Would-be small investors now hardly dare to go for a venture

Mohammad Idil Ali is trying to start a small venture for the past one year but he is yet to start it as the ongoing economic situation continues to hold him back.

“I successfully completed more than 10 training programmes arranged by the National Association of Small and Cottage Industries of Bangladesh and also arranged Tk 10 lakh to start a venture but could not do it,” he said.

Expatriate Md Habib Mollah had to return home from Saudi Arabia during the onset of the Covid-19 pandemic. He planned to start a business of clothing as he had expertise in it and somehow managed a shop at the country’s hub for women’s clothing Gausia Market. But he did not dare to start the business as most of the people drastically reduced their expenses on fancy things for the economic situation. “So, I had no other option but to give up the plan,” he said.

Businessman Md Wahidur Rahman is interested in export-import and planning to initiate a venture for the past six months but he could hardly proceed.

“The austerity measures in the wake of the Ukraine war made opening letters of credit very difficult. Banks are refraining from giving credit to importers, the exchange rate is so high, and inflation is also rising. All these indicate that I have to wait for a friendly environment,” he said.

Like Idil, Habib and Wahidur, a good number of people who want to start a business are straggling to start it as the economic situation lowered their confidence. During the pandemic period, the number of fresh entrepreneurs in medium, small and cottages sectors remained constant but the present economic hardship holds them back, particularly in medium, small and cottages levels.

SME Foundation Managing Director Dr Md Mafizur Rahman said this time is not suitable to start a venture, it is very difficult for even the existing seasoned entrepreneurs.

“The market is unstable now. We are trying to stand by the would-be entrepreneurs and existing entrepreneurs with mental, technical, and financial support,” he said

Mafizur Rahman suggested all the would-be entrepreneurs wait for a favourable time.

Bangladesh Small and Cottage Industries Corporation (BSCIC) have announced two circulars for the allotment of their vacant plots but got little response.  In the first circular, applications are submitted for only 33 per cent of 500 plots of vacant plots in 17 districts and it was only 24 per cent in the second circular for 694 plots across 23 districts.

National Association of Small Cottage Industries of Bangladesh President Mirza Nurul Ghani Shovon said they arranged eight discussions across the country where they found small entrepreneurs are passing their days in panic and none showed courage for new investment.

“The ongoing economic situation is worse than a pandemic. Small businesses are suffering from the power and gas crisis, sharp fluctuations in currency values, and rising inflation. That’s why no new entrepreneurs are coming up with any courageous venture,” he added.

SME Owners Association of Bangladesh President Md Ali Zaman said a handsome number of small and medium entrepreneurs used to meet him over LC margin issues, seeking membership, or discussing doing import and other businesses but for the past few months, the number became very thin.