Md. Abu Abdullah: Small and Medium Enterprises (SMEs) are the backbone of world economies, constituting about 90% of businesses and providing more than 50% of employment globally (World Bank). They stimulate innovation encourage entrepreneurship and play a vital role in diversifying economies, fostering competitiveness, and providing resilience in the face of economic hurdles.
In Bangladesh, SMEs comprise Cottage, Micro, Small, and Medium Enterprises (CMSMEs), constituting a significant portion of the industrial landscape. According to the Planning Division, Bangladesh, CMSMEs make up 90% of industrial units and 80% of industrial employment and contribute 45% to manufacturing value added. SMEs are growing by roughly 6% annually.
The Bangladesh government recognizes the role and contribution of SMEs and supports them accordingly. Supportive legislation, like the Credit Guarantee Department (CGD), provides credit guarantees against collateral-free or partially collateralized loans/ investments disbursed to cottage, micro, small, and medium enterprises (MSMEs). Effective institutions i.e., the Bangladesh Small and Cottage Industries Corporation (BSCIC), SME Foundation, Joyeeta, and a large number of NGOs, are involved in SMEs' development, with a special focus on female entrepreneurs.
Many SMEs specialize in handcrafted items like Leather Goods, Jamdani, and Muslin cloth, Processed Food Products are exporting to over 70 countries, including the US, Canada, the UK and Middle Eastern nations.
Although SMEs are the backbone of economies worldwide. They drive innovation, fuel job creation, and contribute significantly to local and global markets. However, many SMEs face barriers in accessing international markets, demonstrating compliance, or gaining consumer trust.
Accreditation and accredited conformity assessment can help to bridge these gaps by verifying the quality, safety, and sustainability of products, services, and processes. International Accreditation Forum (IAF) and the International Laboratory Accreditation Cooperation ( ILAC ) celebrate World Accreditation Day (WAD) together on 9 June every year. This year’s theme spotlights the role that accreditation and conformity assessment play in empowering SMEs (Small and Medium-Sized Enterprises) to drive economic growth, innovation, and employment.
Given their major contribution to job creation and global economic development, SMEs are an important part of achieving the UN Sustainable Development Goals (SDG), in particular to ‘promote inclusive and sustainable economic growth, employment and decent work for all (goal 8) and to ‘build resilient infrastructure, promote sustainable industrialization and foster innovation (goal 9).
Etty Feller, ILAC Chair, said: “World Accreditation Day 2025 highlights the critical role of accreditation and conformity assessment in empowering SMEs, strengthening their ability to compete, innovate, and expand in both domestic and international markets. Conformity assessment—through testing, inspection, certification, validation, verification, and calibration—ensures that products, services, and management systems meet recognized standards and regulatory requirements. It therefore provides a trusted and globally accepted framework for SMEs to thrive”.
Emanuele Riva, IAF Chair said: “Accreditation is a flexible tool that operates across virtually every sector. It is therefore an essential tool for SMEs to drive sustainable growth, business resilience, and innovation.
IAF and ILAC maintain close strategic partnerships with the United Nations Industrial Development Organization (UNIDO) and the World Trade Organization (WTO), as they both recognize the important role that accreditation plays in the achievement of the sustainable development agenda.
In a competitive marketplace, businesses strive to differentiate themselves and earn customer trust. One of the most effective ways to showcase a company’s capabilities is through the implementation of standards and third-party conformity assessments, which verify compliance with these standards. Accreditation serves as an external validation for organizations providing conformity assessment services, such as testing, calibration, validation/verification, inspection, and certification.
Accreditation simplifies trade at both national and international levels by eliminating the need for buyers to independently verify organizations, their products, processes, systems, and other key elements. Instead, they can rely on test reports, certificates, and other forms of accredited conformity assessment issued by accredited laboratories and certification bodies.
This allows SMEs to compete with larger companies by providing a recognized stamp of authority and credibility, which can help them gain access to larger markets, secure contracts with discerning clients, and build trust with potential customers. It therefore levels the playing field, allowing smaller businesses to compete with organizations with established brands and reputations.
A study carried out by the University of Technology Sydney identified that accreditation generates collaboration that stimulates new knowledge and credibility building. It also found that accreditation positively impacted business innovation levels. The implementation of standards and conformity assessment establishes structured processes that ensure consistent quality in products and services. This helps SMEs reduce errors, minimize rework and duplication, and improve overall efficiency.
The World Bank notes that businesses improve efficiencies through the dissemination of information, allowing interoperability, and economies of scale, by working to harmonize international standards. They also report that surveys in developing economies found that ISO 9001 certification achieved average productivity gains between 2.4% and 17.6% for three Central American economies, 1% for four Southeast Asian economies, and 4.5% in China.
A study evaluating the accredited certification in the global food sector found that 70% of small food manufacturers had benefited from efficiencies and greater productivity, with 63% reporting production improvements, evidenced by a 40% reduction in food recalls since achieving certification.
The ILAC Mutual Recognition Arrangement (ILAC MRA) and the IAF Multilateral Recognition Arrangement (IAF MLA) ensures the mutual acceptance of conformity assessment results, allowing SMEs to enter global markets more easily, as products and services meet universally accepted criteria.
Research conducted by the University of Birkbeck evaluating the global food supply chain confirmed that accredited certification of 55% of suppliers that responded has resulted in expanded market opportunities and growth in home markets, while 60% reported growth in exports. In general, over a third of respondents stated that their sales growth averaged around 7.5%, together with an average of 6% increase in profitability.
Accredited certification and standards support SMEs to improve energy usage and performance, to reduce costs and their impact on the environment. A growing number of policies have recognized that accreditation and conformity assessment play a critical role in supporting the growth of SMEs in different ways.
The writer is a former Additional Secretary and Director General of Bangladesh Accreditation Board.