Speakers at a programme on Sunday suggested framing a separate guideline and better coordination between the regulatory bodies and financial institutions to ensure credit flow to informal sectors.
They also called for clarifying the definition of cottage, micro, small and medium enterprises (CMSMEs) and dividing small businesses into different categories for better management in disbursing loans under stimulus packages.
The suggestions came at a virtual dialogue on "Redesigning a 2nd Stimulus Package for Economic Recovery of CMSMEs" organised by Business Initiative Leading Development (BUILD), according to a press release issued by BUILD.
Presided over by BUILD Chairperson Abul Kasem Khan, the programme was addressed by Bangladesh Bank (BB) General Manager (SME & Special Programmes Department) Husne Ara Shikha, SME Foundation Managing Director Dr Md Mafizur Rahman, Dhaka Chamber of Commerce and Industry (DCCI) President Rizwan Rahman, BUILD CEO Ferdaus Ara Begum while Policy Exchange of Bangladesh Chairman Dr M Masrur Reaz presented the keynote.
Delivering her speech, the BB general manager said cottage and micro enterprises should be separately grouped and targeted apart from Small and Medium Enterprises (SMEs) so that their access to the stimulus packages can be increased.
She said at present, 6.0 per cent of the stimulus package has been disbursed to the cottage and micro enterprises while women entrepreneurs received 6.0 per cent of the emergency fund.
She also said as cottage and micro enterprises are categorised as the informal sector, these are difficult to reach through banking channels, while microfinance institutions are less interested to take out loan from stimulus packages due to lower profitability.
Presenting the keynote, Dr Reaz said low consumer demand has had a detrimental impact on small businesses leading to cash crunch and low revenues.
He noted that overall revenue in the SME sector slipped by at least 66 per cent due to the effects of the pandemic.
Besides, 39 per cent of the SMEs have to cut down salary costs by 25-20 per cent, which hints at layoff of employees to keep running the business.
The DCCI president suggested clarifying the definition of SMEs to avoid confusion about the sector.
He also called for establishing a national database for companies that are considered as SMEs.
Mr Rahman urged the authorities concerned to reduce costs of cash-based financial transactions and documentation fees for SMEs.
Head of SME of Eastern Bank Limited Salekeen Ibrahim, Head of Emerging Corporate of BRAC Bank Limited Introit Sur, Chittagong Women Chamber of Commerce & Industry President Monowara Hakim, Bangladesh Small and Cottage Industries Corporation (BSCIC) General Manager Akhil Ranjan Tarafder, ILO Programme Officer Mohammad Nazmul Avi Hossain, among others, also spoke at the programme.
