Startups seek reforms and stability from new government

As the caretaker government led by Nobel laureate Prof. Muhammad Yunus takes the oath of office on August 8 after the ousting of former Prime Minister Sheikh Hasina on August 5, the country’s startup community is expressing cautious optimism and demands for the new caretaker government. As the caretaker government settles in, entrepreneurs are calling for political reforms, better access to finance and a corruption-free environment to support innovation and growth.

“We were waiting for this change,” said Anayet Rashid, founder and CEO of Truck Lagbe. Recalling the incident at 10 Minute School during the ongoing movement, Anayet said, “What happened at 10 Minute School was a wake-up call for us. It was a clear message that either you work with the government or face the consequences.” Earlier on July 16, Startup Bangladesh Limited announced that it had cancelled an investment proposal of Tk 5 crore for 10 Minute School, the largest edtech platform in Bangladesh, after Ayman Sadiq, founder and CEO of 10 Minute School, stood by the students during the ongoing student movement.

Anayet also added that the startup community in Bangladesh is looking forward to positive changes brought about by the caretaker government. He said, “We welcome the young leadership in the caretaker government. There is a lot of work to be done. Some of the existing policies and laws need to be adapted to the current reality of Bangladesh.”

“Many of us had to register our company in other countries to attract foreign investment. Moreover, the stock market in Bangladesh was also very volatile. All these issues need to be discussed. We need to have open dialogues with leaders against corruption and extortion,” he added.

Nourin Haque Ridi, founder of Dark Kak, said: “As a new startup, we are pushing for more equitable access to financial support from the government. Currently, only a few well-known startups receive significant financial support and marketing assistance from government agencies, while many others struggle with financing, navigating complicated registrations and dealing with the tax system. We are calling for a more transparent and equitable distribution of subsidies, and a corruption-free, politically impartial environment that fosters cooperation rather than competition among startups.”

Mentioning the need for support for women entrepreneurs, she added: “There is an urgent need for targeted support for women entrepreneurs, particularly indigenous and rural women, to provide them with the guidance and funding they need to succeed. We urge the government to encourage industries to engage domestic and politically neutral startups across sectors to drive technological, environmental and cultural progress, rather than relying on international support.”

Gaining investor trust is a crucial step when it comes to the startup ecosystem. Foreign investment is also essential to improve startups in Bangladesh. On this, Fahad Ifaz, co-founder and CEO of ifarmer, says, “The caretaker government must try to regain investor trust in Bangladesh. I hope (Dr) Muhammad Yunus will be able to help Bangladesh in this regard with his good image and networks. Proper implementation of policies and laws is a must, which the previous government failed to achieve.”

Fahad also spoke about how the recent political crisis has affected businesses. He added, “The recent elections and the current political situation have had a negative impact on all businesses. If banks facilitated financing for local startups, it would be a huge help. It would also be helpful for startups if the government exempted them from taxes for one year.”