Startups seek reforms and stability from new government

With the interim government headed by Nobel Laureate Prof Muhammad Yunus taking oath on August 8 after the ousting of former Prime Minister Sheikh Hasina on August 5, the startup community in the country is expressing cautious optimism and demands for the new interim government. As the interim government settles in, entrepreneurs are calling for policy reforms, improved access to funding, and a corruption-free environment to foster innovation and growth.

"We have been waiting for this change", said Anayet Rashid, Founder and CEO of Truck Lagbe. Mentioning the 10 Minute School incident amidst the ongoing movement, Anayet said, "What happened with 10 Minute School was a wake up call for us. It was a clear message that either you work with power or you face the consequences." Earlier on July 16, Startup Bangladesh Limited announced that it had cancelled an investment proposal of BDT 5 crore for 10 Minute School, Bangladesh's largest edtech platform, after Ayman Sadiq, 10 Minute School's Founder and CEO, had sided with the students during the ongoing students' movement. 

Anayet also added that the startup community in Bangladesh hopes for positive changes by the interim government. He said, "We welcome the young leadership in the interim government. There is much work that needs to be done. Some of the existing policies and laws need to align with the current reality of Bangladesh."

"Many of us had to register our company in other countries in order to attract foreign investments. Moreover, the share market in Bangladesh was also very unstable. All of these matters need to be addressed. We must have open dialogues with the leaders against corruption and extortion," he added.

Nourin Haque Ridi, Founder of Dark Kak said, "As a new startup, we seek more equitable access to funding support from the government. Currently, only a few high-profile startups receive substantial financial backing and marketing assistance from government agencies, while many others struggle with funding, navigating complex registration, and dealing with the tax system. We call for a more transparent and fair distribution of grants and a corruption-free, politically unbiased environment that fosters collaboration rather than competition among startups."

Mentioning the need of support for women entrepreneurs she added, "There is a critical need for targeted support for women entrepreneurs, particularly indigenous women and those from rural areas, to ensure they receive the guidance and funding necessary to succeed.  We urge the government to incentivise industries to engage domestic and politically unbiased startups in various sectors to drive technological, environmental, and cultural advancements, rather than relying on international support."

Gaining the confidence of investors is a crucial step when it comes to the startup ecosystem. Foreign investment is also necessary for the improvement of startups in Bangladesh. Regarding this matter, Fahad Ifaz, Co-founder and CEO of iFarmer says, "The interim government must try to regain investor confidence in Bangladesh. I hope [Dr] Muhammad Yunus will be able to help Bangladesh regarding this matter through his good image and networks. The proper implementation of policies and laws is a must which the previous government failed."

Fahad also talked about how the recent political crisis has impacted businesses. He added, "The recent election and the current political scenario has negatively impacted all the businesses. If the banks make funding easier for the local startups that would be a huge help. It would also be helpful for the startups if the government exempts taxes for one year."