One of the biggest determinants of our future success as an economy will be the emergence of new companies in Bangladesh that will have the ability to propel the economy. As such, the importance of investing in and nurturing start-ups cannot be stated enough.
However, it is concerning to learn that only four Bangladeshi start-ups secured venture capital funding in the first three months (January to March) this year, a significant drop from the 20 in the same period last year. Overall, there is an 82% drop in investment in Bangladeshi start-ups compared to last year -- to say this is extremely alarming would be an understatement.
While it is a particularly dire time for start-up funding globally, what remains concerning is that Bangladeshi start-ups are faring more poorly than global averages. As such, it is imperative for the authorities concerned to get to the bottom of this fall.
For Bangladesh, despite measures taken to address the business climate, the reality is that investors have not been given reason to think of Bangladesh as a viable destination. Be it the persistent bureaucratic red tape that slows business operations, or the rampant irregularities that erode investor confidence, we have yet to establish a conducive business climate in the country that would continue to attract investors.
Time, however, is running out. Our start-ups have the power to bring about transformative change in our economy. However, as things stand, if urgent measures are not taken, there is the real threat of losing many of them. It is a collective responsibility to ensure that our start--ups remain on the up, for they will play a major role in ensuring that Bangladesh remains on the up.
