At a national consultation held at the Ministry of Industries, stakeholders and policymakers emphasized the need to simplify regulatory processes to foster the growth of Micro, Small and Medium Enterprises (MSMEs) in Bangladesh. The event, titled 'Simplifying Regulatory Processes and Conducive Environment for Formalization', was jointly organized by the Ministry of Industries, Business Initiative Leading Development (BUILD) and the International Labour Organization (ILO).
Industries Secretary Abdun Naser Khan, speaking as the chief guest, highlighted that simplifying regulatory processes would accelerate business formalization. He mentioned the formation of a high-level committee, headed by the Minister to the Ministries of Industries, Textiles and Jute and Commerce, to address these issues. The government is also preparing a 90-day Deregulation Action Plan and working with the Prime Minister's Office to strengthen the One-Stop Service (OSS) system.
BUILD Chairperson Abul Kasem Khan noted that the newly published Business Licensing Guidebook would help entrepreneurs access information on required licenses and approvals more easily. He proposed integrated utility connections, a joint inspection system and legally backed Service Level Agreements (SLAs). To achieve the government's target of generating one million jobs, he stressed that regulatory barriers must be removed to facilitate the emergence of at least 100,000 new entrepreneurs.
BUILD CEO Ferdaus Ara Begum, presenting the keynote paper, pointed out that excessive regulatory requirements significantly increase the time and cost of doing business. She cited Bangladesh Bureau of Statistics (BBS) data indicating that 65 percent of the country's economic units remain informal, although registered businesses account for more than half of total employment. She proposed introducing a Single Digital Business Identity number, a one-stop licensing platform and long-term licenses, estimating that such reforms could reduce compliance costs by 30 to 50 percent.
ILO Representative Peter Junior Belen emphasized that around eight out of every 10 workers in Bangladesh are employed in the informal sector. He stressed the importance of expanding formal and decent employment to address post-LDC challenges and reaffirmed the ILO's commitment to providing technical support. Representatives from various government agencies, business chambers, labour organizations and development partners also called for simplifying trade licensing, creating a centralized database, improving access to SME financing and addressing tax and audit complexities faced by women entrepreneurs.
