Though the entrepreneurial spirit is often hailed as the backbone of economic progress, for many in Bangladesh, this spirit is stifled by an overwhelming bureaucratic maze.
Our newspaper on Monday reported that the recent shocking reality sheds light on the myriad challenges faced by new business owners in the country.
From exorbitant unofficial fees to the complex web of required documentation, the obstacles are both discouraging and costly.
Only the entrepreneurs’ experience is not an isolated incident to consider; it reflects a broader trend identified in a study by the SME Foundation, which surveyed 304 entrepreneurs across major cities.
A staggering 57 per cent cited tax structures as a primary barrier to lawful business operation. In contrast, others highlighted the cumbersome processes involved in renewing trade licences and the excessive costs associated with them.
These findings expose a systemic issue that not only hampers individual entrepreneurs but also threatens the overall health of Bangladesh’s small and medium-sized enterprise (SME) sector.
The comparison with our neighbouring countries is particularly striking — where entrepreneurs require only seven certificates to operate, their Bangladeshi counterparts must navigate a daunting 34. Such inefficiencies not only breed frustration but also drive potential investors away, ultimately stunting economic growth.
We agree with the president of the Small and Medium Enterprises Owners’ Association of Bangladesh who rightly advocates for a one-stop service to streamline the process and eliminate harassment. Moreover, the recommendations for substantial reforms, including discounts on licence fees and tax holidays, are crucial in fostering an environment where entrepreneurship can thrive.
The report said that as Bangladesh approaches its graduation from Least Developed Country status in 2026, the urgency for reform becomes even more pronounced.
The World Trade Organization has projected a potential decline of nearly 14 per cent in Bangladesh’s export business by 2027, underscoring the critical need for a supportive framework that encourages new ventures rather than stifles them.
Policymakers must heed the voices of entrepreneurs and implement systemic reforms that simplify processes, reduce costs, and ultimately create a more conducive environment for business. Only then can Bangladesh fully harness the potential of its entrepreneurial spirit and secure a prosperous economic future.
