Small and cottage industries continue to form the backbone of Bangladesh’s economy, despite significant growth in overall business establishments, according to the latest Economic Census 2024 published by the Bangladesh Bureau of Statistics (BBS).
The report shows that the total number of economic units increased by nearly 50% over the past decade, reaching 11.7 million in 2024, up from 7.8 million in 2013. Employment also rose by more than 25%, totaling 30.6 million people.
However, the economic structure remains heavily dominated by small-scale enterprises. Small industries account for 56.67% of all business units, while cottage industries represent 38.74%. In contrast, medium and large industries combined contribute less than 1%, highlighting the continued reliance on grassroots entrepreneurship.
Despite the expansion, access to finance remains a major challenge. Around 86% of entrepreneurs identified lack of capital as a key barrier to business operations.
The census also points to declining foreign-linked engagement. Although the number of foreign and joint-ownership enterprises increased slightly, employment in these firms dropped by nearly 25% over the decade. Investment by expatriate Bangladeshis also declined significantly, with fewer such enterprises operating in the country.
The findings highlight the critical role of small and cottage industries in sustaining economic activity, while also underscoring ongoing challenges in attracting investment and improving financial access.
