The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises (SMEs) in Bangladesh

Abstract

Similar to the rest of the world, Bangladesh has been affected by the current and ongoing pandemic COVID-19 crisis. Small and medium enterprises (SMEs) are the fundamental economic pillar for business development in Bangladesh. The main purpose of the research paper is to determine the post-COVID challenges and opportunities on SMEs in Bangladesh. Before staring the pandemic situation, the main barriers to the establishment of SMEs included access to formal credit, a lack of qualified labor, high operational costs, poor product quality, a lack of financial literacy, etc. SMEs are experiencing a capital constraint, increased operating costs, and employee layoffs as a result of this global epidemic. Both primary and secondary data are conducted to identify the findings of the study. Statistical analysis has been conducted by using the Microsoft Excel software. Sample size is 300 respondents from the study area (Dhaka and Narsingdi District) in Bangladesh. The findings of the study are that 52% of businesses have completely shut down its operation because of COVID-19. Moreover, 78% people in Bangladesh enable to run business activities on online platform that is possible only for COVID-19 problems, otherwise, people are unwilling to accept technology. To keep SMEs in business, emphasis must be placed on using government stimulus monies properly. Moreover, the real possibilities and opportunities of Bangladesh remain in the SMEs and therefore the sector should get more concentrating on the sustainable growth and development of the country through overcoming the pandemic COVID-19.