SME Foundation, Oxfam join hands to empower SMEs

To strengthen Bangladesh's Small and Medium-sized Enterprise (SME) sector, which encompasses 90 per cent of all enterprises, the SME Foundation and Oxfam in Bangladesh have signed a Memorandum of Understanding (MoU).

This collaboration aims to empower SMEs, promote and influence the ecosystem, and enhance financial inclusion, said a press release.

According to the Bangladesh Bureau of Statistics (BBS), an estimated 7.8 million SMEs in Bangladesh comprise 25 per cent of the total labour force and 80 per cent of industry employment. The MoU, signed at the SME Foundation in Dhaka on Thursday, marks a significant step towards enhancing business support services and entrepreneurship development programs for SMEs.

By leveraging their expertise, both organizations will provide SMEs, particularly at the incubation and growth stages, with essential awareness and skills in entrepreneurial business and financial management, digital and physical market integration, and access to available financial sources.

Prof Dr Md Masudur Rahman, Chairperson of SME Foundation, expressed his optimism about the partnership, saying, "This MoU marks a significant step forward in our mission to support the growth and sustainability of SMEs in Bangladesh. By working with Oxfam, we will provide comprehensive support to SMEs, helping them overcome financial barriers and achieve long-term success."

This initiative aims to enhance SMEs' transparency and traceability, making them more appealing to commercial lenders. A key focus will be on supporting and piloting youth-inclusive financial business models. Leveraging the SME Foundation's extensive network with pioneering lenders, the collaboration will facilitate financial integration for target populations. For instance, the SME Foundation's Incubation and Acceleration Programme, with centers in Dhaka and Chattogram, will be collaborating with Oxfam's Social Incubation and Acceleration Programme to help young innovators pursue entrepreneurial careers, fostering a new generation of business leaders.

Ashish Damle, Country Director of Oxfam in Bangladesh, said, "SMEs play a crucial role in reducing poverty and driving economic growth in Bangladesh. Through this partnership, we aim to create an enabling environment for SMEs, particularly those led by young entrepreneurs, women, and marginalized communities. Our joint efforts will contribute to a more inclusive and resilient economy."

Despite Bangladesh's progress in poverty reduction and economic growth, many, especially in rural areas, remain below the poverty line. SMEs can drive economic development and improve livelihoods. The SME Foundation and Oxfam aim to support SMEs and address their challenges to foster sustainable and inclusive growth.