small or cottage industries to flourish along expected lines they need adequate support from the government.

There is a need for state initiatives to build a strong entrepreneur network to make the country’s small and cottage industry sectors in facing the ongoing challenges of the free-market economy. Increased competition, poor quality of product, unskilled manpower, lack of management commitment to quality, unawareness about quality through organization and lack of knowledge about quality control are the main hindrances towards making small and cottage industries profitable.

Such a view was reflected in a recent interview, published in TBP, with the President of the National Association of Small and Cottage Industries of Bangladesh (NASCIB) Mirza Nurul Ghani Sovon. Shovon stated that his organisation wants the government to focus on policies and allocation aiming to help promote the growth of the sector.

Relevant data shows that finance for these industries comes through the owner’s private savings and credit by financial institutions is far from enough. We believe that there is a lot of potential in Bangladesh for the progress of this industry and the country can improve its economy further through it.
Improvements can be made through the easier availability of loans on soft terms. Marketing facilities should also be improved. Small-scale and cottage industries should be encouraged as opposed to establishing new large-scale industries in urban centres, where the infrastructure is already strained.

It is imperative to develop the cottage industry on modern lines as it is intertwined with our cultural heritage and improvement in the economy along with the increase in foreign exchange. The government should offer incentives to the workers in the sector and establish proper institutions for training so that they give their best.

For increasing investment in the country, an efficient and strong SME can certainly play its due role; but that is not enough. For increasing investment, it is also necessary to adopt policies that can induce an atmosphere of investment in the country.​
 

Small and cottage industries face challenge​


Posted on November 10, 2020 5:47 PM

Bangladesh’s economy is growing fast with its local backward linkage sector supplying locally produced accessories. But according to a recent report in a local daily, small and cottage industries say that big government plants and manufacturing units are unwilling to acquire such spare parts from the small manufacturing enterprises.

The govt. is procuring such components from big corporations who are importing these parts from abroad.

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Figure: The backward linkage sector is paramount for the country to thrive and acquiring self-capability.

Small manufacturing enterprises say they have obtained their registration from the Bangladesh Small and Cottage Industries Corporation (BSCIC) to meet the standard and specification on demand.

It is worth mentioning that there is no complaint about the product's quality or any other related issues. Those are reported to meet the standard and specifications on demand.

On the other hand, the govt. is procuring such components from big companies under a policy instrument that was adopted by the ministry of industry in 2010.

In the last 35 years, Tk 6.0 billion worth of orders were placed by these big manufacturing units, which were imported.

Small entrepreneurs of the backward linkage industry say this is directly hurting them and the country’s capability in achieving self-reliance.

Not to mention, decreasing the country's gross domestic product (GDP), says the report.

Small and cottage industries, including light engineering, cannot prosper with facing such obstacles.

They also urge BSCIC to increase its monitoring of the large government manufacturing units' inventories for procurement.

Other complaints comprise fragile justifications of lack of quality of their products for rejection of their bids as well as engagement of local agents who irritate or obtain their international bids through conspiracies.

The backward linkage sector is paramount for the country to thrive and acquiring self-capability. At the same time, employing Bangladesh’s large population is one of the biggest achievements of this industry. Ensuring sustainable development of backward linkage through such small manufacturing units has a huge prospect.​
 

Cottage industries seek govt support to overcome challenges​


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Entrepreneurs in the cottage industries sought proper support from the government to help flourish in the sector, overcoming challenges created by the Covid-19 pandemic.

They were speaking on Tuesday at a national workshop titled 'From Challenges to Creativity and Innovation: Enhancing CMSME's Resilience in the Context of Covid-19' and prize-giving ceremony to the winners of Food Frontiers 2021.

National Association of Small and Cottage Industries of Bangladesh (NASCIB) and the Global Alliance for Improved Nutrition (GAIN) jointly organised the event at a city hotel.

NASCIB President Mirza Nurul Ghani Shovon chaired the programme while Jo Jacobsen, programme, policy advisor, nutrition, gender and M&E of World Food Programme, and Dr Rudaba Khondker, country director, GAIN Bangladesh were present as special guests.

Md Monjurul Hoque, the former chief faculty member of Small and Cottage Industries Training Institute (SCITI) of BSCIC, presented a PowerPoint on the issues.

According to the power point, about 25 per cent of the industries under the cottage, micro, small and medium enterprises (CMSME) sector were shut in the first five months of the Covid-19 pandemic.

It also showed that 60 percent of industries incurred 75 losses in selling products, and 58 entrepreneurs lost capacity of investments because of the impact of the pandemic.

Around 34 per cent of entrepreneurs could not pay rents of their institutions, while 16 per cent failed to pay salaries of their staff. Besides, 29 per cent of institutions could provide 50 per cent of the dues of their staff.

The marketing of products was hampered as the income of the majority of people declined due to the prolonged coronavirus pandemic.

The production costs increased in many cases because of the higher prices of raw materials. For these reasons, local products fail to compete with the imported ones, it said.

Entrepreneurs also faced complexities in receiving funds from stimulus packages that were provided for Covid-19 impacted sectors. They also said small and cottage food industries faced challenges due to the restriction on movements of customers during the period.

They also identified problems like the unavailability of technologies in the food sector. They suggested providing one-stop services and simplifying the process of registration and rationalising tax and tariff systems.

However, three business institutions have been awarded in different categories in the programme.

Ghost Kitchen Bangladesh won first prize of US$ 9,000 for improving the production efficiency of restaurants and commercial kitchens.

The first-ever nutrition-dense raw cashew nut processing solution to ensure nutrition for local and global markets, Green Grain won the second prize of US$ 6,700.

With the technological solution to understand the soil and market scientifically to ensure fair price for the farmers, iPAGE won the third prize of US$ 4,300 under the infrastructural grant support category.​
 

Fiscal incentives key to small, cottage industries’ growth​

Rafikul Islam
27 May 2023 00:00:00 | Update: 27 May 2023 00:27:14
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Fiscal incentives key to small, cottage industries’ growth


In the FY24 budget, we want the government to focus on policies and allocations aiming to help promote the growth of small and cottage industries, President of National Association of Small and Cottage Industries of Bangladesh (NASCIB) Mirza Nurul Ghani Shovon tells The Business Post’s Rafikul Islam in an exclusive interview.

Which things do you give priority in the next budget?

The Micro, Small and Medium Enterprises (MSMEs) sector in Bangladesh has emerged as a key contributor to the country’s economy, providing employment opportunities to 89 per cent of the population in urban and rural areas. With a wide network of direct and indirect members, NASCIB aims to foster the development of self-sustained and profitable micro, small and cottage industries, ultimately contributing to a prosperous Bangladesh.

The MSME sector comprises a staggering 7.8 million enterprises, employing approximately 21 million people. These enterprises play a pivotal role in driving innovation, ensuring social and regional stability, and contributing to the overall growth and development of the country.

Besides, we should prioritise capacity-building and skills development, infrastructure development, research and development support, market linkages and export opportunities for the sake of the MSME sector.

As Bangladesh strives to achieve Sustainable Development Goals (SDGs) by 2030, the MSME sector’s development becomes paramount. Prioritising the aforementioned budgetary measures is important in FY24.

What types of structural reforms are necessary to further develop this sector?

Structural reforms are crucial to unleash the full potential of small and cottage industries. We need policies that address infrastructure gaps, enhance skills development, encourage entre preneurship and foster market linkages. Additionally, promoting research and development activities and improving access to technology will help our industries become more competitive globally.

As you know that the government has SME Policy-2019 and Industry Policy-2022 focusing on the development of CMSMEs. To get maximum outcomes, time-bound action plans needs to be implemented effectively with collaborative approaches. If there is any gap, we need to identify these gaps and challenges and make it happen.

Can you shed light on the current challenges faced by small and cottage industries while doing business?

Certainly, CMSMEs often face challenges such as limited access to financing, access to information, less business environment, minimum forward and backward business linkages, less subcontracting, high inflation, increased prices of raw materials, and rising energy costs.

CMSME entrepreneurs and products are deprived of various legal, institutional and strategic benefits. On the one hand, just as the entrepreneur does not get enough benefits for product market and quality research, similarly creative and quality product research and market creation do not get strategic, technical or economic benefits. Therefore, in the way of development, international market creation or IPR can be facilitated to make domestic products industrial and efficient market, so it is noteworthy.

Furthermore, bureaucratic hurdles and complex regulatory processes hinder their growth. Addressing these challenges will require concerted efforts from the government, financial institutions, and industry associations.

What kinds of problems small and cottage industries may face after LDC graduation?

CMSMEs are the backbone of Bangladesh’s economy, and it is crucial to understand the potential obstacles they may face in the post-graduation era.
While LDC graduation presents new challenges to CMSMEs in Bangladesh, it is important to approach these obstacles as opportunities for growth and development. The government, in collaboration with industry associations like NASCIB, should develop comprehensive strategies that address the specific needs of CMSMEs.

This includes providing targeted support in terms of capacity building, access to finance, technology adoption, market access facilitation, and skills development. By addressing these challenges proactively, Bangladesh can ensure the continued success and resilience of its CMSMEs in the post-graduation era.

Considering high inflation, increased prices of raw materials, and rising business cost, do you believe that fiscal incentives are necessary for the development of the sector?

Absolutely, fiscal incentives play a vital role in promoting the growth of small and cottage industries. These incentives could include tax exemptions or reductions, duty waivers on imported machinery and raw materials, and subsidised energy prices. Such measures will help alleviate the burden on businesses and encourage their sustainable development.

What kind of policy support do you expect from the government to facilitate the growth of small and cottage industries?

We want the government to introduce supportive policies that ensure a congenial business environment. NASCIB urges the government to simplify and streamline regulatory processes, remove bureaucratic tangles and paperwork. The establishment of a single-window clearance system or an online portal for regulatory compliance would significantly improve the ease of doing business for these industries.

NASCIB firmly believes that with the right policy support from the government, these industries can flourish and contribute significantly to employment generation, poverty reduction, and overall socioeconomic progress.

The government should create a congenial environment that nurtures the growth of small and cottage industries, paving the way for a prosperous Bangladesh.

Do you get adequate support from BSCIC to develop your industries? What’s your observation?

Bangladesh Small and Cottage Industries Corporation (BSCIC) is playing a vital role in supporting small and cottage industries. However, there is room for improvement. We appreciate the initiatives, taken by BSCIC, such as providing infrastructure facilities and training programs.

However, we would like to get more targeted support, including easier access to finance, assistance in technology adoption, and marketing support for our products. Streamlining bureaucratic processes and enhancing coordination between BSCIC and industry associations will also be beneficial.

You received CIP card. What type of business you are doing and what’s your future plan?

I am the owner of a metal factory located in Kalihati of Tangail district. Our factory specialises in the production of various metal products, including components for machinery and equipment. With the CIP recognition, I feel honoured and motivated to contribute further to the growth of the small and cottage industry sector.

As for my future plans, I aim to expand the capacity of my factory and invest in advanced technologies to improve productivity and quality. I also plan to diversify our products to cater to both domestic and international markets. Moreover, I will continue to actively engage with industry associations, government bodies, and other stakeholders to advocate for the needs and concerns of small, medium and cottage industries.​
 

Dhaka’s handicrafts now in global market​


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Photo: Star

Tucked inside Baitul Aman Housing Society at Adabor is the factory outlet of "Hand Touch" -- a handicrafts venture with a focus on recycling and catering to a niche market of hand-woven textiles in Bangladesh and abroad.

The endeavour, Hand Touch by Mohammad Ali Khan, has been in business since 2002 and its speciality is in home dΓ©cor and textiles made by Bangladeshi women. The fabrics of choice are hand-woven materials like cotton, silk, and local fibres namely khadi, endi silk, jute, and others.

While clothing like local saris and three pieces are solely for the local market in Dhaka, the household products are of export quality and they have already grabbed the attention of the European market -- especially in countries like the Netherlands, Sweden, France, and Italy. Their products are also exported to Canada, Japan, and Saudi Arabia…even as far as Uruguay!

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"Neel Poddo Crafts" is an online page of Fahmida Sultana. She buys wholesale products from Hand Touch like khadi and taant saris and sells them through social media pages. There are about 100 or more such Dhaka-based online sites that sell products bought in bulk from Home Touch.

Graduating in silk technology with weaving as a minor subject, Khan has been experimenting with fabrics made by local artisans. His most recent experiment is the double-khadi weave, where he worked on the warp and weft of the loom with handmade, recycled cotton threads.

"It is not an easy task. After many tests and trials, I got the fabric done. It was for an order of throws and cushion covers in the Netherlands. I had them printed in black, zigzag patterns and the final product looks incredible.

"What makes me happy is that it carries the 'Made in Bangladesh' tag. Just like the RMG sector, we can work wonders with our cottage industry handicrafts," said Khan.

Currently, there are 30 or so companies based in Dhaka working to export local products like wicker baskets, table mats, runners, dining cloths, kitchen aprons, napkins, kitchen towels and tote bags made of recycled cloths, jute bags, and mats. Mohammad Ali Khan has two factories in Panchagarh and Manikganj for their production.

"I have 300 producers involved in the cottage industry. I explain my order and give them a sample. Then, the women artisans get the work done maintaining strict quality control," he shared.

"In Cumilla, handmade khadi threads are spun from spinning mill wastage and I collect the garments waste, make cotton out of them, and re-spin them into threads. The khadi products are hand spun and others are woven in machines. Dhaka is buzzing with ventures promoting local crafts and there is a robust online presence of local saris," Khan explained the reason behind the busy outlet.

We know that Pabna is popular for its buti and coarse saris from Dogachi. Tangail has its fine taants, Rupganj boasts timeless Jamdanis, and Mirpur has its gorgeous katans. Similarly, Cumilla has its yarn-based handloom khadi, and Rajshahi has silk.

Needless to say, our heritage weaves, yarns, and handicrafts are still struggling to put their stamp on the global market. So, when you come across such vibrant local businesses exporting and trading in our handmade merchandise in the global markets you most certainly feel elated.​
 

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