Definition of SMEs (As per Bangladesh Bank)

The enterprises, in principle, are not public limited companies

Enterprise

Sector

Asset size

Small

Service

Total fixed asset excluding land & building Tk.

50000-Tk. 5 Million
Total asset worth Tk. 50000-Tk. 5 Million
excluding the value of fixed asset
Total fixed asset excluding land & building Tk.
50000-Tk. 5 Million
Total fixed asset excluding land & building Tk.
5 Million -Tk. 10 Million
Total asset worth Tk. 5 Million -Tk. 10 Million
excluding the value of fixed asset
Total fixed asset excluding land & building Tk.
15 Million -Tk. 20 Million

Trade
Manufacturing
Medium

Service
Trade
Manufacturing

Source: The Financial Express, Dhaka, 27 May, 2008

No. of
employees
Less than
25
Less than
25
Less than
25
Less than
50
Less than
50
Less than
150

In manufacturing sector, according to the new definitions, industries having real assets of Tk 100 million to Tk 300
million including the establishment cost, but excluding the value of land and factory building; or having 100 to 250
workers, will be treated as medium industries of enterprises.
But, in case of services and businesses, the value of real assets, following the same criteria, would be between Tk
10 million to Tk 150 million; or workers range will be 50 to 100 people.
An industry or enterprise can be treated as medium one following a benchmark but the same can fall under large
industrial category if another benchmark is considered. In that case it will be treated as a large industry.
The lowest value of real assets for the large industries will start from above the highest limit for medium ones, for
instance, above Tk 300 million.
The same way, real assets of small industries under manufacturing sector would be between Tk 5 million to 100
million; or a band of workers will range between 25 and 29, as per the circular.
Small service industries and businesses will have real assets valued Tk 0.5 million to Tk 10 million or 10 to 25
workers.
In case of definition conflicts between small and medium, small industries will be treated as medium industries. An
industry or enterprise will be considered as micro if its real assets range between 0.5m to 5m or workers volume
stands between 10 and 24; or less.
Service or business micro industries will have assets valued less than Tk 0.5 million or the number of workers is
less than 10. Any definition conflict will lift a micro industry to small standard. Cottage industries will mean those
which are predominantly run by the members of a family and have real assets lower than Tk 0.5 million, and total
workforce will remain under 10 people including outsiders.
And definition conflict between cottage and micro industry will make the entity a micro enterprise. A woman, who
owns a private firm as the proprietor or she holds 51 percent stake in a private firm run jointly or registered with
Joint Stock Company, will be treated as women entrepreneur.