Business registration in Bangladesh remains lengthy, complex and scattered across multiple agencies, forcing entrepreneurs, especially SMEs, to face harassment and corruption, said Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun.

He announced that a unified digital platform is being developed with support from donor agencies, enabling entrepreneurs to register businesses, open bank accounts, access investment services and obtain regulatory approvals through a single mobile application.

He made the remarks at the inauguration of the eight-day 12th National SME Product Fair at the Bangladesh-China Friendship Conference Center in Agargaon, Dhaka on Sunday.

This year’s fair is being held under the theme “SME Power, Country’s Progress.”

The event was inaugurated by Industries, Housing and Public Works Adviser Adilur Rahman Khan and presided over by SME Foundation Chairperson Md Mushfiqur Rahman.

City Bank Managing Director and CEO Mashrur Arefin attended as a special guest.

Ashik Mahmud said SME entrepreneurs continue to struggle to access loans, and BIDA is providing technical support to ease financing barriers.

“Doing business in Bangladesh is still difficult,” he said. “We want entrepreneurs to advance as far as possible. We are working to simplify the process through technology.”

He added that bureaucratic hurdles and corruption in the approval process remain major obstacles, with entrepreneurs often forced to make repeated office visits.

Full digitisation, he said, will allow business registration and government services to be delivered through a single platform, ensuring equal access and reducing corruption by eliminating the need for in-person interactions.

Bangladesh, he noted, is on track to become the world’s eighth-largest consumer market by 2030, surpassing the current size of the UK, driven by a young population, rising demand, expanding manufacturing and ongoing digital reforms.

He said a digital platform is already in place to help foreign investors identify local entrepreneurs, but weak backward linkages in sectors such as mobile manufacturing, leather and plastics continue to deter large-scale investment.

Strengthening these backward industries, he stressed, is crucial for attracting global manufacturers.

SMEs create most jobs

Speaking as chief guest, Adilur Rahman said the SME sector is the most labour-intensive and low-investment segment of the economy, capable of generating the maximum number of jobs with limited capital.

To ensure sustainable and environmentally friendly industrialisation, he urged that factories be set up only in designated industrial zones, including BSCIC and SME parks, instead of indiscriminately on agricultural land. He also called for diversifying export markets and expanding product ranges.

City Bank MD Mashrur Arefin said high borrowing costs remain a major challenge for SME financing. Micro entrepreneurs are charged around 15% interest, while small and medium firms pay 13-14%. Interest rates, he said, cannot fall unless inflation comes down.

Arefin noted that SME loan disbursement has declined by 2% due to limited fresh investment by large companies. Each large factory supports 15-20 SMEs as suppliers and service providers, meaning SME growth is closely tied to expansion in the corporate sector.

He dismissed concerns regarding liquidity, saying major banks are holding Tk1.5 lakh crore in excess funds, while international agencies remain prepared to provide dollar support.

Many investors, he said, are waiting for the national election, and SME loan demand is expected to rise once economic activity picks up after the polls.

SME Foundation Chairperson Mushfiqur Rahman said the absence of a central SME database is a major policy barrier, hampering informed decisions on export planning, market development and sector prioritisation.

He said the foundation aims to develop a national SME database with government backing. He also called for establishing a permanent sales and distribution centre in Dhaka for SME products.

Six entrepreneurs honoured

Six entrepreneurs were recognised at the event for excellence in various categories.

They include Best Micro Entrepreneur (Female) Jueyna Ferdous of Ahlad Fashions, Best Micro Entrepreneur (Male) Md Wahiduzzaman of Ribana, Best Small Entrepreneur (Female) Sirajum Munira of Sutar Kabya, Best Small Entrepreneur (Male) Aman Ullah of Aman Plastic Toys Industries, Best Medium Entrepreneur (Male) Kazi Md Monir Hossain of Aparajeyo, and Best Startup Md Mahfuzul Haque of Dubotech Digital.

The fair will continue until 14 December, running daily from 10am to 9pm.

More than 350 SMEs from across the country are participating, around 60% of whom are women entrepreneurs.

Most stalls feature readymade garments, handicrafts, leather goods, jute products, food items and light engineering products, alongside jewellery, IT services, herbal, plastic and other goods.

Nearly 30 banks, 15 government agencies and eight organisations under the Ministry of Industries are offering services to participating entrepreneurs.