Dr. Md. Shamsul Arefin :
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’ve 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. Contrarily, 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.
We have sound framework for attracting FDI in Bangladesh. The BIDA has been continuously improving the investment climate in Bangladesh 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 the economy and reduce the 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 to 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 on 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 set 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.
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.
As a potential developing country, Bangladesh has immense opportunities to develop entrepreneurship for startup business alongside computer aided startup initiatives. Only a comprehensive policy and institutional framework with necessary budgetary allocation needs to be established for our tens of thousands job seeking graduates to make them fair business people.
(Dr. Md. Shamsul Arefin is former Senior Secretary).
