Home ›› 15 Jul 2021 ›› World Biz
Sitting idle at home during the Covid-19 pandemic in December with nothing serious to do or no class to attend, Sabbir Ahmed Himel casually applied for a job for a marketing position at a start-up registered in Bangladesh and Singapore.
Himel, a 25th BBA batch student at the Institute of Business Administration of Dhaka University, was readily handed the position of Chief Marketing Officer at Shopnir PTE Ltd, which provides businesses with e-commerce and f-commerce solutions.
“I have a goal to launch my own start-up, so I took up this job to gain expertise. If I want to launch my own start-up, naturally I will need to have some experience. Currently, I don’t have that experience,” said Himel, who is one course away from becoming an IBA graduate and has an interest in Artificial Intelligence and Machine Learning.
“Due to the Covid crisis and a shift in business dynamics, I would like to be in a management position (through this job) and associate myself at the frontline of the tech industry from e-commerce to AI-based business analytics.”
Himel is one of the very few business students, interviewed by The Business Post, from different public and private universities who expressed an interest in entrepreneurship as a career goal, while most others preferred a secure job or education abroad before choosing their profession.
“I would always have preferred entrepreneurship over a conventional desk job. The start-up ecosystem is being encouraged today across the country more than ever, which is why I believe it’s the best time to step into this grand opportunity and make a real impact on those around us,” he added.
Meanwhile, Fahim Shahriar Tasnim, Himel’s classmate at IBA, took up a job in Abul Khair Group as a management trainee in the branding section and said he would prefer the job for a “foreseeable future” to “understand the business process in practice in Bangladesh.”
“I will go abroad if I see that a postgraduate degree will boost my career,” said Tasnim.
“After five or six years, I plan to invest in my passion, which is teaching English. It will be my passion project,” Tasnim said, adding that the starting salary for a business student graduating from IBA is around Tk 50,000.
BRAC University 12th semester student SM Maisoon Ul Amin, majoring in Computer Information System and Finance, took up a job as UI/UX Designer for a start-up called Gourmet Fitness, a health tech start-up.
“I want to move abroad for higher studies as soon as I complete my undergraduate studies,” said Al-Amin while explaining his career goals.
Ahmedur Rahman Bhuiyan, a fresh BBA graduate from East-West University, said he is looking for a job as he has “no intention” to get involved in any kind of business.
“I prefer a job to a business because it is less risky,” he told The Business Post.
Anonya Ashraf, a student of the 2016-17 session at Chittagong University’s management department, said she is looking for a “managerial position in a corporate house”.
BRAC University BBA final year student Nafisa Sadaf Benazir said she has plans to start her own restaurant and become an investor, but not before completing her post-graduation degree from a foreign university.
Nafisa said her inspiration to become a businesswoman came from her current job at a restaurant called Gourmet Fitness, where she is employed as a client relationship executive.
“Choosing between business and job as a profession was easy for me since I am already familiar with managing a business while working full-time for Gourmet Fitness. I have so far managed to balance all my enterprises simultaneously. I am a multi-tasker,”
Nafisa explained further.
North South University BBA final year student Abir Mashrur said he wants to work for multinational companies after finishing his graduation and then open his own business gradually once he has saved enough money.
Independent University of Bangladesh BBA final year student Tashfiq Mahmud said he wants to start his business in Australia where he plans to settle first as a student.
North South University BBA final year student Faiyaz Rahman said he wants to pursue marketing as a career and is very interested to work in Fast Moving Consumer Goods (FMCG), telecom, and the tobacco industries.
“After working in marketing during the initial part of my career, I want to gather enough experience to open my own business with a unique product line that will give my company its own identity,” said Faiyaz.
Rabbani Rasha Ahmed, a BBA 25th batch student from IBA of Dhaka University, has his own start-up, The Munch Station, a dine-in and takeaway service, but said he is also applying for jobs to attain “financial stability.”
“I plan on doing my job and run my business simultaneously,” said Rasha.
“I have always planned on becoming a business person but the current situation along with uncertain risks in Bangladesh have made me opt for doing both together until the business grows big enough and the risk-to-reward ratio is satisfactory.”
8,53,977 business students
According to 2019 Annual Report of the University Grants Commission (UGC), 8,53,977 students were studying under the Faculty of Business in 45 out of 46 public universities. This is 22.04 per cent of the total students.
Of them, 41,090 students of the Faculty of Business Studies at 43 public universities, which are 13.79 per cent of their total students.
A total of 80,8054 students are studying under National University’s Faculty of Commerce while 4,833 students are studying under the Open University.
On the other hand, out of 105 approved private universities, 92 have business schools, where 87,695 students are studying.
The total number of students studying in private universities is 3,49,160.
Availability of bank loan
Students said lack of experience and funding are major hurdles for fresh graduates to launch their own start-up as banks are unwilling to give them loan, contrary to what Dhaka Bank Managing Director and CEO Emranul Huq states.
“We are always interested in lending to the new and young entrepreneurs but in most cases, they lack adequate documents and mortgages,” Huq told The Business Post.
Basically, lenders scrutinise the initiatives and ideas of young and new entrepreneurs before lending to them, which takes time, he added.
Huq said that it is easier to lend young and new entrepreneurs if they come to the banks prepared.
BB refinancing scheme
The good news is that Bangladesh Bank has recently set up a Tk 500 crore refinancing scheme for new entrepreneurs and the central bank also instructed banks to form a separate fund for the start-ups, said the renowned banker.
The banking regulator set up the refinancing scheme in March this year to provide low-cost loans to budding entrepreneurs.
Entrepreneurs aged 21 years and older are eligible to avail a maximum of Tk 1 crore from the fund with the highest interest rate set at 4 per cent, while banks will get it from the central bank at 0.50 per cent interest.
The repayment tenure of the loans will be a maximum of five years.
Entrepreneurs with innovative ideas will get top priority while their educational qualification, technical expertise, experience and social acceptance will be considered the same way as collateral would.
Huq said that such an initiative of the central bank will play a vital role in increasing employment.
Crowdfunding
Fresh graduates can also explore crowdfunding, where a small amount of money is collected from a large number of people typically via the Internet, to fund a project or venture, suggested IBA student Himel.
“Funding is just one challenge for a start-up. But it is not the most challenging thing. Thanks to our ICT ministry, we have seen some progress in this regard. One can always approach venture capitalists for funding. Crowdfunding and kick-starters could be another option,” he said.
In Bangladesh, crowdfunding is mostly done for charity works where money is received via mobile finance or a designated bank account.
Seed money
Himel said students can also approach their friends and families as groups and pitch their business ideas properly to get funding.
Eminent economist and former central bank governor Professor Atiur Rahman said when a business is in the early stages, the entrepreneur has to try his best to collect seed money from his family or close ones.
“Successful start-ups in Bangladesh have started in this way. Banks, financial institutions or individuals extend cooperation if they are convinced that the business is progressing and have potentialities,” he said.
“Very often grants are approved for undeserving entrepreneurs. Those who deserve it do not always receive it. Universities can help their potential (entrepreneur) students in this regard,” he added.
“Since starting a business is risky, many people think that going for a job is a safer career option. At the same time, they can increase their experience through jobs,” said the economist.
Professor Syed Ferhat Anwar, director of the Institute of Business Administration, DU, said this is the reality in terms of Bangladesh.
“If our students feel that job is safer than jumping into a business venture, then they have the right to choose their own future.”
Mentoring pool programme
Bangladesh Association of Software and Information Service (BASIS) President Syed Almas Kabir said they have developed some other ways to help the start-ups.
“We support the new entrepreneurs through the ‘Growth Ecosystem’, which gives them access to financial assistance such as bank loan, free legal assistance, IT-related advice, and training for their marketing and human resource development,” he told The Business Post.
“For financial support, we have an agreement with BRAC Bank and Prime Bank, who one offer loans up to Tk 1 crore. The start-ups that receive our endorsement can get this loan without any collateral. For last one year, some 80 to 85 companies received this service through us,” he said.
Highlighting the fact that most of the 1,600 members of BASIS are start-up companies established less than five years ago, Kabir said they have also mentoring programme for start-up initiatives.
“As part of our mentoring pool programme, a senior industry figure provides proper guidance and training to three to four aspiring entrepreneurs over the course of three months,” he explained.
Qualifications matter
Runner Automobiles Ltd Managing Director & CEO Reazul Haque Chowdhury said that they have a structured assessment and recruitment process in place for fresh graduates who are interested only in jobs.
“For fresh graduate recruitment, we look at whether the individual meets the job criteria, whether he or she fits the organisational values and culture and other psychometric parameters like adaptability, flexibility, and emotional intelligence etc.
“The company has a defined salary structure for the entry-level. Salary increments in subsequent years will be based on performance. We have a structured Performance Management System,” Chowdhury added.
Walton Group Managing Director Golam Murshed said they have no preference for any particular university before recruiting a fresh graduate.
“Usually, we pay a fresh business graduate between Tk 40,000 to Tk 50,000 depending on his or her qualification. We don’t have any preference for any university for recruiting (fresh graduates),” he told The Business Post.
