Description

Unlike the Global Financial Crisis, which originated in the financial sector and gradually impacted the rest of the world’s economy, the COVID-19 pandemic has struck like a seismic event, stopping all economic activities at one go. While the pandemic is impacting businesses of all sizes, the SMEs are hit especially hard due to preexisting vulnerabilities and their lower resilience. The SME sector is a key driver of the national economy in Bangladesh. Contributing 25 percent to the country’s GDP, SMEs play a crucial role in income generation and resource utilization. According to the Economic Census and Enterprise Survey, both conducted in 2013, some 99 percent of all non-farm enterprises fall into the micro and small enterprises categories, providing employment to 20.3 million Bangladeshi workers. But, despite playing a pivotal role as Bangladesh’s economic engine, SMEs face several challenges.