Experts on Sunday called for simplifying business regulations, introducing a one-stop digital licensing system, and improving access to business support services to spur growth in the country’s micro, small, and medium enterprises sector.
They also said that complex compliance requirements and scattered information continue to hinder the growth and formalisation of MSMEs.
They were speaking at a programme marking the ‘International MSME Day-2026’ at the Bangladesh Investment Development Authority conference room in the capital.
At the discussion, experts said that nearly 90 per cent of businesses in Bangladesh remain informal, employing around 85 per cent of the country›s workforce, largely due to regulatory barriers and complex business formalisation procedures.
They also said that entrepreneurs frequently face harassment and delays because business-related information and support services are scattered across multiple institutions.
Experts called for the introduction of a one-stop digital licensing system that would allow entrepreneurs to apply for and obtain all required licences and registrations through a single platform.
In his speech as the chief guest, Industries, Commerce, Textiles, and Jute Minister Khandakar Abdul Muktadir said MSMEs are the lifeblood of Bangladesh›s economy.
He also stressed that strengthening the sector is essential for ensuring sustainable economic growth and generating employment.
‘MSMEs account for around 90 percent of businesses and more than half of global employment. In Bangladesh, the sector currently contributes about 25 per cent to the country’s gross domestic product,’ he added.
While existing industries have expanded, he said, many aspiring entrepreneurs have faced difficulties entering the market due to challenges such as the gas and energy crisis.
‘The country’s economic activities have become concentrated within a limited number of sectors, contributing to income disparity,’ he said, adding that the share of MSMEs in GDP is higher in neighbouring countries.
Outlining the government’s plans to strengthen the MSME sector, he said that the Bangladesh Small and Cottage Industries Corporation is implementing new industrial park projects in Pabna, Sylhet, Nilphamari, and Syedpur, while feasibility studies are underway to establish additional parks in areas with strong demand for industrial plots.
The government has been working to foster entrepreneurship and create a business-friendly environment since assuming office, he added.
He said that the 2026-27 national budget has placed special emphasis on MSME development through initiatives.
At the panel discussion, Industry Secretary Abdul Nasir Khan said the future of MSMEs would depend on how effectively entrepreneurs adopt artificial intelligence and digital technologies.
He urged entrepreneurs to treat AI as a productivity tool rather than a threat, saying it could simplify business planning, market analysis, customer service, accounting, translation and communication.
In a video message, Gilbert F. Houngbo, director general of the ILO, said that MSMEs are operating in an increasingly challenging environment worldwide, facing the combined pressures of economic uncertainty, geopolitical tensions, climate-related shocks, persistent inequalities, and tighter financial conditions.
‘At the same time, they are being asked to adapt to rapid technological, digital and green transitions. These challenges are real. But so are the opportunities,’ he added, saying that new technologies, digital tools and innovation could help MSMEs become more productive, resilient and competitive.
Ferdaus Ara Begum, chief executive officer of the Business Initiative Leading Development, said entrepreneurs often struggle with lengthy licensing and documentation requirements.
‘A study found that businesses in the plastic waste management sector require 31 licences and around 235 supporting documents, while light engineering businesses need 35 licences and more than 200 documents, with 50–60 per cent of the paperwork being repetitive,’ she added.
Fashion Entrepreneurs Association of Bangladesh president Azharul Hoque Azad called for a one-stop digital licensing system, easier access to finance, tax incentives and stronger policy support for creative industries and local brands.
Women Entrepreneurs Association of Bangladesh President Nasreen Fatema Awwal said Bangladesh has around one crore male entrepreneurs compared with only about 700,000 women entrepreneurs.
‘Increasing women›s participation in entrepreneurship would boost employment, household incomes, children›s education and healthcare, while making economic growth more inclusive,’ she added.
SME Foundation managing director Anwar Hossain Chowdhury said the foundation has directly and indirectly served more than 2.2 million entrepreneurs since its establishment, including over 250,000 direct beneficiaries, 60 per cent of whom are women.
During the programme, the SME Foundation, with support from the ILO›s ProGRESS project, officially launched its Business Development Services (BDS) Portal to make business development services more accessible and effective for small and medium-sized enterprises.
International MSME Day was observed across Bangladesh on 27 June with a series of programmes organised by the SME Foundation under this year›s global theme, ‘Human-Centred Entrepreneurship in an AI-Driven Future: Economic Empowerment for the Next Generation of MSMEs.’
The United Nations designated 27 June as International MSME Day in 2017 to recognise the contribution of micro, small and medium-sized enterprises to decent employment and improved livelihoods. This year marks the 10th global observance of the day.
According to the UN, the world would need around 600 million new jobs by 2030, with 7 out of 10 expected to be created in the MSME sector.
MSMEs account for about 90 per cent of businesses, 60-70 per cent of employment and around half of global GDP.
The UN has identified access to finance as one of the sector›s biggest challenges and has called for supportive policies, easier financing, skills development, innovation, technology support and improved market access.
