START! Entrepreneurs in Bangladesh

We are Known for Our

RESILIENCE

Against Adversity

However, this Adversity seems

NEVER-ENDING

It’s the kind of

Adversity That tells us

We will NEVER

be Better

Even in the middle of

such negativity, We are

Achieving

SUCCESS

Just like our TIGERS, A group of talented individuals are

in the process of TRANSFORMINGOUR COUNTRY

THIS IS

Their

STORY

1…2…3…START!

Entrepreneurs in Bangladesh

Md. Mosta Gausul Hoque, PMP

Masters in Economics ( YU-Japan)

Postgraduate Diploma in Government Financial Management( University of Ulster-UK)

MBA ( IBA)

A Bangladesh Studies

Presentation

Prepared For

Muhtasim Sarowat Rayed

(ZR-61)

Shatabdi Biswas (RH-12)

Arifur Reza Chowdhury (ZR-23)

SharmiliNowshin Kabir

(RH-30)Rafi Ahmed

(ZR-60)

Team Profile of Group 11

ANALYSER SUPPORTER CONTROLLER PROMOTER HARMONISER

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T H E E V O L U T I O N O F E N T R E P R E N E U R S H I P W H A T I S A S T A R T U P ?

S T A R T !

OUTLINE

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5 6

4

B A N G L A D E S H : G R O W I N G F A S T ,

G R O W I N G S T R O N G

A R E A S W H E R E S T A R T U P S A R E D O I N G W E L L I N

T H E F A C T O R S B E H I N D T H E S T A R T U P T R E N D I N

B A N G L A D E S H

C H A L L E N G E S A N D O B S T A C L E S

7

R E C O M M E N D A T I O N S

Renaissance Craftsmen (15th Century)

Merchants and Craftsmen who developed commerce. Explored

new continents for trade.

The Evolution of Entrepreneurship

Colonial Expansion(16th -17th Century)

Established trade routes and founded the first ‘global’ companies. Created

plantations capitalizing on tobacco and sugar cane.

The Evolution of Entrepreneurship

Industrial Revolution(16th -17th Century)Serial entrepreneurs who

made remarkable achievements in technology. First use of expanded credit

system.

The Evolution of Entrepreneurship

20th CenturyUsed mass media marketing to

gain access to very large markets. Advertising

expenditure increased to 4% of national income,

The Evolution of Entrepreneurship

Startups (21st Century)Uses the power of computers and the reach of the internet to reach wide

audiences at low costs. Competing with big business is much

easier.

The Evolution of Entrepreneurship

Not ALL small business ventures are startups!

What is a Startup?

ScalingStartups are designed to grow fast. By design, this means that they have something they can sell to a very large market.

InvestorsStartups go for angel investors or venture capital firms, while small business operations may rely on loans and grants.

Exit StrategyVenture capitalists need an exit strategy as they need to maximize their ROI.

New Business ModelStartups come up with brand new ways of doing businesses, while traditional businesses take tried and tested models and implement them.

How are Startups Different from Small Businesses?

Apple

Microsoft

Facebook

Google

Dropbox

Famous Startups Throughout History

Silicon Valley, USA

London, UK

Oslo, Norway

Melbourne, Australia Singapore

Beijing, China Bangalore, India

Major Entrepreneurship Hubs

Growing Fast, Growing Strong

GDP (2013)

Bangladesh’s GDP increased every year since 1994. From a

real GDP figure of BDT 7,975,387million , it has

increased to BDT 11,989,232 million in 2012-2013 with

respect to base year of 2005-2006.

Exports (Jan 2015)

Exports in Bangladesh increased to US $ 27454.3 million in 2013-2014from US $ 23757.6 million in 2012-2013 registering

a year on year growth rate of 20.2%.

The share of RMG exports during the same period rose from 80.6% to 82.1%.

GDP Growth Rate (2013)

Since 2004, annual rate of GDP growth has been over 6%.

Even though growth rate slipped to 5.7% in fiscal year 2008-2009 due to the economic recession, it accelerated to 5.8% the next

year.

Foreign Exchange Reserve (2013)

Foreign reserves increased to US $ 21558 million in fiscal year

2013-2014 buoyed by remittance inflow.

In 2013, it stood at USD $ 15 billion.

Key Macroeconomic Indicators

Total Population7th Largest in the World

Urban PopulationUrbanisation, chiefly in

Dhaka, driving industrial and service sector

growth.

Median Age60% Population below

30 years of Age

Population

%230Increase in Consumption Expenditure (1990-2010)

Overall Poverty Reduction26% in 10 Years

Income Per Capita in 2008$520

$1044Income Per Capita in 2013

Poverty Reduction

Pioneering Startups

Lead the Way

Emergence of Student

EntrepreneursA Well-Organised,

Thriving Community

Information Infrastructure

Development

THE FACTORS BEHIND THE STARTUP TREND IN BANGLADESH

1.6 MillionSmartphone

Users

122 MillionMobile Phone

Users

43 MillionInternet Users

14 MillionFacebook Users

Information Infrastructure Development

A content syndication startup founded by ShafqatIslam, Iraj Islam, and Asif Rahman in 2008.

It has raised $45 million in venture funding to date.

Pioneering companies Lead the way

Currently the biggest online advertising marketplace in Bangladesh.Founded by Nash Islam and Muhammad Nazimuddaula in 2012

G&R is the Consulting Partner for Amazon Web Services inBangladesh and the AdSense and AdWords partner for Google.

Recently, it was acquired by GenEx Infosys Ltd in a multi-milliondollar deal.

Pioneering companies Lead the way

The first digital marketing firm in Bangladesh, Analyzen wasfounded in 2008. It has won several awards and amassed adiverse and impressive portfolio that includes the likes ofBanglalink, Unilever, Samsung and British American Tobacco,among others.

Analyzen has a unique flat organization structure where everyteam member is known as an ‘Analyzer’.

Pioneering companies Lead the way

32

SD ASIACreates content about startups, entrepreneurs and business in Bangladesh. Organises networking and tech events like Innovation Xtreme and Digibuzz.

BASISAssociation of IT firms. Provides guidance and infrastructural support to registered firms. Organises and sponsors events like Digital World.

EMK CenterA venue platform that works in concert with multiple startups to launch and sponsor events.

Founders InstituteThe world’s largest entrepreneur training and startup launch program. Recently partnered with Fenox to open seed-funding for tech startups.

GoogleWorks with GDG and GBG groups to engage local software developers, as well as various digital entrepreneurs.

A Thriving, Well-Organised Community

Factors Influencing emergence of

Student Entrepreneurs

Strong independent streak

Increasing disposable income

from part time jobs

Ambitious, Determined to Make an Impact

Job market highly saturated

Emergence of Student Entrepreneurs

Investors

Facilitators and

Community

Leaders

Media

Ambassadors

Incubators

and

Accelerators

35

Entrepreneurs

The Startup Ecosystem

Angel Investors and

Venture Capitalists

23

34 listed firms

Works with leading brands

to reach audiences in

real time

DIGITAL MARKETING

$4 BillionMarket Size

200 Crore BDTSales in Last Eid-ul-Adha

ECOMMERCE

GRAMEENPHONE

working closely with local entrepreneurs to encourage

innovative solutions to various relevant problems

ROCKET INTERNET

launched five companies in Bangladesh:

Carmudi, Lamudi, Kaymu, Foodpanda, Daraz

GOOGLE

Google Development Groups (GDGs) and

Google Business Groups (GBGs)

500 STARTUPS

Invested in ChalDal, an online

grocery store

Global Players

40%

2021

40

25%

2015

However, will

this be

achieved?

Adverse Investment Climate

41

Weak Public and Private Institutions

Transport Deficiency

Inappropriate Modal Mix

8.2% growth inpassenger transport

Transport intensity much lower than other countries

Unbalanced pressure on road transport leads to traffic jams

Roads highly susceptible to natural disasters

Road Transport Railways

Internal Water

Transport

Natural Gas supply can support power plants

only till 2019

34,000 MWExpected demand for electricity in

2030

6,264-8250 MWCurrent demand for electricity

61 MillionStill do not have access to

electricity.

.

Power Shortage

No Barriers of Entry and ExitMay have to face exit at any time point of time

Lack of focus on business sustainability

Lack of incubators and accelerators

Nascent Startup Community

San Francisco Model May not Work in Bangladesh

Recommendations

Raise awareness

about startups

Strengthen Investment

Climate Incubators and accelerators that transform

ideas into enterprises

Focus on developing businesses and

sustaining in the

long run

Engage university clubs

Develop elevator pitches

Hold meet and greet events with corporate and

government stakeholders

Raising Awareness

Encourage domestic corporate investors to

get behind startups

Ease Corporate Tax to invite greater FDI

Banks and FIs need to develop better

seed-funding initiatives

Strengthening Investment Climate

Don’t simply go for the

coolest inventions

Develop business model

Provide mentorship

Launch startup

operations

Scale startups

Incubators and Accelerators T r a n s f o r m i n g i d e a s i n t o E n t e r p r i s e s

Early StageStartup

Expansion

Global Company

Maturity

Sustaining in the long run C o m p l e t i n g t h e t r a n s i t i o n i n t o a g l o b a l c o m p a n y

THANK YOU!