Exploring MSME Sub-Sectors to Attract More Investment

Abstract

Micro Small and Medium Enterprises or MSMEs has the potential to become the life line of this country’s economy. Industrialisation helps to create employment, increase GDP growth and export earnings. Agriculture has a highest point of value addition but in case of industry production capacity of a certain land is unlimited. Well managed industries are equally contributory for the entrepreneurs and the workers as well. Bangladesh economy is transforming from agriculture dependent economy into industrialized economy. Government is trying to promote investment to create employment opportunities and increase export earnings. It also helps us to reduce import dependency and save valuable foreign currency. As a result Bangladesh government especially Bangladesh Investment Development Authority (BIDA) is designing several action plans to attract foreign investment. It is important to facilitate equal opportunities to the local investors as well. Relocation trend of industries from higher production cost economy into lower production cost location could be an added advantage for Bangladesh if we can project our potential SME sectors to the global relocating enterprises. Japanese, Chinese and Korean businesses are suffering from higher production cost due to increase of the value of the factors of production there. But Bangladesh has many competitors in attraction of foreign investment, for example countries like India, Pakistan, Vietnam, Cambodia etc. are also thrusts for foreign investment. Therefore we have to take additional aggressive drive with proper preparations to attract more FDI into Bangladesh.