Home ›› 11 May 2023 ›› Editorial
The cottage, micro, small, and medium enterprises (CMSMEs) play a pivotal role in the Bangladesh economy. These enterprises are significant contributors to employment generation, poverty reduction, and economic growth. CMSMEs contribute immensely to the economic growth of Bangladesh. They have a multiplier effect on the economy, as they create jobs, generate income, and contribute to tax revenue. According to the World Bank, CMSMEs contribute around 25 per cent of Bangladesh’s GDP. CMSMEs are also significant contributors to Bangladesh’s export earnings.
CMSMEs provide employment opportunities to a significant portion of the population in Bangladesh. According to the Bangladesh Bureau of Statistics, CMSMEs employ around 87 per cent of the industrial workforce and 48 per cent of the total labour force in the country. The majority of these enterprises are located in rural areas, where they create employment opportunities for women and youth. As per the statistics of the SME Foundation, there are more than 7.8 million CMSMEs in Bangladesh where 7.3 million people are engaged.
Considering the enormous importance of this segment, SME Foundation has been established to give the proper support and cooperation to CMSMEs. Despite their great contribution to the economy of the country, the enterprises belonging to CMSMEs did not get the appropriate attention of the government in terms of capacity building and market access.
It has been obvious that the economy of Japan has gained immense success due to its appropriate concentration on cottage, micro, small, and medium enterprises. To develop this segment of business, the local government with the assistance of the business support organizations adopted the Antenna shop and Global antenna shop concept in Japan. It is pertinent to mention here that I did a short-term training course in Nagoya, Gifu Prefecture organized and financed by JICA (Japan International Cooperation Agency) in 2019. During the training session, the trainees have been given effective training sessions on SME development and their market access in the local and International Market arena focusing on the strategy of the Japanese Government.
The local government and business support organization of the government and private sectors of Japan provides all-out support for promoting and creating markets for the products produced by the CMSMEs. To this effect, they have adopted the antenna and global antenna shop concept. The concept of an ‘antenna shop’ in Japan refers to a retail store that specializes in selling products from a particular region or prefecture operated by Business Support Organisations (BSOs) of the government. In this case, the business support Organisation selects the potential SMEs and selects their quality products to showcase in the Antenna Shop (Retail Shop) operated by the business support Organisation. These stores are typically located in major cities such as Tokyo or Osaka, and they showcase local specialties such as food, handicrafts, and other local unique products.
For example, an antenna shop for Higo, a prefecture of Japan, would sell products that are unique to that region, such as seafood, dairy products, and souvenirs. These shops are popular among both tourists and locals who are interested in trying out new products or supporting their favorite regions.
In recent years, the concept of a ‘global antenna shop’ has emerged in Japan, which takes the antenna shop concept to the international level. In this case, a rack (to showcase products) in the potential hypermarkets and supermarkets abroad is selected for attracting potential foreign customers. As market exploration through participating in the international trade fair is somewhat expensive, the business promoters usually utilise this marketing tool for hunting potential buyers.
In Japan, Global antenna shops can be found in major cities such as Tokyo and Osaka, and they typically offer a wide range of products, including food, cosmetics, and handicrafts. These shops are popular among tourists who are interested in exploring different cultures, and they provide a unique shopping experience that is not typically found in traditional retail stores. The Export Promotion Bureau (EPB) can take due initiative in implementing this approach with the help of foreign missions abroad. Hyper Market/ Supermarket / Department Stores located in New York in the USA, Dubai in UAE, and Jeddah in the Kingdom of Saudi Arabia can be ideal places for Global Antenna Shop.
Most of the enterprises belonging to cottage, micro, small, and medium enterprises in Bangladesh face a hurdle in exploring markets for their products. In this case, the antenna and global antenna shop can be an encouraging option for exploring local and foreign buyers for the CMSMEs.
Overall, the antenna shop and global antenna shop concept provide SMEs in Japan with a platform to showcase their products and services to a wider audience, leading to increased market access, regional product promotion, collaboration opportunities, and improved brand recognition. This can help to accelerate the development of SMEs and contribute to the overall economic growth of Bangladesh.
SME Foundation and Bangladesh Small and Cottage Industries Corporation (BSCIC) are two national Organisations that are entrusted with the responsibility of the promotion of CMSMEs in Bangladesh. SME Foundation and Bangladesh Small and Cottage Industries Corporation (BSCIC) can play active role in implementing the antenna and global antenna shop concept in Bangladesh. Here are some ways in which they can extend their support and cooperation:
Select the spot/location for opening the retail shop: Primarily the SME foundation and BSCIC can take the initiative to select the proper spot/location in Dhaka and Chattogram with a view to creating the platform for the CMSMEs to showcase their products. In Japan, big cities with good purchasing power and tourist potential are chosen to initiate this type of venture.
Awareness building: SME Foundation and BSCIC can help raise awareness about the antenna and global antenna shop concept among CMSMEs in Bangladesh. They can organise workshops, training sessions, and other events to educate CMSMEs about the benefits of these concepts and how they can be implemented.
Capacity building: SME Foundation and BSCIC can also help CMSMEs to build their capacity to participate in the antenna and global antenna shop concept. They can provide training and support on topics such as design and quality improvement, branding, marketing, and technology adoption, which can help CMSMEs to compete in local and international markets.
Partnership building: SME Foundation and BSCIC can facilitate partnerships between CMSMEs and antenna and global antenna shops. They can identify potential partners for CMSMEs, provide matchmaking services, and help negotiate agreements between CMSMEs and antenna and global antenna shops.
To adopt this concept in Bangladesh as a pilot project, technical and financial support can be sought from the JICA (Japan International Cooperation Agency) / JETRO (Japan External Trade Organisation) by SME Foundation or BSCIC.
The antenna shop and global antenna shop concept have been successful in Japan, and there is potential for it to be effective in Bangladesh as well. However, there are some factors to consider when evaluating the potential success of this concept in Bangladesh.
Firstly, Bangladesh has a diverse culture and a rich history, which provides opportunities for the promotion of regional products and unique goods. Similar to Japan, the antenna shop concept could be used to showcase the unique products of different regions of Bangladesh, such as Leather and Leather Goods, Jute and Diversifies Jute Goods, handicrafts, textiles, and food.
Secondly, the SME sector is an important contributor to the economy of Bangladesh. The antenna shop concept could be used to promote and support the growth of SMEs in Bangladesh by providing a platform for them to showcase their products and services to a wider audience.
In conclusion, while the antenna shop and global antenna shop concept have been successful in Japan, its effectiveness in Bangladesh will depend on various factors, including the local market, consumer behaviour, and infrastructure. With strategic planning and implementation, this concept has the potential to contribute to the development of SMEs in Bangladesh and promote the unique products and culture of different divisions and districts of the country.
The writer is Director (Fair), EPB.
