CGS holds focus group discussion with SME entrepreneurs in Dhaka

On February 10th, small and medium-sized enterprise entrepreneurs of Dhaka and Mymensingh gathered at Holiday Inn Dhaka to deliberate on the key challenges and barriers they encountered during the COVID-19 pandemic. The discussion was facilitated by the Centre for Governance Studies (CGS) in collaboration with the Centre for International Private Enterprises (CIPE), a Washington-based organization. The focus of the discussion was on how they navigated these challenges by implementing adaptive strategies in the region amid the COVID-19 pandemic. Participants at the event outlined key recommendations on how diverse stakeholder groups can work together to foster economic resilience nationwide and better prepare for future crises.  Entrepreneurs, civil society, and media representatives from different regions of Dhaka and Mymensingh divisions actively participated in the discussion.

At the beginning of the discussion, the entrepreneurs shared their experiences about the main challenges, obstacles, and resilience during the Corona period. At the government level, various problems were raised in providing stimulus package, among which the ignorance of the entrepreneurs about the incentives and the lack of adequate publicity from the government in this regard. Entrepreneurs have faced harassment from local leaders for posting on Facebook criticizing the government on this matter. Also, scarcity of raw materials and price rise was another major factor hindering entrepreneurs.

Entrepreneurs said that before fully recovering from the damage caused by COVID-19, the recent Russia-Ukraine war and the rising dollar are making it very difficult to sustain business these days. Also, the gap between running a business and paying excessive income tax and VAT is minimal.

The difficulty of getting bank loans also came up in the discussion. One of the main disadvantages of availing bank loan is the necessity of having a government official as a guarantor, which is not possible for all small entrepreneurs. Online entrepreneurs who operate their business through Facebook pages must pay dollars as a 15% VAT for page boosting which is difficult for most small entrepreneurs. In this case, the domestic mobile banking platform is convenient for them if the provision of payment of VAT in cash or development is made.

As a solution to these problems, many recommendations also come out through the discussion. Helal Uddin Helal, President, Bangladesh Dokan Malik Samity given the problem of bank loans said, "We have to protest, we have to speak, we have to unite against the monstrous laws of the banks." In the case of small and medium businessmen, it is advised to set aside some of the capital or savings of the business so that it can be used to sustain the business in future crises. Shahedul Islam Helal Bussiness Leader, said, “Businesses have gone online, to Facebook, and to YouTube. Every business must bring in other social media like Instagram to find more customers.” He advised hiring a good content writer and learning profit calculations when it comes to advertising business products. He also said that in the case of online business, quick response to customer's questions and quick delivery should efforts be taken. Economist and Professor of Dhaka University  Dr. Rashed Al Mahmoud Titumir said, “Lifestyle changing education should be given, no work should be underestimated.” The chairman of today's discussion, Dr. Manjur Ahmed Chowdhury praised the resilience and innovation of the present entrepreneurs. He also said, “Those who have been able to do online business with the use technology and survived are the ones who are doing well.”  

The program was moderated by Zillur Rahman, Executive Director, Centre for Governance Studies (CGS).