The Position of Bangladeshi Agro-based SMEs in International Market and Applicability of PPP

Abstract

<p><em>Bangladesh is a developing country with full of natural resources and huge working age population which are the advantage of initiating of any development activities. To achieve the government vision to be a middle-income country by 2021 and developed country by 2041 it is very much necessary to eradicate poverty, ensuring employment, keeping continuation of better growth rate as well as achieve the social solidarity and environmental sustainability and sound industrialization. Small and Medium Scale Enterprise (SME) plays the leading role in industrial sector as a contributor of </em><em>achieving economic growth, recovered the global economy in a sustainable way, create the employment opportunity and poverty reduction as well. </em><em>The role of SMEs is inseparable for overall economic development of Bangladesh. By considering SMEs as &lsquo;the driving force for industrialization&rsquo; Bangladesh government put emphasis the development in this sector. Along with textiles, garments, light industries, agro-based SMEs are another part which has a great potentiality in Bangladesh as an agricultural dominated country with 84% among rural population who are directly or indirectly engaged with agricultural activities. The available rich raw materials are supporting investment opportunities in agribusiness with high profit return can create many opportunities for establishing agro-based SMEs to increase the export as well as meet the rapidly growing local demand of agro-processed product. But along with the financial problem, it faces other institutional and infrastructural obstacle creating barrier to flourish this sector. Its competitiveness in international market is decreasing day by day. The EXPY trend shows slow incensement in this sector. Besides, there are lack of product diversification and sophistication which need attention. Its agricultural capacity still is in underutilized and public sector can play vital role within the PPP structure in this perspective. The study analyzed the government policy strategy for the development of agro-based SMEs and the applicability of PPP for its development. It has been found that PPP has the potentiality to fostering the agro-based SME sector by contributing in the field of Product</em><em> Chain Development (PCD), Innovation and Technology Transfer (ITT), Development of Physical Infrastructures (DPI) and Delivering Business Development Services (DBDS) within the frame work of government policy strategies and it can promote backward linkage industry as well. Both qualitative and quantitative methods have been adopted in present study for fulfilling its objectives by using secondary data which included UN COMTRADE data set on SITC Rev.2 at 4-digit level, previous studies and research on the specific sub-sectors, particularly shedding light on agro-based SMEs and public private partnerships in Bangladesh and other country which are practicing PPP in this sector.</em></p>

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