High interest rates, reaching 14% in some sectors, are making bank loans unsustainable for many, while exporting and airfare costs have surged by 40% for some, significantly impacting their export competitiveness, finds a survey of the Economic Intelligence Bangladesh, a joint publication of DataSense and The Business Standard.

The 11th issue of EIB titled “CMSMEs and their Plights” released on Wednesday conducted In-depth interviews with 11 cottage, micro, small, and medium enterprises (CMSMEs) across 10 sectors. The sectors include ready-made garments (RMG), leather, jute, light engineering, fisheries, agro and food processing, e-commerce, handicrafts, tanner and second hand market.

The interviews were taken from November 2024 – January 2025.

CMSME leaders emphasize a unified call for more comprehensive governmental and financial support. Existing incentives, while appreciated, are deemed insufficient to address the scale of the problems. The need for increased access to bank financing at reasonable rates, streamlined bureaucratic processes, and enhanced assistance to reinforce their global competitiveness emerged as critical priorities.

Market access remains a significant impediment to expansion, with non-tariff barriers and fierce international competition compounding the difficulties faced by smaller enterprises already struggling with financing.

Despite the headwinds of inflation, rising interest rates, and escalating input costs, the interviews show the remarkable resilience and innovative spirit of these entrepreneurs who continue to fuel growth across various sectors.

Read the full article here: https://www.tbsnews.net/bangladesh/interest-rate-burden-stalls-cmsmes-finds-study-1116791

For our detailed findings, visit: https://intel.tbsnews.net/11th-issue/