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Infrastructural Problems of Small and Medium Industries

Updated on February 5, 2014

The infrastructural problems include transport and communicating, power supply, water supply, and gas connection and so on. Because of the poor economic condition of Bangladesh, these facilities are inadequate and inefficient. On the one hand, the prices of these services are constantly increasing and on the other hand, they are unable to meet the demand of industries with reasonable efficiency. If these essential services are not provided, the growth of industries in general and small and medium industries in particular will be seriously affected. Procurement of the essential services is a constant headache to the industries. It takes a lot of time and formalities to be fulfilled in getting electric power, water and gas and added to these in the problem of constant power failure and fluctuation of voltage, stoppage of water supply etc., causing suspension of production. The presence of these adverse conditions not only hinders the establishment of new industries but also increases the cost of running existing establishments.

In almost all developed as well as in many developing countries, these essential infrastructural facilities are readily available. As these do not exist in Bangladesh and since these can not be created by any single industry individually on their own, the government has to take steps to provide them for the promotion and development of industries. The large – scale industries have the advantage of finance, power and management skills and they are being concentrated in certain selected places, enabling them to overcome these difficulties. But this is not in case of the small and medium industries which are seriously affected by these adverse conditions. Indeed, provision of efficient, reliable and economical infrastructure facilities is a pre-requisite for the promotion and growth of the small and medium industries. With provision of such basic facilities, it will be easier to solve specific problems for the healthy growth of this sector.


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