An assignment on Small and Medium Entrepreneurship (SME

An assignment on Small and Medium Entrepreneurship (SME) Submitted to: Tahmina Khanam Assistant professor Department of Management University of Dhaka . Submitted by: Adrita Dev Tithi 22nd batch,Sec: B Department of Management University of Dhaka UNIVERSITY OF DHAKA Submission date: 27 August,2018 Summary on Development of Tourism Industry through SME: A Study on Commilla The tourism industry is a sector which effect the entire society in many ways and has a profound impact on any country’s social, cultural and economic life. At the world level, the industry of tourism and travels represents the most dynamic sector of activity and, at the same time, the most important generator of jobs. Travel and Tourism contribute to the country in different sectors of economy and society. Our country is very rich in natural beauty. Despite of having more potentialities of tourism industry in our country, it is not developed to the expectation yet. The persons who are involved with SME in tourism industry are less skilled and deprived of the facilities comparing to other industries. This Given article is about a study on Commilla about tourism industry and that survey revealed that knowledge of IT is rare in the owners of SME in tourism industry. Eighty percent respondents have no knowledge of IT where only 5% know about IT, but they cannot apply in their business. That study also revealed that the accessibility of the SME owners to the financial institutions is very difficult .The respondents say that sometimes they have to follow a long and formal procedures to get the loan from financial institution that ultimately creates obstacle to get the loan from the financial institutions. The survey also indicated that 83.33% of did not get the financial support from any financial institutions as for not matching their requirement. Participation of female entrepreneurs is also very low in this sector. Tourism is a multidimensional service industry belong some direct and more indirect sub-sectors. So, well-developed tourism SME is a prerequisite to attain higher growth of tourism. The prospect of SME in this sector is huge through which development of entrepreneurship, enhancement living standard of the local rural people, and poverty reduction by engaging more people in the industry is possible.. Summary on Constraints and Challenges of SME Development in the Developing Countries: A case study on Bangladesh, India ,Pakistan. Small and medium enterprises (SMEs) have slightly different definitions in different countries, but their role in the economic development is recognized in every developing nation. This given article tried to find out the main obstacles and challenges in SME development in three South Asian countries where the average income is low; namely – India, Pakistan and Bangladesh. Using firm level survey data collected by the World Bank in different years. Small and medium-sized enterprises (SMEs) have a special and important role in the economic growth of South Asia and are a critical source for employment creation as well as income generation. The countries under study, namely, India, Pakistan and Bangladesh, are at different levels of development. India is well ahead in terms of economic growth than the other two countries, while Bangladesh is still considered as a Least Developed Country (LDC). The problem with data on SMEs in Bangladesh is that there is no separate ‘SME’ category in the national accounts. Data on Indian SMEs, however, do not suffer from this problem as the Indian Ministry of Micro, Small and Medium Enterprises (MSME) records data on SMEs regularly and separately. The Pakistan Bureau of Statistics and Ministry of Finance records data on two broad categories: ‘large scale’ and ‘small scale. Data showed that in India from 2006-07 to 2011-12, the production of the enterprises has been increasing at around 6 percent per annum. In Pakistan rate of increase is almost constant, at around a rate of 8 percent per annum. So, if the growth rates of SMEs are compared, the growth of SMEs in Pakistan is the most impressive. that most of the respondents of Bangladesh ranked tax rates as the number one constraint they face, and political instability was ranked as the most severe constraint by the second largest number of respondents. This means that the SME owners, who would be identified as small business owners according to the Bangladeshi definition of SMEs, find tax rates to be their biggest hurdle. The importance of political stability also is reflected through their opinions.In India most of the respondents identified electricity as their main problem and the second largest number of respondents identified access to finance as their major constraint. On the other hand almost 67% of the respondents think that lack of electricity is the major problem of operating SMEs in Pakistan. Among the rest, 20% identified political instability as the main constraint. Most of the respondents of India, Pakistan and Bangladesh have indicated lack of electricity to be the main barrier towards successful SME growth. This indicates the shortage of electricity supply in these parts of the world, indicating that there is a need for a much better supply and production of electricity for SME development. The access to better power supply also needs to be made available for the SMEs in the countries. Also, tax rates seem to be another obstacle for the SMEs of Bangladesh, as most of the SME owners surveyed identified it as the most severe problem. Many of the Bangladeshi SME owners identified political instability as another serious problem as well. The next constraint which has received much attention throughout this analysis is access to finance. For SMEs especially, this seems to be a very big problem and is also seen to be hampering their sales in some cases. No doubt, lack of access to finance can pose very severe problems for any business, and SMEs in South Asia tend to have little or no access to formal sources of finance, be it capital market or money market. Banks have specialized SME loans, but these are not sufficient. The area of SME loans need to be further enhanced, as financing needs are one of the most important .Corruption has been a big problem in South Asia, particularly in the countries under study. But corruption does not seem to have a very severe impact on SME growth since the respondents of the survey administered by the World Bank. The governments of these countries have taken many steps to ensure proper power supply in many cases, but this problem is sustaining. Banks and Microfinance Institutions have developed much in the recent decades in these countries, but that has not dramatically improved the situation, as many SME owners still believe access to finance as one of the major problems. Therefore, since these countries share some common problems which hamper SME growth, maybe it is time for a collective and concerted effort to eradicate these constraints and help boost the development of SMEs in South Asia.