When someone says they’re an entrepreneur, what do you think of? Maybe you imagine them buying and selling things. However, being an entrepreneur is much more than that.
According to The Organization for Economic Cooperation and Development (OECD), entrepreneurship has three important parts: Entrepreneurs, Entrepreneurial Activity, and Entrepreneurship itself.Entrepreneurs create economic value because they identify and capitalise on new opportunities through their initiatives.
It’s interesting to see that more and more people, especially youth in Bangladesh, are leaning towards becoming entrepreneurs, to become a self-made person and change the way businesses operate in the country.
Bangladesh’s tech-savvy youth population is playing a vital role in this change. The Government of Bangladesh has also recognised the importance of entrepreneurship with various policy frameworks and initiatives focused on promoting youth entrepreneurship, digitisation, and women’s entrepreneurship.
With a significant number of people living in urban areas, the country has a consumer market that contributes remarkably to its economic growth. The 8th Five-Year Plan aimed to reduce youth unemployment and promote ICT-based entrepreneurship, especially for women. The National Youth Policy of 2017 emphasised grassroots empowerment and self-growth, while the SME Policy of 2019 simplified processes, improved access to finance, and facilitated starting businesses with digital tools. These policies aim to empower young people, provide access to resources, and promote self-employment, driving economic growth and development in Bangladesh.
Bangladesh aims to become a developed country and achieve “Smart Bangladesh” status by 2041. Currently, government initiatives like the ‘Digital Bangladesh’ campaign and the ‘One Stop Service (OSS)’ project have streamlined business registration and fostered digital transformation. The government has established Startup Bangladesh Limited, which is dedicated to fostering Bangladesh’s tech startup scene through financial support and guidance, aiming to generate strong returns by investing in high-growth, socially impactful companies with excellent management and equitable instruments. Additionally, the Innovation Design and Entrepreneurship Academy (iDEA), Bangladesh Investment Development Authority (BIDA), and Startup Bangladesh are offering training and support to aspiring entrepreneurs.
So, why not prioritise entrepreneurship over traditional employment?
Entrepreneurship, driven by factors like education, capital access, and government policies, can fuel economic growth and innovation. Entrepreneurs have more control over their work, potentially higher income, and the chance to pursue their passion or innovative ideas.
In contrast, employees may enjoy stability but lack creative freedom. Entrepreneurship empowers individuals to chart their destinies, contribute to communities, foster innovation, and drive societal progress.
In Bangladesh, a dynamic group of young entrepreneurs is making significant strides in various industries. Many thriving startups like Shopup, iFarmer, Shikho, 10 Minute School, Chaldal, Pathao, Shajgoj, Truck Lagbe, and others led by young entrepreneurs have changed the country’s business landscape.
Additionally, there’s a vast majority of small-scale enterprises and businesses within the informal sector led by youth, driving local job creation and economic growth in peri-urban and rural areas. These enterprises have not only offered employment and income to their owners and workers but have also bolstered the nation’s economic progress by generating foreign exchange earnings and tax revenue.
However, not all startups always see the face of success.
In Bangladesh, there are several crucial reasons behind startup failures. These include the failure to meet real market demands, improper management of financial resources, insufficient competitor analysis, inadequate product or service quality, the absence of a robust business model, and limited marketing efforts.
Conquering these obstacles requires a dedicated commitment to problem-solving, effective teamwork, strategic planning, and unwavering resilience in the face of adversity, ultimately empowering startups to flourish in a demanding business landscape. Access to financial resources for business expansion is also a major obstacle.
According to Mustafa Al Momin, Co-Founder and CEO of Palki Motors, “Although the global entrepreneurship ecosystem is shrinking due to the current economic crisis, the situation is different for startups that only need a small investment. When a venture requires a significant amount of investment and capital, investment becomes a problem.”
Additionally, soaring inflation and late client payments have created financial strains for entrepreneurs in various industries. In 2023, success for Bangladeshi young entrepreneurs hinges on maintaining cash flow, avoiding layoffs, and prudent fund management. Prioritising business stability over a high-profit margin is the key.
Despite its challenges, entrepreneurship offers immense satisfaction, as it involves following one’s passion and being in the driving seat of one’s journey. Aspiring entrepreneurs should remain hopeful, recognising the rewards of their resilient journey.
To succeed as a young entrepreneur, aspiring youth should consider the following steps.
Firstly, conduct comprehensive market research to understand real consumer needs. Once you have a clear understanding of market demands, you can proceed to the next step. Young entrepreneurs must utilise their financial resources wisely and seek expert advice if necessary, to ensure proper management. Learning from other businesses and paying attention to competitors can help in gaining valuable insights to refine strategies.
Also, prioritising to deliver high-quality products or services will help build a strong brand reputation. Once quality is assured, you should create a solid business model with a clear revenue plan, ensuring long-term sustainability. Finally, you should implement effective marketing strategies to increase brand visibility and customer engagement, ultimately driving growth.
By following these connected steps, young businesses can navigate the challenges and create a solid foundation for success in the dynamic business environment of Bangladesh.
Entrepreneurship training is crucial for Bangladesh. Currently, the focus on traditional jobs limits entrepreneurial growth. To change this, we should teach entrepreneurship in schools, offer vocational training, and provide affordable funding. This will empower the youth to innovate and compete globally, reducing income inequality and boosting economic development.
Women face a different set of barriers, including social norms, limited access to funding, and a lack of representation in various industries.
Samanta Haque Rahela, an entrepreneur running her beauty parlour business in Cox’s Bazar, initially faced challenges in her business due to a lack of family support and limited technological literacy to promote her services. But things started looking better for her when she chose to participate in BRAC’s entrepreneurship skills development training and received technological upgradation knowledge.
With this newfound knowledge, she started to promote her beauty parlour online. As a result, her business began to flourish, and over time, she not only witnessed the growth of her business, but also gained the support of her family.
The issue with entrepreneurship is not just following steps; the mindset of the people also needs to change towards entrepreneurs. In BRAC’s experience, advice is crucial for aspiring entrepreneurs to navigate the complexities of entrepreneurship, and make informed decisions at each step of the journey.
The term advice encompasses formal mentoring, consultations, and training offered by government, private, and non-governmental agencies, as well as informal guidance from family and friends. There is great value in ‘peer-to-peer’ learning for aspiring entrepreneurs, as informal social networks play a significant role in individuals’ access to advice and information.
When offering advice to advice seekers or aspiring entrepreneurs, advice givers need to create an environment where advice seekers feel heard and trusted. For advice seekers, it’s also necessary to actively seek advice and recognise shared experience.
Considering the importance of ‘Good Advice’ for aspiring entrepreneurs, BRAC is currently working with the London School of Economics to develop an Advice Toolkit that talks about the business and entrepreneurship advice ecosystem, focusing on accessibility, quality, inclusivity, and how to enhance the effectiveness of advice.
Climate-smart businesses will be crucial for youth to make a positive impact in the face of urgent climate action. There are various areas such as renewable energy, sustainable agriculture, eco-friendly products, and climate adaptation services for youth to tap into. They can benefit from these ventures in several ways.
Firstly, climate-smart businesses often attract environmentally conscious consumers and investors, potentially leading to increased market share and financial success. Additionally, by addressing climate-related challenges, these businesses can contribute to the broader goal of mitigating climate change, which is crucial for the future well-being of the planet.
Moreover, youth involved in climate-smart businesses gain valuable skills and experiences related to sustainability, which can enhance their career prospects and provide personal satisfaction by contributing to a more sustainable world. Overall, climate-smart businesses offer a promising avenue for youth to make a positive impact on both the environment and their future.
Nurturing entrepreneurship in Bangladesh’s youth requires a comprehensive approach involving government initiatives and proactive strategies. By equipping young individuals with necessary skills and resources, the country can foster economic growth and prosperity for its future generations.
Arafath Rahman serves as an Assistant Manager in the BRAC Skills Development Programme, while Jarin Tasnin holds the position of Deputy Manager in the same program