ULSTER UNIVERSITY BUSINESS SCHOOL 2020-2021
MODULE: DISSERTATION (QAHE 2021/ 2022)
MODULE CODE: BMG 847 (18441)
MODULE Level: 7
LOCATION: QAHE
E-Commerce Development in SME Sector in Bangladesh
Submission By:
STUDENT ID- B00804272
Submission To:
Dr Sandhya Sastry
Ulster University
, Abstract
This study aims to determine the potential for effective coexistence of SMEs and e-commerce
in Bangladesh. The Bangladesh market has been found to be sufficient for SMEs to thrive. If the
developed e-commerce system is adopted by small and medium enterprises in
Bangladesh, the growth rate of Bangladesh economy will be higher than ever. The study
found that there are numerous obstacles and opportunities for e-commerce and small
businesses. The survey revealed that the main obstacles to the development of SMEs
are lack of knowledge and economic opportunities. Due to the large population of the
country, SMEs have great opportunities for further growth and the SME sector already
plays an important role in economic growth. The study found that e-commerce offers
more opportunities and is very understandable after the Covid-19 pandemic. The impact
of Covid-19 remains and changes in consumer behaviour can be used as leverage for the
sector. Therefore, Bangladesh's SME sector can achieve significant growth by utilizing or
cooperating with e-commerce. The study also revealed that individual contributions to
SMEs are necessary for proper growth and creating the right collaborative environment
for both sectors. An assessment of the current state of the SMEs and e-commerce
sector in Bangladesh reveals that it is difficult for everyone to create a suitable e-
commerce environment for both consumers and businessmen. On the other hand, this
study found that the development of e-commerce is possible when the audience is
aware of the whole process of e-commerce. The e-commerce sector is still considered
unsafe and unreliable by most consumers, largely due to lack of knowledge of technical
applications. The sector seems unsafe as many consumers have fallen prey to fraud as
they had no clear idea of the transaction and other similar processes. The research
thoroughly evaluates both the SME and e-commerce sectors, and finally, the research
discovered that the effort must be made from all sides, such as the government,
consumers, and businessmen, at the same time, only then can the development of e-
commerce be possible, and only then can the SME sector benefit from the advantages
of ecommerce.
ii
, Declaration
I am declaring that this dissertation has been carried out in accordion to the university's
regulations. The total work is done by me and this thing has not been submitted
anywhere before. I have marked all the parts in the dissertation through proper
referencing and acknowledgment. I have included all the sources in the reference part.
The parts which are not having citations are the work of the author.
Signed:
Date:
iii
, Table of Content
Abstract................................................................................................................................
..
Acknowledgement...............................................................................................................
v
Declaration...........................................................................................................................
v
1. Introduction.....................................................................................................................
.1
1.1 Research
Background............................................................................................1
1.2 Research Aim and Objective.................................................................................1
1.3 Research Gap and
Question...................................................................................2
1.4 Rationale of the
Research......................................................................................2
1.5 Limitations.............................................................................................................
3
2. Literature Review............................................................................................................4
2.1 Industry Background of SME Sector of Bangladesh.............................................4
2.2 Present situation of E-commerce in
Bangladesh...................................................5
Different Types of Changes in these Two Sectors during Covid-19 Pandemic...........6
2.3 Changes in SME Sectors...............................................................................6
2.4 Changes in E-commerce Sectors...................................................................7
iv
MODULE: DISSERTATION (QAHE 2021/ 2022)
MODULE CODE: BMG 847 (18441)
MODULE Level: 7
LOCATION: QAHE
E-Commerce Development in SME Sector in Bangladesh
Submission By:
STUDENT ID- B00804272
Submission To:
Dr Sandhya Sastry
Ulster University
, Abstract
This study aims to determine the potential for effective coexistence of SMEs and e-commerce
in Bangladesh. The Bangladesh market has been found to be sufficient for SMEs to thrive. If the
developed e-commerce system is adopted by small and medium enterprises in
Bangladesh, the growth rate of Bangladesh economy will be higher than ever. The study
found that there are numerous obstacles and opportunities for e-commerce and small
businesses. The survey revealed that the main obstacles to the development of SMEs
are lack of knowledge and economic opportunities. Due to the large population of the
country, SMEs have great opportunities for further growth and the SME sector already
plays an important role in economic growth. The study found that e-commerce offers
more opportunities and is very understandable after the Covid-19 pandemic. The impact
of Covid-19 remains and changes in consumer behaviour can be used as leverage for the
sector. Therefore, Bangladesh's SME sector can achieve significant growth by utilizing or
cooperating with e-commerce. The study also revealed that individual contributions to
SMEs are necessary for proper growth and creating the right collaborative environment
for both sectors. An assessment of the current state of the SMEs and e-commerce
sector in Bangladesh reveals that it is difficult for everyone to create a suitable e-
commerce environment for both consumers and businessmen. On the other hand, this
study found that the development of e-commerce is possible when the audience is
aware of the whole process of e-commerce. The e-commerce sector is still considered
unsafe and unreliable by most consumers, largely due to lack of knowledge of technical
applications. The sector seems unsafe as many consumers have fallen prey to fraud as
they had no clear idea of the transaction and other similar processes. The research
thoroughly evaluates both the SME and e-commerce sectors, and finally, the research
discovered that the effort must be made from all sides, such as the government,
consumers, and businessmen, at the same time, only then can the development of e-
commerce be possible, and only then can the SME sector benefit from the advantages
of ecommerce.
ii
, Declaration
I am declaring that this dissertation has been carried out in accordion to the university's
regulations. The total work is done by me and this thing has not been submitted
anywhere before. I have marked all the parts in the dissertation through proper
referencing and acknowledgment. I have included all the sources in the reference part.
The parts which are not having citations are the work of the author.
Signed:
Date:
iii
, Table of Content
Abstract................................................................................................................................
..
Acknowledgement...............................................................................................................
v
Declaration...........................................................................................................................
v
1. Introduction.....................................................................................................................
.1
1.1 Research
Background............................................................................................1
1.2 Research Aim and Objective.................................................................................1
1.3 Research Gap and
Question...................................................................................2
1.4 Rationale of the
Research......................................................................................2
1.5 Limitations.............................................................................................................
3
2. Literature Review............................................................................................................4
2.1 Industry Background of SME Sector of Bangladesh.............................................4
2.2 Present situation of E-commerce in
Bangladesh...................................................5
Different Types of Changes in these Two Sectors during Covid-19 Pandemic...........6
2.3 Changes in SME Sectors...............................................................................6
2.4 Changes in E-commerce Sectors...................................................................7
iv
