A Comparative Study of SME Policies: Bangladesh and Pakistan

Abstract

This article attempts to understand the developments in policy making and financing for Small and Medium Enterprises (SMEs) of Bangladesh and Pakistan. From 1947–1971, Bangladesh was a part of Pakistan, as East Pakistan, while the remaining current Pakistan, is referred as West Pakistan. However, in 1971 a political turmoil resulted in a separation of two parts into two different nations. Since then, both have taken different routes to develop their economies along with heavy reliance on SMEs. This paper explores the key differences in financing and policy for SMEs in Bangladesh and Pakistan with a comparative study based on literature, empirical case studies and analysis of government policies and regulations, trying to identify some main takeaways from Bangladesh and Pakistan’s market for entrepreneurs, investors and policy makers.