Micro, Small, and Medium Enterprises (MSMEs) now contribute 7.6% to Bangladesh’s GDP and employ 80% of the nation’s industrial workforce, underscoring their vital role in economic growth, according to a new study published in The Journal of Developing Areas.
The report, by East West University researchers Tanbir Ahmed Chowdhury and Partho Paul, found MSMEs’ GDP share rose from 6.7% in 2016–17 to 7.6% in 2023–24, though overall sector growth has slowed in recent years. Key challenges include limited access to finance, poor infrastructure, technological lag, and bureaucratic hurdles.
Still, the study highlights strong prospects, citing MSMEs’ role in employment generation, women’s empowerment, and digitalization. About 50% of entrepreneurs plan to expand abroad. The authors urge policymakers to improve credit access, simplify regulations, and invest in rural infrastructure to help MSMEs drive sustained, inclusive growth across Bangladesh.