In a country like Bangladesh, where about 30 per cent of the population is young, the future doesn't just depend on them - it rests entirely in their hands. Not a single sphere of life exists where hopes are not pinned on them. Whether in politics, education, invention, or any other thing, young people are expected to lead the way, breaking the status quo, and ushering in change. They have already led a revolution in July-August and toppled a tyrant. The main challenge now is to channel this burgeoning youth population in the right direction by investing in their education, skill development, job creation, and fostering an entrepreneurial ecosystem to help them tap into their untapped potential.
According to an estimate, 2.4 million youth enter the country's job market each year. Among them, about 0.5 to 1 million go abroad in search of jobs, while the rest struggle with limited employment opportunities at home. Unemployment rate, especially among university graduates, is disturbingly high. A recent survey by the Bangladesh Bureau of Statistics (BBS) reveals that 0.8 million graduates remain unemployed each year. These youths possess a potent blend of passion, energy and entrepreneurial potential to transform their lives through self-employment. Numerous success stories also highlight how young entrepreneurs have changed their lives from being job-seekers to job creators. Fostering entrepreneurship, therefore, could be a solution to unemployment.
The head of the current interim government Dr Muhammad Yunus is also an avid supporter of facilitating entrepreneurship. "Human beings are not born to work for anybody else," he says. "For millions of years that we were on the planet, we never worked for anybody. We are go-getters. We are farmers. We are hunters. We lived in caves and we found our own food, we didn't send job applications. So this is our tradition." After assuming the office of Chief Advisor, Dr Yunus has been repeatedly encouraging youngsters to become job creators instead of job seekers by embracing entrepreneurship. But in Bangladesh, the road to entrepreneurship is no cakewalk.
The findings of a recent survey jointly conducted by the SME Foundation and the German development organisation Friedrich-Ebert-Stiftung (FES) Bangladesh provide insights into the numerous challenges faced by entrepreneurs. For instance, small and medium entrepreneurs are required to take certificates from 34 government departments to run a business in the country, compared to only 7 in India. Another report informs that IIT students in India have successfully launched over 40,000 companies just using their dorm addresses. But aspiring entrepreneurs in Bangladesh are required to have commercial office space to obtain a trade license. This stark contrast highlights the challenges entrepreneurs in the country face due to bureaucratic hurdles.
The SME Foundation survey found that 74 per cent of entrepreneurs expressed their willingness to comply with government regulations. However, small entrepreneurs emphasised the need for simplifying rules, establishing one-stop services to centralise all procedures, and providing collateral-free credit facilities to support their ventures.
The entrepreneurs have also identified the tax structure and trade licence renewal process as major obstacles to conducting business in compliance with the law. According to the survey, 57 per cent of entrepreneurs consider the tax structure a significant barrier to doing business, while 54 per cent see the trade licence renewal process as a challenge. Additionally, 51 per cent of entrepreneurs cited the high costs associated with trade licence renewal as a hurdle. Furthermore, 44 per cent of respondents pointed to the complexity of laws and regulations as another impediment to business operations.
Additionally, the requirement for high paid-up capital to register a One Person Company (OPC) poses a significant challenge for young entrepreneurs. According to the Companies Act 1994, an OPC must have a minimum paid-up capital of Tk 2.5 million and a maximum of Tk 50 million. Non-compliance with this condition results in hefty fines, creating a major obstacle for aspiring entrepreneurs. Corruption in government offices and extortion by local hooligans also pose a major obstacle to creating new entrepreneurs. Aspiring business owners often face corruption at every stage, which discourages their entrepreneurial spirit and complicates the process of establishing and operating a business.
It is, therefore, hoped that policymakers will recognise the bottlenecks facing small and medium entrepreneurs and take meaningful steps to safeguard their enterprises, while also enabling aspiring entrepreneurs to realise their dreams. Under no circumstances should the enthusiasm of the youth be allowed to fizzle out. Mere encouragement, without cutting bureaucratic red tape, institutional support, or policy reform, rings hollow.
Stakeholders are of the view that a plug-and-play policy could help create a more conducive environment for young entrepreneurs in Bangladesh. This approach would simplify the process of starting a business by allowing young entrepreneurs to register their companies using residential addresses and by revising the paid-up capital requirements. A relaxed paid-up capital system could be introduced, setting different capital requirements based on the type and size of the business. This would allow small and medium-sized businesses to start with relatively less capital.
Transforming an idea into a viable business is a formidable challenge. Universities can play a pivotal role in this journey by establishing business incubation centres to provide essential support, guidance, knowledge, and networking opportunities. By fostering an entrepreneurial mindset among young people and encouraging them to develop innovative solutions to real world problems, universities can help build a vibrant entrepreneurial ecosystem.
The government has approved a Tk935 million project to enhance the capacity of universities to promote youth entrepreneurship, marking a commendable step in the right direction. Achieving this vision requires tangible actions and genuine partnerships with the government, industries, civil society, and the private sector. A nurturing ecosystem is vital to unlocking the full potential of the youth and creating an environment where they can truly thrive. As Bangladesh embarks on its journey towards a brighter future, let us work together to cultivate the boundless potential of our young generation.
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