A Thesis on

Startup opportunity in Bangladesh

As a partial fulfillment of Abashik Training Program of Onnorokom Group of 5th Batch

Submitted to:
Md. Tasawoof Bin Faroque

Onnorokom Group

Submitted by:
Saurav Ahmed

Abashik Training Program

5th batch

Date of Submission: 30th March, 2018

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 Letter of Transmittal

30th March, 2018.

To
Md. Tasawoof Bin Faroque
Onnorokom Group

Subject: Submission of Thesis Report on “Startup opportunity in Bangladesh”.

Dear Bhia,

It is my great pleasure to submit my report on “startup opportunity in Bangladesh” that I was

supposed to complete as a core requirement of Abashik Training Program of Onnorokom Group.
I have gone through many obstacles during making this report. But the experiences I have
achieved will definitely help me in the years ahead. I have tried to describe my observation,
learning and knowledge regarding the startup scenario of Bangladesh. In spite of the several hard
and bitter experiences, I put my all efforts to make this report very meaningful.

I have enjoyed this project work and I would be awfully happy through getting your valuable
necessary corrections.

Sincerely,

Saurav Ahmed

Abashik Training Program

5th batch

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 Acknowledgement

At the beginning, I would like to place my deep appreciation to almighty Allah for making me
able and giving opportunity to finish task in the planned time.

I would also like to place my appreciation to my honorable supervisor Md. Tasawoof Bin
Faroque Bhia for helping, leading and supervising me in every aspect regarding my project work.

I am also thankful to Mahfuz Siddique Himalay Bhia for providing valuable information
regarding startup culture in Bangladesh.

I cannot but mention my special gratitude to my every respondent to give me support.

And it is none but me who is responsible for any mistake in this report.

Saurav Ahmed
Abashik Training Program
5th batch

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 Supervisor’s Certification
This is certified that the thesis report on “startup opportunity in Bangladesh” has been done by
Saurav Ahmed (Trainee, Abashik Training Program, 5th batch) under my supervision. It’s worth
mentioning that to the best of my knowledge, the work reported herein does not from part of any
other project report or dissertation on the basis of which a degree or award was conferred on an
earlier occasion on this or any other candidate . He is found to be sincere and hardworking and
permitted to submit the report. I wish him every success in future.

……………………………
Md. Tasawoof Bin Faroque
Onnorokom Group

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 Declaration
I persuasively declare that the work shown in the report named “startup opportunity in
Bangladesh” is done by me as a core requirement of the Abashik Training program of
Onnorokom Group. I had made the report under the supervision of Md. Tasawoof Bin Faroque
Bhia working in the Onnorokom Group. There is no denial that I had completed the report by
myself. I had also tried to find out something new other than finding the conventional and
existing result related to startup environment of Bangladesh. It is only me who is responsible for
any fault of the report either partially or fully. This report is not submitted to anywhere else. This
report is not copied from any sources.

…………………..

Saurav Ahmed
Abashik Training Program
5th batch

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 Executive summary
Bangladesh is one of the newly formed countries within this world where more than half of the
population of it under the age of 25. The nation of Bangladesh is hoping to become a middle-
income country within 2021. With a view to develop an innovation-centered economy and
sustain its obvious growth, Bangladesh government has taken an initiative to create a national
entrepreneurship platform and at the same time its supporting ecosystem. Needless to say, this
omnipotent initiative will help the nation to innovate faster, create new job opportunity, enrich
technical skills and understand the vision of Digital Bangladesh.

A startup company is nothing but entrepreneurial venture that is relatively newly emerged, fast
growing business and often deals with relatively new product, service, process or platform. Or in
other words, a startup is mainly a company which is designed to develop a scalable business
model.

Bangladesh is a good place providing favorable, smooth and congenial investment opportunity.
In Bangladesh, it is possible to start a business with small capital. That means, the economy of
Bangladesh is increasing because of its low labor cost, products that are cost effective, and huge
number of the population. Because of those favorable circumstances, the necessity of startup
initiatives cannot even be counted on two hands staring from family aspect to global arena.

Developing an ecosystem for the growth purpose of startup is one of the important parameter of
national development including economic development all over the world. It is especially true
for the developing countries. Ecosystem means creating startup incubation organizations,
pioneers of startup, bringing out consultants and experts, providing resources and support to
startups, mentoring the proper utilization of the resources, ensuring idea sharing platform, and all
other idea sharing platform, and all other infrastructural support for the final outcome or success
of startup idea. There are many advantages of promoting the startup ecosystem. When there will
be more and more innovative business ideas and when there will be established new business
ventures, new jobs will be created, unemployed persons will be able to make income,
unemployment problem will be minimized. And ultimately, there will be healthier circular flow
of economy.

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However there are certain things that need to be taken into consideration in terms of startup
opportunity in Bangladesh. For example, there are many types of risks like market risk,
management and execution risks, financial risks; risk attached with legal, technical, operational,
regulatory compliance, economic conditions.

Within my assignment I will try to find the startup opportunity in Bangladesh. My target is also
includes finding the sectors which are sustainable or suitable for the startup in Bangladesh,
finding the obstacles or hinders in terms of startup opportunity of Bangladesh, and at the same
time finding the solution for overcoming the hinders.

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 Table of contents

Serial No Contents Page

No
Chapter 1 1.1 Introduction 11

Introduction 1.2 Objectives of the study 12

1.3 Methodology of the study 12
1.4 Rationale of the study 13
1.5 Scope and limitation 13

Chapter 2 2.1 Literature Review 15-16

Literature review

Chapter 3 3.1Commencement 18

Situational analysis on real market 3.2. My Focus areas 18

3.3 Data analysis 18-24
scenario
3.4 My interpretation 24

Chapter 4 4.1 Commencement 26

Bangladesh : A potential place for 4.2 Opportunity for startup in 26-33

Bangladesh.
startup
4.3 Small business ideas Bangladesh 33-41
best fit in

Chapter 5 5.1 Commencement 43

Obstacles in the way of startup 5.2 Problems concerned with startup 43

5.3 Major Problems and constraints 44-50

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Chapter 6 6.1 Commencement 52

Overcoming obstacles of startup 6.2 Initiatives taken by entrepreneurs 53-55

6.3 Initiatives taken by government 56-62
5.4 Startup ecosystem 62-63

Chapter 7 7.1 Findings 65

Findings, recommendation and 7.2 Recommendation 66

7.3 Conclusion 67
conclusion

References 68

Questionnaire 69

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 CHAPTER ONE

INTRODUCTION

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1.1 Introduction

Startup plays a basic role in terms of ensuring a strong for the development of economy. Startup
is the very important factor in the growth of economy in a country. It is also considered as one of
the roots of our national economy and national development. In a growing economy like
Bangladesh that has an increasing youth population; startup will definitely play a vital role to
meet up the needs of the economy and the industry. It has the capacity to boost up growth and
reduce poverty. But most of the people related to startup in Bangladesh have a few
entrepreneurial skills.

Bangladesh has scored eighth position in terms of population because of having 170 million
people. So the wave of different startups is not surprising us. Probably it is not so far when
Bangladesh can beat the western products within a few years by offering innovative products
through startup.

Much of the activity of startup is often dealt with young entrepreneurs because 60% of the total
population is below 30 years old.

In Bangladesh, different people have different expertise in different areas. Definitely the young
generation, can create value by their creative ideas. But due to shortage of knowledge based
approaches, we are failing to make them very interactive and meaningful. Here, the whole
process of startup is time consuming, hefty and complex, because of many hinders. Because of
these bitter realities business entrepreneurs are discouraged to come in the business arena.

From another point of view, strategic partnership is also a stereotype problem for a startup
company. We often limit our products and services to the local market because of the absence of
favorable policy and instruments. For the purpose of gaining inclusive growth and global market
access, some big companies, government of Bangladesh should come forward and provide help
to the new entrepreneurs.

However, we have to think in a long span. We have to sustain in the long run. We will have to
find the obstacles within this sector, first of all. After that, we need to ensure the congenial
atmosphere through removing the obstacles for the common and greater interest of the nation of
Bangladesh.

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1.2 Objectives of the study

Core objective

My very core objective is finding whether the conception of startup will sustain in the long run
or not.

Minor objective

➢ Finding startup opportunity in Bangladesh.

➢ Finding the sectors sustainable or suitable for startup in Bangladesh.
➢ Finding the obstacles in the way of Startup in Bangladesh.
➢ Finding the solution for overcoming the obstacles.
➢ Understanding in which way most of the startups are being operated: virtually or
physically.
➢ Understanding the women participations in startup.

1.3 Methodology of the study

➢ Primary sources: I have collected primary data by doing a simple survey on

minimum 11 newly started organizations that have not reached their break-even point yet
for understanding the total market scenario of startup culture in Bangladesh.

➢ Secondary sources : To collect secondary data I have gone through

✓ Different websites, journals for reaching a decision regarding startup.
✓ A Secondary Literature Review (SLR). SLR is a review of the important literature for
a given research subject. Secondary literatures consist of books, annual reviews,
textbooks, Journals, Periodicals and Other publications. Secondary data will be used
for this study from Ministry of Commerce, Government of the People’s Republic of
Bangladesh, BSIC, and International Labor Organization, Global Entrepreneurship
Index etc.

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1.4 Rationale of the study

The rationale of the study is divided into two branches. Firstly, learning the actual startup
opportunity of Bangladesh is one of my targets. Secondly, for the fulfillment of the Abashik
Training Program of Onnorokom Group, I am supposed to complete the assignment.

1.5 Scope and limitation

The time was very limited to complete the thesis. The time provided to me was not good enough
to complete a thesis with a good quality. Availability and accessibility of data secondary in
nature is not sufficient to conduct the research. There are also problems regarding collecting and
utilizing the primary data. Within the study, resource constraints and time were major obstacles.
Some area of these may not be covered within this very limited time frame. It was very difficult
to manage both theoretical and analytical data within this very short span of time to get the actual
scenario of the current market.

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 Chapter TWO

Literature Review

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2.1 Literature Review

A solid number of written reports on entrepreneurship have been conducted at home and
overseas. A brief recap of some subjects is given below: the entrepreneur, in Schumpeterian
model, is an innovative entrepreneur, who depends on assertive social and economic overheads.
The economic and social expenses are really poor in backward area, which result the low supply
of entrepreneurs Schumpeter. McClelland took a sketch of the achieving society and found that
initiators could be entrepreneurs as they bear a high demand for accomplishment. The
McClelland’s hypothesis is that a community with a generally high degree of achievement
motivation will create more rapid economic growth. The inner need of the individual to do
something novel, something antic in a specific field has been set up to be a significant
component. It needs entrepreneurial motivation, efficiency and capacity. Achievement
inspiration and power motivation are as imperative for entrepreneurship McClelland and winter.
Marries and Somerset expressed that increase in the range or interaction is needed and the
barriers to interaction must be going down if entrepreneurship is to come. According to Hossain
the entrepreneurs in Bangladesh own sufficient intelligence and ingenuity to make advantage of
feasible business opportunities. Habibul Rahman, critically evaluated the impact of different
programs and policies relating to entrepreneurship and small enterprises The determinants of
entrepreneurship development are constructed along the socioeconomic conditions of a state.
Nevertheless, foreign students who ever studied the socioeconomic and ethnic context of
Bangladesh appear to think that Bangladesh has youths with potentiality to be trained as
entrepreneurs according to the research of Habibullah . Habibullah conducted another research
on entrepreneurship training and development and revealed that training is an efficient tool for
entrepreneurship development in Bangladesh. Chowdhury carried a survey on the emergence and
increase of entrepreneurs in some developing states and found that over the last several years,
some developing countries recorded spectacular growth and success of small entrepreneurs.
Davies focused the urge for achievement as the cause that inspires people to be entrepreneurs
and venture into advanced and productive initiatives enhancing economic development.
Chowdhury and Nuruddin opine that it is rightful that a congenial environment is essential to
prepare and develop effective entrepreneurs in the state. Rahman noted that the poor economy of
Bangladesh can hardly afford entrepreneurship development other than in small-scale ventures.

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In fact, a balanced development of the economic organization is largely contingent upon small
scale enterprise for a good many reasons like huge unemployment, technological backwardness,
poor infrastructural framework and scarcity of capital. Aktaruddin observed that personal
attributes are key factor for entrepreneurial success of failure while Aktaruddin reported on the
socioeconomic background of the entrepreneurs .Salman indicated some external and internal
factors or barriers to develop the SME sector, as information, knowledge, political, economic,
legal organization, government publications, engineering, natural weather, which can be
classified as external elements and machinery, structure people or materials and process as
internal components . He also carried a research on impediments to Small and Medium
Enterprise (SME) development and found that still there is a gap of awareness about new era and
e-commerce. Hasan and Rahman identified that approach to finance is the most important
problem for SME as commercial institutions typically ignores the fiscal demands of the s initially
due to their weakness in providing fixed asset as collateral. . Islam and Aktaruzzaman found that
76.3 percent of the rural entrepreneurs had no education at all, of which nearly 17 percent could
neither say or write and another 59.3 percent were only able to invest in their signature .Costly
time taking regulatory system with licensing and permitting has been planted as a roadblock for
the SME growth development by the SME department’s country mapping research and study.
George and David conducted a survey in providing lower expensive IT approach to rural areas in
developing countries and revealed that weak data structure, just like weak transportation
infrastructure, can reduce the attractiveness of merchandise business with particular countries.
Roni reported that the availability of capital is not enough in Bangladesh due to the precarious
financial environment and per capital income is low as US Dollar 220. The interest rate is high
that lead cost of bowing also high. The wage rate is the most important determinant of
entrepreneurial decision. He also revealed that in the long run socio-cultural environment plays a
far reaching effect in the entrepreneurs. The survey also claimed that entrepreneurs can engage
from socially marginal class, like ethnic, religious culture or migrant minority. Mittal and Batra
ran a study on the factors bearing on the growth of entrepreneurship development in small scale
industries in Panjab and Haryana and noted that with globalization, the small-range
entrepreneurs are facing an intense competitor Mittal and Batra Rahman and Das carried a
research on the evolution of SME in Bangladesh and vowed that unfair use of political power is
liable for the imperfect market .

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 CHAPTER THREE

SITUATIONAL ANALYSIS ON REAL MARKET SCENARIO

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3.1 Commencement

For getting the actual scenario of the Startup opportunity in Bangladesh, I wanted to conduct a
survey. My sample size was very nominal. However, I asked a lot of questions to the
entrepreneurs to find the real scenario of the startup condition of Bangladesh.

3.2 My Focus areas

➢ Idea generation and inauguration scenario

➢ Current performance or activities
➢ SWOT analysis
➢ Fund management
➢ Obstacles faced
➢ Suggestions

That means within my survey I cover the above areas. I looked for questions like from where
they got the conception of their business, their initial amount of investment, their vision, why
they consider themselves as unique, their market offerings, their tenure of the business, regarding
their breakeven point, yearly turnover, loyal customers, strength, weakness, opportunity, threat
of the company, their fund management, composition of debt and equity, the types of obstacles
they face randomly. And last but definitely not the least, what are the suggestions they want to
provide to the new people who are coming future in the startup business.

3.3 Data analysis:

Throughout my survey I wanted to get very practical result. Interestingly there are many
similarities between their stories in terms of idea generation, current performance or activities,
SWOT analysis, fund management, obstacles faced etc. based on these analysis , I made PEST
analysis, Porters five factors model and SWOT analysis. Let’s see consecutively.

3.3.1 PEST analysis

The factors related to internal and external environment have a greater influence in the success of
the startup business. That means by adopting some basic strategies for manipulating these
factors, a business can increase its success probability at a greater extent. A successful business
will not only current factors but also assume change. By this way, entrepreneurs can take
advantage even in the changing circumstances.

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PEST analysis describes those environments. PEST analysis stands for political, economic,
social and technological analysis. It also describes macro environmental factors that greatly
influence startup culture.

Political analysis: Political or the legal factors describe to what extent the government
intervenes within the economy. These factors include tax policy, labor law, environmental law,
trade restrictions, and law of discriminations, political stability, health and safety law, law for the
employment, consumer law. All of the elements related to political factors have impact on the
startup culture of Bangladesh.

Economic analysis: Factors such as interest rates, taxation, international trading blocks, and
exchange rates are related to economic and competitive environmental factors. All of them are
macroeconomic factors. However, it can also pose microeconomic factors like income
distribution, monopolies. To formulate the idea, the cost of capital of a business can be increased
or affected because of the interest rate and exchange rate can affect the price of imported goods.
All the micro and macro factors have effect on startup.

Social analysis: Health consciousness and cultural aspects are the elements of social
environment. Ever changing demographic factors such as population growth rate, the size of the
households are also related to it. It also includes changing lifestyle and societal attitudes.
Attitudes towards career and priority over safety are the examples of changes in lifestyles and

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societal attitudes. Business ethics, health and safety issue, personal ethics are also a matter of
consideration over there. All of them have effect on startup.

Technological analysis: it includes ecological and environmental aspects, the rapid change of
technological change, high cost for R & D are considered to be barriers to entry. Nowadays
internet is the large technological factor. Environmental factors include weather a climate change
Environmental factors include weather and climate change that may directly affect tourism,
farming, insurance. However, all of those factors greatly influence startup.

3.3.2 Porter 5 Factor model: it includes

1. The bargaining power of suppliers.
2. The bargaining power of buyers.
3. The threat of new entrants.
4. The threat of substitute products.
5. Competitive rivalry.

The bargaining power of suppliers

It refers to how much power to negotiate price and other terms your suppliers have. Whenever
you are a small company and producing products with rare inputs which are sold by a few numbers of
suppliers, the bargaining power of your suppliers will be very high. Because probably you have few
alternatives .That means in the environment of startup in Bangladesh, the bargaining power of
suppliers is very high.

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The bargaining power of buyers

It is applicable to customers. When there are many companies within the market, the bargaining
power of the customers will be very high and vice versa. That means when an entrepreneur will
produce rare products, the bargaining power of the customers will be low. As the world is open
to all and each one knows a good number of sources, the bargaining power of buyers is also high
in terms of startup.

The threat of new entrants

The threat of new entrants means to the restrictions of entry into the industry and whether with
enough strength they can prevent other companies to come into the market to compete with them
directly or they are weak to prevent the new companies to come within the industry. Whenever,
they are weak, the market weak is easily flooded with a good numbers of new companies. In the
environment of startup in Bangladesh, it is very easy to start a new business. Because of the boon
of Facebook, a person can easily open a page and operate his business. That means here the
threat of new entrants is very high.

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The threat of substitute products

The threat of substitute product means to the capability of the customer to make decision to use a
different product other than yours in terms of solving the same problem or meeting up the same
need. There are many brands within the market and at the same time there are many substitute
products. So, the threat of substitute product is very high in the field of startup business in
Bangladesh.

Competitive rivalry

Competitive rivalry often means to the number and ability of your competitors. Whenever there
are many competitors within the industry and if they offer same kinds of products and services,
you will definitely have very little power within the industry. It happens because the customers
and the suppliers will have many options and when they don’t like your market offerings. But the
opposite scenario is also true. That means you can enjoy your power when yours offered
products or services are relatively unique. Or in other words, if the business rival cannot offer
what you offer, you will have extra strength to control the market. There are certain factors that
need to be consideration

• The number of business competitors

• The difference between the quality of your product and competitors’
• Any other differences
• Switching cost associated with buyers and suppliers
• Loyalty of the customer

So, here we can also say that the competitive rivalry is very high in the field of startup in
Bangladesh. However, although the above five factors greatly influence startups, in my opinion,
they also encourage startup through tough competition. Higher the competition, higher is will be
the qualities that ultimately provide benefit both entrepreneurs and customers.

3.3.3 SWOT analysis

SWOT analysis or also known as SWOT matrix often means to an approach for strength,
weakness, opportunity and threats and a very structured planning initiative that measure those

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four elements of a particular project or specific business venture. For a particular product, place,
industry, or any other things, A SWOT analysis can be carried on. Let’s know the SWOT
analysis of it.

Strengths Weakness

➢ It will increase your boldness as the ➢ Absence of patent protention.

sense of you have nothing to lose. ➢ Relatively week brand name and
➢ Here , the initial investment is very recognition
low. ➢ Relatively poor reputation among
➢ Superior personnel or access to talent customers.
people. ➢ Little bit high cost structure.
➢ Superior location where products can ➢ Low acccessibility to good raw
be bought. materials or natural resources.
➢ Low labor cost. ➢ Lack of access to key distribution
➢ Very good internal communication. channe.
➢ Have good reputation amomg
customers.
➢ Have good advantages in promotion
like advertising, public relations, word
of mouth and point of sale.
➢ Superior product.
➢ Superior distribution networks.
➢ Here agility is very high because of
small team, focused resources, span of
hierarchy is low.

Opportunity Threats

➢ There are huge unfilled customer needs. ➢ Negative socio cultural change.
➢ The rules and regulation are relatively ➢ Technological change often makes
low. products or services obsolte.
➢ The market segment is growing. ➢ Changes in rules and laws can affect
➢ Technology is changing that benefits the business.
the entrepreneurs. ➢ Changes in customers’ preferences,
➢ Socio cultural cahnage also benefits taste can negatively affect the
entrepreneurs. businees.
➢ Increased trade barriers are also
problems for startups.

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3.4 My interpretation: Based on situational analysis including PEST analysis, Porters five
factor model and SWOT analysis, it can be said that there are many obstacles regarding startup
opportunity in Bangladesh. However, irrespective of having some drawbacks, there are a good
numbers of golden opportunities of startup in Bangladesh. That means the advantages of startup
cannot even be counted on two hands. We can reduce our unemployment problem by boosting
up the startup. We can even export our products through these channels. However, further
research is needed. Obstacles should be minimized by the concerned bodies for the betterment of
the society.

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 CHAPTER FOUR

BANGLADESH : A POTENTIAL PLACE FOR STARTUP

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4.1 Commencement

Bangladesh is very potential market for the startup. The opportunities cannot even be counted on
two hands. And at the same time there are a good numbers of business conceptions that best fit in
within Bangladesh. This chapter is made up of mainly two focus areas.

4.2 Opportunity for startup in Bangladesh.

4.3 Small business ideas Bangladesh best fit in.

4.2 Opportunity for startup in Bangladesh.

As a developing country, a country like Bangladesh has huge opportunities to develop startups.
Throughout my study, I have tried to explore the relationship among opportunities in the below
categories:

1. Stimulatory opportunity.
2. Supportive opportunity.
3. Sustaining opportunity.

The figure of the next page shows the stimulatory aspects are closely connected with the
supportive aspects that further leading to the sustaining opportunity in the field of new startups.
Furthermore, the supportive opportunity is connected with sustaining opportunity in an extent
where supportive opportunity provides very practical help for serving potential entrepreneurs.
This overall relationship between the aforementioned three opportunity can be said as an
integrated overall package program that acts as buffer system for sustainable growth orientation
of potential and skillful entrepreneurs with the new and innovative ideas.

4.2.1 Stimulatory opportunity

The self-stimulate opportunity plays an important role in the entrepreneurship development

process. All the activities related to stimulatory fact raise the scope for entrepreneurs, role play,
education for entrepreneurs, natural resources necessary to uphold the place of entrepreneurs in
Bangladesh. An increasing number of supplies of entrepreneurs to orient new business entity and
develop potentiality are ensured by these programs. The opportunities emerged from diverse
origins are discussed below:

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 Stimulatory Supportive Sustaining
Opportunity Opportunity Opportunity

Logistic and technical Favorable Policy

support

Entrepreneurial: scopes,
International Promotional
natural resources, Training Program
Factors
educational inspiration and
motivation forum. Financial Support Women Entrepreneur
Assistance
Available Supportive
Organization Motivational Assistance

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 4.2.1.1 publicity for immense entrepreneurial scope and identifying areas of functioning

By using the potential operational areas, we should find out lots of entrepreneurs from our rural
areas in order to flourish the GDP growth. Within this place there are lots of entrepreneurial
opportunities to startup their enterprise. Business revolution can be gained by bringing them.
Information technology (IT) related business, for example, software Development Company, f-
commerce, and e-commerce; agricultural related business , for example, juice, cultivation of
mushroom, food preservation, honey bee; farming business , for example, alligators farm,
fishing, cattle rearing, poultry farming; farming, for example , nursery, horticulture, cultivation
of bamboo, tree plantation; beautification related business, for example, cane work, painting,
furniture, interior and exterior design; boutique related business like fashion house, tailoring,
embroidery, parlor; engineering on small scale, for example, glass blowing business, ceramic
tiles business; housing business, for example, land brokerage, real estate; recreation and tourism
sector; advisory and consultancy firm; training institutions, for example; human skill
development institutions, educational institutions, handicraft and technical training can be some
examples that can bring revolution in the sector of startup.

4.2.1.2 Role play and traditions lead to entrepreneurships

Bangladesh is blessed with successful entrepreneurs, intelligent and charismatic leaders and
industrious workforce. In our country it is very natural that business goes to next generation from
their forefather. That is why there are some traditional business practices, for example, family
traditions, regional traditions, historical traditions and so on. These normal traditions may lead to
bring revolution in entrepreneurship in Bangladesh.

4.2.1.3 Availability of Natural assets

Natural resources of Bangladesh have enriched Bangladesh. The available natural capital can be
categorized into cheap and hardworking human resources, provisions for financing facility,
natural gas, mine coal, glass, stone, silicon and many more. Again, the examples of
communication ways are sea port, river ways, air, and rail and road ways. And all of them
facilitate the startup opportunity in Bangladesh.

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4.2.1.4 Positive and independent attitude by nature.

There is no denial that the people of Bangladesh are independent, self-motivated, and innovative
by nature. Furthermore, competitive aspiration, cooperative attitude, creative thinking, risk
taking attitude, industrious nature and lead taking personality boost up the entrepreneurial
quality. All these qualities create entrepreneurs of Bangladesh as whole.

4.2.1.5 Educational inspiration

Both the general education and technical education has the direct contribution to the
entrepreneurship development in Bangladesh. In the general education perspective, students get
the conception of entrepreneurship in the secondary level and get theoretical knowledge of
startup initiatives in the business field for the near future. Very recently, the University Grants
Commission (UGC) of Bangladesh has granted bachelor degree in the specific focused areas.
And at the same time Daffodil International University (DIU) has started a Bachelor of
Entrepreneurship Development (BED) program providing the opportunities to collect knowledge
and skills which will help the to become successful entrepreneur. This BED program will act as a
mentor to guide students so that they can go through the process of starting up in order to
become a successful entrepreneur. Both the theory and practical exposure will be provided to the
future entrepreneurs by a good numbers of well-known entrepreneurs and leading academicians.
On the other hand, world-class exposure has been initiated by the help of foreign universities.
The target of the Bachelor Entrepreneurship Development Program is producing quality
graduates who can survive in the completive platform with their innovative business ideas and
skills. Alumni will have enough capability to transform themselves after the successful
completion of this course. Moreover, certificate, diploma and the degree to demonstrate the
growth of entrepreneurship have been highlighted by this technical education.

4.2.1.6 Motivational training for young entrepreneurs

There are some available motivational training institutes who provide motivation to the
entrepreneurs of Bangladesh. Within this circumstance, the main focus areas are including
providing techniques for startup, savings and motivational aspects of business entity. On the

29
other hand, they ease to gain resources, logistic support; financial supports which are needed for
setting up an enterprise from a different supportive organization.

4.2.1.7 Availability of entrepreneurial firm

There are some entrepreneurial forums that have stood beside startups. Again, there are also
some universities, for example, social business center with Daffodil International University,
entrepreneurship forum of UIU, NSU business club, business club of AIUB who have been
working in the way of entrepreneurial integration. Students are being strong in the business field
by the help of the Bangladesh Youth Leadership Center (BYLC), United Nations Youth and
Students Association of Bangladesh (UNYSAB) and the Forum of entrepreneurship and business
(FEB)

4.2.2 Supportive opportunity

The support programs often boost up the entrepreneurs in staring up and conducting the
enterprise successfully. Let’s know the supporting aspects in details.

4.2.2.1 Financial support

In the way of entrepreneurship development policy, financial sectors help directly or indirectly to
the entrepreneurs. By providing financial assistance, micro credit facilities of interest free loan,
foreign aid collection, subsidy and various other helps, Bangladesh Bank is known as most
leading contributor to the young entrepreneurs of Bangladesh.

4.2.2.2 Logistic support

Logistic support has a vital role for entrepreneur in the industrial sector by providing special
consideration for investment in BEPZA, EPZ, and BSIC industrial area. Logistic support also
includes infrastructural support, cheap transportation facilities, communication facilities, land
port access etc.

4.2.2.3 Technological Support

Bangladesh is dreaming of being digital country by implementing IT in every sphere of business.

So, entrepreneurs are getting IT support. Breeding and development program by IT related

30
organizations; research and development organization, scientific study and engineering
universities are all examples of technical support.

4.2.2.4 Available supportive organizations

There are a good number of organizations, both in government sector and government attached
private institutions, which are specialized in the sector of providing entrepreneurial assistance.
Trading corporation of Bangladesh (TCB), Export Promotion Bureau (EPB), Industrial
Promotion and Development Company of Bangladesh (IPDCB), Bangladesh Council of
Scientific and Industrial Research (BICSIR), Bangladesh Standard and Testing Institute (BSTI),
Board of Investment, Bangladesh Development Bank (BDB), Bank of Small Industries and
Commerce (BASIC), Investment Corporation of Bangladesh (ICB), Government, Controller of
export and import, Bangladesh Krishi Unnoyan Bank, Rajsahi Krishi Unnoyan Bank are the
examples of government organizations. On the other hand, Grammen Bank, Industrial
Development leasing company of Bangladesh Ltd. (IDLC), United Leasing Company (ULC),
Saudi Bangladesh Industrial and Agricultural Investment Company Ltd(SABINCO),
Bangladesh German Chamber of Commerce and industry (BGCCI), Bangladesh Women
Chamber of Commerce and industry (BGCCI), private insurance companies etc. are considered
to be the government supported private organizations who are also make smooth the journey of
startup.

4.2.2.5 Training program

The government of Bangladesh is also directly or indirectly supporting and controlling many
organizations who are conducting entrepreneurship training program. The some names of the
training institutions are Bangladesh Rural Advance Committee (BRAC), Bangladesh Industrial
technical Assistance Centre (BITAC), Micro Industries Development(MIDAS), Youth
Development Training Centre, Bangladesh Institutions of Management (BIM), Directorate of
Women, Bangladesh Rural Development Board (BRDB), Bangladesh Small and Cottage
Industries Corporation (BSCIC) etc.

4.2.2.6 Other Supports

31
Moreover, the people attached with startup get also some benefits like tax relief. They also get
help in terms of marketing products. They are also offered management consultancy etc. all of
these valuable supports are offered by assistance organizations.

4.2.3 Sustaining Opportunity

These types of programs include motivations which help the entrepreneurs by providing enough
courage to avoid barriers in the ways of actual performance. Lack of self-inspiration often leads
the organization to the immature death. As a reflection of this reality , a number of business
organizations face downward slop with GDP falling. However, modified policy, promotional
factors, motivational assistance and some other factors help to sustain or uphold inspiration in
entrepreneurs. Let’s see some of these factors.

4.2.3.1 Favorable Policy

Many favorable policies are over there to uphold the inspiration of the young entrepreneurs and
so that they are not getting discouraged toward the business. Balance development policy, tax
holidays, rural development policy are the name of the policies used to encourage people
associated with the startups.

4.2.3.2 International Promotional Factors

In the era of globalization the whole world is considered to be a single village. The world is open
to all as a boon of the globalization. A flexible international trade reality eases and promotes the
development of the startup development of Bangladesh.

4.2.3.3 Women Entrepreneur Assistance

Development Efforts of Women Entrepreneurship of Department of women Affairs is made up

of Bangladesh Women Chamber of Commerce and Industry (BWCCI) and Joyeeta Foundation.
This is an important step of the government to facilitate the women of the rural areas. A good
numbers of women are getting benefits by this program. Disabled and oppressed women are
getting also benefits from here through getting stalls. The concise targets of the government are
increase the pace of the growth of the women entrepreneurs, creating more work opportunities
for the women entrepreneurs, reducing discrimination between men and women in work region.

32
Moreover, Women Entrepreneurs Association has many roles in terms of creating united
collaboration of women entrepreneurs in Bangladesh. It is true that without women
empowerment, Bangladesh entrepreneurship development cannot go so far. It is worth
mentioning that the empowerment of women is playing a vital role in poverty alleviation.

4.2.3.4 Motivational Assistance

Motivational assistance includes providing consultancy for commercial enterprise and industries,
establishing social recognition, arranging for advisory program, giving rewards, setting quota
facilities to enter into free trade market, arranging favorable program, providing government
support to create awareness for the entrepreneurs of Bangladesh.

4.2.3.5 Other Sustaining Assistance

Apart from the aforementioned assistance, entrepreneurs also get a numbers of help in business
expansion by product diversification. These also include additional financing, facility of quality
testing, help with re-engineer products or services from assistance organizations. This type of
assistance best fits in the failure stage of the organization.

4.3 Small business ideas Bangladesh best fit in.

To a greater extent it is true that just the hour Bangladesh has been passing her best time to start
a new small business. It is learnt that the young entrepreneurs of Bangladesh are highly
interested to initiate a small business rather than a job. There is no denial that it is obviously a
great initiative in the development process of Bangladesh economy. RMG industry, poultry
industry, sea fish industry, leather industry, tea industry, and recent time online business are the
most profitable business in Bangladesh. And the lists are very big.

We need to think very practically based on our strength, weakness, opportunity and threat. Let’s
see a list of great small business ideas Bangladesh best fit for 2018 and near future.

33
4.3.1Open a small scale super shop business in Bangladesh

The conception of starting a small scale super shop is wise and profitable in Bangladesh. Place is
very important for this kind of business. A busy residential area is good place to start this sort of
business. For this kind of startup, 450 to 500 square feet space is required. For getting help, you
can hire one or two employees in this business. But the minimum investment is 10 lack BDT.

4.3.2Fashion House

Fashion house business is very suitable from the Bangladesh perspective at the present time. But
before going to start fashion house business, you need to develop a concise business plan.
Having a perfect business plan is very much required to make it profitable in the long span. Just
like super shop business, the minimum required amount it the very beginning is 10 lacks BDT. In
short, it is suitable and profitable business that match with Bangladesh business environment.
You can also run online shop with the conception of fashion house.

4.3.3 Baby and mother products business

This type of business is not as easy as it sounds. You will have to study a lot before going to start
this kind of business. These sorts of products are very sensitive. Choosing location is also
important here. A largely residential area, near hospital can be examples of perfect location to
start this business.

4.3.4 Open a Toy Shop in Bangladesh

The toy industry is relatively new in Bangladesh. Most of the toys we are using are coming from
China. To start this business you need to buy toys from Dhaka and Chittagong in wholesale price
and from here you can buy at a reasonable price. Market analysis is very much required before
starting toy shop in Bangladesh. You have to keep in mind that toys are not affordable for all
sorts of people. So, a perfect business plan is very much required. Again, location is also
fundamental thing.

4.3.5 Stationary Shop for students

Let’s know another small and at the same time profitable business idea in Bangladesh business
arena. Although it is a local business idea, it is very much profitable. Opening a stationary shop

34
is a wise decision when your investment is low. Place is also important here. Place besides or
inside university, college and school can be a good choice.

4.3.6 Fast Food Shop Business in Bangladesh

Most of the young entrepreneurs in Bangladesh are interested in this business. This kind of
business is suitable in the big cities like Dhaka, Chittagong. The initial investment is not so high
here. But you should have 5 to 7 lacks BDT for starting this business.

4.3.7 Coffee Shop Business

It is also profitable. In Bangladesh, there are rarely a few coffee shops who are selling solely
coffee. This sort of business is very suitable for you whenever you have made your mind to
conduct your business for a long time. But there is no option to make business in your business
plan. Product, price, place and promotions are all important here. Near the park, commercial
areas, the shopping mall all are the suitable place to start a coffee shop.

4.3.8 Mobile Phone Selling Shop

Definitely it is another chance to start own business in Bangladesh. You can conduct your
promotional activities through the online.

4.3.9 Small Scale Restaurant Business

The demand for the products and services of restaurant is increasing day by day. But the actual
reality is that eighty percent of the restaurant is losing their investment and the rest twenty
percent is earning a big amount of profit. Proper planning is very important here. You need to
analyze SWOT analysis of your business. It is very profitable business but not challenging
indeed.

4.3.10 Barber or Saloon Shop business in Bangladesh

When you are doing another business, this is an evergreen business idea. That means you can
conduct this kind of business as part time business. Good behavior, marketing, training,
creativity all is keys to get success within this kind of business. In a single area there are lots of
saloons available. You will have to find out your specialty that will attract the customers to come
in your saloon.

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4.3.11Cosmetics Shop for girls

The cosmetics industry is one of the fast growing industry in Bangladesh compared with other
business. Most of the customers of cosmetics are girls. Probably almost all of the girls are used
to buying cosmetics. You can also introduce an online shop for selling cosmetics.

4.3.12 A fixed price shop for men’s products

From the reality it is learnt that a fixed price shop is always profitable for Bangladesh. Most of
the men don’t like bargaining, they prefer this kind of business. You need to more focus men.
However, you will have to keep another demandable product.

4.3.13 An ice-cream shop

There are three basic principles for being successful in this business and those are good location,
quality ice cream, and well decoration. Truly speaking, this business is very profitable.

4.3.14 Start an Aquarium Shop business in Bangladesh

There is no denial that your customers will be rich as the sense of they want to buy an aquarium.
But you need to display a quality full aquarium. Compared with other business it is slow
business and profitable business. Again, the location and the services are very important to get
success.

4.3.15 Used products buy and sell

This is an example of another low-cost business idea in not only Bangladesh but also in the
world. But the mechanism of the business is very simple, you will have to buy used products,
you need to repair it and finally you need to sell it to another customer. Mobile phone, laptop,
computers, TV can be a good example of the business. Online advertising can be an option to
buy and sell. A good amount of money can be earned by doing this sort of business. But you
will have to be very hard worker.

4.3.16 Open a juice bar

To start your business, the juice bar can be very profitable. At the very beginning, you need
around 7 to 8 lack BDT.

4.3.17 Electronic Products selling shop business in Bangladesh

36
This business is very common and demandable in Bangladesh. Location is also important here.
Here, you can take dealership of a big companies and make business.

4.3.18 Poultry farming business in Bangladesh for eggs

Again, poultry farming business is very demandable business nowadays. Layer poultry is both
old and profitable business in Bangladesh. In very recent time, farmers are getting low profit
margin due to poultry feed cost. Making one feeds for your hens can be a solution. This method
will also increase your profit.

4.3.19 Broiler Poultry farming business

Whenever we want to eat chicken fry, the broiler hens are over there. It is profitable business in
cities and also in countryside area in Bangladesh.

4.3.20 Duck Farming Business in Bangladesh

The price of duck eggs is more demandable than the price of hens’ eggs. To start a duck farming
business, you need to have a pond or any water source. When you have small pond, then you can
start farming both fish and duck. That would be more profitable.

4.3.21 Dairy farming business in Bangladesh

The dairy farming is considered to be number one business among the all farming business. This
is long term business. But you can take it as side business too. But before going to start it you
need to make a good business plan. You can sell both the milk and cow by this sort of business.

4.3.22 Goat Farming Business

Surely, this is very profitable small business ideas from the perspective of Bangladesh. It needs
less hard work and it provides good return of profit. The demand of meat of goats is always high
in Bangladesh. You can think of the business.

4.3.23 Fish Farming Business in Bangladesh

This is another attractive business idea to think of starting in Bangladesh. There is a huge
demand in both local and national market. If you are thinking of side business, then fish farming
business is a good option. And most importantly, the initial investment is low here.

37
4.3.24 Fish and Duck in the same place

Combining fish and duck farming business in Bangladesh is very good business to start. It will
reduce the cost of the fish feed and ultimately your business will be profitable. In Bangladesh,
there are lots of people who are doing this. Young businessmen, women or the beginners can
start this business with minimum effort.

4.3.25 Vegetable farming business

Whenever you have small capital and want to start your own business in Bangladesh, then
vegetable farming can be a good solution. There is no denial that it is very profitable also. You
can also supply your vegetable to the super shop also. Besides, there is huge market demand for
vegetable in the local market. Here, you don’t need to be worry about the selling process.

4.3.26 Start bee farming business in Bangladesh

Honey is always valuable food item in Bangladesh. But before going to start a commercial bee
farm, you have to take well training .This is a tiny business where investment is low but the
return is relatively high.

4.3.27Furniture Shop

The demand for furniture is increasing in Bangladesh. But at the beginning you will have to
invest a good amount of money and then you can earn a good return. You can also sell your
furniture through online. Online marketing is good ways to market your products.

4.3.28 Mobile Food Cart

It is another small-scale business opportunity in Bangladesh. But, before starting this business,
you need to take permission from your local government.

4.3.29 Bicycle Shop

At the present time, the demand of bicycle is very high. It is very profitable business. You can
sell in favor of the company or you can buy from the company and sell yourself.

38
4.3.30 Be an insurance agent

It should be more priority based startup. Here, you are earning money from one sale for up to 15
years. To formulate the idea, you are selling the insurance today, and then you will get
commission until the maturity of that insurance. This is like tree plantation.

4.3.31 Business Plan Writing

There is no doubt that business plan writing business is very innovative in Bangladesh. But
before going to do so, you will have to vast knowledge in every business sector so that you can
sell your business plan. Although this is a very creative way to earn money in Bangladesh, you
need to work hard.

4.3.32 Provide lunch in corporate office

Providing homemade lunch in the corporate office is a great small business idea in Bangladesh
perspective. Before starting, you have to make the menu and ensure that your provided foods are
good in quality. Women, students, young people can easily start this business very comfortably.

4.3.33 Online shop or e-commerce business

Although it needs hard work, e-commerce business is one of the profitable business ideas. There
are some advantages of conducting this business. You can run this business from home also. In
Bangladesh, there are more than 9000 E-commerce websites and 1500 F-commerce pages.

4.3.34 Make a YouTube Channel earn money from Bangladesh

If you have good capability in video editing, you can develop your own YouTube Channel.
There is no denial that it is a money making procedure but don’t use the videos of others. The
content used here would be yours.

4.3.35 Social Media Manager

Surely Bangladesh is passing a golden period in terms of online revolution. Many companies
often search for social media manager. Here the investment is lower. But will have online
advertisement to attract customers.

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4.3.36 Online Newspaper business

This kind of business idea is very short time. The initial money you need is very little. Again, the
plan of the business is also simple. You will buy domain, hosting, you need to provide content,
make a popular face book page and you need to sell all things.

4.3.37 T-shirt Business

This kind of business is loved by all and this kind of product is loved by all. It is a low cost
business idea in Bangladesh. You need to know the demand of the customer or you may have
unique design. You can also promote the business through online.

4.3.38 Small scale sports products manufacturing business

As a nation we love sports and we are crazy about sports. Through this kind of business , you can
produce sports jersey, cap, sports pants etc.

4.3.39 Leather belt manufacturing business

Probably among the all manufacturing company within Bangladesh, it is one of the most
profitable manufacturing businesses in Bangladesh. Again, investment is lower here than other
manufacturing company.

4.3.40 Small Scale garments business in Bangladesh

By doing this kind of business, try to fulfill the demand of the local markets. There is no denial
that it is very profitable in Bangladesh but making a business plan is must here. Making SWOT
analysis of your company is also important here.

4.3.41 Start photography

Photography is considered to an art. Photography is not only a hobby. If you take it as

profession, you can earn a lot of money. In Bangladesh, a weeding photographer is very
demandable. You can start your business by simply open a Facebook page. You need to upload
photos of your work so that people can understand your quality, work and value. In sum, it is
profitable business idea in the perspective of Bangladesh.

4.3.42Car wash business

It is not only a profitable business in foreign countries but also in Bangladesh. It is also suitable
business ideas for students.

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4.3.43 Rent Wedding dresses

It sounds funny but surely you can earn profit from here. It can be a part time business. You can
do this kind of business while you are doing another business. Promoting through online is the
demand of time.

4.3.44 Security Service Company

Security service is being looked by many house owners and small companies. In Bangladesh,
there are few institutions that are providing this kind of services. You can start this kind of
business in a very profitable and comfortable way.

4.3.45 Artificial tree and flower making company

Although it is machine dependent business but it is very professional business idea. The demand
of the artificial tree, flower are increasing day in any day out. Those sorts of business are used
for in house designing. Here, the initial startup cost is high. But it is very profitable.

4.3.46 Invest in IPO

If you are thinking of risk free business, you can think about IPO (initial Public Offering). Here,
the process is very simple. You can apply for the IPO and if you are lucky, you can get a good
amount of profit from here.

4.3.47 Invest in the secondary share market in Bangladesh

In general, the share market of Bangladesh can be divided into two parts. One is risk free but
earning is limited, this is called IPO. The next one is the secondary market that has risk. But if
you are expert, you can earn a lot of money.

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 CHAPTER FIVE

OBSTACLES IN THE WAY OF STARTUP

42
5.1 Commencement

The startup culture of Bangladesh faces various types of structural, managerial, financial,
infrastructural, marketing and social problems. In Bangladesh, according to the size, location,
and market linkage, the extent of the problem faced by the people supporting startup differs.
Some of the problems such as financial, infrastructural, and political unrest are considered to be
acute due to their substantial impact on business activity and that can hinder their compatibility
as well.

5.2 Problems concerned with startup

Name of the problems

Poor transportation facilities Lack of entrepreneurship education and
training
Financial assistance Hartals(Strikes)

Law and order situations Bureaucracy

Lack of control of corruption Lack of adequate investment

Lack of government support and assistance Lack of research and development

Inadequate information Inability to forecast demand

Frequent power failure Inadequate telecommunication services

Apathy of risk taking tendency Lack of technology

Scarcity of raw materials and other factors of Technological problem

production

Weak infrastructure Choosing the right business

Compete with the existing syndicate Lack of managerial, commercial and

technological knowledge
Political problem Increasing labor and power source cost

Finding trustworthy business partner Lack of meaningful networks

Improper publicity of Govt. facilities Insufficient arrangement for pre-investment
advice
Economic problems Lack of package help

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5.3 Major Problems and constraints

5.3.1 Exclusive Factors

The mental elements, conceptual factors, efficiency factors and managerial components are
indicated by the backward position in entrepreneurship development. Mentality factors contain
backdated, avoidance, risk averse, conservative mental traits. Conceptual factors define lack of
originality, courage, business knowledge, managerial experience and forecasting skill. Efficiency
factor is the gap in entrepreneurship because of lack of talent, training, selecting power
workforce. Finally, managerial factors combine unavailability of expert management, proper
preparation and operating strategy.

5.3.2 Coincidental-Situational Factors

Coincidental-Situational Factors combine the marketing factors, risk factors, infrastructural

factors technology factors. Marketing factors indicate failure of market strategy, lack of fair
competition, unstable market conditions, and unfair practices. Risk factor includes high risk with
a low yield problem, losing social status, sole responsibility and uncertainty in raw material
supply. Infrastructural factors are non-developed roadside, expensive airways, risky
transportation system, lack of fuel and costly energy supply. The unavailability of IT facility in
the fringe is indicated by Technology facts.

5.3.3 Legislative and Bureaucratic Factors

The legal system along with political issues, by policy making factors, political agents,
international factors and corruptions, lead to increase constrains in entrepreneurship
development. While making policy some issues come in front that entrepreneurs do not take into
attention, like difficulty in licensing, copyright barriers, political instability, harassment, risk of
life indicate political factors in the roadblock. In addition, there is practice of corruption through
administrative blockage, biases, bribery issue.

5.3.4 Economical Factor

Sometimes, the economic condition of Bangladesh negatively influences the development

process of entrepreneurship. High inflation, unemployment issue, complex loan granting process,
restrictive credit policy, unusual market structure, crisis of emergency fund and infrastructural
lacking are the drives of the economic condition.

5.3.5 Lack of required financing

This is the fundamental problem of developing entrepreneurship in Bangladesh. Entrepreneurs

face problem in collecting required working capital and fixed capital, in the meantime most of

44
the financing organization demand for supporting papers and apply rigid conditions consequently
most of the entrepreneurs can’t get required capital to operate their activities smoothly.

5.3.6 Scarcity of raw materials and other factors of production

In our country there is an massive shortage of basic raw materials to operate industrial activities
smoothly such as skilled manpower, technology, capital and so on, for that reason it is required
to import raw materials and supplementary factors of production that increase the cost of
production. As a result entrepreneur cannot take initiative to establish industrial organization
without difficulty.

5.3.7 Lack of training

In any field training is essential to work efficiently and effectively. Training is a practical
experience regarding job that is necessary to increase efficiency and productivity. In our country,
there is no available training center to provide training in developing entrepreneurs. As a result,
people cannot come ahead to take initiative that is an obstacle to develop entrepreneurship.

5.3.8 Lack of knowledge regarding technology and management

In developed country, most of the business and industries are technology oriented and they
follow modern management techniques as well. Those are helpful in developing active
entrepreneurs. On the other hand, in our country there is little opportunity of using technology
and modern management. Besides, we also have not proper acknowledgement regarding use of
those matters.

5.3.9 Political Problem

Political unrest like Hartals / strike brings harm to their business. During this period the
entrepreneurs face a lot of problems to produce and sale their goods.

5.3.10 Social problem for woman

Women are in difficulty in the current centralized wholesale market which is controlled by men.
The men in business do not welcome women's entrance in the market and they often discourage
women through different ways. Women entrepreneurs are often cheated by their male partners in
trade through dishonest means which may turn risky when disposed encounter. Women in
general back wearing in both education and self-confidence.

45
5.3.11 Transportation Problems

Lack of quality transportation problem hampers linkages with the markets and flow of constant
supply of product.

5.3.12 Lack of Technological knowledge

Technology is changing fast but women have very little access to new technology and market
information. Women normally work within a small geographic area with limited mobility. They
often cannot identify the problem of the enterprise due to not having proper knowledge based on
technology.

5.3.13 Problem in marketing produced product

Now a day marketing of the product has become an important task in business that largely exists
in our country. In open market economy, product of the home and foreign countries compete
with each other in the same market. Usually quality products capture the market, does not matter
where these products are coming from. Because of different problem and lack of factors of
production our entrepreneur can’t produce or hardly produce quality product as of developed
countries. For these reasons they face marketing problem greatly for every product.

5.3.14 Poor Infrastructure

Poor physical infrastructure increases the cost of production and reduces the competitiveness of
HBEs/HBWs products. Major problems of infrastructure include frequent power failures and
poor transport facilities, which seriously hamper the production level and delivery of products.
Such HB enterprises suffer more from frequent power failures because of lesser captive power
generation facilities in their production units. Beside these shortages of basic utility facilities
(water, gas, telephone, etc.), proper working environment also affects the production extensively.
Most unfortunately Government has no separate policy yet for supporting SMEs and HBWs with
these basic requirements.

5.3.15 Lack of Skilled Workers

In order to increase productivity and manufacture high end products, entrepreneurs often demand
an adequate supply of skilled workers. An upgrade of technologies, important for manufacturing

46
better products, always requires skilled workers to cope up with the novelty. Huge public
investment is necessary to develop human resources to apply the new technology.

5.3.16 Poor Quality and Standards

Bangladesh Government has limited capacity to ensure the quality of products and services to
consumers not only in the domestic market but also in international markets. There is a no
national quality policy or support system that provides support to HB enterprises to
understanding the principles of quality and to develop quality awareness in business behavior. At
present, the Bangladesh Standards and Testing Institution (BSTI) has prepared national standards
only for industrial, food, and chemical products.

5.3.17 Absence of a Favorable Social/Cultural Environment

The concept of entrepreneurship is not native to every culture or society. Starting a business
requires courage that assumes the risks of putting money into ideas and the courage to jump into
an unknown future. The fear of failure created by the highly volatile sociopolitical-economic
conditions of Bangladesh has developed into the minds of potential entrepreneurs. As a result,
new and energetic entrepreneurs are not emerging in the market. Traditionally, women were
tended to be kept in homes while women bear the burden of the poverty (according to the
Chowdhury, 2007). In many societies of our country, women did not have the opportunities to
come up with their innovative works to the market what they used to make in the home. In some
cases, these works are not treated as an honor worthy profession to accept. The SME policy of
the country is badly needed to work on building awareness at the socio-cultural level to develop
a favorable environment for creating new entrepreneurs.

Socio cultural problems

It consists of lack of legitimacy of entrepreneurship, lack of social mobility, insufficient security,

religious problems, improper support from relatives, friends and teachers.

47
5.3.18 Raw materials

As women are used to purchase from the retail market, they often face problem of price increase
of the raw materials and consequently have to pay high rate. They cannot purchase bulk quantity
of raw materials due to lack of capital and that leads to pay high rate for retail prices. Transport
costs increases due to frequent travel for buying of small quantities of raw material.

5.3.19 Price

Women do not get the proper prices for their products due to lack of market facilities, they are
got underpriced by the customers or wholesalers who order their products. Other problems arise
when the buyer does not provide the actual price or the whole-seller takes goods on credit and
pay the payment after the promised date. Middlemen create problems regarding low payment as
they have very strong network.

48
5.3.20 Labor

Moreover, non-availability of efficient or skilled labor is another problem.

5.3.21 Equipment

Due to lack of improved equipment and machinery, quantity and quality of production decrease
that sometimes lead to fail to cope up with the existing competition.

5.3.22 Improper publicity of Govt. facilities

Sometimes Govt. provides facilities for developing entrepreneurs in limited basis. These
information are not informed properly to the remote villagers. Therefore, these facilities cannot
work well for mass people. Some urban people accept the facilities for developing entrepreneurs
all over the country. So this is one of the fundamental obstacles for developing entrepreneurs.

5.3.23 Insufficient arrangement for pre-investment advice

Pre-investment advice is essential to ensure best use of investment as that advice let the investor
know the risk and return of that particular investment. In our country there is no sufficient
arrangement of pre-investment advice for this reason most of entrepreneur cannot study market
probability for the product and business. Most of the entrepreneur can’t operate their activities
successfully as they do not know the demand for the product in market, possibility of gaining
profit etc. due to lack of this study. Many of them fail in their initial activities for not having
proper knowledge of investment.

5.3.24 Lack of package help

In developed country, Govt. and non- govt. sector provide package help for developing industrial
sector. These are helpful in creating entrepreneurship as well as industry of different products.
But in our country, there is no large quantity package help that is very essential for developing
entrepreneurship. So it is another problem of developing entrepreneurs and entrepreneurship in
Bangladesh.

49
5.3.25 Different types of risks

Startup includes the following risks.

5.3.26 Other Problems

Law and order situation poses problems for women's mobility which is another problem those
insecure feelings. Sometimes police, mastans create problem to carry their goods to have bribe.
Women have no legal knowledge or help in protecting their industries and often fall victims of
illegal threats or criminal offences. As their factory is set up in a rented house, they have to
remove their factory according to the wish of landlord that causes a great harm to their business.
Frequent power failures are another important factor which hampers their production which
ultimately effect on their business market. Home-based enterprises are also charged at a
commercial rate for utility expenses without considering the income from the businesses. Due to
lack of storing facilities and space, the entrepreneurs suffer serious problems because of damage
or theft of the products. Furthermore, entrepreneurs face other constraints while start up a
business like absence of proper policy decision, lack of proper financial support, lack of
awareness of incentives offered by the government, lack of campaign about areas of
entrepreneurship, lack of proper training facilities of entrepreneurs, lack of integrated computer
software assistance, stimulating, supportive and sustaining activities needed for SMEs.

50
 CHAPTER SIX

OVERCOMING OBSTACLES OF STRARTUP

51
6.1 Commencement

Entrepreneurs face many challenges in today’s ultra-competitive business world; fortunately,

contemporary times have also blessed entrepreneurs with more resources for tackling those
problems than ever before. But it is worth mentioning that the solutions of those problems cannot
be minimized by entrepreneurs only. Government should come forward in terms of solving the
problems for the greater interest of the country.

Initiatives taken by entrepreneurs Initiatives taken by government

1. Improve knowledge regarding 1.Raise Special startup Development Fund

technology and management

2. Setting strategic goals 2.Focus on Economical Factor

3. Develop New Ideas, New Products, and 3.Focus on political problem

New Services

4. Choosing what to sell 4.Focus on transportation problem

5. Marketing strategy 5.Focus on poor infrastructure

6. Raise capital 6.Ensure proper training

7. Develop networks with important 7.Improve banking rules and regulations

market agents
8. Overcome your fears of risk-taking by 8.Focus on scarcity of raw materials and other
confronting them head-on. factors of production

9. Eliminate self-doubt 9.Focus on Absence of a Favorable

Social/Cultural Environment

10. Other skills 10.Develop local product standards

11.Solve Social problem for woman

12.Disseminate the Information of Successful

Enterprises

13.Encourage policy coherence

14.Enhance Regional Trading Arrangements

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 15. Improve the image of the country.
16.Encourage FDI

17.Encourage Energy cooperation between

South Asian Countries
18.Improve the custom services

6.2 Initiatives taken by entrepreneurs

6.2.1 Improve knowledge regarding technology and management

There is no denial that the world of today is much more competitive than ever before. To
survive in the competitive platform, more efficiency is required in every sector. Especially,
improving the efficiency in terms of technology and management is much required for the
entrepreneurs. Entrepreneurs can take different sorts of training from the training institute, the
can learn from the online based tutorial, they can also learn from the books.

6.2.2 Setting strategic goals

Successful startup usually set strategic goals in view of getting support from the government and
other organizations. These goals usually target the social needs of the country in which the firm
operates its businesses. One of the country’s major social needs is to create new jobs in order to
ensure income for more citizens. These strategic objectives help firms convince organizations
under their network of their commitment to society and encourage the latter to take positive
decisions in favor of small enterprises.

6.2.3 Develop New Ideas, New Products, and New Services

There is always a demand for new products/services if those products meet the demand of the
customer. This means that entrepreneurs should focus on ‘customer satisfaction’ when
developing new products. Investment in ‘R&D’ is of great importance when looking at product
development, process improvement, or technology upgrading. Resources should be allocated on
preferential terms and conditions to enterprises for investment in ‘R&D’. However, for the many
enterprises that are not yet ready to take on large-scale investment in ‘R&D’.

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6.2.4 Choosing what to sell

Within this mechanism it is important to know the demand of the customers or focus of my
target area. Entrepreneur should be very specific about his offerings. SWOT analysis is also
crucial here.

6.2.5 Marketing strategy

Entrepreneurs need to know the best way to market your products and services: print, online,
mobile, advertising, etc. entrepreneurs want to maximize your return on investment with
efficient, targeted marketing that gets results. Again, he is not adept at creating marketing plans
and placing ads, it’s a good idea to outsource his marketing strategy to someone who is. At this
point, all he need is a core marketing plan: what marketing activities will he undertake to
motivate purchases? Give your planner a budget and tell them to craft a plan that efficiently uses
that budget to produce profits. This is not the time for experimentation. You can do that later, on
your own or with the advice of your marketing strategist, after you’ve established a baseline that
works.

6.2.6 Raise capital

Raising capital is often a big issue. It’s very challenging for the entrepreneur. However, it
cannot be only obstacles. Alternatives source of fund should be found out. Entrepreneurs can
raise fund from taking loan from banks, financial organizations, venture capital market, family or
friends. Willingness is mostly important here.

6.2.7 Develop networks with important market agents

Successful firms working in value chains usually maintain a good network, which in many cases
reduces transaction costs and market risks while ensuring financial and other tangible and
intangible resources if required. These networks are not limited to production agents. They
extend to various business-related agents such as government agencies. Through these networks
firms may get access to various types of critically important resources.

6.2.8 Overcome your fears of risk-taking by confronting them head-on

Being an entrepreneur is risky business. Every decision you make could potentially hurt or help
your company. How do you deal with your fears so you can make the best decisions Instead of

54
trying to launch a multi-million dollar corporation overnight, focus on your initial core
customers? Continually work to find new customers, of course, but consistently strive to be
remarkable to those customers you already serve. Word-of-mouth will spread, and more
customers will come looking for you. As they do, develop systems and business processes that
allow you to delegate tasks without sacrificing quality. Your business will grow slow and steady,
and you’ll be able to solve problems while they’re small.

6.2.9 Eliminate self-doubt

Being able to overcome self-doubt is a necessary trait for entrepreneurs. Having a good support
system will help: family and friends who know your goals and support your plight, as well as an
advisory board of other entrepreneurs who can objectively opine as to the direction of your
business. One of the best ways to deal with self-doubt is to work your goals and tasks lists. When
you’re down and lack motivation, look at your lists and know that the tasks you do today are
contributing to your lifetime goals

6.2.10 Other skills

Entrepreneurs face many challenges, and volumes have been written about how to overcome
them. Perseverance and intelligence are your allies; use them to your advantage keep working
toward your goals. Understand that you’re not the first to struggle, and because of that there are
many resources available to help you get through your darkest days as an entrepreneur so you
can reap the immeasurable rewards that come with building your own successful business. The
last skill you need to effectively solve problems in business is courage. Courage to face your
problems squarely, courage to face the consequences of your decision; and courage to take
extreme measures or solutions are some others skills you should have. Just like faith, courage is
developed over time through personal mastery.

6.3 Initiatives taken by government

6.3.1 Raise Special startup Development Fund

Access to resources, especially financial resources, is one of the major requirements to develop
successful startup in the country. Improved access would help develop better products/services,
disseminate new technical skills/knowledge and improve management techniques. Financial

55
resources should be offered at a reduced price, which would help small entrepreneurs invest in
the development of new products and ideas. Without these resources it is difficult to pursue such
innovations. Financial resources are required not only for the financing of working capital
requirements, but also for ‘start up’ capital. A number of commercial banks have opened
windows for women entrepreneurs, mainly in their urban branches. These are commendable
initiatives but they need to be extended to sub-urban and rural areas.

6.3.2 Focus on Economical Factor

Economic factors affecting business include all important trends in the economy that can help or
hinder the company in achieving its objectives. Economic factors that commonly affect
businesses include consumer behavior, employment factors, interest rates and banking and
inflation and overall economic indicators. They also include several legal regulations in the
country, which are described in: Legal factors affecting business. Analysis of economic factors is
integral part of every strategic analysis method including PEST analysis, STEEP analysis,
PESTEL, PESTLE and other derivatives of strategic business environment analysis.
Entrepreneurship tends to focus on identifying and fulfilling consumer needs in specific niche
markets, but all businesses can be affected by large-scale economic trends. Accounting for trends
in the overall economy can help business managers make better decisions. Economic factors that
commonly affect businesses include consumer confidence, employment, interest rates and
inflation. Government of Bangladesh should focus on these areas.

6.3.3 Focus on political problem

The political parties of any country are supposed to remain dedicated on working for the social
and economic development of their countries. This how they should be attempting to please the
general people and earn their support. Their steps and political activities are expected to be for
the betterment of condition of the country and the people, but things like this do not always
happen in the desired way. When the political parties of a country take very hostile positions
towards each other, then political instability grows in the country. And it hampers the desired
economic development of the country. Economic growth and political stability are strongly
related. For the betterment of the society, political parties should make a congenial atmosphere to

56
perform business smoothly. Hartals, strikes, seminars of political movements should be reduced
at a very nominal scale. Ensuring accountability within this stage is very much crucial.

6.3.4 Focus on transportation problem

An adequate and efficient transport system is a pre-requisite for both initiating and sustaining
economic development. Investment in improving transport efficiency is the key to expansion and
integration of markets - sub-national, national and international. It also helps the generation of
economies of scale, increased competition, reduced cost, systematic urbanization, export-led
faster growth and a larger share of international trade. However, it is obviously is not a simple
task to solve the problem related to transportation overnight in Bangladesh. Bringing more public
transport, reducing fare, permitting only fit vehicle, population control, making strategic
decisions, reallocation of workforce in different districts apart from Dhaka city are considered to
be most effective solutions.

6.3.5 Focus on poor infrastructure

The poor infrastructure development was a major obstacle. Infrastructure includes physical and
organizational structures, like access to efficient water sanitation and transportation systems,
both which greatly contribute to reducing poverty and improving the economy. Infrastructure
bottlenecks are among the largest inhibitors of economic growth in Bangladesh. The World
Bank estimates that Bangladesh must spend $7.4 billion to $10 billion a year until 2020 to bring
its power grids, roads and water supplies up to the standard needed to serve its growing
population. The transportation sector alone will require between $36 and $45 billion of
investments. Other priority sectors identified by the World Bank include: water supply and
sanitation, solid waste management, and telecommunications. The mega projects include the
Padma Bridge, Rooppur Nuclear Power Plant, Payra sea port, coal-fired Matarbari and Rampal
power plant, metro rail and liquefied natural gas terminal. In order to successfully improve
infrastructure in Bangladesh, there must be an increased commitment from the government, in
addition to foreign investments. This will ensure that large-scale projects will be funded
continuously and in a transparent manner. These changes will result in further improvements in
the future and help the development of Bangladesh.

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6.3.6 Ensure proper training

The necessity of training cannot even be counted on two hands in the sector of startup. It is not
only necessary but also essential. Training related to technology, marketing, HR, compliance are
very much essential.

6.3.7 Improve banking rules and regulations

Banking regulations are not always considered to be favorable to entrepreneurs, especially those
who operate small-scale businesses. Firstly, small-scale businesses face relatively higher interest
burdens against their loan, although banks argue that there are higher risks involved in the
financing of SMEs. Secondly, small businesses, in most instances, do not follow formal
accounting practices, which make it difficult for banks to assess the financial condition of these
businesses. Hence bank officials are often reluctant to make the extra effort to formalize the
accounting practices of these business units for the provision of credit. Thirdly, it is more
difficult for women entrepreneurs to get credit from banks. Fourthly, entrepreneurs often cannot
obtain credit from the international market due to some restraints in banking rules and

58
regulations. In order to ease the problems and constraints confronted by SME, adequate attention
and support is required from financial institutions.

6.3.8 Focus on scarcity of raw materials and other factors of production

We all have scarcity of raw materials. For that reason, we need to rely on other countries. Or in
other words we need to import raw materials from other countries. So, the cost of final product is
increased. Government of Bangladesh should make Bangladesh as a suitable place where we can
produce our own necessary products. By doing so, employment opportunity also will be created.
And, in economic terms factors of production can be defined as inputs that are used for the
production of goods or services with the aim to make economic profit. All of these four factors
should be ensured by government. The factors, of production are the resources that include land,
labor, capital, and enterprise.

6.3.9 Focus on Absence of a Favorable Social/Cultural Environment

A favorable social and cultural environment is fundamental. Government should encourage that.
Healthy competition should be ensured. At the same time sustainable recreation should be
ensured.

6.3.10 Develop local product standards

In order to improve the standards of local products, a strict application of standards needs to be
ensured. Without this local products cannot be accepted in international markets. Local testing
laboratories, with their existing facilities, can hardly ensure a proper level of product standards.
The improvement of local testing laboratories is therefore required. Bangladesh should work
jointly with South Asian countries in order to develop a harmonized standard system for their
products. To this end, the mutual recognition of standards is required. In cases where the
improvement of standardization is required, the government should allocate sufficient funds to
improve the testing system at the Bangladesh Standard & Testing Institute (BSTI).

6.3.11. Solve Social problem for woman

In Bangladesh, the outlook towards the business of woman is not positive. Women are not
encouraged to come in the business. This outlook should be changed. Social consciousness
should be created through mass media, education. We cannot go so far by denying the
participation of woman in the economic activity. Never, ever.

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6.3.12. Disseminate the Information of Successful Enterprises

New and potential entrepreneurs are often constrained by a lack of access to adequate
information on successful enterprises, possible means for overcoming various challenges, or
factors contributing to the success of these enterprises. Such information should be disseminated
through different channels including print and electronic media, information services, and NGOs.
This information could encourage potential entrepreneurs to understand markets, value chains,
production techniques, and marketing mechanisms, thereby preparing them to take on new
challenges.6.2 Actions to be taken at the regional level.

6.3.13. Encourage policy coherence

One effective tool towards fostering an enabling environment is to highlight the issue of trade
facilitation in the WTO negotiations. The outcome of trade negotiations at the WTO has to be
coherent with other international policies, especially foreign aid. It is important to ensure a
unified donor approach for initiatives in specific sectors.5 Anecdote of a billionaire from HK
approached by a Bangladeshi Diplomat to invest in the country who publicly declared that a lot
should be done to improve the national image of Bangladesh which is only linked to poverty,
corruption and natural disasters.

6.3.14. Enhance Regional Trading Arrangements

Although South Asian countries signed the SAFTA accord in 2006 there is no noticeable
improvement in intra-regional trade and investment within the region. It is argued that long
negative lists that include member countries’ major exportable products hamper the basic drive
towards enhanced intra-regional trade. South Asian countries should immediately reduce the
number of products from these negative lists in order to sustain the momentum towards increased
trade. There are a number of potential export areas in which Bangladesh has a comparative
advantage over other South Asian countries. In certain products Bangladesh enjoys unique
potentiality, while other Bangladesh products have complementarity with neighboring countries.
The government has to make the effort to attract more FDI from South Asian countries by
offering them the comparative advantage of the country.

60
6.3.15. Improve the image of the country

In order to help increase the inward flow of investments, 5 international efforts could be taken to
raise the image of the country by highlighting the country’s potential, its achievements in human
development, GINI index, stable growth, and the development of the readymade garment sector
for example. Run a promotional campaign (like “Incredible India” & “Malaysia truly Asia”),
underlying the dynamism, reliability, resilience of the Bangladeshi people, which could include
testimonies of managers (both locals and expatriates) praising their Bangladeshi employees, and
interviews of enlightened Bangladeshi individuals.

6.3.16. Encourage FDI

Foreign investment needs to be encouraged, especially in areas such as new product and process
developments, new management techniques, and new services. FDI should be encouraged in
developing diversified products and services with better management and marketing techniques.
In view of the increased competition in developed country markets, foreign firms are interested
in investing and exploring the BOP markets of developing countries. Bangladesh could be
considered a potential option for them.

6.3.17. Encourage Energy cooperation between South Asian Countries

In view of the growing demand for energy in the country, Bangladesh should put a strong
emphasis on the development of domestic energy resources, especially gas and electricity.
However, inconsideration of the country’s long-term energy security, the government should lay
stress on regional cooperation in energy resources; essentially the development of resources and
supply through a regional grid. A regional power grid could be established in which additional
amounts of electricity could be generated by and for member countries. Energy generation in
Nepal and Bhutan, for example, could be transferred onto regional grid for consumption in other
countries like Bangladesh.6.3 Actions to be taken at the international level.

6.3.18. Improve the custom services

The government has undertaken various initiatives to reduce different types of hassles faced by
entrepreneurs in the export and import of goods. The number of forms required for export and
import has been substantially reduced, which has brought down the overall time for processing

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customs related activities. Under the policy of trade liberalization, the government has
substantially reduced tariff rates from as high as 350% in 1991 to 25% in 2008. The number of
tax slabs has declined from 15 in 1993 to 4 in 2008. These initiatives have substantially
improved the customs system in the country.

6.4 Startup ecosystem

A startup ecosystem is formed by people, startups in their various stages and various types of
organizations in a location (physical and/or virtual), interacting as a system to create new startup
companies.

These organizations can be further divided into categories: universities, funding organizations,
support organizations (like incubators, accelerators, co-working spaces etc.), research
organizations, service provider organizations (like legal, financial services etc.) and large
corporations. Different organizations typically focus on specific parts of the ecosystem function
and/or startups at their specific development stage(s).

Elements of Startup ecosystem

• Ideas, inventions and researches

• start-ups at various stages
• entrepreneurs
• start-up team members
• angel investors
• start-up mentors
• start-up advisors
• other entrepreneurial minded people
• third people from other organizations with start-up activities

Organizations and activities with start-up activities

• Universities
• advisory & mentoring organizations
• startup incubators
• startup accelerators

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 • co working spaces
• Service providers (consulting, accounting, legal, etc.)
• event organizers
• start-up competitions
• investor networks
• venture capital companies
• crowd funding portals
• Other funding providers (loans, grants etc.)
• start-up blogs & other business media , other facilitators

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 CHAPTER SEVEN

FINDINGS, RECOMMENDATION AND

CONCLUSION

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 7.1 Findings
Findings of the thesis are very simple. We have lots of opportunity and at the same time we have
lots of drawbacks regarding startup in Bangladesh. The drawbacks cannot be eradicated by
single hand. Neither the government can solely solve the problem nor can the entrepreneurs of
Bangladesh solve the problems solely. For bringing dynamism within this sector, combined
efforts are not only necessary but also essentials.

There are a good numbers of business conceptions that best suit within the environment of
Bangladesh. It’s learnt from the reality that those sorts of business conceptions are very much
suitable and at the same time profitable from the perspective of Bangladesh. All of the
aforementioned business conceptions don’t take a big amount of initial cost.

Now let’s know the some specific findings of some specific analysis. From PEST analysis it is
learn that all the political, economic, social and technological factors have great influence on the
startup culture of Bangladesh. However, all of those factors positively influence startup
opportunity in Bangladesh.

According to Porter five factor model, all of the factors greatly influence the startup. Some of the
factors make it difficult for the entrepreneurs of Bangladesh. But in my opinion, in the long run,
it will help the entrepreneurs’ .lets have an example. We can also say that the competitive rivalry
is very high in the field of startup in Bangladesh. However, although the above five factors
greatly influence startups, in my opinion, they also encourage startup through tough competition.
Higher the competition, higher is will be the qualities that ultimately provide benefit both
entrepreneurs and customers.

By analyzing SWOT, it is learnt that startup has a vast number of strengths and opportunity and
at the same time few weakness and threats.

In summary, based on situational analysis including PEST analysis, Porters five factor model and
SWOT analysis, it can be said that there are many obstacles regarding startup opportunity in
Bangladesh. However, irrespective of having some drawbacks, there are a good numbers of
golden opportunities of startup in Bangladesh. That means the advantages of startup cannot even
be counted on two hands. We can reduce our unemployment problem by boosting up the startup.
We can even export our products through these channels. However, further research is needed.
Obstacles should be minimized by the concerned bodies for the betterment of the society.

65
 7.2 Recommendation

Bangladesh with immense prospect for entrepreneurship development can flourish the scope
across national boundary line by recovering the constraints faced by entrepreneurs. At that place
are some following recommendations to tradeoff the problems with opportunities:

➢ Entrepreneurs should develop knowledge regarding technology, management, HRM, and

Finance etc. Entrepreneurs can take different sorts of training from the training institute,
the can learn from the online based tutorial, they can also learn from the books.
➢ Entrepreneurs should have strategic goals. The goal or the goals should be very concise
and realistic. These strategic objectives help firms convince organizations under their
network of their commitment to society and encourage the latter to take positive
decisions in favor of small enterprises.
➢ It is important to think of innovative ideas, products and services. People nowadays often
prefer or search for innovation rather than conventional one. Resources should be
allocated on preferential terms and conditions to enterprises for investment in ‘R&D’.
However, for the many enterprises those are not yet ready to take on large-scale
investment in ‘R&D’.
➢ Entrepreneurs should know what to sell and whom to sell. That means they should be
very specific about their products and customers. Marketing strategy should get priority.
The necessity of marketing nowadays cannot even be counted on two hands. Self-doubt
and fear should be eliminated. Entrepreneurs should know that self-doubt and fear cannot
add something.
➢ The government should acquire a practical and implacable policy for entrepreneurship
development, focusing on decentralization, rural development and protect domestic
entrepreneurs. Government should take necessary initiatives to develop the sector.
Government should have a special startup development fund. This fund cans meet up the
initial capital of the entrepreneurs. Problems related with transportation, economy,
politics should be minimized. Different strategies should be developed.
➢ Adequate infrastructure is very much essential. Ensuring proper training should be
confirmed. Banking rules and regulations should be improved. Adequate raw materials
and other factors of production should be confirmed.

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 7.3 Conclusion

Bangladesh provides huge opportunity for startup in spite of having a lot of problems. Those
problems cannot be solved overnight. Some of the problems should be controlled or minimized
by the entrepreneurs itself and the other hand some of the problems should be handled by the
government for the betterment of the society. Government should bear in mind that the necessity
of startup opportunity in Bangladesh cannot even be counted on two hands, starting from
reducing unemployment problem to reducing social vice.

This subject has tried an attempt to explore the problems and opportunities of entrepreneurship in
Bangladesh. As a producing nation, Bangladesh has extreme range for the evolution of
entrepreneurship. With the help of integrated package programs, including (i) Stimulatory
programs, (ii) Supportive programs and (iii) Sustaining programs, the study has identified legal
facilities, financial facilities, logistic supports, technical and technological assistance, availability
of natural capitals, training and educational assistance, providing by both government and non-
government organizations, facilities from socio-cultural prospect, traditional role play personals,
international factors, favorable policy and boundless scope for selecting operational area for
business.

This study also pinpointed constraints and problems in the growth, development of entrepreneurs
which are categorized in personal, environmentally-situational, legal- political and economic
causes. The identified factors consist of mentality, conceptual, efficiency, managerial, marketing,
risk, infrastructural, technological, policy making, political, international, corruption, inflation,
crisis of emergency fund, insufficient financial organization, complexity in loan granting,
restrictive credit policy, unstable market structure, Infrastructural backwards, absence of proper
policy decision, lack of proper financial support, lack of awareness of incentives provided by the
government, lack of campaign about areas of entrepreneurship, lack of proper training facilities
of entrepreneurs, lack of integrated package assistance, stimulating, supportive and sustaining
activities needed for SMEs and so on.

By following proposed recommendation, identified problems and constraints may be halted by

utilizing named scopes and opportunities to boost entrepreneurship development of Bangladesh.
This work is just elbow grease in the plot of entrepreneurship development in Bangladesh but
further research should be pursued to achieve the higher growth of entrepreneurship.

67
 References
➢ https://www.slideshare.net/dineshkumar49b/summer-internship-report-development-
process-of-startups-from-start-to-maturity-63809055
➢ http://startupbangladesh.gov.bd/
➢ https://www.techinasia.com/talk/top-11-startups-to-watch-from-bangladesh
➢ https://sdasia.co/2017/12/11/43950/
➢ http://www.connectingstartupsbd.net/
➢ https://startupdhaka.org/course/starting-up
➢ https://www.slideshare.net/limz69/entrepreneurship-in-bangladesh
➢ https://www.slideshare.net/FayshalAkash/entrepreneurship-development-problems-in-
bangladesh
➢ http://www.assignmentpoint.com/science/computer/entrepreneurship-development-
program-available-in-bangladesh.html
➢ http://www.bracu.ac.bd/academics/centres-and-initiatives/centre-entrepreneurship-
development
➢ https://businessdaily24.com/10-best-business-ideas-bangladesh-small-investment/

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 Questionnaire

Idea generation and inauguration Current performance or activities

scenario
➢ What are the products or services you
➢ From where you got your business are dealing with?
conception? ➢ What is the duration of your business?
➢ What amount of money you did invest ➢ How many helping hands or staff do
initially? you have?
➢ What is your vision? ➢ Have you reached your breakeven
➢ Do you believe that you are unique point?
within the industry? If yes, why? ➢ What is your yearly turnover?
➢ What are the marketing strategies you
do follow?
➢ Do you have any specific target
market?
➢ Have you any loyal customer?

SWOT analysis Fund management

➢ What is the strength of your company? ➢ In terms of operating what do you

➢ What is the weakness of your prefer: debt or equity?
company? ➢ Have you any bank loan?
➢ What is the opportunity of your ➢ What is your equity to debt to equity
company? ratio?
➢ What is the threat of your company?

Obstacles faced Suggestions

➢ What are the obstacles you do face ➢ What are your suggestions in terms of
often? overcoming the obstacles?
➢ What are the strategies you do follow to ➢ What are your suggestions for the new
overcome the obstacles? people want to come up with startup
conception?

69