Tk 100cr fund for budding entrepreneurs

The government is set to create a Tk 100 crore fund for start-ups as it looks to alleviate youth unemployment, which is progressively becoming an albatross for the country.

More than 20.1 million youths aged 15-29 participated in the labour force, according to the Labour Force Survey 2016-17. Of them, 2.1 million were unemployed.

Then another 29 percent of the 41.4 million of 15-29 year-olds were not in education, employment or training.

In short, the number of unemployed, especially the number of educated unemployed youths, is on the rise in the country as the government can hardly manage jobs for them.

On the other hand, new business opportunities have sprung up in both private and public sectors because of advancement in technologies.

So now, budding entrepreneurs who have been unable to get their business underway for want of capital will be able to do so thanks to the fund.

The modalities of the fund are yet to be worked out: the government may disburse the fund either as loan or as grant.

The most common reasons are structural changes in the labour market that affect young people particularly severely, which at times may be further exacerbated by recessions or downturns, according to the latest survey of the Bangladesh Bureau of Statistics.

“But a more insidious reason is just plain discrimination by employers. It is understandable that firms prefer older workers because, other than having more experience, they believe adults are more reliable, elicit better trust from customers or clients and have less issues with absenteeism,” the BBS study said.

Unemployed youths are likely to have problems with health, friendships and family life compared to those with work or study, the BBS said.

They have less confidence about the future, and are more likely to turn to drugs thinking there is nothing to look forward to, it added.