Entrepreneurs in Bangladesh are facing unnecessary hurdles in their path to success, as highlighted by a recent study on the state of doing business in the country. The findings reveal that entrepreneurs are burdened with regulatory barriers that not only cost them time but also money, making it difficult for them to thrive in the economy.
One major issue identified in the study is the exorbitant fees entrepreneurs have to pay to obtain licences and permits from government agencies. In some cases, they are forced to pay six times more than the official rates, adding to the financial strain of starting or continuing a business. The process of obtaining licences is also cumbersome, with entrepreneurs needing to acquire multiple licences from different agencies, such as the 20 licences required to set up a garment factory.
The challenges don’t end there, as entrepreneurs also struggle to secure financing from banks due to complex processes and high interest rates. This, coupled with the prevalence of defaulted loans in banks, further hinders their ability to access the capital needed to grow their businesses.
Corruption is identified as a key factor contributing to these barriers, with the United States Trade Representative highlighting it in a recent report on foreign trade barriers. The impact of these obstacles is not limited to domestic entrepreneurs, as foreign investors are also deterred from investing in Bangladesh.
To address these challenges and support entrepreneurship in the country, reforms are essential. By removing unnecessary barriers and streamlining processes, Bangladesh can create a more supportive environment for entrepreneurs to thrive. With the right support, small and medium entrepreneurs can play a significant role in creating employment opportunities and boosting export earnings, ultimately contributing to the country’s economic growth.