Decline in new entrepreneurs has widened income inequality, says Industries Minister

Photo: Collected

DHAKA, June 28 (CNI): Bangladesh has witnessed a sharp rise in income inequality over the past 12 to 15 years due to a significant decline in the creation of new entrepreneurs, Industries, Commerce, and Textiles and Jute Minister Khandaker Abdul Muqtadir said on Sunday.

Speaking as the chief guest at a programme marking International MSME Day 2026 at the Bangladesh Investment Development Authority (BIDA) auditorium in Agargaon, the minister said the country's industrial growth has largely benefited existing business owners rather than creating new entrepreneurs.

"Over the past several years, very few new entrepreneurs have emerged. Those who already owned industries and factories have mainly become larger. One of the principal reasons behind this was the shortage of gas supply for industries," he said.

The minister noted that Bangladesh experienced strong entrepreneurial growth between 1991 and 2006, but the pace declined dramatically over the following decade and a half.

"From 1991 to 2006, new entrepreneurs were created at a much higher rate. Over the next 10 to 15 years, that rate fell sharply. As a result, economic activities and wealth remained concentrated among a limited number of people, which has been a major contributor to rising income inequality," he said.

Muqtadir said income inequality in Bangladesh is now significantly higher than it was 15 to 20 years ago.

Referring to the global income disparity index, he said the indicator ranges from zero to one, with higher values reflecting greater inequality.

"Our country's level of income disparity is now considerably higher than before," he added.

Comparing Bangladesh with neighbouring countries, the minister said the contribution of micro, small and medium enterprises (MSMEs) to the country's gross domestic product (GDP) remains lower than that of Vietnam, Cambodia, India and Pakistan.

He said the MSME sector currently contributes around 25 percent of Bangladesh's GDP.

Emphasising the importance of the sector, the minister said strengthening MSMEs is essential for sustaining economic growth. The government is therefore giving priority to creating new entrepreneurs by ensuring supportive policies, easier access to finance and a business-friendly environment.

"There is no alternative to creating new entrepreneurs for generating employment, accelerating industrialisation and achieving inclusive economic growth. The government will continue providing all necessary support for the development of the MSME sector," he said.