Nowadays, the startup business has become a common phenomenon. In Bangladesh, the startups are experiencing significant growth, creating new business innovation, and also making an important contribution to the economy. For this new business idea, Bangladesh's business sector is growing day by day. Although startup businesses are improving day by day, they face many barriers to their growth in the market.
When startups create their business ideas, firstly, they face capital financing barriers. They cannot fully fulfill their early-stage financing. Banks initially don't want to lend them money because they are seen as risky businesses to invest. As a result, they rely on personal financing from friends and family, other investors, and venture capital. The government can support the fledgling ventures by providing tax breaks or co-investment programmes.
Another barrier is poor infrastructure, which creates challenges for startups. There are inadequate office spaces, transportation facilities, and eco-friendly areas that startups need to operate smoothly. If the government takes initiatives-such as supporting tech projects through the Bangladesh Hi-Tech Park Authority (BHTPA), joining startup hubs like Startup Bangladesh and BD Venture, and providing proper infrastructure-then startups can thrive and contribute more effectively to the economy.
Another significant challenge is the regulatory environment. Startups often face numerous difficulties in their early stages, particularly due to bureaucratic complications. The government can play a crucial role in supporting new businesses by streamlining regulations and reducing bureaucratic hurdles, enabling startups to grow more efficiently.
More government-led initiatives are needed to foster innovation and entrepreneurship, such as incubators, accelerators, and business mentoring programs. These initiatives can facilitate networking among entrepreneurs, offer guidance, and provide the training necessary to navigate business complexities.
In conclusion, startups have the potential to significantly boost the Bangladesh economy if the government and other institutions actively support them. A thriving startup ecosystem can be nurtured through a combination of funding, regulatory reforms, mentorship, and robust infrastructure.
Rafee Ibn Zakir
Undergraduate Student
School of Business & Economic
North South University
