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New ventures to boost economy


Published : 18 Oct 2019 10:00 PM | Updated : 07 Sep 2020 02:24 PM

Encouraging youth entrepreneurship could substantially boost economic growth and strengthen business opportunities as well as create jobs, reduce poverty and drive a resilient national economy.

Seeing its bright future in encouraging small and medium enterprises, experts say that the government’s initiative is very positive in tapping human resources into the process of production. They said that in spite of possessing natural and physical resources, machinery and capital may go underutilized or misused if human resources are not properly utilized.

The experts however, pointed out that lack of institutional finance, poor infrastructural facilities, lack of technological knowledge, poor managerial and technical skills and lack of motivation and social support for female entrepreneur are some of the major barriers to such start-up business that government must address.

The experts said that a third of the population in Bangladesh are between the ages of 18-35, numbering about 60 million. Today’s youth, on the whole, are better educated than previous generations. They are better linked and proficient with technology. Many of the areas driving Bangladesh’s growth depend on youth, from garment factory workers to the expanding pool of workers seeking employment overseas. 

So it is time that the government focus and explore the potentials of the youth force which could potentially further accelerate the growing economy, the experts strongly recommend.

In its latest initiative the government has created a special fund of Taka 100 crore in the latest budget to initially support and encourage youth entrepreneurship.

The government should design and outline programs that provide social network and livelihood trainings, and access to finance for such youth who preferably have had minimum education.

Speaking to Bangladesh Post World Bank’s former lead economist Zahid Hussain said, “The government should take multiple initiatives to create new entrepreneurs to manage huge employment opportunities for ensuring jobs for all unemployed people.”

He said, “The government has generated start-up funds worth Tk 100 crore for creating young entrepreneurs. However, only financial support alone is not enough sufficient.”

Recalling global experiences Zahid mentioned, “In the global practice, 90 people out of 100 have failed to establish start-up entrepreneurs by depending on financial support. Hence, the government should provide beginners with all business supports, including infrastructure, market survey for choosing best products and creating market for selling their products to get best result from them.”

“At the same time, the government has to create skilled manpower to meet local and overseas demands,” he said.

Lutfun Nahar Mukta, Co-founder of Mediator Health, told this correspondent, “The government has given good support including Tk 1 million non-refundable money to continue our business and provide free office space and training, which have helped us to do well in the business.”

IOBE chairman Arnill Asraf said, “Once, there was no opportunities for doing small or medium business. That is why, most of people could not take risk to venture into entrepreneurship as they felt being employed for job was more secured career.”

“Recently, people have come forward to take opportunities for doing business as the start-up business environment is set in the country,” he said.

He also said that we have recently got huge response from new entrepreneurs, adding that, we helped them by managing funds from international investors.

He said, “International investors want to give funds for unique concept business. Hence, the government should help to create innovative ideas for the start-up entrepreneur to get foreign funds easily.

Founder of Dhaka Cast Fahreen Hannan told Bangladesh Post, “Me and my husband are doctors. We are providing online medical service especially for diabetes patients. We are providing treatments by a nominal cost as well as some treatments are totally free.”

We want to prevent people from diabetes as it is affect people due to lack of awareness, she said adding that, “We are publishing many prevention and advice videos through online for betterment for the people.”    

CEO and Founder of Pine Solutions Limited Sanjida Farhana said, “At first, I started job in university, now I do my own business to be a self-sufficient business person.”

She said “The government should recognize people like us as we create young jobs and inspire others to do the same.”   

She said, “The government should motivate parents to allow their children to do business because most of the guardians still cannot allow their children to do businesses.”

State Minister for Information and Communications Technology Division Zunaid Ahmed Palak Said, "The world is currently in a crisis of youth. We are in a great position there. More than seven crore people in our country are currently studying at primary schools and preparing to reach university.”

Every year, twenty lakhs people are being added to the workplace, he said adding that, now our goal is how can we utilize the power of youth in the prosperity of Bangladesh. 

But if so many people are just employed, it will not be possible to provide employment through any government or private enterprise, he added.

The government has been providing Tk 10 lakh each as seed money to about 200 local startups, he said.

“We are trying to create a culture of tech companies here and that’s why we are taking the lead. If we can produce just one world-leading startup it would be good enough for us,” he added.

An official of ICT ministry said, a start-up is a young company founded by one or more entrepreneurs in order to develop a unique product or service and bring it to market. 

By its nature, the typical startup tends to be a shoestring operation, with initial funding from the founders or their families, he added. 

Typically, banks are not comfortable with investing in digital service companies as they have no fixed assets and carry higher chances of not turning out to be economically viable ventures, he added.

Venture capital can make these bold ideas successful and that is why we are investing in them, he informed.

He said, “Almost 97 start-up businesses have already been gotten Tk 1 million fund, rest of them will give funds soon.”