High cost of doing business worries entrepreneurs

IT is worrying that the cost of doing business might increase in the coming months which may hinder the country’s growth of businesses. The business entities, especially in the manufacturing sector, have low confidence in costs, highlighting the need for immediate action to address the cost burden of businesses emanating from the spike in the prices of electricity, water, gas, and raw materials, says a survey.
The Bangladesh Business Confidence Survey 2022-23 unveiled the findings of the survey at a hotel in the capital on Saturday, conducted during last year’s September-November period. It has raised concerns over the increasing production costs making businesses bleed. The USAID-funded Feed the Future Bangladesh Trade Activity supported the survey among 567 micro, small, medium and large businesses during the three months.
According to media reports yesterday, the chief executive officer (CEO) of the Business Initiative Leading Development (BUILD), while presenting the major findings of the survey, said the Business Confidence Index (BCI) is apprehended to fall to 22.4 over the months to June 2023, down from 35.8 earlier. The low index indicates that the rising cost of doing business is an upcoming challenge that needs to be taken care of. “It is a worrying signal to the businesses.”
Mentionable that BUILD is a private sector dialogue platform set up in 2011 by the Dhaka Chamber of Commerce and Industry in partnership with the Metropolitan Chamber of Commerce and Industry and the Chattogram Chamber of Commerce and Industry.
Of the firms surveyed, 284 are from the manufacturing sector while the rest are from the service sector. During the survey, seven issues were considered to prepare the index: employment, the volume of order or demand, business activity, operating capacity, selling price and investment, overall business cost, and investment. However, business entities are slightly optimistic that the volume of orders for the manufacturing sector, demand for services in the service sector, selling prices, and business activity will increase in the next six months, says the BUILD. As a result, businesses are willing to expand their employment and investment during the period.
It is no secret that launching and running a business in Bangladesh is a very challenging endeavour. While corruption is ubiquitous in every sector, it does not make life easy for an entrepreneur. Thus, they are forced to take the unethical route of having corporate contracts through bribing officials.