Premium Essay

Problems in Developing Small Scale Industries in Bangladesh

In: Business and Management

Submitted By faisal990607
Words 3349
Pages 14
Problems in developing small scale enterprises in Bangladesh
There are a huge number of problems in the question of developing small scale enterprises in Bangladesh, which are discussed below:
Individuality: Maximum small scale enterprises are owned by the individuals and an individual has obviously some limitation.
Lower Per Capita Income: Per capita income of our people is low and for this reason our people are not being able to generate adequate capital to run the business efficiently.
Unskilled Human Resources: Human resources of our country are not skilled this is a problem with developing small scale enterprises in Bangladesh. The economic environment of our country is not hundred percent suitable for operating the business another cause of the restrictions.
Excessive import of foreign product: Excessive import of foreign product in our country is another reason cause when the people of the country will be mainly dependent on the imported product then the entrepreneurs will loose their interest to develop small scale enterprises.
Political instability: Political instability of our country is another reason for developing the small scale enterprises rate slow. Political environment of our country is not suitable enough to run the efficient business in our society.
Deterioration of Morality: Public moral is getting down means most of our people are loosing their moral and for this reason developing small scale enterprises in Bangladesh is not so easy like the other country of the world.
Security reason: Security reason is a strong reason which is effecting the developing of small scale enterprises in Bangladesh. Government are not being able the proper and adequate security to the citizen of the country this is directly effecting the developing speed of the small scale enterprises in Bangladesh.
Inadequate support from govt. & non-govt. organizations:…...

Similar Documents

Premium Essay

Unemployment Problem in Bangladesh

...Sciences Topic: Unemployment Problem in Bangladesh Course title: Introduction to Sociology Course Code: HUM– 381 Department: Bachelor of Business Administration Prepared for- Mohit Prodhan Lecturer of Sociology School of Liberal Arts Prepared by- Rawnak Razzak (ID: 08310026) Afsana Khanom (ID: 08410001) Sadi Muhammad Naved (ID: 08410056) Sharmin Zaman (ID: 08410023) Date of Submission: April 10, 2011 10th April, 2011 Mohit Prodhan BBA, MBA (DU) Lecturer Faculty, School of Liberal Arts UNIVERSITY OF INFORMATION TECHONOLOGY & SCIENCES Subject: Submission of the report on “Unemployment Problem in Bangladesh” Dear Sir, With humble submission we want to thank you for assigning us the pragmatic report on “Unemployment Problem in Bangladesh”. We have really enjoyed the various stapes preparing the report. We have made a strong group works and have also collected different data from Online. We think this report enriches our practical knowledge on Sociology. There may be some mistakes. We think the mistakes in the report will be kindly excused. With thanks and best regards. Sincerely yours, Rawnak Razzak 08310026 Afsana Khanom 08410001 Sadi Muhammed Naved 08410056 Sharmin Zaman 08410023 BBA Faculty, School of Business University of Information Technology and Sciences. ------------------------------------------------- Acknowledgment Our project was to Unemployment Problem in Bangladesh. We chose......

Words: 5891 - Pages: 24

Premium Essay

Impact of Tax on Small Scale Industries

... Published in April 1958 IMPACT OF TAXATION ON SMALL AND MEDIUM SCALE INDUSTRIES BY MURARJI J. VAIDYA (Text of a public lecture delivered under the auspices of Forum of Free Enterprise on April 9, 1958 in Bombay. The author was Founder-Vice-President, Forum of Free Enterprise). It is necessary at the outset to define the terms, “Small Scale” and “Medium Scale” industries because there appears to be a deal of confusion over the precise connotation of these terms. Government have defined small industries as those which employ 50 workmen where power is employed and 100 workmen where power is not employed and the industry is manually operated. In the matter of capital, the limit of Rs.5 lakhs as invested is the maximum limit to qualify an industry as a small-scale industry. As far as medium scale industries are concerned, there is no specific definition. From time to time, various figures have been given. In my opinion, industries employing up to 500 workers and with an invested capital of Rs.5 lakhs should be considered as medium scale industries in the context of present costs of putting up such factories. The Government of India, however, have not laid down any definition of medium scale industry and, I am sorry to say, that they have not taken much interest in the development of medium scale industries. In April 1956, in my presidential address to the 26th Conference of the All- India Manufacturers’ Organisation......

Words: 3602 - Pages: 15

Premium Essay

Development of Apparel Industry in Bangladesh

...Development of Apparel Industry in Bangladesh Garment Industry Large-scale production of readymade garments (RMG) in organised factories is a relatively new phenomenon in Bangladesh. Until early sixties, individual tailors made garments as per specifications provided by individual customers who supplied the fabrics. The domestic market for readymade garment, excepting children wears and men's knit underwear (genji) was virtually non-existent in Bangladesh until the sixties. Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented industry although, the domestic market for RMG has been increasing fast due to increase in personal disposable income and change in life style. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. In 1999, the industry employed directly more than 1.4 million workers, about 80% of whom were female. With the growth of RMG industry, linkage industries supplying fabrics, yarns, accessories, packaging materials, etc. have also expanded. In addition, demand for services like transportation, banking, shipping and insurance has increased. All these have created additional employment. The total indirect employment created by the RMG industry in Bangladesh is estimated to be some 200,000 workers. In addition to its economic contribution, the expansion of the RMG industry has caused noticeable social changes by bringing more than 1.12 million...

Words: 13376 - Pages: 54

Premium Essay

Problem and Prospect of Flower Industries of Bangladesh

...PROBLEMS AND PROSPECTS The Bangladesh government and the Bangladesh Aid Group have taken seriously the idea that Bangladesh is the test case for development. In the late 1980s, it was possible to say, in the somewhat patronizing tone sometimes adopted by representatives of donor organizations, that Bangladesh had generally been a "good performer." Even in straitened times for the industrialized countries, Bangladesh remained a favored country for substantial commitments of new aid resources from a strikingly broad range of donors. The total estimated disbursement for FY 1988 was estimated at US$1.7 billion, an impressive total but just US$16 per capita. Half of that total was for food aid and other commodities of limited significance for economic growth. Even with the greatest imaginable efficiency in planning and administration, resource-poor and overpopulated Bangladesh cannot achieve significant economic improvements on the basis of that level of assistance. In examining the economy of Bangladesh, wherever one turns the problems crowd in and threaten to overwhelm the analysis. Underlying problems that have threatened the young nation remain unsolved. These problems include overpopulation and inadequate nutrition, health, and education resources; a low standard of living, land scarcity, and vulnerability to natural disaster; virtual absence of valuable metals; and inadequate government and bureaucratic structures. Yet the brief history of independent Bangladesh offers......

Words: 639 - Pages: 3

Premium Essay

Small Scale Business

...AU J.T. 13(3): 186-192 (Jan. 2010) A Study of Small- and Medium-Scale Industrial Development in Ondo State, Nigeria Adejuyigbe Samuel Babatope and Dahunsi Olurotimi Akintunde Department of Mechanical Engineering, Federal University of Technology Akure, Ondo State, Nigeria E-mail: Abstract Ondo state is strategically located in the southwestern region of Nigeria, and is endowed with resources and potentials of a state that could be highly developed industrially. This paper reviews the state of industrial development in the state, comparing it with other states in the country. Previous forecasts and studies were also reviewed, while some cases of existing small and medium scale enterprises (SMEs) within the state capital, Akure, were also investigated with results presented in order to establish the peculiar problems militating against their profitability and level of profitability. These problems were found to be availability of credit facility, infrastructures and bad or poor management. Keywords: Credit facility, forecast, infrastructure, management, profitability. Introduction The definition of small and medium enterprises (SMEs) varies from country to country, region to region and from agencies to agencies in today’s world. Loveman and Sengenberger (1990) recounted that, “Small enterprises” or “small and medium enterprises” are elusive concepts. They do in fact hide a large heterogeneity in the types of the firms.......

Words: 2718 - Pages: 11

Free Essay

Small Scale Industries

...Meaning of Small Scale Industries Characteristics of Small Scale Industries Role of Small Scale Industries in Indian Economy Role of Government in Promoting Small Scale Industries Sickness in Small Scale Industries Extent Causes 2. Review of Literature Following are the characteristics of some industries which identify them as small-scale industries: 1. Labour intensive: Small-scale industries are fairly labour-intensive. They provide an economic solution by creating employment opportunities in urban and rural areas at a relatively low cost of capital investment. 2. Flexibility: Small-scale industries are flexible in their operation. They adopt quickly to various factors that play a large part in daily management. Their flexibility makes them best suited to constantly changing environment. 3. One-man show: A small-scale unit is generally a one-man show. It is mostly set up by individuals. Even some small units are run by partnership firm or company, the activities are mainly carried out by one of the partners or directors. Therefore,' they provide an outlet for expression of the entrepreneurial spirit. As they are their own boss, the decision making process is fast and at times more innovative. 4. Use of indigenous raw materials: Small-scale industries use indigenous raw materials and promote intermediate and capital goods. They contribute to faster balanced economic growth in a transitional economy through decentralisation and dispersal of industries......

Words: 1501 - Pages: 7

Premium Essay

Rmg Industry of Bangladesh

...and employment generation but this approach has not worked. The Ready-Made Garments (RMG) industry occupies a unique position in the Bangladesh economy. Bangladesh has a total population of over160 million. Among of vast population about 3.5 million people are working in the garments industries. It is the largest exporting industry in Bangladesh, which experienced phenomenal growth during the last 20 years under the quota system of Multi-Fiber Arrangement (MFA). The abolition of quota system thus brings new challenges for Bangladesh’s apparel industry to continue its current status and enhance it in a free flow of apparel trade era. According to BGMEA, after the Liberation War of Bangladesh, in 1983 the Ready-Made-Garment (RMG) industry emerged to be a most promising sector in the socio-economic context of Bangladesh. From that point of time till now, this industry has grown and developed so rapidly that currently Bangladesh is exporting RMG products worth 5 billion USD every year to countries like EU, USA, Canada and other countries of the world. Now, Bangladesh enjoys the position of being the 6th largest apparel supplier to the USA and EU countries. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. Background of RMG industry in Bangladesh since beginning of ‘80s Export-oriented garment exports from Bangladesh were initiated in the beginning of the 1980s (Bhattacharya and Rahman, 2001; Hoque,......

Words: 4646 - Pages: 19

Free Essay

Problems and Prospects of Small Business

...Problems and prospects of our small industries Published : Saturday, 05 January 2013 Women working in a small industrial unit Md Atikur Rahman Every country wants to develop. We believe that industrial development can bring in faster development for any country. A well-conceived industrialization strategy, be it import substitution industrialization or oriented industrialization, can be useful in accumulating wealth. Many of the developing countries have achieved development through industrial development. Most developed countries are industrially developed countries. Europe and America's quick development came through industrial development. Japan, Korea, Taiwan, Hong Kong and Singapore became economically developed by having quick industrialization. In late 20th century some countries like Malaysia, Thailand, China, Indonesia and also Philippines developed by quick industrial development. So our government should concentrate more on industrial development in our country. On the other hand, many small industries play a pivotal role in the economic development of a country. Even countries like Japan and the USA that can boast of some of the largest industrial units in the world, had their rapid development and great prosperity thanks to their small industrial units. The most important single argument that can be advanced in their favour is their capacity to generate a large volume of the employment. In Bangladesh, capital is scarce, but cheap labour is......

Words: 825 - Pages: 4

Free Essay

It Industry in Bangladesh

...November-December, 2006, pp. 31-39 An Overview of the Software Industry in Bangladesh Syed Munir Khasru Abstract: Software is one of the most talked about but unexploited industries in Bangladesh. Last two decades have seen lot of initiatives, both in public and private sector, to stimulate growth in this sector. Although some successes have been achieved, Bangladesh lags far behind other South Asian countries like India and Sri Lanka in terms of employment and revenue generation in the software industry. Against such background, this paper takes a close look at the software industry of Bangladesh. Starting from the formative years of the software industry to different measures taken by the government to support this sector, the paper analyzes the factors critical for achieving development and growth in this industry. In the process, a set of recommendations have been made to catalyze the software industry in exploiting its potentials to the fullest. Keywords: Software, IT Enabled Services, Intellectual Property Right, IT Policy. Introduction Software has become a growing industry in Bangladesh over the last two decades. This paper highlights this unexploited industry based on available published information mainly collected Bangladesh Association of Software and Information Services (BASIS). Evolution of the Industry in a Nutshell Software industry in Bangladesh has come a long way over the last few decades. The industry has become dynamic with a significant......

Words: 3847 - Pages: 16

Premium Essay

Problems and Prospects of Small Business Development in Bangladesh

...Problems and Prospects of Small Business Development in Bangladesh Section One: Definition & Characteristics of Small Business  Our essay is divided into five sections. Section one will discuss about the definition, nature and scope of Small Business. In section two we will get the opinion of some entrepreneurs according to our questionnaire. Section three will deal about some common problems that our Small Business firms face, according to the answers of previous section, which will be followed by some suggestions from our group in section four.  And our discussion will come to an end with some concluding remarks in the last section. Section One: Small Business DEFINATION: * According to Small Business act 1934,” A business which is independently owned and operated and not dominant in its field” is a Small Business. * Bolton Report on the commission of the inquiry on Small Business firms, 1977,”Small firm is one that has a relatively small share profits market.” * Stoner, Freeman, & Gilbert, 1995, “Small Business refers to business locally owned and managed, often with very few employees working at a single location”. * US Government, “A Small Business is one with fewer than 500 employees.” According to executive committee for national economic development,”A Small Business one of which process at least two of the following characteristics: * -Managers are the owners, * -Capital supplier and the owner is individual or a small group, ...

Words: 1773 - Pages: 8

Premium Essay

Small Scale Approach to Rural Development

...poverty levels particularly in developing countries. The persistence of rural poverty has been a major cause of this problem. Ways to curb this problem have been one of the major tasks that development scholars have undertaken and this has given rise to conflicting development approaches or strategies and these approaches have led to raging debates as to which one offers the best approach to rural development, (Thurlown, 2006). In this regard, the essay aims at critically examining the large-scale and small-scale development approaches, and further give view of which is the best approach to rural and agriculture development. It will start by defining key terms; large-scale and small-scale approaches. Thereafter, it will critically examine each of these developmental approaches; and later state which between the two offers the best approach to rural and agriculture development. Later in, a conclusion will be drawn. The focus of this paper will be on Small scale farming as an answer to rural development. Large-scale development approach refers to large scale type of farming as a means to bring about development to rural areas. Large scale farming can therefore be defined as the production of crops and rearing of animals for sale intended for widespread distribution for consumption by others. The main objective of large scale development approach is achieving higher profits, (Sen, 1991). Small-scale development approach refers to the use of Small scale farming as means to......

Words: 1758 - Pages: 8

Premium Essay

Small Scale Industry

...Institute of Appropriate Technology Master of Science in Management of Technology Course: AT 6001- Fundamentals of Management of Technology Assignment: 02 Title of the Assignment: “Development plan & strategy to promote ceramic industries sector in Bangladesh” Submitted By SL 1 2 3 4 5 Name MD. Ashrafuzzaman Student ID 0413292082 0413292079 1014292002 1014292002 M. A. F. Al-Mansur Md Firoz Hossain Md Bayzidur Rahman MOHAMMAD SAIDUR REHMAN Submitted To: Professor Dr. Kamal Uddin Director & Head Date of Submission:10 January 8, 2015 Bangladesh University of Engineering & Technology INTRODUCTION “Government of Bangladesh has given top priority to the growth of local industries for achieving economic prosperity and creating of job opportunities. Ship building, ceramic, light engineering and small and medium enterprises are in the priority list of the government. It is possible to buy a square foot of tiles for only Tk. 30 now, which was Tk. 130-140 seven to eight years back. It has become possible, as local manufacturers in a bigger way have come into the scenario. Earlier, a major portion of the local demand for the item was met through imports. In the past fiscal year, 21 local leading ceramic ware factories earned more than $35 million from exports of their products to 50 countries. Of the products, ceramic table wares are exported to about 50 countries including, the US and Canada, tiles to India, Nepal and Bhutan, and sanitary wares to the Middle East, specially......

Words: 4014 - Pages: 17

Premium Essay

Major Problems of the Banking Industry and Strategies to Overcome Them: a Study on Bangladesh.

...Major Problems of the Banking Industry and Strategies to overcome them: A study on Bangladesh. Table of Content Topic Page# 1.0 Introduction ------------------------------------------------------------------------------------3 2.0 Review of Previous Empirical Literature------------------------------------------------4 3.0 Banking Industry in Bangladesh---------------------------------------------------------- 3.1 What is a Bank? ----------------------------------------------------------------------5 3.2 Definitions of Bank form different view -------------------------------------5 3.3 Where does the word BANK come from? ------------------------------------6 3.4 Why Banks? Why don’t go to another financial institution? -------------7 3.5 Banking System in Bangladesh---------------------------------------------------7 3.6 Banking system is very from country to country because of Following 3 reasons---------------------------------------------------------------------12 3.7 There are different kinds of financial services firms calling themselves Banks---------------------------------------------------------------------------------------12 4.0 Major Problems Faced by Bangladeshi Banking Industry-------------------------14 4.1 Lack of Good Governance, Accountability and Transparency------------14 4.2 Low quality of asset ---------...

Words: 5756 - Pages: 24

Free Essay

Small Scale Industries of Bangladesh

...Submitted to Md. Shakhawat Hossain Lecturer, Department of Management Studies, Faculty of Business Administration and Management Submission date: 15/12/2011 Course code: MST326 Course title: Entrepreneurship development and Business Environment Submitted by GROUP: INNOVATION Level-3, Semester-II Session: 2008-2009 Faculty of Business Administration and Management Patuakhali Science and Technology University Dumki, Patuakhali-8602 Small Scale Industries of Bangladesh: A Case study of some small scale industries A report On ATTENDANCE SHEET Level: 3, Semester: II Course code: MST326 Course title: Entrepreneurship development and Business Environment Report title:  Small Scale Industries of Bangladesh: A Case study of some small scale industries Roll. No. | Reg. No. | Name | Signature | 0803019 | 01881 | Dibakar Chandra Das(GL) | | 0803001 | 01862 | Farjana Khanom | | 0803003 | 01864 | Kazi Riasat Muntahi | | 0803011 | 01873 | Kamrun Nnahar Sila | | 0803018 | 01880 | Md.Nazmul Haque | | 0803021 | 01883 | Hasnain Ahamed Asif | | 0803023 | 01885 | Md. Ali Marjan | | 0803026 | 01893 | Md. Saidur Rahman Sajib | | 0803027 | 01894 | Atia Jahan Siddiqa | | 0803037 | 01906 | Tania akter | | 0803042 | 01912 | MD.Mahbub Alam | | | | | | Accepted by: …………………..………… EVALUATION SHEET Level: 3, Semester: II Course code: MST326 Course title: Entrepreneurship......

Words: 5794 - Pages: 24

Premium Essay

Unemployment Problem in Bangladesh

...Unemployment Problem in Bangladesh Unemployment means the state of being without any work both for the educated and uneducated for earning one's livelihood. Unemployment problem has become a great concern all over the world. But nowhere in the world is this problem as acute as in Bangladesh. Thousands of people in our country are without any job. In 2010, Bangladesh’s unemployment rate was 5.1% (Source: Bangladesh Burrow of Statistics). Source: UN data, Country Profile: Bangladesh Cause of unemployment: Bangladesh, suffers from large-scale underemployment; especially in agriculture, a large part of the population could be removed without reducing agricultural output. Beyond agriculture, disguised unemployment also exists in industries, offices and organizations, particularly in the public sector. Unemployment among the educated youths is rather high in Bangladesh. The unemployment rate for the population having secondary education and above is significantly higher than those with a lower level of education. The unemployment rate for educated women is higher compared to the male population. In Bangladesh salaried employment in the formal sectors is not big enough to take care of the huge number of unemployed. Employment promotion, especially, creation of self-employment opportunities, continues to be the most important function of the Bureau of Manpower Employment and Training. The Fifth Five-Year Plan (1997-2002) had set a target of creating additional employment of......

Words: 2219 - Pages: 9