Understanding the Concept of SMEs in Driving Economic Growth and Development in Bangladesh

Abstract

Small and Medium Enterprises (SMEs) play a vital role in Bangladesh's economy and have been recognized as a significant catalyst for poverty reduction programs and economic growth. Therefore, it is essential to have a comprehensive understanding of the concept of SMEs and their role in driving economic growth and development. Consequently, this study endeavors to explore the definition of SMEs, their present status, and their contributions to the development of Bangladesh’s economy. Using a quantitative research method, the study performed a descriptive statistics analysis on data gathered from diverse sources, including academic, governmental, and private institutions, as well as pertinent literature from researchers, academics, and scholars. The study has found that the definition of SMEs in Bangladesh has undergone changes over time. The study findings also revealed that the growth of SMEs has had a significant impact on various economic indices in Bangladesh, contributing positively to the country's economic development. Hence, the findings of this study can provide valuable insights to readers seeking a comprehensive understanding of SMEs in the context of Bangladesh. Moreover, policymakers can utilize these findings to introduce well-suited policies and initiatives that will foster the future development of the SME sector.