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TA Loan 2150-BAN: Small and Medium Enterprises Sector Development Programme (SMESDP) – Component 6: Integrated SME Database Development

Objectives:

The most important objectives before these nation-wide sample surveys (NWSS), to be conducted in two phases, were: (i) to harness an expert and scientific characterization of Bangladesh’s Small and Medium Enterprises (SMEs) involving analysis on both the supply-side as well as the demand-side; (ii) to characterize Bangladesh’s SMEs in terms of their magnitude, composition, characteristics and performance; (iii) to identify, in specific terms, the supply-side and the demand-side of Bangladesh’s SME development; (iv) to identify the positive and negative drivers of productivity, profitability, employment generation and poverty reduction; (v) to identify the micro-economic aspects of the SME growth process itself, with an accent on causal determinants of the intensity of the use of services with public-goods characteristics of a kind that PRSP is focally concerned with; (vi) the identification of a “priority core” comprising six to eight from among the eleven “booster industries” cited by the report of the SME Task Force and then enshrined by the SME Policy Strategies 2005 in the interest of greater operational focus in future implementation of SME Policy Strategies by the Government of Bangladesh; (vii) to assess the character and effect of the existing structure of competitiveness between SMEs on the one hand, and large enterprises in Bangladesh on the other; (viii) to assess the forward and backward linkages radiating from the process of growth of SMEs themselves, and the impact on the allocation of resources by firms, including hiring of workers disaggregated by gender; (ix) firm up estimates about the levels and characteristics of demand for the final goods produced by SMEs.

Services:

Designed the surveys and ensued database covering all important definitional, analytical, policy, incentives and institutional issues and based on the most appropriate definitions of the various variables; Generated the primary data to the highest standard of accuracy possible, and obtained all appropriate secondary data bearing in mind the imperative to deal with the econometric problem of “identification” for each major markets studied; Edited, catalogued and archived the data, using methods offering best practices in survey data security, including the use of  especially configured data-entry terminals which per-force can only store data on hard-disk(s) residing on a powerful server machine, which were “offline” at all times and allow disk-mirroring systematically;  Processed the data using both STATA, LIMDEP and GAUSS/GAUSSX, to the point of generating all results, including model results of interest to the RFP; Web-enabled the database to facilitate the broadest possible dissemination to the community of users and stakeholders at the lowest possible cost including disseminating through the SME Web Portal ; writing a series of reports characterizing the SMEs’ growth process, the existence, the nature and causes of market failures; distinguishing “high-growth” vs “low-growth” SMEs; splicing the data about both the number of establishments and employment with a gender-aware “switch”; and finally producing guidelines for how to implement SME Policy Strategies.

 

Timeframe: September, 2008 - August, 2009

Realated Countries: Bangladesh

Client(s): ADB, GOB, Ministry of Industry

Categories: MIS and ICT, SME and Microfinance and Microenterprise, Technical Assistant

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