Overcoming Challenges in Bangladesh Startup Ecosystem Assignment Sample

Overcoming Challenges in the Entrepreneurship Ecosystem for Global Startup Growth

Part A

Four key challenges faced by start-up entrepreneurs

Discover the difference with New Assignment Help's UK assignment help, tailored to meet your academic requirements.

The majority of startup manuals discuss the stages necessary to bring a concept to completion. Carrying them out is far easier stated than done. One of the hardest things person can do is start a successful, inventive business from scratch. Every step of the way needs to overcome hurdles on many different levels. The following four key challenges faced by start-up entrepreneurs are discussed:

Hiring Suitable Candidates

The team's working together is one of the critical elements in establishing a corporate culture in a startup commercial. Groups are completeby people with expertise and objectives. Startups in especially, and industries as a whole essential to hire the correct individuals to build an extremely operative team values (Freeman and Siegfried, 2015).There is a generouspool of aspirants is available for team building. It issomewhat difficult duty to choose anentrant who is right fit for the job. In this modern era, this is crucial issue faced by new firms.

Funding and Financial Management

One of the major challenges faced by a start-up entrepreneur is sourcing funding, which includes raising finance for all business activities. To run a start-up and make it a successful venture need an efficient flow of cash into the business (Kuschelet.al. 2017). Another aspect of this challenge is the management of finance; it includes how to source money, and where to invest. It is a fact that tiny startups heavily depend on financial sponsorship from so-called investors. At periods, in the situation of cash influx, startups tend to catch it hard to appropriately dealing their funds.

Time management

As said “ time is money", time is a very imperativecomponent in the progress and success of any startup. A startup entrepreneur needs to take many decisions in a day, the decision must be right and taken timely otherwise startup will not be able to compete with its rival in the industry.This means postponing any decision or activity that is not openlyservingthe entrepreneur to achieve its aims and objectives. An entrepreneur can also use synced datebooks and planners to create these easier-to-allotodd jobs and accomplish goals speedily (Isaga, 2018).Time management is not just for the reorganization of business functions but to formulate a way for an optimal customer experience. For illustration, when startups delay the commencement of a creation or an app, clients can start to lose hope and interest.Time management is very important to start a venture, this is one of the main challenges faced by new entrepreneurs because new venture have small teams and major decisions are taken one manager. This problem can be solved by outsourcing some work but at this initial stage, it will require a lot of money.

Rules and regulation

This is another challenge face by startup entrepreneurs; there are various rules and regulation imposed by the government in its policies. Startups have to comply with all the legal formalities as well otherwise it any have faces legal consequences (Panda, 2018). On the other hand if government rules and regulation supports startups than it may help companies to grow.

Part B

Isenberg's model of an entrepreneurship ecosystem

Isenberg developed a model for the evaluation of the entrepreneurship ecosystem, this model consists of six domains of the ecosystem. These six domains are organizationalculture; facilitating strategies and guidance, accessibility of suitable money, excellence in anthropological resources, venture-welcoming marketplaces for goods, and a variety of government supports (Maroufkhaniet.al. 2018). This report is focusing on main three domains which are policy, finance, and culture.

Policy

The policy is used by people, governments, or organizations to plan the work. Regardless of the vitality and achievement of entrepreneurs depending on their personality, skills, and competence, their actions are exaggerated by the rule and policy imposed by the government in a solitary way or supplementary. The policy includes tax policy, tariff rules, and fiscal and monetary policy imposed by the government; these policies directly affect the new startups in the economy (Aminovaet.al. 2020).Trade and industry growth is the main concern of each government since they add to the various opportunities such as employment opportunities and expenditure ability of people. Economic expansion can only be attained through the growth and improvement of entrepreneurship skills in the exacting country.Constructive policies imposed by the government related to business, toll, legislation, learning, etc. This will assist in the promotion of entrepreneurship in the nation.High-quality governance is an essential prerequisite to sustain and encourage entrepreneurship action that would have optimistic effects on trade and industry growth. Various empirical and theoretical studies accepted the observation that the administration can hit a blockade on entrepreneurship related to information, skills, infrastructure, and the market.

Finance

Finance is the solution to the beginning and development of entrepreneurship. Thoughts can simply be implemented; chance can just be captured, if there is adequate money to spend. Commonly entrepreneurs depend on outside financing, there is variety of industry funding available from the external supplier of the company in various forms such as bank loans, funds from individual or venture funding firms, advertising equity, or getting grants. Venture capital provides funding for various stages such as seed funding, initial, Second, Third and last stage investment.Seed financing is to establish the business concept, Start-up financing is to extend the merchandise and initial promotion. Other stages financing is done for various purposes like the commercialization of the venture, running operational resources, expansion of the venture and ultimately investing in the corporation going public aim (Hosseinzadehet.al. 2022).The part of finance is extremely important in the expansion of entrepreneurship in every sector including Micro, Small, and Medium Scale Enterprises (MSMEs).Bangladesh entrepreneurs have access to funding some example of it are iDEA, BHTPA, Startup Bangladesh Limited, and most in recent time’s scheme by the Central Bank According to the last 30 years' data in time series, there is a strong relationship between finance and entrepreneurship. Entrepreneurship can grow in a country like Bangladesh because of entrepreneurs can access finance easily.There is a large number of evidence in the literature that points out that funding and financing of entrepreneurship will result in elevated growth in service, and productivity and therefore have an optimistic impact on financial growth.

Human capital

According to the oxford dictionary, Human capital is knowledge, experience, and skills acquired by the employees in the organization, adequate human resources are very important for the growth and success of a business. Two firms can have the same material resources but they can't have the same human resources. Human resources are very helpful in creating a competitive advantage over a rival by performing effectively and efficiently. Human capital is allowed valued on their contribution and cost paid term of compensation (Stephenset.al. 2022).All these statements point out the significance of human capital in the context of entrepreneurship because the achievement and growth of ventures largely rely on the accessibility of skilled human resources. The accomplishment of entrepreneurs majorly depends on their capability to think in a different way and their community competence. Human capital is consistently and widely used to make assumptions related to venture efforts, venture emergence, and project progress. Project survival also depends on the performance of human capital in the startups.

Figure 1 domains of the entrepreneurship ecosystem

( Source: medium, 2017)

Key areas of the entrepreneurship ecosystem in Bangladesh

Entrepreneurship environments are odd systems of mutually dependentactions and relations straightforwardly or indirectly sustaining the formation and growth of the latest ventures. The entrepreneurship ecosystem is gaining traction in many countries including Bangladesh. The importance of rules and regulations regarding startups in Bangladesh is increasing (Cao and Shi, 2021).Research on the relationships between entrepreneurship, industrial progress, and wealth isdone by the Global Entrepreneurship and Development Institute (GEDI Institute). Bangladesh was ranked 125th out of 132 countries in its 2016 Global Entrepreneurship Index (GEI), placing it at the bottom of the Asia-Pacific region and the world as a whole.

Government Initiatives in Bangladesh

As we show above in the Isenberg model, the policy is solitary of the significant domains in the entrepreneurship environment. This part of the report includes a deep study of the various Bangladesh government's initiatives in developing a friendly startup entrepreneur ecosystem in the country.

Startup Bangladesh Limited: It is a venture capital fund that is sponsored by the Bangladeshi government for startup growth and development (Islam and Khan, 2021). This is the only venture capital fund in Bangladesh that is sponsored by the government, it was launched in 2020 and now it allocated a total of 65 million USD in terms of capital to startup businesses.

Figure 2

(Source: startup Bangladesh, 2021)

IDEA: this is an important initiative of the Bangladesh government; it is related to the technological advancement for startup businesses in the country. Here iDEA's full form is Innovation Design and Entrepreneurship Academy; it is a special program which is commenced in 2017. This program facilitates funding to startups at the initial stage, it has benefited more than 250 ventures now, since 2017 (Biswaset. al. 2018). With the help of the iDEA program, the government of Bangladesh is developing inventive ideas in the fields of Teaching, farming, Fitness, monetaryAmenities, transportation, authority, atmosphere, and Arrangement.

SME Foundation

This is a foundation established by the government of Bangladesh for the development of minor and middle size startups. The SME Foundation is established under the ministry of industries in the ecosystem of the country (Bakht and Basher, 2015). Its foremost operations containexecuting the Bangladeshi Government's SME strategy, ruleencouragement, and involvement to facilitate SME development.

Figure 3 SME foundation logo

( source: The business starndard, 2022)

Finance

Finance is very important to run and growing a new venture. Bangladesh ecosystem has some notable startup investors two of them are given below:

Anchorless Bangladesh

Anchorless Bangladesh is a beginning venture equity investment company and its headquarters in Dhaka, Bangladesh. It was established in 2019 and The Company is paying attention to funding startups through a series of rounds (Roundy, 2017). The business has so far made investments in businesses involved in IT, such as Shikho, Loop, and GAZE, as well as in industries including education and logistics.

Bangladesh Angels

This is Bangladesh's earliest angel spending policy, establishedby the task to raise the nation’s startup businesspersons to the maximum. This platform is a jointeffort to fetchcomposed the managers in the homebusiness ecosystem and internationalallies who stake an enthusiasmintended forgeneratingprice and expansionof startup businesses. At the moment, the policy has made availablemoneys of approximately USD 1 million to ten new businesses numerous of which remainedestablished by the youthfulpublic.

Human capital

To get together the growing attention in entrepreneurship amongst the early life residents, it remains very significant to advance the initial times and acquaintance provision necessary for commercial business enterprises.Position and values are varyingoptimistically towards entrepreneurship as there is additional interest in the population towards the beginning and running of a new business.The presentlearning system is so far to build an efficient contribution to increasing the entrepreneurship particular ability of students.

Part C

How this entrepreneurship ecosystem can care the development of global new venture

This part of the study will discuss how Bangladesh's entrepreneurship ecosystem helps in dealing with the challenges defined in part A and how the three domains specified in part B will support the international growth of new ventures (Malecki, 2018). The startup trends in Bangladesh point out growing levels of improvement in the ecosystem, by way of additional than 200 new startups rising throughout the country each year, sustained by an extra 80 Million USD in record substitute investment funds and an excess of 200 dynamic angel investors. Startups have also grown to be more and more essential to the economy, sustaining 1.5 Million in service with more than 750K SMEs.

Potential sector for investment in a startup in Bangladesh

Based on numerousviews from stockholders to businesspersons, the present three rewardingareas for startups are Fintech, SaaS (Software as a Service), SME (Small and Medium Enterprise), and EdTech.

How Bangladesh's ecosystem supports the growth of new ventures in a global context

The Policy domain in the entrepreneurship ecosystem in Bangladesh is very supportive of a new venture. Policy structure supports the accessibility of government-led amenities in many areas such as equity reserves, funding and contributions, accelerator programs, novelty labs, and support in information technology (Spigel, 2017). The public sector in Bangladesh is on a mission to develop various policies for the international expansion of new startups. The iDEA platform is also supporting the growth and expansion of new ventures by providing equity funds and grants as a venture capital fund. Bangladesh ecosystem also offers co-working freedom and runs a range ofcapability development curriculums for startups, campus students, and founders. Bangladesh's government provides a fair legal system for promoting entrepreneurship, it includes various rights such as property rights, bankruptcy system, and other laws. The policies of Bangladesh's entrepreneurship ecosystem encourage funding from a diverse range of sources, these include money from the administration, public segment, secluded sector, equity crow funding, and other types of lending. The new venture growth also depends on the Tax aspect in the country, Bangladesh is updating its tax regime to improve tax laws that support the global expansion of new ventures.

A startup's voyage toward achieving accomplishment is meaningfullydevoted to the capability of its individuals. Human Capital and Skilled Labor in Bangladesh are not up to mark but its improving day by day. Human capital is significant for entrepreneurship;it can be upgraded through education and experience.This involvesevolving a mentoring display place to provide worldwide standard teaching, tutoring, and guidance on proceduralexpertise and management, for SMEs and other startups that can shape more investment-ready originalities. At present, there are 6.5 lakh IT professional exporters or freelancers in Bangladesh, and there are roughly 1,600 team-based freelancing businesses. A business expert has given an approximation that they collectively bring in around USD 500 million annually. There are various programs launched to educate young people to understand entrepreneurship. Human resources have a very important role in international growth and the success of the new venture, skilled workforce help in reducing turnover expenses, performs efficiently and effectively, and create a competitive advantage.

Part "A," said hiring the right talent is very challenging for startups in every economy including the ecosystem in Bangladesh.The traditional form of startup organizations is regularly linked to the complexity modern rising enterprises encounter. Generally speaking, start-ups or expanding companies frequently have a rather lean structure that depends on a small core of people. These small core people need to be trained well to get desirable output from human resources. The workforce also needs to train to perform different kinds of tasks to handle as many as role possible.

Access to Finance and Incentives is another aspect that facilitates the growth and expansion of new domestic ventures in the global market. In the Bangladesh ecosystem,there are many public sector supplies for every stage of startup funding to build up a healthy startup ecosystem. There are various examples of these supplies such as iDEA, BHTPA, Startup Bangladesh Limited, and most in recent time’sscheme by the Central Bank.This funding is key to the beginning and development of entrepreneurship (Brush et.al. 2019). Ideas are executed; opportunities are grabbed, because of sufficient money supplied by these sources to invest in the startups. Bangladesh's ecosystem is also improving the contribution of private organizations in venture funding. These organizations are the Bangladesh startup consortium, BASIS (Bangladesh association of software and information services), etc. There is a mounting interest from financial institutions to expand access to finance at every stage; still, need for improvement to facilitate access to finance for new ventures.

The Bangladesh ecosystem also improves its other domains such as Access to Markets,Business Links and Networks, and Access to Technology and Knowledge. All these are also helpful in creating an environment for the global success of a domestic new venture. The ecosystem facilitates accessing the online market through various social media platforms. These platforms are very helpful in the global growth and expansion of new businesses. It includes business to business, business to consumer platform which proved various expansion opportunities for new startup entrepreneurs. To help rural startup entrepreneurs various opportunities are provided by the government and NGOs for acquiring larger markets. The government also committed to providing a different program to develop the skills needed to be a successful entrepreneur in terms of accessing the new market globally. Bangladesh's ecosystem network domain is an important aspect of its entrepreneurship ecosystem; new startups get support from its network to expand in more areas as well as the country.There are several platforms and institute functioning for the empowerment of youth from the spiritual and cultural minority population.

Access to Technology and Knowledge is another aspect of a strong entrepreneurship ecosystem. Small-scale SMEs and other entrepreneurs are being helped to grow by startup-led digital platforms. The development of businesses that use technology is being supported by the government. Because of COVID-19 and the nationwide lockdown, there is a rising trend in technology adoption among consumers and enterprises. The process of entrepreneurship among students can be facilitated by segmenting and developing sub-tracks on learning possibilities, such as in entrepreneurship, across universities (Eliaet.al. 2020). As COVID-19's effects continue to hurt many enterprises, particularly in the SME sector, business owners will need to move their operations online, which presents an opportunity for startups. For individuals to use digital services, engage in e-commerce, and obtain training, there are thousands of Digital Centers and Labs all around the nation.

Startup-led modern platforms are serving small-scale SME businesspersons to produce. The Government is subsidiary the expansion of creativities that influence technology. There is angrowing trend in equipment adoption amongst consumers and industriesfor the reason that of COVID-19 and the nation-wide lockdown. COVID-19 has disadvantaged many industries, particularly in the SME sector, and as its conclusioncontinues, there is a requirement for businesspersons to take the trades online, problematic that startups can take gain of. Thousands of Digital Hubs and Laboratoriescrossways the nation enables last-mile service delivery to people to admittance digital facilitiescontribute in e-commerce, and access teaching.

References

• Aminova, M., Mareef, S. and Machado, C., 2020. Entrepreneurship Ecosystem in Arab World: the status quo, impediments and the ways forward. International Journal of Business Ethics and Governance, 3(3), pp.1-13.
• Bakht, Z. and Basher, A., 2015. Strategy for Development of the SME Sector in Bangladesh. Bangladesh Institute of Development Studies.Bangladesh Institute of Development Studies, Dhaka.
• Biswas, T.K., Akash, S.M. and Saha, S., 2018. A fuzzy-AHP method for selection best apparel item to start-up with new garment factory: a case study in Bangladesh. International Journal of Research in Industrial Engineering, 7(1), pp.32-50.
• Brush, C., Edelman, L.F., Manolova, T. and Welter, F., 2019.A gendered look at entrepreneurship ecosystems. Small Business Economics, 53(2), pp.393-408.
• Cao, Z. and Shi, X., 2021.A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies. Small Business Economics, 57(1), pp.75-110.
• Elia, G., Margherita, A. and Passiante, G., 2020. Digital entrepreneurship ecosystem: How digital technologies and collective intelligence are reshaping the entrepreneurial process. Technological Forecasting and Social Change, 150, p.119791.
• Freeman, D. and Siegfried Jr, R.L., 2015. Entrepreneurial leadership in the context of company start?up and growth. Journal of Leadership Studies, 8(4), pp.35-39.
• Hosseinzadeh, M., Foroushani, M.S. and Sadraei, R., 2022.Dynamic performance development of entrepreneurial ecosystem in the agricultural sector. British Food Journal.
• Isaga, N., 2018. Start-up motives and challenges facing female entrepreneurs in Tanzania. International Journal of Gender and Entrepreneurship.
• Islam, M.T. and Khan, M.T.A., 2021. Factors influencing the adoption of crowdfunding in Bangladesh: A study of start-up entrepreneurs. Information Development, 37(1), pp.72-89.
• Kuschel, K., Lepeley, M.T., Espinosa, F. and Gutiérrez, S., 2017. Funding challenges of Latin American women start-up founders in the technology industry. Cross Cultural & Strategic Management.
• Malecki, E.J., 2018. Entrepreneurship and entrepreneurial ecosystems. Geography compass, 12(3), p.e12359.
• Maroufkhani, P., Wagner, R. and Ismail, W.K.W., 2018. Entrepreneurial ecosystems: A systematic review. Journal of Enterprising Communities: People and Places in the Global Economy.
• Medium, 2017, The 6domains of the Entrepreneurship Ecosystem (online).<https://medium.com/@myISMinc/the-6-domains-of-the-entrepreneurship-ecosystem-a297571f58be> (accessed on 24 November 2022).
• Panda, S., 2018. Constraints faced by women entrepreneurs in developing countries: review and ranking. Gender in Management: An International Journal.
• Roundy, P.T., 2017.Hybrid organizations and the logics of entrepreneurial ecosystems. International Entrepreneurship and Management Journal, 13(4), pp.1221-1237.
• Spigel, B., 2017. The relational organization of entrepreneurial ecosystems. Entrepreneurship theory and practice, 41(1), pp.49-72.
• Startup bagngladesh, 2021 (online).<https://www.startupbangladesh.vc/> (accessed on 24 november 2022)
• Stephens, S., McLaughlin, C., Ryan, L., Catena, M. and Bonner, A., 2022. Entrepreneurial ecosystems: Multiple domains, dimensions and relationships. Journal of Business Venturing Insights, 18, p.e00344.
• The business starndard, 2022.SME Foundation to give SME Award 2022 to small, medium entrepreneurs (online). <https://www.tbsnews.net/economy/industry/sme-foundation-give-sme-award-2022-small-medium-entrepreneurs-482650> (accessed on 24 November 2022)