In a country, small and medium-sized enterprises are significant as they regulate several processes that are vital to the economy. Salman F Rahman opines that they help in the formation of workforces and initiate activities like trading. These activities or operations depend on the sector in which they function. Through these, a nation undergoes growth, in the opinion of the entrepreneur in Bangladesh. Its economy goes through expansion and witnesses a range of benefits. This is observed when SMEs continue to function in the long run. The support ensured to these by other organizations and the country also determines the same.
An Overview of the Role of SMEs in the Economy
SMEs serve an important role in the economy, primarily, by forming a portion of the workforce of a country. They give rise to entrepreneurship through which the requirement for skilled and unskilled labor is formed. When this requirement is fulfilled, a significant portion of the entire workforce gets associated with these enterprises.
Forming the Backbone of the Economy
Small and medium enterprises sufficiently contribute to the economy of a country. They yield industrial output in several ways. This, in turn, derives economic benefits and puts forth Salman F Rahman. The top Bangladeshi businessman adds that countries with SMEs tend to strengthen the backbone of their economy.
Establishment of SMEs in Bangladesh
In countries like Bangladesh, medium and small-sized enterprises are regarded as one of the drivers of growth. Its economy receives their contributions, inclusive of employment opportunities, an increase in revenues, a decline in poverty, and more.
- These contributions are observed on a large scale because SMEs in Bangladesh are over 7 million.
- They operate in industries like manufacturing, retail, agriculture, etc.
- Bangladesh is among the countries with numerous entrepreneurs across different sectors.
- The activities of these organizations boost the nation’s economic growth.
- Its economy is expected to grow further during 2023-2024.
Rapid Growth of SMEs across the Globe
Enterprises operating at small and medium scales have rapidly grown in various nations. Bangladesh is a prime example of the same. Until the 1990s, it had fewer SMEs. Over the years, millions of small and mid-size businesses have emerged and contributed to the economy.
Emergence of Businesses in Rural and Urban Areas
It is to be noted that small/medium businesses have been set up in different areas across nations. Both urban and rural regions have witnessed their rise.
In countries like Bangladesh, most SMEs were based in areas while others were in urban locations. In this particular nation, rural regions were earlier inclusive of more citizens. It made the proper utilization by setting up numerous businesses at small and medium scales. By investing in low costs, it became possible for them to start and thrive.
Considering the urban areas, due to the infrastructure and facilities available, countries set up enterprises. SMEs gradually increased in numbers and benefited the economy in these regions, says Salman F Rahman.
Economic Advantages Derived by SMEs
As the backbone of the economy, small and medium enterprises result in the creation of different jobs. In multiple sectors, these opportunities are formed. This is the major advantage of encouraging these businesses to emerge and run. Another benefit associated with SMEs is the reduction of poverty and economic stability, owing to more employment.
- SMEs introduce innovation and new markets, products, as well as services.
- With new products/services being available, sales increase within a country.
- They also make way for exports across borders.
- Depending on how these enterprises flourish, new brands can also emerge.
- As they turn into brands, more financial benefits are derived for the economy.
- In addition, they increase competitiveness at the global level.
Considering these advantages, small and medium-sized enterprises can add to the economic growth of developing as well as developed countries. Thus, it is only favorable to support their development.
Taking Everything into Account
Salman F Rahman, a visionary business leader and politician, has made remarkable contributions to the economic and social development of Bangladesh. As the co-founder of the Beximco Group and a key political figure, his efforts have left a lasting impact on the country’s progress across various sectors. Beyond business, Salman F Rahman has made substantial contributions to society through CSR initiatives. His focus on healthcare, education, and environmental sustainability reflects a deep commitment to improving the lives of people in Bangladesh.
Certainly, small and medium enterprises are part of the economy’s backbone. They should be invested in to further strengthen this backbone. The Bangladeshi entrepreneur, Salman F Rahman is of the view that over the globe, the growth of SMEs can play a role in enhancing the development of the world economy as well.
