Business Development Services and Small Business Growth in Bangladesh

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European Journal of Developing Country Studies, Vol.2 2006 ISSN(paper)2668-3385 ISSN(online)2668-3687 www.BellPress.org such as the regulatory framework and tax system, infrastructure development, and the provision of non-financial services. Manuh (1988) and Wren and Storey (2002) treated BDS as software including the provision of information and advice, counseling and consultancy, training and education, encouragement of partnership and gateway services. With respect to small business development, Carney (1998) made a classification of BDS into four different categories: physical (provision of infrastructure such as water, electricity and industrial sites); social (developing business linkages, networks, clusters, business associations and cooperatives); natural (promotion of the sustainable use of natural resources, recycling, pollution reduction and the waste disposal); and human capital (provision of training, advice, counseling, consultancy, entrepreneurship and business management). According to Ramsden and Bennett (2005) and Lambretch and Pirnay (2005) the BDS of many countries might fall into social and human capital assets. Businesses need an enormous range of services. Most of these are provided by the public and private supporting institutions such as Banks, Non-bank financial institutions, Non Government Organizations (NGOs), Corporations, etc. Bangladesh Small and Cottage Industries Corporation (BSCIC), an autonomous corporation under the Ministry of Industries of Bangladesh, with its industrial estates and training institute-Small & Cottage Industries Training Institute (SCITI), has been providing BDS for the development of small and cottage industries (SCI) in Bangladesh since 1957. Micro Industries Development Assistance and Services (MIDAS), a promotional organization in the private sector, was set up in 1982 with the objective of supporting the development of micro, small, and medium businesses in Bangladesh. In Bangladesh, the BDS provided to the small businesses is comprised hardly of the physical or infrastructural support services. Most of the private agencies including MIDAS are putting more emphasis on the financial and human capitals. The following Table exhibits the types of BDS provided by BSCIC and MIDAS:

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