Acknowledgement

All praise and admiration for almighty Allah. The most gracious, the most kind and merciful who has turned all my effort into a great success.

We have benefited from the help of many people in completing our internship and in preparing this report. Discussion with our Honorable Sir, materials supplied by our friends-everything helped me in an unfold number of ways in shaping this report. Our intellectual debt to all of them who blazed us with helps.

We are particularly indebted to our honorable course teacher, Mr. Faruk Bhuiyah for allowing us to complete our attachment in his well esteemed organization. It is worth mentioning here the name of the following managers or owner of the restaurants for their help in particular: y Md. Kasem Aftab fisheries Chittagong y Md. Abul Kalam Frozen fisheries Chittagong y Md. Nuzural Islam Provida fisferies Chittagong y Md. Siful Islam Borodigi Agro fisheries y Md. Didatul Alam Chowdhury & hussain fisheries

Table of Content

Name Executive summary Background of the study

Page No. 1-4 4

Origin of the report

Data collection method: An overview about SME

5 5-14

Background about fisheries Survey outcome

14 15-22

Findings Conclusion and Recommendation Reference

22-23 23-25 25

Executive Summary
General
Keeping in view the immense potentials of fisheries sector of the country in providing better nutrition and employment opportunities, particularly to the poorest of the poor, and the urgency for scientific utilization and management of the aquatic heritage, the Fisheries Research Institute (FRI) was established in 1984 through promulgation of an Ordinance. In 1997 the FRI was renamed as Bangladesh Fisheries Research Institute (BFRI) under Bangladesh Fisheries Research Institute Act (amended 1997). The BFRI is an autonomous research organization and linked up administratively with the Ministry of Fisheries and Livestock, Government of the Peoples Republic of Bangladesh. The general direction, administration and supervision of the affairs of the Institute are vested in a Board of Governors. The Headquarters of the Institute is located at the Bangladesh Agricultural University (BAU) campus, Mymensingh, which functions through its various divisions. In addition to the Headquarters, there are five research stations viz. Freshwater Station, Mymensingh; Riverine Station, Chandpur; Brackishwater Station, Paikgacha, Marine Fisheries and Technological Station, Coxs Bazar and Shrimp Research Center, Bagerhat. Also there are five sub-stations named as Freshwater Sub-station, Jessore; Riverine Sub-station, Rangamati; Floodplain Substation, Santahar; Riverine Sub-station, Khepupara and Freshwater Sub-station, Sayedpur.

Research and Development of Technologies

A total of 35 research programmes were conducted during the reporting period 2003-2005. Of them, 10 research programmes of Freshwater Station belonged to breeding & genetics, aquaculture, farming systems; 8 research programmes conducted at the Riverine Station and its Sub-stations on breeding of catfish, openwater aquaculture and management; 10 programmes in Brackishwater Station, which included shrimp and crab culture, disease, live food and supplemental feed and 7 programmes in Marine Station included stock assessment, disease, hydrographic assessment of coast etc. Noticeable research progress has been obtained in case of seed production of local endangered fishes- shing, koi and guizza, mono-sex male production of GIFT, nursery management of golda M. rosenbergii, pearl production, spawning success of local pangus P. pangasius, assessment of natural spawning of carps in Halda river, monitoring of pollution on the Buriganga, Shitalakhya rivers and Bay of Bengal coast, crab fattening, etc.

Technology Transfer
Subsequent to development of technologies or management practices, the Institute generated research results are transferred through various mechanisms. On-farm trials were conducted through government and non-government extension agencies, private entrepreneurs and NGOs. Different government agencies including Dept. of Fisheries, NGOs, farmers and entrepreneurs were offered training on research-evolved technologies. After successful maturation of technologies, printing materials like manuals, booklets, leaflets, posters etc. were published and

distributed among the users. BFRI published 5 manuals/booklets/leaflets and 2 research reports during reporting period. Besides these, Institute always maintained Farmers Advisory Service in its different stations and sub-stations to resolve farmers day-to-day problems.

Training, Workshop and Seminars

During the reporting period, a total of 1,380 people in 61 batches have been trained in different disciplines at the Institute. Fish framers, NGO field officers/managers, DoF officers, BFRI scientists, students of the Faculty of Fisheries, Bangladesh Agricultural University, journalists, teachers and LGED facilitators participated in these training programmes. As a part of Institutes manpower development programme one post-doctoral course in Japan, two short-term training and one study tour were implemented in Thailand and Malaysia, respectively. Institute organized 3 national workshops in order to identify the problems, and sharing and exchange of knowledge generated through implementation of different research programmes. The international siminar on Expert Consultation on Ecological Risk Assessment of Genetically Improved Fish was Organized by BFRI and World Fish Center, Malaysia, held in Dhaka, during 4-8 August 2003.

Finance
The Institute received an amount of Tk. 396.70 lakh and 485.34 lakh, respectively during the fiscal year 2003-2004 and 2004-2005 from the government revenue budget for institutional operation. Besides, the Institute received an amount of Tk. 85.34 lakh from WorldFish Center to finance the Research for Sustainable Aquaculture Development Project. Also the Institute received an amount of Tk. 10.00 lakh from the government revenue budget to finance its ongoing Fisheries Research Strengthening Project. During the reporting year, the Institute made an income of around Tk. 15.00 lakh from the sale of spawn, fishes, tender schedules, conveyance and other miscellaneous items.

Background of the study:

As a graduating student of international Islamic University Chittagong School of business, every student has to attend like this attachment program i.e. BBA in any business organization and after completing the program the student has to submit a report.

Origin of the report:

Under the program, every student obtains the opportunity to utilize for acquiring practical knowledge, prepare a descriptive report with proper study is a nominated esteemed organization under the guidance of a knowledgeable person as a teacher to guide, supervise and help the student to complete his study, before awarding the BBA Degree. Therefore, this report has been prepared to describe about the practical knowledge and experience that is gathered during the 7

days program in many fisheries. It contains our experience with these and gives us an opportunity to know about SMEs in Bangladesh.

Data collection method:

The research work was dependent on primary and secondary data study. For the primary data study survey method was conducted by survey through human interactive media or personal interview. Then secondary data study was conducted through different websites, books etc.

An overview about SME:

SME Loan Bangladesh: Bangladesh is development country in the world here people are very hard work change his life style. Many people get SME loan from local Bank & established SME base Company trading, Manufacturing factory What is SME Loan: SME loan is the Financial support small and medium sized enterprises and represents a major function of the general business finance market in which capital for firms of types is supplied, acquired, and costed/priced. Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; The economic and social importance of the small and medium enterprise (SME) sector is well recognized in academic and policy literature.

Management of Business lending:

The effective management of lending to SMEs can contribute significantly to the overall growth and profitability of banks. There has been considerable research and analysis into the methods by which banks assess and monitor business loans, manage business financing risks, and price their products and how these methods might be further developed and improved. SME Loan Bangladesh position: SME loan Bangladesh change the Bangladesh economy there are many people get this loan & growth his business . Bangladesh many Bank & Finance leasing company get this loan many sector trading, manufacturing

List of Bank & leasing company who get SME Loan

Dhaka Bank Ltd Prime Bank Ltd City Bank Ltd

Exim Bank Ltd Islamic Bank Bangladesh Ltd Karmosangesthan Bank Bangladesh Krishi Bank

SME Foundation Bangladesh:

(SMEF) was formally inaugurated today, July 17, 2007, by Dr. A. B. Mirza Md. Azizul Islam, Honorable Advisor, ministries of Finance, Commerce, Post & Telecommunications, Government of the Peoples Republic of Bangladesh at a ceremony held at the Hotel Sonargaon, Dhaka. The SME Foundation is an independent center of excellence created and generously capitalized by the Government of Bangladesh to the tune of a total endowment of Tk. 2 billion. The inaugural was presided over by Mrs. Geetiara Shafiya Chowdhury, Honorable Advisor, ministries of Industry, Jute and Textiles, Children & Women Affairs and Social Welfare, Government of the Peoples Republic of Bangladesh. Dr. Md. Nurul Amin, Secretary, Ministry of Industries, originally set the proceedings off by delivering an address of welcome. The Honble Finance Advisor also formally launched also at the same time Small & Medium Enterprise Web Portal (SMEWP) and Small & Medium Enterprise Helpline Centers, two of the deliverables within the framework of Small & Medium Enterprise Sector Development Programme (SMESDP), the ADB-assisted technical assistance (TA) project being implemented by the Ministry of Industries. Thirty-two such helpline centers would from now be operating in twenty-five districts of Bangladesh. Special Guests who also spoke on the occasion, wishing the SME Foundation well and giving exceedingly valuable guidance and suggestions were Mr. Mir Nasir Hossain, President, FBCCI; Ms. Hua Du, Country Director, ADB Bangladesh Resident Mission; Mr. Abdul-Muyeed Chowdhury, Chairman of the Board of Directors of SME Foundation and Dr. Salehuddin Ahmed, Governor, Bangladesh Bank. Halfway through the session, the Honble Finance Advisor, accompanied by the Chair-person and all the other dignitaries, examined, with obvious interest, several features of the content management system before, finally, declaring the SME Web Portal open. Speaking on the occasion, the Honble Finance Advisor appraised his audience about the great importance the Government attaches to the subject of the development of SMEs in the country. He reminded the audience that he was recently called upon by a delegation representing the community of women entrepreneurs. The women entrepreneurs represented, with some visible angst, how difficult it is to succeed in the highly competitive world of SMEs in Bangladesh when ones bank charges on

interest rates as high as 17% to 22%. The Honble Finance Advisor appeared to commiserate with the women entrepreneurs delegation, whereupon he urged the managing directors of private banks present in his audience to do everything in their power to charge SMEs in general and women entrepreneurs in particular interest rates that are affordable. The Honble Finance Advisor expressed his conviction that the under the leadership with a proven track record, the SMEF would more than meet the high expectation the Government and the nation have about it. The Advisor also informed the audience that an orderly transference of the Small Enterprise Fund (SEF) from the Bangladesh Bank to the SMEF was already in train. The Honble Advisor of Industry, Mrs Chowdhury, said that as well as carefully going into the challenging area of credit wholesaling, where prudential guidelines of the Bangladesh Bank would have to be upheld meticulously, the SMEF would need to be very diligent, highly professional and innovative in both generating a facilitation capacity to have business creation services and business development services delivered to SMEs in general and women entrepreneurs in particular in a demand-driven manner. Ms Hua Du said in her address that, while it is relatively easy to create a new institution, what really count for a lot more is to run it most prudently, efficiently, astutely, for that is the only way in which an institution can sustain itself and then can grow in others regard and esteem. She issued a mild note of caution that the SMEF would be well-advised to get involved in wholesaling credit very very gingerly and cautiously. She also advised the SMEF to ensure that it makes the utmost effort to involve, empower, upgrade and collaborate with the private sector and not crowd it out. Mr. Abdul-Muyeed Chowdhury responded by saying that the SMEF has every desire to make the private sector the principal change agent on the ground. SMEF, he said, constantly would remind itself that it is a catalyst, a facilitation platform, and wants to be remembered by its work. Publicprivate partnership is the shibboleth, the imprimatur, by which the SMEF would want to be recognized

Mission of Bangladesh SME Foundation :

The abiding mission of the Government of the Peoples Republic of Bangladesh as regards the development of SMEs is the primacy of pro-poor development of Bangladeshs small and medium enterprises (SMEs) in the present age of unceasing globalization, and all-consuming restructuring. This flagship mission translates into more measureable goals of spurring growth rate of SMEs, upgrading capacities and productivities by existing SMEs and providing stimulus to the emergence of new enterprises, their capacity to generate employment and reduce poverty.

Vision of Bangladesh SME Foundation

Amid an environment characterized by increasingly relentless integration of markets, internationalization of production network by leading and name-brand companies, lowering business threshold for alternative competitive entry, and therefore exacting competition, Government of Bangladeshs core business values in championing the cause of SMEs are (i) the creation and tasking of a genuinely independent brains-trust comprising a professionally rich trove of expertise; (b) a level policy playing field for all sizes of enterprises, especially small enterprises; (c) the creation, updating and dissemination around the clock of an integrated information- and evidence base which not just informs but is also in tern informed by the community of its users; (d) the discovery and inculcation of a holistic systems-approach regarding what it takes to enable SMEs in Bangladesh to draw level with, even at times leapfrog, their competition; (e) unstinted and transparent execution of a plan of action that is wellinformed and yet consensual, future-facing and yet well-embedded in todays context, opportunities and constraints. It is a milestone development that the Government of Bangladesh has entrusted the SMEF with implementing the SME Policy Strategies - 2005 that will be adopted by the Government from time to time. In no countries of Asia has incumbent governments vested so much executive sovereignty along with generous start-up budgetary support for an institution with so much indepdence in the name of spurring the development of SMEs.

Objectives of Bangladesh SME Foundation

To promote, support, strengthen and encourage the growth and development of SMEs in all productive sectors of the economy, including the service sector, throughout the country. To plan, program and finance interventions for delivery by private sector organizations, including chambers, associations, trade bodies, research and development institutions including universities, consultancy companies and professionals. To institute SME Awards in order to promote competitiveness among the SMEs. To facilitate SME access to finance by creating and supporting appropriate strategies and institutions in order to encourage and promote potential SME booster sub-sectors, but shall not sanction and/or deal in direct credit delivery to SME clients. However, SMEF may also promote, select and supply fund to banks and financial institutions having wide outreach throughout the country for onward lending to SME clients all over the country. To rationalize public sector approaches and support structures for SME development through systematic capacity assessment and interventions for organizational development and institutional capacity building. To create a pro-growth and pro-poor business environment in which both existing and aspiring SME entrepreneurs, affordably. Find what they need---namely, access to finance, information, counseling, mentoring, marketing, and design know-how, networking, linkages, representation and the power of agency to succeed. To create appropriate incentives, mechanisms and support structures to facilitate the formation of new

enterprises, ensuring enterprise competitiveness, and promoting sustained growth of existing businesses. To identify and report policy anomalies, market and institutional failures that are prejudicial to the legitimate interests of SMEs, based on in-depth research, and stakeholder consultations. To encourage improvement in SME business environment by gradually becoming a one-stop facilitation window center. for SMEs in getting licenses and approvals from various agencies and department, and in accessing other required services. To create a database and provide all needed information about SMEs to investors and service providers To encourage and motivate financial institutions, industry and trade associations, civil-society institutions and bodies, including SMEs own cooperative bodies to meaningfully enhance their capacities for SME development To implement a strategy for facilitating applied R & D while harnessing the synergies existing within the public-sector, corporate and private sector and the research and university system To actively foster greater collaboration, in both design and commercialization, between industry, civil-society and academia in the interest of harmonious development of human resources, and delivery systems for SME develop

Place of SMEs in the National Economy of Bangladesh

Any precise quantitative estimate of the importance of SMEs in Bangladesh economy is precluded by non-availability of comprehensive statistical information about these industries at the national level. The latest BSCIC estimates suggest that there are currently 55,916 small industries and 511,612 cottage industries excluding handlooms. Including handlooms, the number of cottage units shoots upto 600,000 units indicating numerical superabundance of the SCIs in Bangladesh. Quoting informal Planning Commission estimates, the SMDF puts the number of medium enterprises (undefined) to be around 20,000 and that of SCIs to be between 100,000 to 150,000. This wide variation in the BSCIC and Planning Commission estimates of the numerical, size of the SMEs might be due to at least two reasons: (a) different set of definitions of the SMEs and (b) different coverage of SME families. This strongly suggests the need for adopting and using an uniform set of definitions for SMEs by all Government agencies to help formulation of pro-active SME promotion policies. Whatever the correct magnitude, the SMEs are undoubtedly quite predominant in the industrial structure of Bangladesh comprising over 90% of all industrial units. This numerical predominance of the SMEs in Bangladeshs industrial sector becomes visible in all available sources of statistics on them (Ahmed, M.U 2001). Together, the various categories of SMEs are reported to contribute between 80 to 85 per cent of industrial employment and 23 per cent of total civilian employment (SEDF, 2003)2. However, serious controversies surround their relative contribution to Bangladeshs industrial output due to paucity of reliable information and different methods used to estimate the magnitude. The most commonly quoted figure by different sources (ADB, World Bank, Planning Commission and BIDS) relating to value added contributions of the SMEs is seen to vary between 45 to 50 per cent of the total manufacturing value added. While the SMEs are characteristically highly diverse and heterogeneous, their traditional dominance is in a few

industrial sub-sectors such as food, textiles and light engineering and wood, care and bamboo products. According to SEDF sources quoted from ADB (2003), food and textile units including garments account for over 60% of the registered SMEs. However, as identified by various recent studies, (Ahme, M.U. 2001, ADB 2001, US-AID 2001) the SMEs have undergone significant structural changes in terms of product composition, degree of capitalization and market perpetration in order to adjust to changes in technology, market demand and market access brought by globalization and market liberalization.

Constraints to SME Growth

It is important to understand the operational strengths and weaknesses of the SME sector for pragmatic policy making and effective implementation of such policies. Given an excessive heterogeneity and almost a bewildering diversity in the type, composition and characteristics of the members of the SME facilities it is exceedingly difficult to have any precise diagnosis of their operational constraints. Over the years many studies have been carried out to identity the operational bottlenecks encountered by the SME entrepreneurs. One of the most recent studies (Sarder, J. 2001) based on a small sample of 19 entrepreneurs identified the following (as perceived by the respondents) as the major difficulties faced by them: lack of modern technology lack of adequate investments irregular/inadequate supply of power high rate of interest on bank loans inadequate availability of raw materials absence of clear-cut government policies fierce competition lack of skilled technicians and workers lack of research and development facilities. These are very commonly perceived and also perhaps generally encountered difficulties of operation of the SMEs. However, a close scrutiny and careful interpretation tends to reveal that lack of institutional credit, non-availability of working capital, low levels of technology, low productivity, and lack of marketing facilities and market access problems are the major bottlenecks to SME growth in Bangladesh. In the recent years, domestic law and order conditions, unreliable power supply and stiff competition both in domestic and international markets seem to have been the added dimensions to the SME operational bottlenecks. However, systematic and in-depth studies based on sufficiently large samples are needed to precisely identify the operational woes of the different categories of the SMEs.

10

SME Assistance Policies and Institutional Arrangements

The economic efficiency and overall performance of the SMEs especially in the developing countries are considerably dependent upon macroeconomic policy environment and specific promotion policies pursued for their benefit. It is thus important to examine the policy environment and institutional support within which the SMEs operate. Though promotion of SME development has been a stated objective of successive governments ever since Pakistan days, the broad macro policy regime has continued to remain biased against SME development in many ways. Allocation of public sector investments, trade policies and taxation policies in particular have mostly been anti-SME development in character and contents (ADB, 2002). The specific promotional policies and support measures such as extension services, financial and physical support form the public sector agencies and the development partners have also not always been adequately effective. Weak and inefficient management and lack of proper implementation of the various policy support measures have rendered various assistance relate business advisory services, such as training, credit marketing and physical infrastructural facilities (through BSCICs Industrial Estates Programme), much less effective than desired. The private sector efforts through participation of MIDAS, BASIC and selected NGOs (especially GB, BRAC and Proshika) have not so for been adequate especially in SME promotion. The SMEs because of their structural weaknesses, such as, scale barriers, inefficient management and weak technological capacities therefore need pro-active policies and institutional support in addition to removal of existing policy biases. Though BSCIC has been the key public sector agency responsible for supporting SME promotion for a long time, its operational efficiency remains weak for a number of structural and administrative and managerial bottlenecks. While getting the Government out of business and greater participation of the private sector are now emphasized as key strategies for development, some public sector participation for desirable monitoring of selected essential public services such as, effective legal and judicial procedures, commercial contracts, land settling arrangements etc. will still be necessary.

Financial Constraints
Access to Finance: SMEs encounter great difficulties while raising fixed and working capital because of the reluctance of banks to provide loans to SMEs. Banks are shy to lend to SMEs because of high processing and monitoring costs of loans to SMEs. The loan application forms for investment financing from banks are long, tedious, and redundant. Since the removal of the interest rate subsidy without the removal of interest band, financial institutions find little incentive to lend to SMEs. SMEs find it difficult to use non real estate assets as collateral to obtain loans from the banks. In the past, the government has attempted to provide SMEs with access to finance through targeted lending. There was a government directive that 5 per cent of a bank's loan portfolio be set aside for small and cottage industry financing. A new bank, namely,

11

the Bank of Small and Cottage Industries (BASIC) was set up in 1988 with the objective of financing the small and cottage industries. There were also attempts to channelize fund received from international agencies such as the Asian Development Bank (ADB) to the sector through private banks. There were provisions of favorable debt equity ratio, special interest rates and credit guarantee scheme. The central bank also issued directives to both public and private commercial banks regarding working capital loans, use of standardized documentation procedure and time limits for credit sanctioning and loan disbursement. Notwithstanding all these arrangements for financing of SMEs, the actual delivery of institutional credit to this sector has been grossly inadequate. The following seem to be the key factors inhibiting flow of institutional finance to the sector. Project Preparation and Evaluation: The first problem entrepreneurs face in seeking institutional finance is with regard to preparation of the project proposal. In spite of directives from the central bank to follow standardized procedure, the loan application process has still remained lengthy and cumbersome. The entrepreneur often lacks the ability to formulate a proper project proposal. Even when he prepares the proposal drawing on outside expert services, there is no guarantee that the proposal will be evaluated properly as the financial institutions themselves lack adequate capability for proper project evaluation. Collateral Requirements: One of the main factors that have hampered flow of institutional finance into SMEs is banks' pre-occupation with collateral based lending. Traditionally banks have used fixed asset ownership, particularly land ownership as the basis for judging credit worthiness. This puts SMEs at a relative disadvantage, as large entrepreneurs are often able to get around the problem because of their influence and contacts by putting up collateral of dubious valuation. The solution to this problem lies in banks seeking deposit relationship with owners of SMEs and using cash flow rather than asset ownership as the criterion for creditworthiness. An expanded credit guarantee scheme will have to play a vital role in this regard. Bureaucracy and Corruption: Because of lack of proper autonomy and accountability the public sector financial institutions are beset with inflexibility, inefficiency, political interventions and corruption. Since the performance of the bank officials is not properly evaluated they lack the incentive to bring a large number of suitable borrowers, particularly those in the SME sector, within the fold of institutional financing. They adopt a passive and inflexible attitude towards the borrowers either to avoid the risk of making an inappropriate lending or to force the borrower to make side payments for more favorable handling of the loan application. Until necessary reforms in the public financial institutions are carried out, the SMEs will continue to bear the brunt of this institutional malice.

12

Major Industrial Constraints A Historical Perspective (1988-98)

There is a growing literature on various constraints that have impeded the growth of SMEs in Bangladesh. Many of the constraints presently encountered have been discussed in the preceding section. In this section, a summary of the findings from selected studies, during the 1988-98 periods, is being presented. Major Findings: Over the years, various studies have been conducted to identify constraints encountered by entrepreneurs in the industrial sector. A summary of the ranking of the problems from selected studies over the 1988-98 period is presented in this section. Table 1 provides the ranking of the top eight problems according to the recently completed survey of eight SME subsectors under the JOBS program. The subsectors include: Steel Furniture, Small Metal Works and Light Engineering, Electrical Small Goods, Plastic Products, Specialized Handloom, Bakeries, Textile Dyeing and Printing, and Footwear. According to Table 1, electricity, credit, and law and order are respectively the three top ranked problems followed by legal barriers, excess competition, and dearth of technical assistance. Relative ranking under selected past studies of the top eight problems, identified under JOBS, is presented in Table 2. As evidenced in Table 2, points are awarded only if a problem was ranked as one of the top five under each of the respective studies (5 = most serious). A summation of the scores from the various studies reveals that credit and working capital have consistently remained as the major bottlenecks to industrial growth in Bangladesh. Electricity problem is also ranked close to credit as a serious problem at present and in the past. Unavailability and/or high price of raw material, poor law and order conditions and legal barriers are cited as serious problems, but not as highly as credit and power.

BB Regulations for Small Enterprises

Private entity with less than 1. 60 employees for the Manufacturing Sector 2. 30 employees for the Service Sector 3. 20 employees for the Trade Sector 1) Service Sector: Total Assets (excluding lands and buildings) between 50,000 and 3 million Tk (800-50,000 USD) 2) Trade Sector: Total Assets (excluding lands and buildings) between 50,000 and 5 million Tk (800-80,000 USD) 3) Manufacturing Sector: Total Assets (excluding lands and buildings) between 50,000 and 10 million Tk (800-160,000 USD) Banks: HSBC Turnover < 2.5 million USD

13

Citibank Number employees < 60 BRAC Bank Loan size < 3 million Tk AB Bank Loan size < 100 million Tk

Background about fisheries

Bangladesh is rich in aquaculture and aquatic resources. Around 260 fresh water fish species, 475 marine species 24 prawns, 36 shrimp and 12 exotic species are available through natural production or cultured production. Bangladesh inland water bodies are the habitats of 266 species if indigenous fish 13 exotic fish, about 26 freshwater mollusks, and 150 birds. There are some categories of major fisheries resources, such as inland open water 4.05 million ha, inland closed water including brackish water 0.39 million ha, brackish water 0.14 million h and marine water etc. Fish and fisheries is part and parcel of the culture and heritage of Bangladesh. There are remarkable varieties of marine and fresh water fish species in Bangladesh that provides protein and nutrition for the people of Bangladesh. Fisheries contribute 5.3 percent of GDP and 6 percent of foreign exchange earnings through export (Economic Review, 2003). Fish is one of the main sources of our protein that provides 63% of national animal protein. About 20 million people earn their livelihood by fishing, of them 61% from open water bodies, 23% from the marine sources and 16% from the closed water bodies (Mothsha Pokkha, 2002). Fisheries sector plays an important role in employment, poverty alleviation and economic development in Bangladesh. At one time, Bangladesh was rich in fresh water natural fish and wetlands were full in fish in year round.

14

At present, fisheries are under assault from a wide variety of problems, including over-fishing, indiscriminate killing of juveniles, drainage and irrigation projects without having any regard to fish breeding and rearing needs, water pollution, fish disease, defective and insufficient fish conservation laws, inadequacy of proper processing, marketing, siltation, degradation of wetland, changes in river courses, land reclamation, unscrupulous use of chemicals in agriculture, destruction of spawn, inadequate knowledge, unwise use of natural resources etc (Fifth Five Year Plan 2002). With a view to overcome those problems, the Government of Bangladesh has passed several fisheries laws and policies. Three categories of fisheries laws have been developed, each aiding the development and administration of different water bodies: inland open water, inland closed water, and brackish and marine water. There are some categories of major fisheries resources, such as inland open water 4.05 million ha, Inland closed water including brackish water 0.39 million ha, brackish water 0.14 million ha and marine water 16.61 million ha. In the meantime, the government of Bangladesh ratified-13; signed-6, accessed-12, and 11 made accession including Biological Diversity in protecting the environment of the country.

Survey outcome:
This survey is conducted on five fisheries Total Sample size = 5 1. Capital of the business Range of Capital

At starting Response in In % amount 5 100 0 0 0 0 0 0

At present Response in In % amount 3 60 2 40 0 0 0 0

Less than 2 cores 2-4 cores 4-6 cores 6-10 cores

15

capital of business in %
100% 80% 60% 40% 20% 0% At starting At present

Comment: In this diagram it is shown that, 100% of total surveyed fisheries started their business with capital less than 2 cores; at present 60% less than 2 cores and 40% (2-4 cores). 2. Data shown as they have prepared any plan at the starting time to achieve their goal or dream: Response Yes No 4 1 In % 80 20 Total respondents 5

Response for Preparation of plan for achieving goal

No 20

Yes 0 20

80 40 60 80 100

Comment: In this diagram it is shown that, 90% of total respondent response that they have prepared any plan at the starting time to achieve their goal or dream; 10% or remaining respondent responded that they are not prepared.

16

3. Importance of long term planning for SME: Response In % Total respondents Yes 5 100 5 No 0 0

100% 50% 0%

0.00% 100.00% No Yes Response

Comment: This graph shows that, 100% of total respondents think that long term planning is important for SMEs and remaining 0% dont think it as important for SMEs

4. Preparation for long term planning: Response In % 60 40 Total respondents 5

Yes No

3 2

100.00% 50.00% 0.00%

60.00% 40.00%

Yes No

Response

Comment: In this figure 60% of total respondents response that they are prepared for the long term planning and the remaining 40% of the respondents are not prepared for this

17

5. Reasons for not preparing the long term plan: 40% of total respondents dont prepare the long term plan since there may have many limitations such as. Here sample size is = 2= 40% respondent who dont take long term plan. a. Lack of time =(3+1)/2 = 4/2 = 2 or 20% b. Lack of specialized expertise = (10+9) =19/2 = 95% c. Inadequate knowledge of planning process = (8+9) =17/2= 85% d. Reluctance to share strategic plan with employees =(8+8) = 16/2 = 80% e. Environmental uncertainty =(2+7) = 9/2 = 45% f. Size of business = (4+6) = 10/2 = 50% g. Internal implementation barriers = (5+7) = 12/2 = 60% h. Business life-cycle = (10+5) = 15/2 =75% i. Others(inadequate finance) = (8+10) = 18/2 = 90% 6. How the barriers of preparation of strategic planning can be removed: Description Response In% Employing expert employee Providing training to existing employees To make realize its importance Govt. rules or incentives/ assistance 1 3 3 4 20 60 60 80

Total respondents 5

100.00% 60% 50.00% 0.00% 20.00% 60.00% 80.00%

Response

Comment: Here shows that 16.67% think that by employing expert employee barriers can be removed and 83.33% didnt think this; 83.33% of total respondents think that by providing training to existing employees and 16.67% dont think this; 66.67% of total respondents think that by govt. rules or incentives/ assistance barriers can be removed.

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7. Dependence on their plans: Response Yes 5 No 0

In % 100 0

Total respondents 5

Response
0% no 100.00% yes

0.00%

50.00%

100.00%

Comment: This shows that, 100% of total respondent response that they are fully dependent on their plan and the 0% response that they are not dependent. 8. How many SMEs know their SWOT: Response In % Yes No 5 0 100 0

Total respondents 5

Comment: It is shown that, 100% of total respondents response that, 100% of total SMEs knows their strengths, weakness, opportunities and threats. 9. How many SMEs prepare short term plan just to face present situation: Response Yes No 3 2 In % 60 40 Total respondents 5

19

Response
yes no

40%

60%

Comment: there is shown, 60% of total surveyed SMEs prepare short term plan just to face present situation and 40% dont. 10. How many respondents think that short plan is more effective than the long term plan: Response Yes No 2 3 In % 40 60 Total respondents 5

response
yes no

40% 60%

20

Comment: In this diagram it is shown that 40% of total surveyed SMEs think that short plan is more effective than the long term plan and 60% don think. 11. Benefited by long term plan: Description Higher sales growth Higher return on assets Higher margin or profit Higher employee growth Development & implementation of plan Sustainable development(avoid failure) Efficient in competition International growth Others Response 4 3 3 2 5 2 4 2 1 In% 80 60 60 40 100 40 80 40 20 Total respondents

100.00%

50.00%

0.00%

Response

Comment: In this diagram, it is shown that 80% of total respondents votes in higher growth sales and 20% didnt response; 60% votes on higher return on assets and 40% didnt response; 60% votes on higher margin or profit and 40% didnt response; 40% votes on higher employee growth and another 60% didnt response; 100% votes on development & implementation of plan; 40% votes on sustainable development(avoid failure) and 60% didnt vote; 80% votes on efficient in competition and 20% didnt voted; 40% votes on international growth and the remaining percentage goes on silence and 20% votes on others and 80% kept silent.

12. Problems face by an organization if strategic plan is not prepared: Description response In % Total respondents

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Low profit Low expansion/ development Dissatisfaction of employees Unable to sustain in the market for long Dissatisfaction of customers Loss of market share Poor in competition Others..

5 0 4 2 3 4 5 0

100 0 80 40 5 60 80 100 0

0.00% 100% 80.00% Response 0% 100.00% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 60% 40.00% 80.00%

Comment: Diagram shows that, if the strategic planning is not taken, 100% think that there may be low profit, 0% were silent; 0% think that there may be low expansion/ development; 80% think that there may be dissatisfaction of employees, 20% were silent; 40% think that there may be unable to sustain in the market for long, 60% were silent; 60% think that there may be dissatisfaction of customers, 40% kept silent; 80% think that there may be loss of market share, 20% were silent; 100% think that there may be poor in competition and there is no comments in others.

Findings:
SME is a sector which is indispensable for overall economic development of a country like Bangladesh. Being labor intensive with short gestation period, SMEs are capable of increasing national income as well as rapid employment generation; achieving goal of eradicating extreme poverty and women empowerment. SME development is currently considered as one of the major pro-poor socio-economic development policy. Since one of the key issues concerning SME development in our country is lack of financing (SMEs often find it difficult to avail adequate credit in our country. By analyzing the whole literature and survey we have got many finding which is mentioned below. 01. Maximum SMEs in Bangladesh has a poor capital, we find those restaurants which have

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the capital within one core even there is capital within 2-3-4 laces. 02. 80% of total respondents said that they think that long term planning is important for SMEs but only 20% of total surveyed SMEs are prepared for long term planning because of some lacking. There is 95% of lacking of specialized expertise, 60% of inadequate knowledge of planning process, 85% of lacking of business size, 60% cause of internal implementation barriers, 60% reasons of business life-cycle and 75% of inadequate finance which is the most common problem or barriers in the most SMEs. 03. These barriers can be removed if the govt. rules or incentives/assistance will be made in favor of SMEs and by making realize its importance: respondents think. 04. There is 40% SMEs which dont prepare the short term planning just to face the present situation yet 60% confess that short term planning is more effective than long term plan. And they also confess that they are fully ( 100%) known about SWOT. 05. They also confess that in order to long term plan development and implementation can be done 100%; 80% said that higher sales growth can be ensured; 60% said that higher return on assets, Sustainable development or can be avoided failure; 50% said that higher employee growth can be ensured. 06. If strategic plan is not taken, 100% response that poor competition may be occured; 80% response that low profit may be come; 60% response market share may be lost and employee may be dissatisfied and 60% response that customer may be dissatisfied.

Conclusion and Recommendation

The fish sector has been geared to export oriented expansion which has resulted in huge export earnings at the national level and large number of employment generation in the coastal areas of Bangladesh. However, the achievement is not impressive on all counts. Therefore, with the growing importance of shrimp as one of the important export items from Bangladesh, it is important to efficiently utilize the capacity of fish farms and processing plants, carefully maintain the quality of the exported item through appropriate quality control measures and internalize the environmental costs arising from the production process. In order to perform these an appropriate policy and a sectoral strategy are required as the sector suffers from both policy and institutional failure. As has been mentioned that the NFP 1998 has announced a policy for the fish sector. The policy, however, does not focus on livelihood aspects of the poor involved in

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the sector and does not ensure access to resources by the poor communities and their participation in the decision making process. It also lacks vision for dealing with some of the trade measures which constrain the market access capacity of Bangladesh in the developed countries. In view of the inadequacies in the fish policy to tackle the emerging issues and the challenge to deal with the emerging compliance regulations at the global level a number of recommendations may be made for the fish industry in Bangladesh. 1. Assessment of the Sector: A complete assessment of the sector has to be made to have a full overview of the production, yield, capacity utilization, production method, effort level and economic contribution. It is essential in order to formulate a policy for the sector. Information on the number of players of the sector and their activities should be comprehensive. A clear understanding of the role of various stakeholders, their economic and social background, their role, their demand and priorities is also important for the policy makers to suggest a useful and practical strategy. 2. Monitoring of fish Farms: Being the most profitable economic activity fish farming is a lucrative profession for many in the coastal region. In the absence of any policy fish farming are taking place in an unplanned way causing economic, environmental and social problems. Strict supervision and monitoring system is needed to stop further conversion of agricultural land into fish farming. Imposition of strict environmental regulation is also required in order to protect the ecological balance of the area. 3. Increase Yield and Capacity Utilisation: As fish processing firms are operating at the below capacity level it is important that fish farmers increase their yield. Since land is scarce resource in Bangladesh yield should be increased by better management practice by the fish farms. If fish farms could double their yield per acre of land, shrimp processors could increase their processing capacity up to 50 percent without bringing new land under shrimp farming (IUCN, 2004). However, to be able to do that shrimp farmers need training on better 65 management of their ponds and should have access to information on various rules and regulations. 4. Close Supervision of Quality Control: In order to ensure the market access the quality control of fish at every stage in the export chain is a must. Inspection by the concerned government official from time to time and giving guidance and training on a continuous basis on the developments of relevant rules and regulations should be a regular practice for all the licensed shrimp processing plants. The EU regulations have forced the fish sector to undertake certain measures which have improved the processing standards at the exporting plants. However, quality control at other points of the production system, such as landing and procurement centres is equally important for the industry to be competitive in the global market.

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5. Access to Information: Clear knowledge on the requirements under various rules and regulations of the WTO is the pre-requisite for compliance. At the current multilateral trade regime rules are being changed and evolved continuously. It is difficult for the shrimp exporters of Bangladesh to follow and understand all the relevant developments right away due to lack of information. Therefore, information should be shared through training on the requirements of the buyers. The Ministry of Commerce (MOC) may help in giving training on the rules and regulation related to fish exports. The Ministry can also share information through its WTO cell on the relevant issues. 6. Awareness Building: The consequences of being non-compliant should be taken into cognisance by all concerned. In case of shrimp exports, the EU had been giving signals to Bangladesh for quite sometime before the imposition of the ban but there was lack of awareness of the actual meaning of such indication by the importers both at the government level and among the private processing plants. 7. Market Diversification: Bangladesh should also do marketing in other countries including Asia to promote its shrimp export. The share of export to Japan and Australia may be increased since these countries are less stringent on HACCP rules. The country will be able to expand its market for shrimp through advocacy and active initiative as Bangladeshi fish are produced in a natural process.

Reference:
 Website  Field survey

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