& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

SMEs show path to jobs

In times of rising unemployment, small and medium enterprises can create jobs and deserve attention from policymakers

Tarique Afzal
WITH rising unemployment and inflation, we need more jobs, and we need them now. The most efficient way to create jobs is by encouraging more small and medium businesses and entrepreneurs to compete in the market and beyond.
The reality is that small and medium enterprises (SMEs) are powerful — indeed essential — engines of economic growth and job creation, not to mention additional revenue.
Unfortunately, financial institutions do not give enough attention. The SMEs are not receiving adequate attention to equip and gear them toward competing internationally, despite the vast potential that exists aboard.
All businesses require loan or credit to grow. Our current system of financial institutions is performing its function anemically. The derivatives may be a rare option but the potential of planting long term benefits are for real and durable.
The real problem this nation faces is moral conduct and hence the attitude "I do it my way.” One would have to be naive or foolish to believe that individuals in financial power would conduct themselves dif-ferendy. Neither politics nor law has been able to correct our conduct.
SMEs have traditionally been the province of growth for the economy in countries similar to ours and the nation can depend on it to increase the country's employment rate.
The commitment to grow the strength of the SME sector of Prime Minister Sheikh Hasina is overwhelming.
Let us look at the paraphrase of benefits of SMEs — these enterprises generally have a greater understanding of cultural and related context, links with society, and a greater commitment to operating in a specific area. In many cases, family-owned companies in particular often exhibit strong ethical approaches that ensure job satisfaction and reduce default on borrowings. They are also able to build a strong business case to improve and demonstrate their social responsibility.
According to statistics from countries such as India, Sri Lanka and even Canada, small and medium-sized enterprises produces about 21 percent of their GDR encouraging sectors to deal cross borders and become global players.
In lieu, our prime minister urged all entrepreneurs by saying at the opening
ceremony of the SME Fair, "Despite various incentives by the government, you will have to sustain by competing with the outside world, both in quality and price of the products. You also have to be more careful about management and quality control of the goods."
In order to ensure such a vision of employment opportunities, the difficulties confronting high-growth SMEs include obtaining financing, expanding markets, calculating the risks of alliances, finding the
right partners and employees, hiring and training staff.
Governments can help overcome such barriers to growth by simplifying policies and programmes to reduce bureaucracy, by giving more responsibility to private authorities and by evaluating the policies on a regular basis. In this regard, the SME Foundation has played a major role in developing significant methods in modifying the sector via extensive research and fundamental support. "We will be driven by the vision to increase manufacturing of a variety of products in the local industries and to find new destinations to boost exports," said Syed Rezwanul Kabir, managing director of the SME Foundation. To support the slogan of SME employment, SME Foundation and nine other similar bodies in Asia have recently formed an alliance to foster economic growth and create jobs for the youth. The new platform emerged after the Commonwealth meetings of the government heads in 2009 and 2011 gave mandate to set policies and mechanisms for youth enterprise development.
SMEs operate in almost all sectors, but are more heavily represented in some than others. However, SMEs tend to predominate in service, construction, retail, manufacturing (in the case of medium-sized companies), transport, storage, and others. Today, like in many countries, SMEs remain the backbone to the development of the economy at large.
The economic crisis has affected the economies of a majority of different states in various sectors to varying degrees. The highest export revenue generating sector of RMG and pharmaceuticals had to cut profits. The impact on SMEs has been mixed, and largely dependent on issues such as the sector in which they operate. However, in countries like ours, the impact on SMEs seemed insignificant as they cater mostly to the domestic market.
Considering the modalities, the option shall always be the SME way, and it is clear that the small and medium businesses, which are the bedrock of the Bangladesh economy, need support to boost business confidence and realise their potential.
The need of the time is SMEs, which, I think, should be the focus of all debates and discussions.
The writer is the chief executive officer of a rating agency. He can be reached at tariqueafzal@hotmail.com.