Impact of Fourth Industrial Revolution (4IR) on Small and Medium Enterprises (SMEs) and Employment in Bangladesh: Opportunities and Challenges

The Fourth Industrial Revolution (4IR) is transforming industries and economies worldwide, presenting both opportunities and challenges for Small and Medium Enterprises (SMEs) and employment. This study qualitatively explores the impact of 4IR on the SME sector in Bangladesh. Initially, secondary data sources are reviewed to establish the context and to prepare the questionnaire for primary data collection. Then, the primary data is collected through Key Informant Interviews and Focus Group Discussions with different stakeholders including SME owners, association representatives, and government officials. The study reveals that while most of the participants have only a superficially awareness of 4IR, they view it as a blessing for the SME sector. Despite being in early adoption stages in Bangladesh, SMEs anticipate numerous benefits including enhanced customer experiences, reduced production times, improved quality, etc. Regarding employment, most participants believe that adopting 4IR in the SME sector of Bangladesh will create new job opportunities. However, participants express concern about challenges during the transition to 4IR, including a lack of technical knowledge, financial constraints, inadequate training, safety and security issues, etc. To fully harness 4IR's potential benefits for SMEs in Bangladesh, several key recommendations emerge that include analyzing of the current SME landscape, establishing a collaborative information sharing platform, organizing effective training and workshops, promoting resource sharing, encouraging local innovation, attracting foreign clients, ensuring proper policy implementation and fostering collaboration among government, associations, and academia. By addressing these challenges and implementing the recommended strategies, Bangladesh can effectively embrace the transformative benefits of 4IR, simultaneously improving its SME sector.