CMSME Development in Bangladesh upon LDC Graduation: Challenges and Way Forward
Abstract
Bangladesh is poised to graduate into a developing economy later 2026 according to UN declaration as all criteria were met. In this journey of development, Cottage, Micro, Small and Medium-Sized Enterprises (CMSMEs) have played a crucial role. Despite their significance in the economy, CMSMEs have not realized its maximum capacity yet, facing some constraints to reach its full potential. In addition, transitioning from Least Developed Country (LDC) status marks a milestone for Bangladesh economy, yet it brings forth a host of challenges for CMSMEs. Hindered by limited access to finance, intensified competition, deficient infrastructure, challenges to maintain operational efficiency etc. With this link, this study aimed to understand the impact of LDC graduation on the CMSMEs in Bangladesh and to explore the barriers that hinder their growth and development. The study also seeks to identify the opportunities available for CMSMEs in the post-LDC graduation era and to propose strategies for leveraging those opportunities. Alongside, this study found both quantitative and qualitative research techniques. For quantitative data collection, a purposive sampling technique is used with a structured survey questionnaire. Qualitative data findings from the primary survey were validated with key informant Interviews (KIIs) from key industries of the private sector to understand their perceptions and opinions on the challenges of development of CMSMEs upon LDC graduation and the way forward.