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Sme In Bangladesh Essay

5329 words - 22 pages

OVERVIEW
Small and medium enterprises (SMEs) occupy unique position in most of the countries especially in a developing country. They are a primary target for many countries desiring to stimulate economic growth and development. The SMEs sub-sector plays an increasingly dominant role in the technology assimilation and dissemination and in economic development in Bangladesh as well. In Bangladesh, SMEs playing a significant role for the development of our economy by creating employment opportunity and producing important alternative machines and machinery parts for saving huge foreign currency for our country. So as a part of our development strategy, we should intensify our efforts to ...view middle of the document...

50, 000 and 5 million
Manufacturing Sector: Total Assets (excluding lands and buildings) between Tk.50, 000 and 10 million
In most economies, smaller enterprises are much greater in number than large companies. SMEs are often said to be responsible for driving innovation and competition in many economic sectors.
According to ministry of industry and commerce we get SME definition which is given bellow:-
Category Number of Employees Capital Investment (BD) (Manufacturing Sector) Annual Turnover (BD)(All Sectors)
Micro Up to 10 Up to 20,000 Up to 100,000
Small 11-50
(up to 100 for Construction Sector) 20,001- 500,000 100,001-1 million
Medium 51-250
(up to 400 for Construction Sector) 500,001 - 3 million 1,000,001 – 5 million

1. Threshold limits of both employment and capital investment/turnover will have to be complied with.
2.For SME’s in manufacturing sector (including process industries), capital investment will be the defining criterion. For all other sectors, turnover based definition will be used.
3.Capital investment does not include cost of land and building and will be calculated at the original value of purchase.
4. Turnover figures need to be substantiated by a copy of audited balance sheet. (For micro businesses, only bank statements should be sufficient. For Small Businesses, in the absence of audited financials, software based compiled financials and bank statements will be sufficient.

CHARACTERISTICS
• Have begun spontaneously from just one idea or new product and may continue to be an incubator for innovative ideas and products
• Have an owner/manager with little formal business experience or few generic business skills
• Have begun because the founder/owner has a particular technical expertise
• Comprise the founder/owner and up to four employees (often with an unpaid family member providing administrative support)
• Have the owner as the only person in a managerial position, and no board or formal governance arrangements
• Operate on trust, rather than on systems and contracts
• Have a tight family-like culture where the values of the owner are strongly shared by the staff and workplace practices are flexible and suited to individual employees' needs
• Focus on a small range of products or services sold mainly on the local domestic market
• Have all personal assets, including the owner's home, committed as security for the business
• Acknowledge the owner's time as one of its scarcest and most valuable assets
• Operate flexibly, on a "reasonable person" basis, rather than on an informed and strict observance of regulations
• Have a vision and outlook that is bounded by the horizons, skills and experience of the founder/owner, the pressures of day-to-day management and tight resource constraints (i.e. a tactical rather than a strategic approach)
• Endeavour to operate independently of other businesses and institutions and to favor self-help over seeking advice
•...

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