Digital Maturity, Sustainability, and Challenges of CMSMEs in Bangladesh: A Literature Review Validated by Pilot Survey Evidence

Abstract

The CMSME sector serves as the economic spine of Bangladesh, yet a significant "capability gap" persists between high-level policy literature and the practical realities faced by entrepreneurs. This study addresses this disconnect by contrasting a systematic literature review with primary empirical evidence from a structured pilot survey of CMSME owners. Utilizing a descriptive research design, the study investigates the convergence and divergence between theoretical frameworks and actual behaviour regarding digital maturity, sustainability, and operational challenges. The findings reveal that while internet accessibility is high (98%), "digital adoption" in this sector is driven primarily by informal rather than by formal website usage or data processing, as often assumed in policy discussions. The study identifies a market-oriented approach to sustainability, in which business owners prioritize selling "eco-friendly products". Financial management needs and export support challenges are cited as primary barriers. The findings also reveal a significant institutional void, as entrepreneurs primarily rely on self-learning and mentorship rather than on formal government support or training programs to address skill gaps. The paper recommends shifting from infrastructure expansion to competence development, specifically advocating targeted business digital literacy training and direct financial incentives to support the transition to green business practices.