ROLE OF LOCAL GOVERNMENT INSTITUTIONS TO PROMOTE MICRO AND SMALL ENTERPRISES (MSES) AT UPAZILA LEVEL

Abstract

Small and Micro Enterprise (MSE) is extremely important for the development of entrepreneurs, could help human development through employment generation both in rural and urban areas which leads to poverty reduction. The specific objective underlies in the provision of resource allocation, infusion of vital potent promoting microenterprise and to pursue socio-economic patronization for development of the small & micro-enterprises. In this research work mostly secondary data is used in this research. For undertaking this study, the researcher organized discussions with the Small and Micro entrepreneurs, local government representatives to have a clear conception on the issue. Local government institutions or LGIs (Upazila Parishad, Municipality & Union Parishad) are the major service delivery organizations for MSEs’ but these LGIs are not motivated to deliver services for promoting Micro & Small enterprise (MSEs) though they have mandate to do so. In Upazila & Union level Banks/ Financial Institutions are reluctant to deliver loan. Government departments working in Upazila level (BRDB, Youth Development, Agriculture, fisheries, Animal, Cooperatives etc.) are not proactive to deliver services for micro-entrepreneurship development, & lots of difficulties are there to flourish MSEs in sub-urban areas. Micro finance Institutes (MFIs) and NGO has regular microcredit (rural credit, urban credit, ultra poor credit, seasonal credit and specialized projects for agriculture, livestock etc.) program without collateral to the individual. NGOs micro credit activities have been contributed a lot in transforming farmers/ unemployed youth to micro-entrepreneurs. Non-financial support also proliferate micro enterprises with high potential. The micro & small enterprises are innovating new ways of doing business or initiating changes in the production function, exploring market opportunities for products and ultimately changing the business environment. But this sector has been facing multifarious difficulties to flourish due to nonresponsive service delivery for MSEs. Development of micro & small enterprise needs two-pronged strategy – (i) make local government institutes (Upazila Parishad, Municipality & Union Parishad), government departments, Banks service responsive; and (ii) empower Business Samities to stimulate service providers to ensure service delivery for MSEs for employment generation for improving livelihood and reducing social decadence through flourishing MSE sector. Service providers especially government department has to be triggered to deliver services, like; undertaking training for entrepreneurship development in Upazila & Union level. Business Samities of the concerned Upazila have also to work for MSEs to access to credit.  Local Government Institution like; Upazila Parishad, Union Parishad and Municipalities has also to work in a coordinated ways to promote MSEs in Upazila and Union/Village level. A coordination forum in Upazila level has been suggested to be formed which will bring a systemic change in Upazila level for promoting Micro and Small Entrepreneurship which will contribute to employment generation for better livelihood of the citizen which leads to economic development of the country.