Small and Medium Enterprises (SMEs) form the backbone of Bangladesh’s economy, contributing 25% to GDP and employing over 24 million people. Yet, with 2.2 million new job seekers entering the workforce annually and only 700,000 formal jobs being created, the urgency to strengthen the SME sector is great.
To address this issue, a high-level consultation on the Draft SME Policy 2025 was held on April 23, 2025, at Holiday Inn Dhaka, bringing together UN agencies and development partners. The event was organized by the SME Foundation in collaboration with the ILO Bangladesh.
As the technical partner to SME Foundation, Innovision has been leading regional workshops and consultations with SME owners, policymakers, banks, and experts, ensuring the new policy is both practical and inclusive.
During the event, Md. Rubaiyath Sarwar, Managing Director and Lead Consultant of Innovision, shared practical policy recommendations based on real-world experience. Using examples from Dhaka and Chattogram businesses, he explained why different SMEs need different formalization approaches, not the same rules for everyone.
Mr. Sarwar emphasized three critical success factors: first, using real data to create targeted policies that can adapt over time; second, comprehensive inclusion addressing gender, geographic, and socio-economic disparities; and third, environmental sustainability integrated throughout SME development frameworks. These recommendations reflected Innovision’s hands-on experience in policy design and implementation.
Key speakers at the consultation emphasized the urgency of inclusive SME reform:
- Mr. Adilur Rahman Khan, Honorable Adviser to the Ministry of Industries, reiterated the government’s target of allocating 30% of SME loans to women entrepreneurs by 2027 and noted that 70% of Bangladesh’s 11.8 million businesses still operate informally.
- Mr. Md. Nuruzzaman, Additional Secretary of the Ministry of Industries, confirmed the government’s commitment to inclusive industrial growth.
- Mr. Md. Mushfiqur Rahman, Chairperson of the SME Foundation, stressed that diversity and inclusion must be core principles of the new policy.
- Mr. Toumo Poutiainen, Country Director of ILO Bangladesh, called for stronger coordination among ministries and partners to foster inclusive economic development.
- Mr. Gunjan B Dallakoti, Head of Programs at ILO Bangladesh, advocated for clearer enterprise classifications and enhanced support for women, youth, and persons with disabilities.
- Md. Nazeem Hassan Satter, Deputy Managing Director of SME Foundation, emphasized the sector’s potential in addressing the nation’s employment gap.
Insights from this high-level consultation are expected to shape the SME Policy 2025, driving inclusive growth, supporting formalization, and preparing Bangladesh for LDC graduation and sustainable industrial transformation.