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1.0 Introduction
Although poverty alleviation has always been a
major national goal in, the poverty situation in Bangladesh has
remained critical as ever. The country's economy continues to suffer
from "growth inertia" with real GDP growth remaining below 6 percent
required for significant poverty alleviation. The earning potential
of most poor people is limited by their lack of skills, assets and
access to resources. About half of the population lacks access to
required amount of food. According to 1991‑92 Household Expenditure
Survey (HES) more than 50 million people in the country lives below
the absolute poverty line, more than 30 million lives below the
hard‑core poverty line and 16.13 percent of the population (about 20
million) lives below ultra poverty line. Important to note that the
absolute number of population below hardcore poverty line has
increased from 26.67 million in 1985‑86 to 30.42 million in 1991‑92,
or by 14.1 percent. This vast population has extremely low income,
inadequate accessibility to food, health, education and social
services. Unemployment remains one of the major causes of poverty in
Bangladesh and the country faces an enormous challenge in its
efforts to reduce poverty. Ensuring sustainable economic growth is
the only way to alleviate poverty.
For attaining expected growth
increased production coupled with equity in asset and income
distribution and better employment and income for poorer sections
are essential. The SME sector accounting for a considerable share of
country's industrial GDP and employment has great potential for
poverty alleviation and sustained growth.
The present report is part of
JOBS/USAID sponsored sub‑sector studies in the SME sector involving
eight sub‑sectors. The analysis broadly involved assessment of the
current state of the sub‑sector, its strengths and weaknesses,
identification of major actors and review of policies and
institutions. The report recommends measures for growth and
promotion of the sub‑sector.
2.0 The Sample (Producers)
The study involved collection of
primary and secondary data and information from relevant sources The
sample Comprised of 40 enterprises from 12 districts of six
divisions. Highest number of the sample was chosen from Dhaka
division (19). Ninety percent of the sample were chosen from urban
areas. The highest concentration of the enterprises (37.5 per cent)
were in the groups with employment ranging between 11 and 20
3.0 occupation of Respondents
Steel furniture manufacturing was
in primary occupation of ail entrepreneurs, accounting for largest
share of their incomes.
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