Industries Minister Khandaker Abdul Muqtadir said that income inequality in Bangladesh has increased due to the alarming decline in the rate of new entrepreneur creation over the past 12 to 15 years. He noted that very few new entrepreneurs emerged during the period, while those who already owned industrial enterprises continued to expand their businesses. The primary reason behind this trend was the shortage of natural gas, according to the minister.

He made the remarks on Sunday while speaking as the chief guest at a programme marking International MSME Day 2026, held at the auditorium of the Bangladesh Investment Development Authority (BIDA) in Agargaon, Dhaka.

The minister said that Bangladesh witnessed a much higher rate of new entrepreneur creation between 1991 and 2006 than during the following 10 to 15 years, when the pace declined dramatically. Economic activity became concentrated in a limited group of business owners. He described this as a key driver of income inequality, adding that the country had effectively followed that path. Consequently, income disparity is now significantly higher than it was 15 to 20 years ago.

Referring to the global income inequality index, the minister said that the scale ranges from zero to one, with higher values indicating greater inequality. He noted that Bangladesh’s level of income disparity is now much higher than before. Comparing Bangladesh with neighbouring countries, he said that the contribution of the MSME (Micro, Small, and Medium Enterprise) sector to GDP is considerably higher in Vietnam, Cambodia, and even India and Pakistan. In Bangladesh, the sector contributes only 25 percent of GDP. He said the government aims to increase that share, emphasising that strengthening the MSME sector is essential for maintaining the dynamism of the economy.

Outlining the government’s plans to foster new entrepreneurs, the minister said that it is moving forward with a broad-based strategy. A mentorship programme is being introduced to support aspiring entrepreneurs. The Bangladesh Small and Cottage Industries Corporation (BSCIC) has also undertaken projects to establish new industrial parks in Pabna, Sylhet and Saidpur in Nilphamari. He added that feasibility studies would also be conducted to develop additional industrial parks in areas where existing parks have already allocated all available plots.