Abundant job opportunities in the startup industry!

Case Study 1
After finishing my office work in Mohakhali, I am waiting downstairs for a bus. Seeing severe traffic on the road, I decide to use a ride-sharing app to call a motorcycle rider. Quickly, a middle-aged biker arrives. He looks quite smart and fit, riding the bike without any hesitation. Politely, I requested him to ride the bike calmly without hurrying and sat behind him and left for the destination of Indira Road. As we navigate through the streets, taking advantage of the various traffic signals that force other vehicles to stop, the driver engages in conversation with me. Curious about his background, I inquire about his name and profession.

In response, let me share the poignant story of his professional life. Muhibul Alam, a young man hailing from the bordering district of Satkhira in Bangladesh, spent his entire life in his hometown. He was born, raised, and received his education there, completing his studies at Satkhira Government College. Later, he secured a job at a solar power institution in Bagerhat, allowing him to support his family. Everything was going well until the year 2020. The global pandemic, COVID-19, wreaked havoc worldwide, significantly impacting Bangladesh. The country experienced a surge in fatalities, and many businesses were forced to shut down. Numerous companies, grappling with financial challenges, began laying off employees. Unfortunately, Muhibul Alam also became a victim of these circumstances, losing his job during this challenging period.

Suddenly, his world crumbled. Losing his job, he found himself adrift. With a family to support—his wife, a child, and his mother—he plunged into uncertainty. While four others sustained their lives on the income of his erstwhile employment, Muhibul was not one to succumb. He had to emerge victorious in the battle of life! A new struggle began, and the horizon of his life darkened. At that time, ride-sharing companies emerged as beacons for the jobless and unemployed, providing new addresses and havens of trust. The call to wage war for survival echoed loud. It was then that Muhibul, amidst the throes of the pandemic, decided to purchase a motorcycle in Dhaka and engage in ride-sharing. Juggling roles as an Uber and Pathao worker, he traversed the corners of the capital, shuttling passengers from one end to the other.

At the end of the day, Muhibul starts supporting his family by utilizing the commissions earned from Uber and Pathao. Following in Muhibul's footsteps, numerous individuals of various ages have begun embracing ride-sharing as a profession, and they continue to do so. Muhibul reveals that despite Bangladesh being liberated from the grip of the COVID-19 pandemic, he and many others like him have chosen ride-sharing as a means of livelihood. While the country may have overcome the pandemic, numerous individuals, engaged in the battle for survival, have opted for ride-sharing as a profession. Presently, ride-sharing company Pathao has become workplaces for thousands of people.

Case Study 2
A young man named Sohag Matobbar used to work at an e-commerce company. In the dreadful aftermath of the 2020 pandemic, he faced the loss of his job. It was a crushing blow to him. The burden of supporting a vast family rested on his shoulders, with a recently born child, a wife, and in-laws all depending on him. Overwhelmed and unable to comprehend the situation, he found himself in a state of uncertainty. Later, he discovered that Mokam, a business-to-business (B2B) commerce company in the capital, was hiring sales assistants for their distribution in the city's bus terminals. Mokam, essentially a startup established in 2017 under the name ShopUp, is a significant business entity that supplies food and essential goods to 3.1 crore people across the country through small local stores. Without further hesitation, Sohag Matobbar applied for the position of Sales Assistant at Mokam to contribute to their distribution support.

Having overcome challenges, he discovers a new life that he passionately embraces. Sohag loves taking on challenges. Upon entering Mokam, alongside his job, he joins the internal skilled training department, the 'School,' to enhance his skills. There, he quickly evolves by undertaking training in distribution planning and technology. Impressed by his overnight performance, Mokam's management rewards Sohag with a promotion to the position of Management Information System (MIS) Officer. Currently, he works at Mokam's main office in SKS Tower, Mohakhali. In parallel, he has completed his graduation at Rajendra College in Faridpur under the National University. A determined individual, he refuses to accept defeat in life. Addresses of countless young people, like Sohag, are now in startup companies.

Who is working in the startup industry?
Currently, countless startups are working to meet the demand for local products, employment, and workspace creation through domestic and foreign investments. In the category of ride-sharing companies, there are several prominent entities such as Uber, Pathao, and OBHAI. In the realm of food and daily essentials supply, companies like ShopUp, Chaldal, Sindabad, and Foodpanda are leading the way. Within the online marketplace sector, Daraz, Monark Mart, and Pikabu are at the forefront. For courier or logistics support services, RedX, Pathao, Truck Lagbe, and StedeFast are performing well. On the other hand, in the healthcare sector, companies like Praava Health and Arogga are prominent players. In the book supply industry, companies like Rokomari and online education platforms like Ten Minute School are excelling. Various organizations in the job market, such as Bekar and Shikho, are playing a significant role in creating opportunities for unemployed and job-seeking youth.

Types of work in startups:
Information from Startup Bangladesh Limited reveals that approximately 1.2 million people in the country are directly involved with the startup industry. Currently, there are more than 12,000 entrepreneurs, with a majority being young, talented, visionary, and tech-savvy individuals. Leveraging a blend of technology and innovative business ideas, these entrepreneurs exhibit outstanding performances. With a strong commitment to fundamentally transform the nation, hundreds of thousands of determined young entrepreneurs are driving Bangladesh towards the future. Despite receiving foreign investments of around 940 million dollars in the startup industry's development over the past 13 years, the growth has been exceptional. More than 500,000 small entrepreneurs have emerged in the past decade, demonstrating the extraordinary potential and indomitable spirit of the youth. According to a data, due to the unyielding enthusiasm and boundless energy of the youth, the startup sector is gradually gaining prominence. From ride-sharing to household services encompassing food, products, healthcare, education, social issues, agriculture, technology, economic solutions, and various other domains, startups are making significant contributions to the country's economic development.

Capital in the industry:
Startup Bangladesh Limited started its journey as a government initiative in 2020 with a capital of 50 crore rupees to support startups. The proposed fund of the institution is 500 crores. However, if patronage is received at the private level, many more institutions will be created, as well as similarly, there will be arrangements for the livelihoods of countless people.

Employment picture in the startup industry of the country:
According to the latest data of Bangladesh Bureau of Statistics, the current unemployment rate in the country is 25 lakh. Among them, 16,70000 are male, and 830,000 are female (source: Deutsche Welle, August 27, 2023). Although the unemployment rate was 5.21% during the COVID-19 pandemic in 2020, it was 4.38% in 2019. Despite a slight reduction in the current unemployment rate after the significant impact of the pandemic, the startup industry is playing a crucial role in creating employment opportunities for the younger generation, particularly for tech-savvy individuals. Pathao, a startup company, reports that since its establishment in 2015, it has created employment for five lakh people in the country. The company is involved in ride-sharing, food delivery, and courier or logistics services (source: Dhaka Tribune, July 30, 2023).

On the other hand, Shopup, the country's largest B2B retail business Mokam, and RedX, the largest retail business entity in the country, and one of the major logistics service providers, has a workforce of about 7,000 across the country. Through this network, the company is currently supplying food and essential commodities to around 3 crore 10 lakh people. The company's goal is to reach these products to nearly 8 crore people in the country by the year 2026. (Source: Prothom Alo, December 6, 2023)

bKash, the largest fintech company in the country, started its journey as a startup in 2010 and currently employs around 3,000 people (both permanent and temporary). It has 200 distributors nationwide, 300,000 agents or business partners, and over 600,000 merchants or shopkeepers. On the other hand, the Digital Transactions Department of the Postal Service has about 800 permanent employees, thousands of sales officers, and a nationwide network of 270,000 agents. However, agents of bKash across the country also work as representatives for cash sales. Therefore, it can be said that the number of workplaces in the startup industry has been increasing.

Challenges in the startup industry!
The rise of startups globally has paved the way for the emergence of a tech-dependent startup industry in Bangladesh, capturing attention and recognition for the aspiring young generation. While startups are making significant strides, there are also several challenges hindering their development. Overcoming these obstacles through the use of modern and advanced technologies can propel Bangladesh forward, making it a noteworthy player on the global stage in the future.

The current government's goal, as outlined in the Vision 2025, aims to support the creation of five unicorns (companies valued at least one billion US dollars) in the country by the middle of 2025 and contribute to the formation of 50 unicorns by 2041. Rapid implementation of this plan will not only boost economic growth but also create extensive employment opportunities for the population.

What are the experts saying?
Sami Ahmed, managing director of Startup Bangladesh Limited, said the prime minister's ICT Advisor, Sajeeb Wazed Joy, is providing maximum support for the development of the startup industry. He highlighted that during the Startup Summit held for the first time in the country at Hotel Intercontinental on July 29 of the current year, Prime Minister Sheikh Hasina inaugurated a fund dedicated to this industry.

Sami further said that they are fortunate that whenever they approach the Prime Minister with any startup-related initiatives, she approves and supports them. They receive all kinds of assistance from the government to create employment opportunities through the establishment of workspaces.
At the Startup Summit, the Prime Minister emphasized, "To tackle the challenges of the fourth industrial revolution, it is essential to develop skilled human resources proficient in artificial intelligence, internet usage, blockchain, robotics, big data, medical scribing, and cyber security." It is easily understood from this that the government is deeply committed to the advancement and creation of a widespread ecosystem in this sector.

Meanwhile, according to Shawkat Hossain, the country's renowned venture capital expert, the startup industry can be the biggest stakeholder in establishing a 'Smart Bangladesh' announced by the government. Several steps need to be taken urgently for the sustainable development of this industry.
These are:
1) Expedite the registration process for unregistered companies.
2) Simplify the IP registration procedure.
3) Promote policies to ensure accurate and ethical investments in the startup sector.
4) Regularly monitor and oversee startups.
5) Take various initiatives to increase foreign investments.
6) Encourage private investors to collaborate with the government.
7) Streamline the investment process.
8) Train young individuals to create skilled, entrepreneurial, and tech-savvy workers.
9) Create a favorable environment to increase the number of angel and corporate investors.
10) Increase the budget allocation for the startup sector.
11) Develop infrastructure for sustainable growth, including internet services.
12) Provide uninterrupted electricity and internet services in rural areas.
13) Foster a friendly ecosystem for both corporate venture capital and startup-friendly industries.
14) Provide additional funds to Startup Bangladesh Limited to support small entrepreneurs economically.
15) Provide tax benefits to investors in startups.
16) Acknowledge the significant role of giant startups and offer financial support to new entrants in the market.
17) Encourage strategic alliances among giant startups.
18) Encourage larger companies to acquire and support smaller, newer startups.
19) Keep a careful eye on the potential risks for larger companies compared to small and new startups.

Finally, the government's vision is to realize the dream of a Smart Bangladesh by 2041. In this context, providing substantial assistance to the startup industry is crucial for it to reach its goals. Therefore, investments need to be increased in various sectors, including FinTech, retail, logistics and mobility, AgriTech, energy, health tech, e-commerce, consumer services, software, technology, and edtech. By creating extensive employment opportunities through the establishment of diverse startups, the country can undergo a massive transformation in its overall economy. If proper policies are implemented and executed swiftly by 2025, the contribution of the startup sector to the GDP could potentially reach 2 percent. The success of domestic startup companies will play a pivotal role in controlling and leading the future economy. If these startups thrive, they will undoubtedly shape and guide the economic landscape for years to come!


Author: Journalist and Researcher