Startup boom getting stronger

A startup business is an entrepreneurial venture which is typically a newly emerged, fast-growing business that aims to meet a market need by developing a viable business model with an innovative product, service, process or a platform in digital means. A startup is usually an initiative designed to effectively develop and validate a scalable business model.

We have seen many examples of startups such as; Uber, Snapchat, Airbnb. More and more individuals are looking to create their own startup, in which they turn their business ideas into real-world products and successful business initiatives.

Japanese individuals, graduates and/or companies typically identify a solution which solves a real-world problem. In order to turn their idea into a viable business, they start developing their products, services or processes. At the outset of the product development, many startups have no idea how to take their business from an idea. They are grown-up for new business not for jobs. The mental set up of graduates is to try first to start a business, if fails then they look for jobs. Their first priority is to find a business solution. Our graduates are not business mind oriented because the educational institutions usually in many cases, do not shape up the mindset of their students in such a way. Thus, after graduation job seeking is their first choice in our country. Societal attitude is also in favor of the job seeking than a business. The country has been receiving tens of thousands fresh graduates in the job market each year. But we know that opportunities for jobs are limited. Thus, sometimes they use to try for going abroad with high risk for a job. This trend of culture needs to be changed for avoiding a tendency to go outside country in some cases with a false assurance for jobs with risk. Sometimes they comeback with empty hand after facing legal complication. The motivation for startup business by educational institutions, positive societal attitude and a comprehensive dedicated governmental framework with budgetary loan provision for startup business may contribute a lot in this regard.

We have sound framework for attracting FDI in Bangladesh. The prudent policy option of the government led by the dynamic leadership of hon’ble Prime Minister Sheikh Hasina has helped in improving the investment climate and increase the status of ease of doing business index for Bangladesh. Very recently ICT Division has been pursuing startup initiatives for young graduates for their self-employment by breaking the tradition of job seeking attitude. Recent policy choices insisted young graduates to be job givers not to be job seekers to grow economy and reduce unemployment problem. Newly set up “the Innovation Design and Entrepreneurship Academy ie idea” by the Bangladesh Computer Council is an initiative from the government to give a momentum in startup business for the young people. The Bangabandhu Innovation Grant (BIG) is a platform for the future entrepreneurs and aspiring young people of the country to motivate, recognize and share their innovations for creating self-employment.

Taking lessons of international experience and best practice of world on startup business may give us philosophical stand to shape our own framework for new business initiatives. The Service Corps of Retired Executives (SCORE) is a national non-profit organization of USA that advices new business owners and aspiring entrepreneurs. The SCORE throughout the United States offering counseling services to small businesses in all areas at no charge to the client. The seasoned consultation of SCORE at a free of charge allows entrepreneurs to receive specific guidance and resources based on their unique goals and circumstances for startup business. The Small Business Administration (SBA) is an autonomous U.S. government agency to promote the economy in general by providing assistance to small businesses. One of the largest functions of the SBA is the provision of counseling to aid individuals trying to start and grow new businesses. In Japan, the government is backing zero-interest loans for the startup business. The Canadian government’s Innovative Solutions Canada (ISC) helps innovative start-up entrepreneurs to address their challenges of small business. According to the World Bank, Indonesia has progressed significantly in startup business in recent years. A climate has created where young graduates are no more interested for searching jobs. Rather they are interested in setting-up of startup business because government created a conducive framework for the new startup business. They did a lot of exercise to improve the condition of “Ease of Doing Business (EODB) index” by breaking the bottlenecks of time taking process, method and cost in all criteria of doing business and streamline the entire process towards job creating climate. In Brazil, the dedicated program for small business aims to reduce specific regulatory barriers and other microeconomic distortions to leverage startup business. In the Philippines, the program for small business is supporting the economic development agenda of the government by strengthening business regulations and practices through regulatory reform. In South Africa, the program aims at addressing issues of investment for SMEs. In Turkey, special emphasis has been given to increase startup business for the young graduates. In recent years, the five largest companies such as Google, Facebook, Amazon, Microsoft, and Apple have been pursuing to help the tech industry for innovation and startup business.

International experiences proved that it is much easier for the government to support startup business than creating jobs or employment scope for the young graduates. A comprehensive and holistic start-up policy and institutional framework needs to be developed for Bangladeshi young people. “Small Business Administration office” like USA may be established in each upazila to facilitate start-up business for the young graduates at rural areas. Trade license can be downloaded by one click after providing information along with NID in the website. Loans for small business, creditworthiness certificates, required knowledge and a clear understanding of rules and procedures for receiving loan need to be known. An open and dedicated website for the startup business may provide a checklist to apply for business finance. Suppose a website like www.startupbusiness.gov.bd may give entrepreneurs assistance through access to a list of resource materials and other helpful advices for starting and growing a business with startup package. The purpose of the website is to connect small business owners with experienced industry experts who can address their questions, offer direction, and share best practices.

Relevant government agencies may opt for a cloud-based unified communication solution which allows easily to manage every aspect of startup business communication from a centralized dashboard alongside a built-in compliance standards and security measure. Small business owners may also find value in upgrading their internal communication systems to a cloud-based solution. This will not only enable them to streamline productivity between employees and clients but also improving index of ease of doing business. A cloud communication system can cut communication costs across the sector. The Small Business Administration office may offer free online training classes that cover how to apply for a small business loan.

Nothing is as frustrating for a new graduate as having to deal with multiple government agencies for documents and certificates to start new business. Bangladesh Investment Development Authority (BIDA) started “one stop service” for attracting the foreign direct investment in our country. A proposed comprehensive framework for “startup business” like BIDA may initiate one stop service for the fresh graduates.

We know well that government regulations play a decisive role in creating a predictable and conducive framework for a new business to form, operate, and grow. The objective of this framework is to improve regulations, bring all regulations under one umbrella, reduce administrative costs, foster open and competitive markets, and lower uncertainty for new businesses.

As a potential developing country, Bangladesh has immense opportunities to develop entrepreneurship for startup business alongside computer aided startup initiatives. Each year, Bangladesh receives near about 10 lakh (1 million) fresh graduates in to the job market. But our job opportunity is not sufficient. For which startup business may give an alternative opportunity to get self-employment for these new graduates. Business like e-commerce, software development, agriculture based business like honey bee, food preservation, mushroom cultivation, juice; farming business like poultry farming, cattle rearing, fishing, firming like nursery, horticulture, tree plantation, bamboo cultivation; beautification based business like interior, exterior design, furniture, painting, cane work; boutique business like parlor, embroidery, tailoring, fashion house; small scale engineering business, ceramic tiles business, light engineering, tourism and recreational sector, consultancy and advisory firm; training institution like human skill development institution, technical and handicraft training, outsourcing jobs and many more may be good options for startup business for fresh graduates. There are a number of organizations specialized in small business and entrepreneurial skills both in the government and private sector in Bangladesh such as SME foundation, Bangladesh Computer council, ICT Division, BSCIC, NGO foundation, PKSF and many other departments and agencies who can come forward to help new graduates for startup business under an umbrella organization.

The writer is a former Senior Secretary to the government. He can be contacted at s22arefin@gmail.com