Regulatory policy

Lack of funding, political causes of low startup growth in Bangladesh: speakers

Speakers at a seminar said that startups are doing relatively well but the success rate is unsatisfactory due to various issues including regulatory issues such as lack of access to finance, process of secular valuation, lack of investment capital and incubation.

The seminar on “Journey of CMSMEs from Startup to Expansion: Prospects and Challenges” was organized by the Dhaka Chamber of Commerce and Industry (DCCI) on Saturday in the capital, UNB reports.

DCCI Chairman Rizwan Rahman said startups can be a great economic catalyst for Bangladesh, but a startup-friendly ecosystem in the country has not been significantly equipped.

In the Global Startup Ecosystem Index 2022, Bangladesh ranks 93 out of 100 countries.

He said the Startup Index also claimed that lack of funding and political support were behind the slow growth of startups in developing economies, including Bangladesh.

He also said that Bangladesh currently has more than 1200 active startups and about 200 new startups are joining the industry every year, which has generated about $800 million in investments and 1.5 million formal jobs and informal over the past decade.

Meanwhile, the government has taken various initiatives to strengthen the startup ecosystem, including the establishment of a venture capital firm, 28 high-tech parks, data centers as well as draft rules for businesses. Small Cap 2022 by BSEC.

Considering this urgency of a fluid ecosystem, the country needs to create startup incubation centers with international standards, startup pioneers, expert consultation, startup exhibition, networking, development of mentors, low-cost financing options with necessary regulatory reforms, including industrial policy, export policy, tax policy, foreign exchange regulations and SME policy and others, Rahman said.

Fahim Ahmed, CEO of Pathao gave the keynote speech. He said startups are enabling Bangladesh’s digital transformation.

“Startups help SMEs by creating market access, accelerating Fintech, adopting technology and enabling mobility. The regulatory framework, policies, limited human capital, technology, finance and access to international market are some of the challenges for this sector,” he said. said.

Principal Secretary, ICT Division, Zeaul Alam, inaugurated the program as the chief guest, while Dr. Shaikh Shamsuddin Ahmed, Commissioner, BSEC, was present as special guest at the ceremony.