The Role of Small and Medium-Sized Enterprises (SMEs) in Addressing Rural Unemployment in Bangladesh

This research paper examines the contribution of Small and Medium-Sized Enterprises (SMEs) to mitigating rural unemployment in Bangladesh over the past decade (2015–2024). Integrating quantitative data from government surveys, economic censuses, and SME reports with qualitative insights from development literature, the study analyzes SMEs’ capacity to generate employment, absorb surplus labour, and promote inclusive rural economic growth. The findings reveal that SMEs, particularly agro-processing, handicrafts, and service enterprises, play a substantial role in reducing unemployment, providing income opportunities for youth and women, and diversifying rural livelihoods. The paper also highlights challenges such as limited access to finance, infrastructure gaps, and skills deficits, and offers policy recommendations including financial inclusion, capacity building, infrastructure investment, and market integration. This study is relevant for policymakers, development practitioners, and researchers interested in rural development, SME policy, and employment generation strategies.