Since its establishment, the SME Foundation has been implementing various programs such as policy advocacy for cluster development, enhancing the capacity of entrepreneurs, providing training programs of different types for the development of new entrepreneurs, facilitating access to microcredit facilities, utilizing modern technology, ensuring the inclusion of women entrepreneurs in the formal economy, ensuring the utilization of ICT and adopting various tasks including research and publications.

The definition of a cluster included in the National Industrial Policy-2022 (Section 3.6) is as follows:

“A cluster is considered to exist within a radius of 5 (five) kilometers in a geographical area where there are 50 or more production or service-oriented cottage/micro/small/medium/large industrial establishments producing the same or similar products or providing backward-forward linkages to support the production of similar products.”

SME Foundation initiated a study in 2011 to assess the economic and social perspectives of Bangladesh and conducted a cluster mapping study based on the opinions of stakeholders. In 2013, a book titled “SME Clusters in Bangladesh” was published. The study identified a total of 177 clusters (129 in booster sectors and 48 in non-booster sectors) across the country, with a workforce of around 20 million, comprising approximately 74% male and 26% female workers. The annual turnover of the 70,000 establishments within these 177 clusters was about 30,000 crore taka. Notable clusters included light engineering, handicrafts, nakshi kantha (embroidered quilt), small ready made garments, artificial jewelry, handicrafts, and leather goods. In Bangladesh, the SME Foundation first published the “SME Cluster Directory” in 2022.

To facilitate the sales, presentation, and buyer-seller interactions of the cluster’s products, the SME Foundation has developed a website specifically for the Artificial Jewelry Industry Cluster, and there are future plans to create websites for other clusters as well.

Until the 2022-23 fiscal year, the SME Foundation has identified the development needs of 90 clusters through pre-assessment visits. Currently, the Foundation is managing various development programs in around 35 clusters. Through different initiatives of the SME Foundation, around 4,600 entrepreneurs have received training in areas such as product diversification, design development, business management, marketing skills, accounting, modern technology usage, online marketing, VAT-tax, and business security, enabling overall business improvement.

Alongside the enhancement of entrepreneurs’ skills, various fairs and matchmaking programs organized by the foundation, provide opportunities for cluster products sales and exhibition. Through exposure visits to similar product-producing clusters, entrepreneurs within the clusters have gained experience and connected with new customers and markets, sharing knowledge about product markets, raw material sources, production methods, and market integration techniques, leading to the improvement of their products and businesses.

Under the Credit Wholesale Program, loans have been distributed among approximately 2,132 entrepreneurs from different clusters (524 female and 1,608 male entrepreneurs) and around 600 entrepreneurs have received loan assistance from the government’s incentive package for COVID-19 resilience and economic recovery. Additionally, support has been provided to entrepreneurs in acquiring banking capabilities through banking-related training and collaboration programs with banks and various financial institutions.

Undoubtedly, SME cluster development by SME Foundation contributes significantly to achieving the goals of Bangladesh’s “Perspective Plan” and “Vision 2041.” The cluster development initiative of SME Foundation is not limited to specific geographic areas but aims to create employment opportunities, alleviate poverty, reduce unemployment, and ultimately contribute to building a prosperous future and transforming Bangladesh into a developed country.