Premier University

Term paper
On
“Small Size Business in Bangladesh”

Submitted to:
Mr. Syed Moinur Rashid
Lecturer
Department of Management
Faculty of business studies
Premier university, chattogram

Submitted by:
Mostafizur Rahman
ID: 1503210108701
Department of Management
Faculty of business studies
Premier university, chattogram

Date of submission
LETTER OF TRANSMITTAL
Date:
Mr. Syed Moinur Rashid
Lecturer
Department of Management
Faculty of business studies
Premier university, chattogram
Subject: Submission of Term paper on “Small Size business in Bangladesh”

Dear Sir,
With due respect, I would like to inform you that it is a great pleasure for me to submit the term
paper on “Small Size Business in Bangladesh” as a mandatory requirement for BBA Program.
This term paper program was my very enthusiastic and provided me great learning experience
and knowledge in several areas. I have tried my level best to make a full fledge term paper by
analyzing all the requirements you have asked for.

I am grateful to get the opportunity to prepare this report under your guidance. I will remain
deeply grateful if you kindly give your valuable time to go through the report and evaluate my
performance. I will be happy to provide any further explanation if necessary.

Sincerely yours,
……………...
Mostafizur Rahman
ID: 1503210108701
Department of Management
Faculty of business studies
Premier university, chattogram
 ACKNOWLODGEMENT

At first I would like to gratitude to the almighty Allah, who aided me his strength, and gave me
wisdom and patience to make this term paper successfully.

Additionally I want to thank to my course instructor Mr. Syed Moinur Rashid who always help
me by giving valuable instruction, and also believe that I could terminate the term paper on time.
His moral guidelines, endless effort, and joyful encouragement made me successful in this term
paper.

Furthermore I want to show my appreciation to the executives, to the librarian of premier

university and to the lab assist ant of the computer labs, for their unlimited patience during the
time of research writing.

At last I also thankful to my classmates and friends for their help and support. I would like to
thank to my parents and other family members for their help and support and sacrifices during
the making of this term paper.
Supervisor Declaration

This is to clarify that Term Paper report on “Small Size Business in Bangladesh” has been
submitted for the fulfillment of the degree of Bachelor of Business Administration (BBA) at
Premier University, chattogram carried out by Mostafizur Rahman, the student of Dept. of
Management 32nd batch under my supervision. His ID: is 1503210108701. He has done his job
according my supervision and guidance. To the best of my knowledge and as per his declaration,
any part of this report has not been submitted for any other degree, diploma or certificate.

He is permitted to submit the term paper. I wish great success of his future career path.

Best regards

……………

Mr. Syed Moinur Rashid

Lecturer

Department of Management

Faculty of business studies

Premier university, chattogram

 Executive Summary

This report is the last stage of my BBA program. This report is made based on basically “Small
Size business in Bangladesh”. The objective of this report is to analyze the present scenario of
small business in Bangladesh. The reason for choosing this topic for my term paper because this
topic consider as one of the most valuable for our economic growth.

Small business is that part of business which is organized and managed by the owner or his or
her family. Small business is a crucial part of the total business scenario of any country.
Especially it plays a vital role in case of the economic development of a less developed or under
developed country. Areas that small business covers are- manufacturing, wholesaling, retailing,
service and so on. An interesting point to be considered is that the growth and development of
medium and large industries is mostly dependent on small business.

Today, small business is providing strong contribution the national economy. Features that have
made small business separate from other business forms are – large contribution of owner,
source of finance, size and capital of the firm, size of investment, less legal restrictions and so
on. Like other countries small business is in a firm position in our country.

As the unemployment in our country is high, so small business may play an essential role in
reducing the rate of unemployment. Some government and non-government organizations are
assisting in the expansion of small business in our country. But unfortunately, small business is
facing some unexpected problems. These problems include – lack of required knowledge and
managerial skill of the owner, lack of adequate capital, inventory mismanagement, negligence of
the inhabitants towards small business, unable to compete with large firms, lack of proper
counseling and other forms of assistances and so on.

As small business is having a crucial impact on the economic developed of our country, so
government as well as non-government institutions must come forward with comprehensive
program to remove all the inconveniences. Because small business has gained a major portion of
our country by contributing to personalized flexibility, creativity, specialization and
performance.
CHAPTER 1
Introduction

Small business are recognized as engine of economic growth and employment generation for
sustainable industrialization in both developed and developing countries of the world.

In context of Bangladesh, there is no alternative of small enterprises for rapid industrialization

and national economic growth through lower capital investment and employment generation.
Their absolute contribution to employment and GDP, Small Business offer significant economic
and social advantages. By virtue of their local ownership they offer the possibility of greater
involvement in the local community. They also offer a degree of choice that would not exist if
Small Business were to be less significant.

To run a business enterprise allocation of funds and their proper uses are very important. But
most of our Small Business suffer from lack of necessary funds and their proper uses. Besides
this, in our banking sector the micro credit becomes a very important instrument due to its higher
rate of loan repayments. Many PCBs now go for providing micro credits as well as the NCBs,
NGOs, Grameen Bank and other financial organizations. Small business are the main customers
of micro credits.

Since its independence, Bangladesh has experienced more than its fair share of natural disasters
and political instability. These have contributed to a very slow rate of economic growth and a per
capita income of around US$220 per annum. Despite some degree of industrial development,
most notably in the ready-made garments industry, Bangladesh is still predominantly an agrarian
economy. The sector contributes 43 percent of the GDP and employs around 60 percent of the
labor force..

A circulation of Bangladesh Bank in the last year states that all the commercial banks must have
to open 20% of their total branches in the rural area. From this circulation it is clear that the
Central Bank is giving emphasis on the rural banking i.e. micro credit. From this circulation it is
clear that the Central Bank is giving emphasis on the rural banking i.e. micro credit.
OBJECTIVES

The main objective of this paper is to evaluate the performance of Small Size of Businesses of
Bangladesh. More specifically the objectives are:

 To assess the relationships among Average Growth of Profits, Savings and Investments
of SSBs.
 To assess empirically the relationships between Average Growth of SSBs (Small Size of
Businesses) and Employment Opportunity.
 To assess empirically the relationships between Economic Development and Poverty
Alleviation.
 To find out the major problems in SSBs and provide some recommendations against the
problems at the end.

METHODOLOGY

A. Primary Data Collection

A structured questionnaire was developed on the basis of some valuable indicators to which the
respondents were asked to put the right mark against the dichotomous questions and asked to put
the quantitative data. At the end of each questionnaire it has blank space for mentioning the
problems of doing small business and suggestions as well.

B. Secondary Data Collection

Secondary information has been collected from Ministry of Industries, SME foundation,
Bangladesh Bureau of Statistics, Bangladesh Bank (BB), BSCIC, MIDAS, Financial Institutions
and from other SME related organizations, Different Books, National and International Papers,
Proceedings, Magazines etc.

Limitation of the Study

There were certain limitations while conducting the study. These are summarized below:

 The main constraint of the study was of time as the duration of the program was very
short.
 Insufficient supply of relevant books and journals.
 Lack of my experience and efficiency to prepare the standard report.
CHAPTER 2
LITERATURE REVIEW

Now a day it is well acknowledged among researchers and economic policy makers that Small
Size of Businesses play vibrant role in contributing to overall economic development of
countries.

Studies of the US economy in the 1990 revealed that the introduction of new firm births and the
growth of Small Size of Businesses were the major sources of job creation that played a
significant role in local economic change (Karlsson, et al. 1993).

The history of small business has been one of the most prime concerns for the different groups or
stakeholders and it involves with controversial stories in economic development in the world.
The role of small business in an economy has frequently been weakened and even
misinterpreted. In the past, small businesses were believed to impede economic growth by
attracting scarce resources from their larger counterparts (Audre-tsch, et al., 2000).

However, the later part of this literature, it is clearly reveal the positive impact of SMEs as the
SMEs are found in all sectors of the economy, they are dominant in trade followed by services
(Hartog, J. 2005).

In a study about SME sector of Bangladesh Miah (2007) stated that SMEs are involved with the
paucity of self-fund, sources of financing, modern technology; high rate of interest,
irregular/inadequate supply of power, poor physical infrastructure and high transportation cost,
poor information about market opportunities and requirements, inadequate availability of raw
materials, lack of skilled technicians and workers, lack of research & development facilities,
fierce com-petition, absence of effective and transparent legal system, difficulties in accessing
technology, credit constraints, low access to business services, constraint of quality of human
resources, low awareness, low lobbying capacity, rapid changes in policy environment.

Curtis E. Tate, Jr. and his co-authors in their book “Successful Small Business Management”
(1982) define small business as “An organization with a name, a place of operations, an owner,
and one or more workers other than the owner.”
The Federal Reserve Bank of USA says small business is one which “is independently owned
and operated but is not dominant in its field.” In the Small Business Act of 1953, the US
Congress gave the same definition of small business.

“Small industry means an industrial establishment or unit which is run mainly by hired labor and
not using mechanical motive power but does not normally employs more than 50 workmen and
whose land, building and machinery does not exceed Tk.150, 00,000 in value in either case.” –
E. Pakistan Small Industries Corporation Act of 1957.

Moreover, it is worth mentionable in the context of Bangladesh SME is characterized by low

capitalization and limited assets, geographical diversity and high mortality, poor credit
knowledge, very limited access to formal source of credit, cash intensity in transactions, very
limited record keeping habit, poor financial disclosure on account of tax issues, high risk
perception has led to high borrowing (Chowdhury 2007).

Understanding the relationship between small businesses, economic growth and the incidence of
poverty has been the interest of many researchers and there have been many attempts to establish
statistical relationships between poverty rates and overall macro-economic performance on the
basis of aggregate some statistical techniques. But, still there has been limited works in
Bangladesh at micro level to focus only the Small Size of Businesses and their contribution for
the development of economy. So, in this paper it attempts to evaluate the performance of Small
Size of Businesses (SSBs).
CHAPTER 3
SMALL BUSINESS

A small business is a business that is independently owned and operated, with a small number of
employees and relatively low volume of sales. Small business is defined as those engaged in
manufacturing or processing or service activities whose total fixed investment is limited to BDT
30 million (US$ 0.75 million), while cottage industries are those engaged in manufacturing or
servicing and generally run by family members with a total investment limited to Tk. 0.5 million
(US$ 12,500) only. The legal definition of “small” often varies by country and industry, but is
generally under 100 employees in the United States and under 50 employees in the European
Union. In comparison, the definition of mid-sized business by the number of employees is
generally under 500 in the U.S. and 250 for the European Union. In Australia, a small business is
defined as 1-19 employees and a medium business as 20-200 employees. Small businesses are
normally privately owned corporations, partnerships, or sole proprietorships.

In addition to number of employees, other methods used to classify small companies include
annual sales (turnover), value of assets and net profit (balance sheet), alone or in a mixed
definition. These criteria are followed by the European Union, for instance (headcount, turnover
and balance sheet totals). Small businesses are usually not dominant in their field of operation.

Small businesses are common in many countries, depending on the economic system in
operation. Typical examples include: convenience stores, other small shops (such as a bakery or
delicatessen), hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses,
photographers, small-scale manufacturing etc.

The smallest businesses, often located in private homes, are called micro businesses (term used
by international organizations such as the World Bank and the International Finance
Corporation). The term “mom and pop business” is a common colloquial expression for a single-
family operated business with few (or no) employees other than the owners.
Features of small business

Small business has some special characteristics. These characteristics have made small
businesses different from other firms of businesses. The features of small businesses are as
follows-

 In case of small businesses, owners pay the most vital role as he\she performs all the vital
responsibilities .s\he is the one who takes all the initiatives to start the business’s\he bears
all the risk. The business is operated & managed by his or her\by the owner
 It is easy to run the small business compared to large corporations. And there . is little or
no delegation of authority. And the communication process is verbal.
 Another important feature is that, there is no separate entity. Business & owner is
uniform in this case.
 In case of small business, employers are hired internally. Most of the employees are from
the family & only few are hired.
 Another important concern is financing .Small business is basically financed by the
owner. Limited funds are borrowed. It has no access in share market.
 As, the employees are mostly from the owner’s family & the number of the employees
are few, so there remains a close relationship among owner & employees.
 There is little scope of innovation. And also few scope for specialist services.
 Small businesses are housed in small establishment. So infrastructural cost is low.
 Small businesses are run by the owner. So control is easy.
 In case of small business, it is easy to ensure security; compared to large corporations.
 Small business is run by limited capital. So, size of investment is comparatively low.
 Small business has limited market share. That is sales volume is small.
 Another important concern is, use of technology. Modern equipments are not used to a
large extent in case of small business.
 The alone mentioned features have made small business different.
Stages of Small Business Development

Any precise quantitative estimate of the importance of small business in Bangladesh economy is
precluded by non-availability of comprehensive statistical information about these industries at
the national level. Latest BSCIC estimates suggest that there are currently 55,916 small
industries and 511,612 cottage industries excluding handlooms under the section of small
business. Including handlooms, the number of cottage units shoots up to 600,000 units indicating
numerical abundance of small and cottage industries (SCIs) in Bangladesh. The most recent
private sector survey estimates the contribution of the micro, small, and medium enterprises
(MSMEs) is 20-25% of GDP. Regardless of the correct magnitude, SBs undoubtedly play a very
important role in the economy of Bangladesh in terms of output, employment, and private sector
activities. Together, the various categories of SBs are reported to contribute between 23% of
total civilian employment. However, serious controversies surround their relative contribution to
Bangladesh’s industrial output due to paucity of reliable information and different methods used
to estimate the magnitude. The most commonly quoted figure by different sources (ADB, World
Bank, Planning Commission and BIDS) relating to value added contributions of the SBs is seen
to vary between 45-50% of the total manufacturing value added. Some specialized financial
institutions are working actively in Bangladesh to provide SME facilities:

Bangladesh Small & Cottage Industries Corporation (BSCIC)

 Bangladesh Industrial Technical Assistance Center (BITAC)

 Bangladesh Council for Scientific & Industrial Research (BCSIR)
 BASIC Bank
 NASCIB
 MIDAS
 CARITAS
 Commercial Banks (BRAC Bank, AB Bank, Dhaka Bank)

Prospects of Small Business in Bangladesh

Small business in Bangladesh has a significant prospect in respect of social, economic & cultural
perspective. In previous & current year, we observe the owner of the small business; get
auspicious result from conducting this business. Here we identify some reasons for the prospects
of small business in Bangladesh.

Supporting Industry:

Small business work as a supporting industry for the large business unit. Large business
develops products, select market and produce large scale of products which are distributed to
the ultimate consumers by small business. To distribute large scale product small businesses
like distributors, wholesale business, retail business etc. are developed over time.

1. Easy formation:

Easy start up & less rules &regulation also help the growth of small business unit in
Bangladesh. As we know to start up a business like small business the formal procedure is
very easy compared to other country in world.

2. Cultural product demand:

Culture specifies norms and customs of a society. Bangladesh has a established culture and
different cultural event. Bangladeshi people with their norms and in different cultural events
use cultural products. This demand may be fulfilled more efficiently by small business rather
than large business. For example, we use Punjabi and Shari in cultural events like Pohela
Baishak, Pohela Falgun etc.

3. Unemployment effect:

A large number of unemployed people are playing a crucial role in establishing small
business. In rural area seasonal unemployed people support the small business a lot. Current
global recession also help a large number of skilled people who loss their jobs will contribute
in small business with their skilled labor.

4. Skilled worker:

For starting small business expensive training program is not necessary. It also does not
require modern technology. Workers can gather experience from their family members.

5. Women participation:
 Women participation in outside work environment is still limited in our country because of
social conservativeness. So women can easily engage in small business activities. As a result
they can play a greater role for the development of their family as well as our country.

6. Local demand:

Local demand mainly created according to local culture, people’s idea modes and norms.
Specific local demand can not be fulfilled by large industry. By fulfilling local demand
small business can earn more profit

7. Location:

For establishing small business it is not so much important for managing area as large
location. Most of the small businesses are established by the combination of family
members. It is not necessary to buy or rent extra land for establishing small business.

8. Loan facility:

Different financial institutions provide financial support for the development of small
business. Now a day’s different N.G.O’s also play a greater role for providing support to
the small business.

Institutional Support in Small Business Unit

 Bangladesh Small & Cottage Industries Corporation (BSCIC)

BSCIC is a promotional organization. It fosters the promotion and extension of Small and
Cottage Industries (SCI) in the private sector in Bangladesh. Its H.Q. is in Dhaka having 4
Regional offices and 64 District offices. It is a Government statutory body.

 Its Objectives are:

 To accelerate the growth of SCI and raise its productivity.

 To create employment opportunity, develop and provide marketing facilities and linkage
industries.
 To arrange HRD facilities.
 BSCIC Provides
  Pre investment counseling
 In plant advisory services
 Post investment extension services
 Developed Industrial plots for investors

 BSCIC Supplies

 Technical information
 Designs and prototypes
 Industrial profiles
 Market information

 BSCIC Assists in:

 Financing of SCI through DFIs & NCBs

 Selection of right type of machinery
 Adopting and adapting appropriate technology
 Studying investment feasibility
 Establishing sub- contracting linkages.

 BSCIC Organizes

 Technical and management skill development training

 Fairs and exhibitions
 Buyer-seller meet

Bangladesh Industrial Technical Assistance Center (BITAC)

Bangladesh Industrial Technical Assistance Center (BITAC) was set up by government as an

autonomous body under the Ministry of Industries. Its mandate is to:

(a) Train industrial personnel to upgrade their skills;

(b) Render technical advice to industries;

(c) Disseminate modern know-how and improved techniques among industrial personnel;

(d) Manufacture and supply spare parts, tools and machines; and
(e) Develop equipments tools and processes. BITAC has since its birth played an important but
limited role by facilitating transfer of technology to the industrial sector of the country besides
developing human resources through its skill development training programs. However, it has
suffered from chronic paucity of funds necessary for conducting training and modernization.
This venerable organization with years of experience and goodwill should be reenergized and
enabled to play its due role in the national economy.

Bangladesh Council for Scientific & Industrial Research (BCSIR)

Bangladesh Council for Scientific & Industrial Research (BCSIR) has also remained an
underutilized organization in spite of its potential. Particularly, its regional establishments in
Chittagong and Rajshahi should have been fully used to undertake research in locally available
materials, which can be used as inputs by the SMEs. The agency’s research in the area of Soya
foods and Spirulina for example has attracted attention of the public but there has been no
sustained effort by BCSIR to remain in the public view. Years of neglect and fund starvation
have stifled the growth of BCSIR. To the best of our information it has no useful linkage with
the SME sector. Ways need to be explored to find mutually beneficial cooperation between the
two.

Other Institutions

Over the years a number of semi government and private sector institutions have become active
in the SME area. Some of these like the BASIC Bank, and just named

BCSIR are in the public sector. But more importantly NASCIB, MIDAS, CARITAS, Kumudini,
Banglacraft to name a few are some of the organizations, who have appeared in the private sector
and are contributing to promotion and development of the SMEs particularly those in the
traditional sector. However, more SMEs should be encouraged and assisted to form their own
associations and build-up links with the national bodies. The major non-government private
sector support agencies in the field of finance include a large number of non-government
microfinance organizations (NGOs).

Their work among the landless & asset less poor through infusion of microfinance has activated
millions of miniscule SMEs across the country.

Special Incentives for SB in Bangladesh

A. Tax consideration:

Tax considerations specially tax holiday and income tax benefits for small business
encourages potential entrepreneur to establish a small business. For small business govt.
provide tax holiday for 5-10 years and entrepreneur’s income are also tax free. Tax
 holiday facilities will be available for five or seven years depending on location of the
industrial enterprise. Tax holiday facilities will be provided in accordance with the
existing laws. The period of such tax holiday will be calculated from the month of
commencement of commercial production. Tax holiday certificate will be issued by NBR
for the total tax holiday period within ninety day of submission of application.

B. Flexible rules & regulations:

Flexible in rules & regulation also assist the growth of small business in Bangladesh. For
this flexibility small business unit may quickly start up their operation. Special incentives
will be provided to encourage non-resident Bangladeshi (NRSs) for investment. In case
of their investment in Bangladesh, they will enjoy facilities similar to those given to the
foreign investors.

C. Consultancy support:

Banks and N.G.O’s provide financial support as well as counseling facilities. They
monitor the performance of the small business. If their performance is not satisfactory
financial institutions provide logistic support.

D. Reviewing performance:

In order to eliminate any unfair competition, rationalization will be undertaken keeping in

view the interests of the entrepreneurs as well as consumers. Bangladesh Tariff
commission will regularly review such cases and recommend necessary measures.

Constraints of SB in Bangladesh

I. Quality and Standards:

Bangladesh has failed to ensure the quality of products and services to consumers not only in
the domestic market but also in international markets. There is no national quality policy and
adequate support systems that provide assistance to all enterprises to understand the
principles of quality and to develop quality consciousness in business behavior. Currently,
the Bangladesh Standards and Testing Institution (BSTI) formulates national standards of
industrial, food, and chemical products. However, the most important problem is that BSTI
lacks credibility.
 II. Marketing:

SBs in Bangladesh, especially the small enterprises, do not have enough marketing capability
and network. An overwhelming majority of small firms do not have resources to be invested
in marketing. Advertisement is an important determinant of demand but SBs in Bangladesh
in most cases are not in a position to use this as a marketing tool. Export-oriented SBs have
very little marketing activities and most of them try to survive by linking up with
multinational buyers or setting up subcontracting relationships with them.

III. Investment and Working Capital:

One of the most important problems affecting supply is the access to finance. SBs need
finance to enable them undertake productive investment in order to expand their business,
to introduce new products, and to market them. Various survey and microstudies in
Bangladesh have identified access to finance as the main problem facing the SBs

IV. Shortage of Skilled Workers:

Although Bangladesh is a labor abundant country, shortage of skilled workforce is

perceived to be a major constraint for manufacturing production. This problem is
particularly acute for medium scale export oriented enterprises. Manufacturing goods
now overwhelmingly dominate Bangladesh’s export basket, but a significant proportion
of it comprises very low domestic value addition because of limited backward linkage in
the RMG sector, which will require skilled manpower. Therefore, supply capacity is
preconditioned by availability of skilled workers.

V. Lack of entrepreneurship and management skills:

Most owner-managers and entrepreneurs often lack wider managerial skills that hinder
their long-term success. Strategic planning, medium to long-term vision, marketing,
commitment to quality, knowledge of quality systems, communicating in foreign
languages, cash-flow management, information technology are a few critical elements of
management required to meet challenges of the market economy, especially in the
international market environment. In such a complex setting since it is not possible for an
individual to muster all of these qualities, firms make division of Labor.

VI. Physical Infrastructure:

The state of physical infrastructure is weak in Bangladesh. It is evidenced that in

countries with poor infrastructure, business must devote more resources to such tasks as
 acquiring information, procuring inputs, and getting their products to market. There are
two dimensions of poor infrastructure – one is the unavailability of a certain service or
utility (such as telephone, water, electricity, roads and highways, etc.) and the other is the
unreliability of the services provided. In Bangladesh there are problems on both fronts
and together undermines the competitiveness of SBs.

VII. Transport costs:

In some recent survey finds that transport to be a bigger problem in Bangladesh than in
some comparator countries. Three factors interact to accentuate this problem. First, the
recent research works on economic geography and international trade suggest that
unfavorable geographical locations (e.g. distance) increase the costs of both export and
import trade relative to countries with more favorable geographical characteristics.

VIII. Geographical Disadvantage:

Geographically Bangladesh is away from more lucrative market of world like USA,
Europe. The geographical disadvantage of being farther away from its North American
and EUmarkets compared to many other competitors. Inefficient and corrupt ports and
inland transportation increase the cost of production substantially.

IX. Trade Policy and Incentives:

Bangladesh’s trade policy underwent a radical change particularly in the decade of the
1990s. Liberalization of industrial and trade regimes along with globalization are likely to
have had significant effects on Bangladesh’s SBs

X. Lack of information:

Lack of information is a major constraint to market development of Bangladesh’s SBs.

Trade information is more than ever an element of competitiveness due mainly to three
reasons:
 (i) Assessing market trends and characteristics,

(ii) Understanding the market and new market access conditions, and

(iii) Identifying new market opportunities and potential trading partners. The Internet has
introduced a new way of doing business especially in the field of commercial operations
– selling and buying, advertisement, servicing and training.

Suggestions

Here we are giving some suggestions that may be helpful to improve the Small Business sector
in Bangladesh. As capital is the major problem for Small Business development in Bangladesh
special emphasis should be put here. Commercial banks should finance Small Business by giving
them loan in low interest and for long term.

 Role of N.G.O.s: NGOs are very active in this sector. There activity should be spending
all over the country.
 Assistance of Government: Government should make definite plan to boost up this
sector. Youth development department should be more activate. Their fund needs to be
increased and rules should be more flexible.
 Ministry for Small Business: Special ministry can be made to coordinate all this.
 Subsidy: Government can give some subsidies to boost up this sector.
 Flexibility in Case of Tax: Taxation rules should be more flexible for Small Business.
 Availability of Raw Material: It should be assured that the Small Business firms will get
sufficient raw materials in lower cost.
 Removal of Political &Social Inconsistency: Political and social instability should be
maintained. Terrorism must be sustained and keep under control.
 Availability of other Facilities: It must be assured that the Small Business firms will get
public utility service connection without any delay and bribe.

As newspaper report of Bangladesh, 11 lac (more than one million) educated people are
unemployed. Neither employees are (job seeker) happy for salary nor employers are happy to
appoint unskilled and imperfect people. I shall not go to find the reason of such situation. Rather
inspire the young people to reduce unemployment scenario.  Why do not you start small
business! You have spread, talent, capability of taking small risk, bright future for your next
generation. Why are you dependent on job! Let giving example, you have 10 years’ experience
on particular job and your current salary is Taka 100,000 or 100,000 (+-). When you will retire
from job your child will start from the beginning as Jr. Executive like you (10 years back). The
same hard working will have to do your son/ daughter. Besides, private job is not secured at all.  
No performance, fire!

Why do not you start small business! Today’s small business will be bigger after 10 years if you
utilize your talent, patience, time, knowledge and money. Your son/ daughter will not have to
start carrier as Jr. Executive. They will take a good position of Chair and happy rest of life. A
good business never dies. Grandson becomes proudly run business of Grandpa.