Research paper

On

Importance of Small and Medium Enterprises in

Bangladesh

Submitted By

LIMON,MD.SAIFUR RAHMAN

20-91618-1

SEC-A (MBA)

Submitted To

DR. MD. FARUQUE HOSSAIN

Date :15/12/2020
Acknowledgments

All applaud to the almighty who provided me the power and knowledge for thinking.

I would like to expose my special thanks to my teacher our honorable Dr. MD. Faruque
Hossain Lecturer of Research Methodology of AIUB, who provided me the special opportunity
to do this outstanding project on the topic Importance of Small and Medium Enterprises in
Bangladesh
), which also helped me in doing a lot of Research and I came to know about so many new
things. I am really thankful to them.

I would also like to thank my parents and friends who helped me a lot in finalizing this project
within the limited time frame and supported me in gathering information and sometimes in excel
sheets by giving their valuable time and knowledge. By their support and help, I completed my
research report successfully.

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Abstract:

Small and medium-sized enterprises (SMEs) are the backbone of the national economy in
Bangladesh. This sector is playing an important role to develop the economy of our country. The
role of SMEs sector is huge to improve the poverty from the country as well. Small and
Medium enterprises are particularly right for the heavily populated countries like Bangladesh
where SME sector can provide huge employment opportunity with much lower investment. They
are expected to create jobs, reduce poverty and drive a resilient national economy. An attempt
has been made in this paper to identify the importance of SME sector for Bangladesh.

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Table of Contents
Introduction 5
Material and method 6
Result 7-10
Conclution 10
References 11

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Importance of Small and Medium Enterprises in Bangladesh
1.0 Introduction:

1.1-1.2 Background and Justification: Small and medium enterprises are known as the main
thing of economic growth. In Bangladesh, there are no other chances of small and medium
enterprises for fast development and countries economic growth. In our country small and
medium enterprises are playing an important role to the development of our country by creating
some chances to employment opportunity and get some foreign currency by their foreign
business. Now a-days so many people are encouraging to do some small and medium business in
our country.

1.3 Literature review: In developing economy like Bangladesh, Small and medium enterprises
play an important role in the development of the economy by creating employment
opportunities. Small and medium enterprises importance defined by many researchers in many
ways. Small and medium enterprises are the backbone of the economy in countries like
Bangladesh (Alauddin and Chowdhury, 2015). Small and medium sized enterprises (SMEs) are
playing increasingly important role as engines of economic growth in many countries including
Bangladesh (Zaman and Islam, 2011). SMEs can be established in any locality for any kind of
business activity in urban or rural area (Khalique et al.,2011). Small business are very important
to the world economics (Wiklund& Shepherd,2005). Small business firms play an important role
in the economy of any developing country (Wong & Aspinwall,2004).

1.4 Hypothesis: At the present time small and medium enterprises sector is facing a lot of
problems. Bangladesh government is trying to develop the small and medium enterprises sector
through different plan procedures even still the rate of development is not up to expectations.
There is a huge prospect to develop this sector. If Bangladesh government cannot develop this
sector then they have to face some uncertain situation in economic growth.

1.5 Objective: The objective is to highlight the importance of small and medium enterprises
(SMEs) sector in Bangladesh.

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2.0 Materials and Methods: Data mainly gathered from some small and medium enterprises
Entrepreneurs. Data which was I collected that was qualitative data. In this survey the problems
have come out regarding this issue plus many factors that could stimulate growth of small and
medium enterprises were also figured out. Data was also collected from secondary sources.I
collected the data by contacted other person via face to face method. The study analyses
published books, newspapers, magazines, different published research works, reports of various
government authorities and websites.

2.1 Research Design: Our research will be a new research, which is never made before. And our
population will be all business man, where our sample will be who are doing entrepreneur. And
sampling method will be randomly selected.

2.2 Population: That is defined as a individual data which taken a sample. This research
population Employees, Job holders and Businessman.

2.3 Sample: My sample size will be 32.

2.4 Sampling: Sampling is a statistical analysis a number of observations are taken from a large
number of population. Sampling is different ages, different culture people which involved a
business entrepreneurship. I will make questionnaires from collecting data and given with
multiples option.

2.5 Statistical approach: The study used Microsoft Word, Microsoft Excel and Google forms to
analysis the data. Several statistical and analytical methods and tools were used for analyzing the
gathered data from the survey. Bar chart has been used. The data that was collected through
online survey was shown in percentages with proper explanations as graphical tools to show the
analysis of data.

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3.0 Results and Discussion:

3.1 Results

10% Strongly Agree

Agree
15%
45% Moderate

Disagree

Strongly Disagree
30%

Figure 1: Reduce unemployment problem

In this chart 45% of people strongly agree that SME can reduce the unemployment problem and
30% of people says agree, 15% of people moderate but also 10% of people disagree that SME
cannot be reduce unemployment problem (figure 1).

20% 5%
40%
Strongly Agree

Agree

Moderate
10%
Disagree
25%
Strongly Disagree

Figure 2: Better than other Businesses

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In this chart 40% of people strongly agree that SME is better than other businesses and also 25%
of people agree, 10% of people moderate but 20% & 5% of peoples disagree and strongly
disagree that SME is not better than other businesses (figure 2).

15%
Strongly Agree

35% Agree

20% Moderate

Disagree

Strongly Disagree

30%

Figure 3: Improve economic condition

In this chart 35% of people strongly agree that they believe SME can improve economic
condition of our country and almost similarly agreed peoples are 30% and also 20% of people
moderate but there have also 15% of disagree people ( figure 3).

15% 5%
Strongly Agree
45%
Agree

Moderate

Disagree
35%
Strongly Disagree

Figure 4: Creating more entrepreneurs

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In this chart strongly agreed people are 45% that refers people think SME can be creating more
entrepreneurs than the other businesses in our country. It also mention that 35% of people are
agree with this concept and 15% of people moderate but just a 5% of people disagree with this
concept (figure 4).

10% 5%
Strongly Agree
20%
Agree

Moderate
35%

Disagree

30% Strongly Disagree

Figure 5: More profitable than other businesses

This chart mention that just 5% of people are strongly agree that SME is more profitable than
other businesses and 20% of people are also agree with them. 30% of people are moderate. But
35% of people are disagree with this concept and 10% are strongly disagree that are not more
profitable business than other businesses (figure 5).

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 10% Strongly Agree
20%
Agree
25%
Moderate

Disagree

45% Strongly Disagree

Figure 6: Improve urban and rural areas status differences

This chart show us that 45% of people are agree with this content and 20% are strongly agree
that SME can improve the differences between urban and rural areas people living status and
also 25% are moderate with this content. But just 10% of people are disagree with this content
(figure 6).

3.2 Discussion:

In these charts mention clearly that small and medium enterprises (SME) is important for our
country perspective. Because, 45% of people strongly agreed that SME can reduce our country
unemployment problem and they also mention that 40% of people believe SME can be a better
business choice than other businesses. It also mention in the chart that 35% and 30% people are
strongly agree and agree about improvement of economic condition in Bangladesh by SME. In
Bangladesh perspective we need more entrepreneurs to improve the business sector and 45% and
35% of people strongly agree and agree that SME can be creating more entrepreneurs for our
country. SME also effective to change the peoples thinking about the rural areas people status.
Now 45% of people agreed that SME can be improve the status differences between urban and
rural areas people. So for this data analysis help to know about the importance of SME sector in
our developing country and how it will be essential for our country.

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4.0 Conclution:

So it has clearly mention in the charts that SME is very much important for a country like
Bangladesh. Because in our country almost 17 million people lived and their main problem is a
poverty problem and there have not an enough sector for their job and that’s why our country
facing huge level of unemployment problem. Perspective of Bangladesh there is no alternative of
SME to reduce the unemployment problem and also increase the economic growth of this
country. Because Bangladesh economic condition is not a good and Bangladesh isn’t a well-
developed technology that’s why we are not used the high technological product. Our main
problem in business sector is low capital investment. So these types of problems perspective I
think SME is a good option for our country to reduce the unemployment problem. Now a day the
idea of SME business is also developed. The government of Bangladesh should be define a
secure and reasonable policy for the development of SMEs in the country.

5.0 References

1. Alauddin, M. and Chowdhury, M.M. 2015. Small and Medium Enterprises in Bangladesh-
Prospects and Challenges. Global Journal Of Management And Business Research 15(7) : 1-11.

2. Zaman, A.K.M.H. and Islam, M.J. 2011. Small and Medium Enterprises Development in
Bangladesh: Problems and Prospects. ASA Unversity Review 5(1) : 1-16.

3. Khalique, M., Isa, A.H.M., Ageel, A. 2011. Challenges for SMEs in a knowledge based
economy. Indus journal of management and social science 5(2) : 74-80.

4. Wiklund, J., Shepherd, D. 2005. Entrepreneurial orientation and small business performance :
a configurational approach. Journal of Business Venturing 20 : 71-91.

5. Wong, K.Y. and Aspinwall, E. 2004. Characterizing knowledge management in the small
business environment. Journal of knowledge management 8(3) : 44-6.

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