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.

Full text

The Challenges and Opportunities of Post-COVID Situation
for Small and Medium Enterprises (SMEs) in Bangladesh
Mohammad Rakibul Islam Bhuiyan*
Abstract: Similar to the rest of the world, Bangladesh has been aected 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 qualied labor,
high operational costs, poor product quality, a lack of nancial literacy, etc. SMEs are
experiencing a capital constraint, increased operating costs, and employee layos as
a result of this global epidemic. Both primary and secondary data are conducted to
identify the ndings 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 ndings 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.
Keywords: Post-COVID-19, Challenges, Opportunities, SMEs, Government, Bangladesh.
Introduction
The COVID-19 epidemic is an unanticipated nationwide phenomenon that has essentially
paralyzed commerce and wrecked the economy. It has aected on economic activities and
quality of life to whom those involving small and medium-sized businesses (SMEs). The
research revealed that throughout this epidemic, SMEs were facing diculties with banking,
ready-made clothing, remittances, FDI, educational systems, and other areas. The post
pandemic situation of COVID-19 has negatively impacted not only Bangladesh but also
worldwide. Qamruzzaman et al., (2021) conducted a study that economy slowness might
be forecasted by the individual economy because of higher susceptibility, lower levels
of attentiveness, more dependence on local agencies and government as well as nancial
* Lecturer, Department of Management Information Syems, Begum Rokeya University, Rangpur,
Bangladesh, Email: rakib@mis.brur.ac.bd

142 PMIS Review, Volume 2, No 1, June 2023
control, low market demand etc. on enterprise owners. Like other countries over the world,
the economy of Bangladesh has been suering negative impacts on all categories of economy.
Additionally, the substantial consequences seen in the signicant contributory category,
SMEs, are felt strongly and continue to pass with the COVID-19 negative indicator. SMEs
are vital to the growth, employment, and expansion of most economies. Although SMEs
contribute signicantly to economic development and growth, they are often vulnerable in
public crises (Leso et al., 2022). Reduced demand in the poultry, dairy, and shing industries
has resulted in a sharp decline in prices. Additionally, city day laborers and garment workers
lost one’s jobs due to industrial closures. Therefore, many people who had no other means
of support moved placing the countryside economy from cities to villages in a precarious
position.
The government must provide immediate assistance if upcoming economic and social
problems arising after the pandemic COVID-19 in the country side have been evaded. Around
2.8% GDP growth will be reduced because of less growth in private investment, reducing
ready-made clothing exports, and complex instructions on broader in pre and post COVID-19
situation which is stated by the International Monetary Fund in 2021.
SMEs are essential for economic development, job creation, local and regional growth, and
social cohesion. Nearly all companies are small or medium-sized, accounting for 60% of
local employment totals and 50% to 60% of value contributed, on average. These industries
also play a signicant role in developing new businesses and entrepreneurial talent, giving the
national economy the much-needed dynamism and vibrancy (Silimela, 2022). In Bangladesh,
eorts to implement action programs and methods to reduce poverty are systematic and
ongoing. To achieve the government’s goal of cutting the current level of poverty in half
by the year 2015, as outlined in the Millennium Development Goals, the Poverty Reduction
Strategy has identied some fundamental guidelines and parameters at both the macro and
local levels (MDGs). Unquestionably, SMEs with rapid and sustained growth are a vehicle
for advancing national economic boost to the point where it can be measured in terms of
poverty and unemployment reduction and job creation. More than 90% of Bangladesh’s
industrial businesses fall under the SME size category (Alam & Ullah, 2006). SMEs typically
have a high labor intensity and a low capital intensity. The SME also exhibits the luxury of
being cost-eective and having comparable cost advantages. To help accomplish the MDGs
established by the government to lessen the eects of the COVID pandemic, SME policy
solutions have been developed.
The post pandemic situation has been aected on SMEs not only internationally but also
nationally. Nevertheless, socioeconomic pressures are predominantly aecting in third
world countries where economic activity and resources are conned and limited. The post-
COVID-19 has threatened the economy such as recession as well as deeper poverty. Based on
the analysis by Ozili (2020), socio economic and political development have been obstacle

143
The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises
due to post pandemic in Africa. Hence, SMEs development in Bangladesh is fundamental
pillar for economic development and sustainable growth after the pandemic circumstance.
Bangladesh government is trying its level best to improve diverse policy measurement on
SME areas even though development proportion is not standard expectations (Singh and
Belwal, 2008). There is a great opportunity to improve this area. As doing so, the economy of
Bangladesh is under threat. Moreover, there are so many papers have been published among
most of them studied about SME’s and its branches. Very few studied about the pandemic
COVID-19 on SME’s but it is indispensable to identify the challenges of pandemic over
SME’s activities in Bangladesh (Qamruzzaman, 2020). This paper also attempts to identify
the current and future opportunities of SME’s along with the pandemic COVID-19 on SME’s
in Bangladesh.
Research Objectives
* To know the post COVID-19 present position of SME sectors in Bangladesh.
* To determine the opportunities of post COVID-19 on SME sectors in the study area.
* To propose some supportive suggestions and strategies to reduce post COVID-19
challenges at study area in Bangladesh.
Research Questions
* What is the present position of SME sectors in Bangladesh?
* Where are the areas of possible opportunities of post COVD-19 situation on SME
sector in Bangladesh?
* How can the SME’s overcome identify the challenges of post COVD-19 situation in
SME sector in Bangladesh?
* What are some suggestions regarding SME’s to maintain the sustainable economic
growth in Bangladesh?
Literature Review
The pre and post pandemic situation has unexpectedly impacted on the national and
international economy. It has negatively aected on economic activity and people livelihood
particularly health, business, transportation on SMEs (Tesso, 2020). SMEs were having
problems during the pandemic due to loan payments, workers’ wages, stagnating inventory
as well as rental costs.
The possible inuence of COVID-19 on the economy has become a common discussion
around the world in recent years, and Bangladesh is no dierent. The economy might expect
sluggishness as a result of supply chain disruption, trade cessation, and insucient market

144 PMIS Review, Volume 2, No 1, June 2023
demand. Bangladesh’s economy, like that of other countries, has already been hit by merciless
and negative impacts in every sector. Furthermore, the substantial repercussions shown in the
large contributory section, SMEs, are continue to pass with the COVID-19 negative indicator.
In the majority of economies, SMEs are essential for promoting growth, creating jobs, and
opening up new markets. Even while SMEs play a vital role in economic growth, they are
typically the most at risk when major societal crises occur. Due to their diminished vigilance,
increased vulnerability, more dependency on governmental and local acts, and greater
emotional and nancial load on the owners, as well as their lower levels of attentiveness,
SMEs are the most severely hit in crises, according to (Nikolaidou, and Vogiazas, 2017).
The health and economic eects of the global COVID-19 and post pandemic are becoming
obvious dangerous.
According to the Viero et al. (2022) in the COVID-19 situation in Bangladesh, the study
examines the challenges on SMEs of establishing daily activities and remote working
conditions. Nyboer et al. (2022) identied many barriers to implementing remote working
techniques, including budgetary limits, bureaucracy, a lack of knowledge and motivation,
communication issues, high sta turnover, and the diculty of nding trustworthy employees.
The study additionally provided some recommendations for how to address the issue, such as
educating people about the enforcing government regulations, advantages of providing remote
work, training and IT courses, nancial incentives, remote (online) classes at universities, and
establishing methods of remote work in SMEs in present and future. This has a number of
ramications for the performance of SMEs and the benets to worker’s opinion (Pelletier et
al., 2022).
The growth of the SME sector as well as the current status and participation of the banks
were both noted (Sadia et al., 2023). Even though SMEs might have been essential for the
development of sustainable industries and economic growth, Bangladesh was unable to
successfully capitalize on this sector, according to the study’s conclusion. Due of occasionally
dicult loan repayments, banks— the main nancing sources for SMEs where loan rejections
rate was higher in COVID-19 situation.
Alamgir (2014) carried out a research with the goals of studying how SMEs function in the
economy, analyzing the framework issues on SMEs, and identifying the existing environment
and nancial constraints that are preventing SMEs from achieving sustainable development.
In order to achieve sustainable growth in this business, SME entrepreneurs need to have easy
access to counseling, information, funding, promotion, and technical support.
In addition to claiming many lives, the COVID-19 outbreak has severely restricted both
personal and commercial activities in a very short amount of time, according to Kraus et
al., (2020). The study’s current objective is to provide readers a more thorough knowledge
of how Bangladeshi SMEs can weather the storm by having a exible cash-ow structure
paired with a variety of strategic interventions. This is the rst article to provide a systematic

145
The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises
strategy to cash-ow management for Bangladeshi SMEs in order to capitalize on the business
possibilities of the epidemic.
The survival of SMEs is signicant for economic sustainability because of diverse economic
role. Hence, the number of SMEs operation has impacted on the overall economy of
Bangladesh (Khanom et al., 2022). Due to supply limits, restricted market demand, nancial
incapacity, and capital constraints have under threats in pandemic situation. SME’s have been
attempting to rebuild themselves from the unexpected eects by relying on talents, innovation,
and economic resources, and concerted eort from the government and organizations. The
goal of the research is to identify the eects of technical adaptation, protable investment,
government participation in Bangladesh on the long-term feasibility of SMEs in post pandemic
situation (Chien et al., 2022). According to the ndings of the study, policy formulation and
implementation might enable emergency level along with smart online nancial benets
as well as joining IT advancements in operation and settling commercial transactions, and
reducing fraud.
From the point of view by Nyanga and Zirima in 2022, study have used qualitative
methodologies, for example, descriptive tools and techniques for examining SMEs responses
by COVID-19 at Masvingo in Zimbabwe. On the basis of study conclusion, reducing
unemployment and uncertain business operations have been aected by SMEs. Their
organizations requested to support to government for extending investment and reducing
economic disruptions. Kukanja et al., (2022) conducted another investigation that SMEs’
inability to renew marketable operations was because of a combination of a labor scarcity,
uctuating market demand as well as liquid capital issues in China. Furthermore, according
to the study, a liquidity issue becomes acute when it comes to repaying xed operational
expenditures.
(Echobu and Ikechukwu, 2022) conducted a research in Nigeria at Benue State for investigating
the impacts of post COVID-19 on SMEs productivity and performance. Moreover, the study
conducted that the economy of Nigeria has negatively impacted on SME areas, Pre and
post COVID-19 appears as reducing SMEs performance, productivity and lowering sales.
The post-COVID-19 has caused in global economic crisis and health problem, business
collapse, job losses, as well as nancial illiquidity, leading in a recession that harmed SMEs’
performance. The study ndings revealing on SMEs were unable to operate regularly due to
a signicant shortage of raw materials, fewer personnel, and low market demand according
to Qamruzzaman (2021).
The concept of SMEs
No single denition of an SME is accepted worldwide. Depending on their degree of
development, several countries employ dierent metrics of size. SMEs are typically dened
dierently by people in various nations. According to Singh and Pillai’s denition of SMEs

146 PMIS Review, Volume 2, No 1, June 2023
in 2021 denes SMEs as business that engages in economic activity is a small business
regardless of their legal structure, including sole proprietorships and family enterprises. Isaga
(2017) uses the number of employees, annual revenue, and a description of the economy that
is based on the key traits of small businesses to dene SMEs. The SMEs mostly engage in
manufacturing, mining, commerce, and services, which are non-farm economic activities.
A productive activity that is mostly carried out in the unorganized sector is what Momba
(2013) denes as an SME. This productive activity may be used to create or distribute goods
or services.
Serial
no. Sector
Fixed Asset other than Land and
Employed Manpower
Building (in TK) (not above)
1
Service
50,000-50,00,000 25
2
Business
50,000-50,00,000 25
3 Industrial 50,000-1,50,00,000 30
Table 1: Requirements of SMEs in Bangladesh
Source: Bangladesh Bank
Serial
Sector
Fixed Asset other than Land and
Building
Employed
Manpower(not
no. (in TK) above)
1
Service
50,000-10,00,00,000
50
2 Business 50,000-10,00,00,000 50
3
Industrial
1,50,00,000-20,00,00,000
150
Table 2: Requirements of Medium Enterprises in Bangladesh
Source: Bangladesh Bank

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The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises
Theoretical Approaches
National concerns are diverse and always evolving, and economic literature lacks a single
framework to explain how they aect SMEs and strategic approaches. Every business entity,
especially SMEs in the nationalized economy, has a national problem as a result of the cyclical
economic and nancial crises that the international economy undergoes. In particular, the
theory claims that less production and unemployment is caused by the low eective demand
in economy. Moreover, it has connected with a lack of nancial liquidity among enterprise
investors in the national economy. In developing country like Bangladesh, economic crisis
tests the SMEs’ production feasibility or temporarily termination situation because of more
vulnerable situation in external factors (Naradda et al., 2020).
At the present business world, numerous businesses maintain SWOT analysis for strategic
planning process before corporate strategy implementation (Jeyaraj et al., 2012). According
to Wiid (2015), resources, structure, culture, and functional areas are determining the
customer needs and satisfaction through internal analysis and factors. On the other hand,
external factors will stimulate and identify threats and opportunities of SME organizations in
environment. Wiid et al. (2015) have suggested available information on external and internal
environmental factors which is leading to successful business operations. SWOT analysis is
the strategic planning process for acquiring a sustainable competitive advantage where SMEs
and large organizations implement the SWOT analysis before starting the organizational
policy and strategy in the marketplace.
According to Alam et al. (2022), the expansion of SMEs in developing nations is undoubtedly
a desirable objective given their alleged role in the production of output and the creation
of decentralized jobs. According to Alam et al. (2022), SMEs in developing nations like
Bangladesh signicantly contributed to the economy growth by providing job opportunities
as well as machinery components and substitutes, which saved our nation a large amount of
foreign currency. In Bangladesh, there are over 6.0 million SMEs that are now operating,
producing 25% of the country’s GDP, supporting 31 million jobs, and generating 75% of
household income. Together, dierent types of SMEs account for ranging 80-85% industrial
employment and 13% for other employment in Bangladesh.
According to Hales (2017), organizational strategic position can be determined by the
generic strategies for achieving competitive market position. On the basis of wide or narrow
market along with sources of competitive advantage in Michael Porter strategies such as cost
leadership and dierentiation. This determines whether a company is targeting a wide industry
segment or a specic industry segment. Hence, competitive scope is the organizational
decision. SMEs must also evaluate their strategic positioning within the industry, in addition
to major corporations. Determining the techniques these companies are using is crucial.

148 PMIS Review, Volume 2, No 1, June 2023
Sabourin and Jabo (2012),PESTEL performs two main tasks for a company: it helps
it understand the environment where business is operating with the circulation of data and
information that enables to predict the competitive advantages and productivity with superior
performance in the future at SME organizations. To improve their decision-making, all
companies must recognize PESTEL aspects. Inception of improving business policy, strategy
or choice, SMEs might be considered into an external environment such as economic, political,
environmental, legal as well as technological implications on the enterprises (Rakesh, 2014).
SMEs must conduct a PESTEL analysis at the same time to identify their rivals. These
businesses have great potential to create jobs, encourage entrepreneurship, bring in foreign
currency for the nation, and spread industries.
Figure: Proposed Research Model for SMEs
Ainuddin et al. (2010) conducted a study where resource based approach is a process of
formulating strategies on organizational resources for achieving competitive advantage in
business sectors. This approach is accelerated to rms in cases of internal advantages rather
external factors. Moreover, SMEs can predict the superior performance and competitive
advantage by implementing unique resources. Since they have greater issues than large
companies in gaining access to export resources and competencies, SMEs encounter more
challenges when joining global markets.
According to Hessels and Parker in 2013, the resource-based view assumes that for improving
organizational performance on SMEs are correlated with availability and accessibility of
resources (tangible and intangible). Hence, there is clear evidence from the above research
that strong network and resources have accelerated to organizational productivity. Moreover,

149
The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises
suppliers, sta, and customer satisfaction are required to SMEs to achieve sustainable national
goals and developments.
In a study, Lu et al. (2020) used primary data gathered through an online questionnaire from
4807 SMEs to analyze the COVID-19 impaction of SMEs in Sichuan Province, China. The
results of the study showed that SMEs are incapable of continuing economic operations
because of a severe shortage of raw materials, a lack of labor, and a weak demand in the
market. The report also shows that SMEs have trouble paying their operating expenses
because there aren’t enough ways for them to generate income. According to Qamruzzaman,
from March 18, 2020, to April 30, 2020, a stop order will be implemented in the economy,
and research will be done into the survival tactics used by SMEs to lessen the eects of the
current pandemic. Above the two studies have similar topics with researcher topic, but the
objectives are dierent and scope are identical.
The goal of the research is to nd out how SMEs businesses are doing now, as well as what
obstacles they may face in resuming operations in the near future. Descriptive statistical tools
were utilized with both primary and secondary data. According to the research, SMEs in
Bangladesh face a variety of challenges, including liquidity crises, low market demand, and
nancial restraints.
Data and Methodology
Population Size
To conduct this research, the whole population size is concerned with people who are directly
and indirectly involving the SMEs sectors in Bangladesh. Most industries and entrepreneurship
are also included in the population size of the study. It is dicult to determine the actual
numbers of individuals, directly and indirectly, involved with SME sectors in Bangladesh.
Sampling Method
Both secondary and primary sources of data were used in the study’s design. The researcher
gathered information from documents already released by various media outlets, research
organizations, policy experts and newspapers, magazines, various research papers, various
government reports, as well as websites in order to have a better understanding and accurate
ndings of the study. This study was conducted using a purposive sampling strategy. A 5-point
Likert scale will be used to design the questionnaire. Microsoft Excel was used to conduct the
statistical analysis.
Sample Size
The main attempt of the study is to summarize opportunities and challenges of SMEs by
the pandemic COVID-19 that is relating to socio-economic impact on Bangladesh economy.

150 PMIS Review, Volume 2, No 1, June 2023
Sample size is 300 respondents from the study area (Dhaka and Narsingdi District) in
Bangladesh.
Findings and Analysis
There are numerous challenges and opportunities of SMEs by facing the post COVID-19
some challenges are given below.
Challenges of Post-COVID-19 on SMEs
Figure 1: Main Challenges of COVID-19 on SMEs
Source: Field Observations and Responses (2021).
In terms of challenges of COVID-19 on SME’s is 52% of businesses have completely shut
down its operation because of COVID-19. A large proportion of SMEs is going to be in a
risk position. The amount of decrease in revenue is 28 percentage. Only 5% is increased on
a small proportion of revenue while new 11% of revenue is decreased tremendously due to
COVID-19.

151
The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises
Figure 2: Soft Loan with Low-Interest Rates
Source: Field Observations and Responses (2021).
52% of SMEs have taken soft Loan at the low-interest rates to smooth their business activities
and survive COVID-19 crisis. The working capital loan is 2 times than Government Grant
support to pay salary. Moreover, a exible installment package is a 50% increase loan tenure
without any penalty is 6% by the seminar report.
Figure 3: Minimizing Costs on SMEs
Source: Field Observations and Responses (2021)

152 PMIS Review, Volume 2, No 1, June 2023
According to Figure 3, 42% SMEs rst choice of optimizing costs has been to halt all
marketing expenses. As COVID-19 is going on marketing research activity is not fruitful
here. Our people are willing to invest more money in small and medium Enterprise that’s why
marketing research and development must have deducted.
Figure 4: SMEs Contribution to Bangladesh’s GDP
Source: Bangladesh Bank Report (2021).
By comparing the total gross domestic product around 25% of the GDP contribution to is
retrieved from here while more people can employee from SMEs while it is tremendous and
fabulous a lot of people can be self-employment and ourish economy not only society but
also nation. While there is a less amount of capital is required there by comparing others
sectors for instance, service, heavy industries, commercial agriculture and miscellaneous.
There is a huge chance of increasing of SMEs because other sectors are segmenting their
activities and converted to SMEs activates for the sake of higher protability and less risk
in the pandemic COVID-19. According to survey based information, 40% contribution to
service sector which is remarkable in the crisis economy. The contribution of Bangladesh
GDP’s economy is 10 percent on Commercial Agriculture. Contribution of Miscellaneous
Sector on GDP in Bangladesh by SME’s is approximately 4%.

153
The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises
Figure 5: SMEs Contribution to Employment
Source: Bangladesh Bank Report (2021).
SMEs have accelerated towards increasing the number of entrepreneurship that is
tremendously contributor factor for overall employment in Bangladesh. For developing
country like Bangladesh, SMEs are considered as the fundamental drivers for economic
growth and development. By comparison with neighbor’s country like India, China, and
Pakistan are approximately 97.60%, 99%, and 60% SME organizations. In Bangladesh,
GDP contribution on SME sector is comparatively low rather than emerging economy at
20.25%. There are 17,390 micro businesses including 15,668 small, 6,105 medium, and 3641
large scale enterprises in Bangladesh. The signicant contribution of entrepreneurship to
national employment is 41% which is a positive sign for Bangladesh. Furthermore, the most
proportion of people involve working in private sector that is approximately 46%. However,
13 percentage of SMEs contribution to employment is on non-agricultural sector.
Figure 6: COVID 19 Opportunities for SMEs Authority
Source: Bangladesh Bank Report (2021)

154 PMIS Review, Volume 2, No 1, June 2023
Adaptive technology in Bangladesh refers to modied versions of already existing technologies
or instruments that oer improvements or novel approaches to using the technology. During
the pandemic sityation, human beings are obliged to stay at home because of COVID-19,
they can learn the technological adaptations for instance, using zoom, google meet, whatsapp,
messenger for meeting purposes that is the part and parcel of being a Digital Bangladesh. As a
consequence, majority people can adopt technology issues. 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. A large proportion of e-commerce has
been increased in the pandemic COVID-19 time while people can easily accept their products
and services at home. 68% of E-commerce platform has added to SMEs that is really required
to maintain sustainable development of economy. Furthermore, because the government
has placed a strong emphasis on various information policies and principles for ensuring
customers and SMEs users, people can easily access information about SMEs’ products and
services. While 87% of SMEs have accelerated to create a smoother, easier communication
platform, 95% of individuals can obtain information from the SME’s authority about small
and medium enterprise.
Mapping SME Clusters in Bangladesh
Around 8.1 million micro, small and medium businesses are operating their operations with
2.3 million location in city areas and approximately 6.8 million in countryside regions. Dhaka
accounts for 32.2% of all operating businesses, with Chattogram, the second-largest city,
accounting for 17.1 percentage. The proportions show that the majority of businesses are
centered in Dhaka and Chattogram, while most businesses are found in rural areas, where
they play a big part in countryside development.
Figure 7: CMSME numbers in diverse divisions (Percentage)
Source: Asian Development Bank (2022)

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The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises
Policymakers in Bangladesh have long ignored the close proximity of SME clusters, but
this has changed recently. After the pandemic COVID-19 circumstances, cluster is the
combination of 50 or more than 50 businesses manufacturing same categories of services
or products which is located nearby locations such as from 3 to 5 kilometers radius where
SWOT are common factors. With over 69,902 businesses and 1,937,809 workforces, 177
SME clusters have been identied by SMEF in 51 districts. In the rst stage of the process
for cluster identication is the furthest cluster development that has improved in Bangladesh.
Conclusion
From the above discussion, post-COVID-19 has created opportunities and obstacles for SME
in Bangladesh specially in business sectors. The operation of SMEs is determined by the ability
of overcoming the current obstacles and on the eectiveness of their strategies for undergoing
the safest possible business transformation in toughest time (Jones et al., 2021). The outbreak
of post COVID-19 has moved the world and changed socio-economic paradigms in all areas.
Post COVID-19 has undoubtedly provided SMEs with a window of opportunity when they
must rethink, reinterpret, and rework their survival strategy. Owing to COVID-19, many
businesses lost their direction due to complacency, resistance to change, and other factors.
Nonetheless, SMEs will have to follow the rules laid down by the coronavirus and develop
their own paths to success now. Business owners of SMEs should have taken initiative such
as build management skills and strong nancial control for the development, survival and
growth. Furthermore, the government should improve technical strategies and policies for
developing the SMEs (Liu et al., 2022). Moreover, the real possibilities and opportunities of
Bangladesh remain in the SMEs, and therefore, the sector should get more concentrated on
the sustainable growth and development of the country through overcoming COVID-19.
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The Challenges and Opportunities of Post-COVID Situation for Small and Medium Enterprises
Author's Biography:
Mohammad Rakibul Islam Bhuiyan completed his BBA and MBA
from the University of Dhaka in Management Information Systems
Department. At present, he is rendering his service as a lecturer at
Begum Rokeya University, Rangpur in Management Information
Systems department since December 2021. Furthermore, he is working
as an Assistant Provost at Shaed Mokter Elahi Hall in Begum Rokeya
University, Rangpur. He was working as Lecturer at Khaja Yunus Ali
University in Sirajgonj for 1.5 years. He also worked as a research
assistant, project research associate, teaching assistant and has many
notable contributions in dierent research aspects. His research interest topic is including
Digital Economy, Cashless Society, SME, Internet Addiction, E-wallet, Transport Quality
and so on.