With the revised Small and Cottage Industry (CSI) policy in place, the sector will have enhanced access and outreach to finance. The cost of capital will also be reduced over time.
The policy focuses on the six main domains of the entrepreneurship ecosystem and will be implemented through a series of action plans covering the entire period of the policy.
These are policy and legislative framework, entrepreneurship culture and human capital development, business development support and infrastructure, enhancing access to finance and incentives, innovation and technology adoption and access to market.
Minister for economic affairs, Loknath Sharma, launched the policy during Bhutan Economic Forum of Innovative Transformation 2019 (BEFIT) summit.
The minister said that the revised CSI Policy 2019 aims to further improve the policy and regulatory environment to accelerate the growth of the CSIs in the country.
CSIs account for more than 95% of the total industries in country, playing a critical role in the industrialization and diversification of the economy.
The minister said that the despite initiating various reforms in the past, the growth of CSI sector has not been substantial. “The role of the government is to create an enabling policy environment that addresses the challenges and fosters growth of CSIs in the changing business environment.”
The CSI policy is intended to develop the necessary policy environment and institutional framework to ensure that it is systematically implemented, using both international and national good practices.
The policy also intends to develop a culture of entrepreneurship at all levels of the education system and all spheres of economic activity to reinforce the importance of entrepreneurship and its contribution to socio-economic development of the nation. There is also a need to develop and enhance a deep and diverse talent pool of CSIs that matches labor market demand, with an emphasis on gender equality. Thus, the government will accord due priority to the development of entrepreneurship culture and human capital to foster growth of CSIs in the country.
In the fast-changing global business environment brought about by the industry, the success of CSIs in Bhutan depends largely on the innovation, creativity and adoption of new technologies.
To enable greater innovation and technology adoption, the government will facilitate assessment and adoption of emerging technologies through access to technology resources and support to the CSIs.
CSIs in general face difficulties in accessing market particularly international market owing to geographical location and limited range of products that meet international standards. The government intends to provide requisite support in product development as well as access to market through various interventions.
Dechen Dolkar from Thimphu