Entrepreneurs yesterday lamented that technology adopted by the government for delivering different services has not been able to simplify businesses of small and medium enterprises (SMEs).

The SMEs still have to pay bribes and face difficulties in ports and delays in different processes that cost them money and competitiveness, they said.

"There is so much talk about smart technology but if you want to get a trade licence, there is no trace of it. But once you give the bribe, you will get it," said Sk Md Waliul Islam, managing director at the Roots Group of Companies.

He was speaking at a seminar on "Technology for Smart CMSMEs" organised by the Dhaka Chamber of Commerce & Industry (DCCI) at its office in Dhaka.

"The SMEs, which account for most of the business in Bangladesh, are facing problems on multiple fronts. To add to their woes, a one percent supervision charge was imposed on SME loans from July of this year. It's a punishing move," he said.

The SMEs are faring badly now, said Muhammad Zamsher Ali, managing director of Aisna Petrochemicals Limited.

"As my business (petrochemicals) depends on imports, we are now unable to open letters of credit. It's been six months I have been trying to open LCs, but banks are not allowing due to a dollar crisis," he said.

Bangladesh Bank initially set the exchange rate of the US dollar against the taka and later it let banks set it and so, some banks now charge anywhere from Tk 120 to Tk 126 per US dollar, he said.

The fear of being penalised by the National Board of Revenue is the main obstacle behind businesses refraining from adopting a digital transformation, said Sharfuddin, proprietor of Ador Enterprises.

"After three months of efforts, I was able to open an LC, depositing 110 percent and with a Tk 122 per dollar," said Ikram Dhali, managing director at Pinnacle Garments.

"When I bought 20 tonnes of melamine powder, customs stated that the imported material should undergo a chemical test. Later, it took 20 days to complete the test," he said.

"After the test, my products received a green light. If my products are good, why should I pay those charges? So, where have the advantages of technology gone, as I had to pay demurrage charges for the container and port, alongside other fees," he said.

He said during the payment of salaries to his employees at a garment's factory, he had to wait for days to get the bank's approval to disburse it.

Although Bangladesh Bank is providing loans to women entrepreneurs at a 4 percent interest rate, the loans are disbursed through different banks that charge 9 percent, said entrepreneur Taslima Siddique Ratna.

Ports are not adopting or utilising any technology, resulting in delays and subsequent cost increases, said Suraiya Alam, proprietor of RS Corporation.

It is high time to support the SMEs and make them digitally equipped to grab future opportunities, said DCCI President Md Sameer Sattar.

"We all are aware that SMEs are instrumental to the success of the economy of Bangladesh, making substantial contributions to employment, GDP and export earnings," he said.

"As a whole, 9 million SMEs with a 24.5 million workforce in diverse sectors from agriculture, manufacturing, trade and services to export-oriented sectors are recognised as the lifeline of the economy of Bangladesh," he said.

Sattar made some suggestions for the development of technologically-enabled smart SMEs to accelerate the development desired by the country.

There include providing subsidies and easy access to finance, low-cost refinancing schemes and rational tariffs for technology transfers and fintech adoption, fiscal incentives like tax cuts and rebates and synchronising relevant policies and laws.

Adequate data of the SME sector is essential for taking data-driven decisions by the government, said Shamsul Arefin, secretary to ICT Division.

The private sector is the engine of growth and the SMEs play a vital role in this regard, said Md Abul Kalam Azad, former principal secretary to the prime minister.

"There should be no fear in embracing technology, rather it is a blessing of time and the more we can adopt technology, the faster we can achieve development," he said.

It is time to implement a digital payment system across the country, said Mezbaul Haque, executive director at Bangladesh Bank. "We have come to an era of digital lifestyle rollout," he said.

"We have a lot of technology in hand but we have limitations in real-time optimum utilisation," he said.