1 AIT Asian Institute of Technology

A study of small-scale and cottage industries and their contribution to rural development in Bangladesh

AuthorMorshedi, Mohammad Helaluddin
Call NumberAIT RSPR no. HS-85-13
Subject(s)Small business
Rural development--Bangladesh
Note A research study submitted in partial fulfillment of the requirements for the degree of Master of Science, School of Engineering and Technology
PublisherAsian Institute of Technology
AbstractThis fact-finding study was undertaken to examine the contribution of small-scale and cottage industries to rural development in Bangladesh. It is a two level (National-macro and District-micro) study, but district level study in more specific in nature to know the important role that this sector plays in transforming the rural economy of the country. Especially, for better understanding of its contribution in income and employment generation, growth over time, resource mobilization and other indirect contributions in rural areas. Attempt has been made to evaluate industrial and rural development policies and past experiences as well as the role of government and non-government organizations connected with these sectors. The study also focuses on various components of rural development with a comparative analysis of small-scale and rural cottage industries sectors. The study show that this sector provides direct employment to over 2 million persons which is about 78 percent of the total industrial manpower and contribute 4 percent to the GDP out of a total contribution of 8.66 percent made by the manufacturing sector in 1983-84. It is found that small and cottage industries have strong production-linkages both backward and forward with other rural activities. A large part of the raw materials for small and cottage industries comes from the agricultural sector; o the other hand these industries supply low-cost clothes, utensils, furniture, agricultural tools, equipment, and fixtures, other and fixtures, other basic household items and daily necessities of life. It is observed that small and cottage industry sector has tremendous potentialities for repaid development and expansion in Bangladesh which has a surplus, trainable and relatively cheap labour and a sizeable internal market. the industry has also a large scope for expanding foreign exchange earning. Moreover, small-scale and cottage industries can be widely dispersed throughout the country specially in rural areas for balanced and harmonious development of the country. In earlier studies, conclusions were drawn and general statements made for both small and cottage industries, without distinguishing the two types of industry. This study, however, has found that, in terms of their relative contributions to employment and income generation, locational and other advantages, prospects, problems and needs it is vital to distinguish small from cottage industries. Based on the findings and analysis of the study, and considering also its limitation, some recommendations for planning purposes and for further study are made.
Year1992
TypeResearch Study Project Report (RSPR)
SchoolSchool of Engineering and Technology (SET)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSHuman Settlement (HS)
Chairperson(s)Setty, E. Desingu ;Guimaraes, Joao P. C.
Examination Committee(s)Onishi, Takashi
Scholarship Donor(s)The Royal Netherlands
DegreeResearch Studies Project Report (M. Sc.) - Asian Institute of Technology, 1985


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