New Age | Bangladesh must embrace start-ups, tech-driven entrepreneurship

INNOVATION, automation and the rapid digitisation of life are changing economies across the world, and Bangladesh is right in the middle of that shift. Every year, more than two million young people enter the workforce here, but most find themselves up against a job market that’s shrinking in real terms. The public sector is already full, and many private sector jobs are either saturated or mismatched. At this point, it’s no longer about whether we should promote entrepreneurship — it’s about how quickly we can build the conditions to make it a viable path, especially in the startup and tech sectors.

Let’s be honest, the job market right now isn’t offering much hope. For many young graduates, even those from top universities, the options are either limited or ill-fitting. It’s not that these young people aren’t capable; they’re often highly skilled, motivated and ready to work. But the economy is still shaped around a narrow range of sectors, and most of them aren’t keeping up with the new skills that young people bring. The garment industry, which still dominates our exports, has very little space for tech-savvy graduates. If we don’t act soon to create more entrepreneurial opportunities, we risk seeing more young people feeling stuck, opting to migrate, or worse, giving up on their potential altogether.

Around the world, startups are doing more than solving problems — they’re creating jobs, shifting industries and driving long-term value. Countries like India, Indonesia and Vietnam have moved fast to support new businesses through better policies, access to funding, and a stronger ecosystem. Bangladesh has a real chance to do the same. Our young population is huge, more people are coming online, and basic digital skills are spreading quickly. But the startup scene here still feels stifled. Too many regulations, too little funding, very few mentors, and an outdated education system that still rewards memorisation instead of questioning, that’s what we’re up against.

Tech-based entrepreneurship can offer solutions that go beyond the economy. Think digital healthcare that reaches rural districts, fintech that includes the unbanked, e-commerce opening up opportunities for small businesses, or agri-tech improving yields for farmers. These aren’t just fancy ideas; they’re realistic, scalable and urgently needed. Whether it’s a self-taught developer in Sylhet or a young designer in Rajshahi, talent is everywhere. What’s missing is the support system — capital, connections, infrastructure — that could help them build something meaningful, even at a global level.

The government’s plan for a ‘smart Bangladesh’ by 2041 depends heavily on technology and innovation, yet we’re still seeing a piecemeal approach. Initiatives like startup Bangladesh Limited and the IDEA project are good in theory, but they don’t yet have the reach or coherence to change the game. We need something broader: a national plan that connects education reform, legal updates, digital infrastructure, startup financing and international collaboration. Right now, these elements exist in isolation, not as a system.

Funding is perhaps the biggest barrier. There are few venture capital firms operating in Bangladesh, and even fewer angel investors. What little exists is centred in Dhaka, making it hard for anyone outside the capital to break in. Banks are still very cautious and tend to treat startups as unreliable borrowers. Although the startup Bangladesh Fund was set up to help early-stage founders, many who apply find the process confusing or overly bureaucratic. It’s not just about money, we need funding that comes with insight, mentorship and market access.

Our regulatory environment also does startups no favours. The bureaucracy involved in getting licences, registering a business, or sorting out taxes is enough to put anyone off. On top of that, there’s no dedicated legal framework for startups — no fast-track registration, no tax relief and barely any protection for intellectual property. If we want young people to take risks and build new ideas, we can’t keep making the process so difficult at the outset.

Then there’s the issue of perception. In most households, a government job or a private sector role is still seen as the ideal outcome. Starting a business, on the other hand, is often considered risky, unstable, or even a failure to ‘get a real job’. That needs to change. Entrepreneurship should be seen as an ambition, not a fallback. Schools and universities can do more to build this mindset — through startup labs, business competitions and collaboration across disciplines. At the same time, the media can highlight local success stories to show what’s possible when young people are given a chance.

We’re also overlooking the role our diaspora can play. For decades, remittances have supported our economy. But what if we created better channels for those living abroad to invest in local innovation? Diaspora-backed funds, or even global crowdfunding platforms, could open up new capital sources. International organisations can also contribute, especially when it comes to building entrepreneurial skills among women and people from marginalised communities. If we’re serious about inclusivity, these are the kinds of interventions we should be exploring.

The problems we face as a country — traffic congestion, climate-related disasters, health inequities, gaps in education — aren’t going to be solved using old tools. In fact, some of the most promising innovations are already coming from local startups: AI tools for disaster prediction, mobile apps offering remote healthcare, and smart systems for farmers to boost productivity. These aren’t just commercial ventures — they’re part of a wider process of building resilience and independence.

Of course, many startups fail. But that’s not a reason to hold back. Failure is part of the learning curve. We need to normalise it, not fear it. Our legal system should support second chances — by reforming bankruptcy laws, for instance —and we should encourage the kind of mentorship that helps people bounce back, not disappear.

Inclusivity must be more than a slogan. Women still face serious hurdles in accessing funding, being taken seriously, or even finding space to work safely. We need targeted policies that support women-led startups: safe spaces, networking events, access to investors and visibility in the media. The same goes for young people in rural or semi-urban areas. Their ideas often speak directly to local problems, yet they rarely get the chance to be heard.

The private sector also has a role to play. Large firms can invest in new ideas, offer mentorship, or run innovation challenges. Universities need to get out of their silos and start collaborating with industry, not just to do research, but to bring research into the real world. Telecoms, banks, and fintech platforms are in a great position to act as enablers here.

Bangladesh’s shift from a low-income to a middle-income economy didn’t happen by chance. It was driven by resilience, ambition and people making the most of limited opportunities. The next leap will depend on whether we can build a culture that values experimentation, trusts its young people and provides the tools they need to build things from scratch.

Md Mehedi Hasan is currently serving with a United Nations Organisation.