BRAVING THE BUSINESS WORLD
Remember the Harvard University dropout, the guy with the neatly combed hair, a pair of specs and a smile glued to his face? A failed business called Traf-O-Data, his inexperience, endless doubt - nothing could stop this young man from chasing his dream and his passion for computer programming. The result of his hard work and determination was the world's largest software company, Microsoft, while the man was titled as the youngest self made billionaire of the world at the age of 31. The tale of Bill Gates has been a source of inspiration for ambitious youngsters who are trying to carve their niche in the business world.
Wondering what the perks of being a young entrepreneur are? Apart from being the powerhouse of energy and having the advantage of being tech savvy, young entrepreneurs can afford to make mistakes, they have the time to learn from them. While our country is blessed with a thriving textiles and clothing industry, sectors such as ICT and business services, pharmaceuticals and life sciences, agribusiness, finished leather products and eco-tourism are being considered as emerging sectors, which give young people the opportunity to experiment and grow as entrepreneurs. Apart from that, Dhaka Chamber of Commerce and Industry (DCCI) in assistance with the Bangladesh Bank has undertaken a project called E2K, which aims to create 2000 entrepreneurs by giving young self-starters loan facilities, access to training programmes and other such opportunities.
When you don't belong to a business family, the urge to start your own business can sometimes be stifled by other members of your family. No matter now easy it is to utter the cliché “follow your dreams,” in reality it's never that simple. However, the success story of 32-year-old Tania Wahab has already become a source of inspiration for budding entrepreneurs.
Tania decided to start her own shop when she was a student of leather technology of Dhaka University. With a capital of Tk 10,000 and towering confidence to create a solid footprint in the leather industries, she started her small business. “It was incredibly tough in the beginning. I had no support from my family as I came from a non-business background. But I decided not to give up, as I believe that when young people want to do something on their own and believe in their abilities, they should have the strength of conviction and be a bit stubborn about their goal,” says Tania. That's how young Tania started Karigar, a brand of customised leather products.
Tania bought a sewing machine, hired one employee who was responsible to make the products, and rented her first shop in Hazaribagh in 2005. She wanted to be different from her competitors, who were more interested in producing copies of foreign products, and design unique products that captured the hearts of consumers. Karigar now employs 20 full-time workers and around 100 part-time employees, while its clientele includes firms like British American Tobacco (BAT) Bangladesh, Grey Advertising Bangladesh, BASIC Bank, Mutual Trust Bank, East West University, Chevron Bangladesh, Grameenphone, Sanofi Aventis and Orion Group. Apart from ruling over the domestic market, Karigar has also successfully exported her products to the UK in 2008 and in the following years she exported her products to Switzerland, Japan, India and Cambodia.
Anisul Haque Chowdhury Shohag had a simple dream. He wanted to be in charge of something that would give him the opportunity to live by the sea. He indulged in his desire to stay close to the sea by arranging surfing lessons for tourists in Cox's Bazaar. Eventually, however, he thought that the beach town was an ideal setting for a small, intimate café. “It cost me around Tk four lakhs to set up the first Mermaid Café in Cox's Bazaar in 2004. I collected the money from my family and rented a piece of land in Kolatoli. My plan was to involve as many local youths as I could in this venture. I wanted to create new job opportunities and thankfully, succeeded in doing that. Today most of the people working in Cox's Bazaar are locals or young people from neighbouring areas,” says Shohag, Managing Director of the popular Mermaid Eco Tourism Limited Bangladesh.
“In 2008 we thought of opening a resort on Pechar Dwip. We bought a small piece of land from the profits we earned from Cox's Bazar's Mermaid Cafe. We set up an organic garden and the cafe's produce came from that garden. At that time, visitors would come to Pechar Dwip for a day and many visitors would come to our resort,” he adds. While the company incurred costs of around $1.5 million from its initiation till date, it now has a market value of over $20 million.
Young to-be entrepreneurs mostly worry about the initial source of investment, but this capital can be arranged from a number of venues, believes Shafayet Bin Nabi, who ventured into the business world after establishing his own small buying house as a student of North South University in 2010. “I had to put in a very small amount to open my buying house. But that gave me the opportunity to invest in larger business plans. After graduating in 2012, I was able to buy a small share in Dream Knitting, a garment accessories factory located in Chittagong EPZ. After I joined the company, I made a few changes in the management and other processes, and that helped the company to generate more revenue. Gradually, I was able to buy more shares in the company,” says Shafayet, who is now the chairman of Dream Knitting.
One should aim at obtaining a loan from the bank if they are thinking of starting their own business, suggests Shafayet. It would therefore be easier if people launched a small business as it would be much easier to collect the necessary funds, he adds. “Once you are able to establish your reputation in the market with your business, no matter how small it is, it will definitely be easier to get a loan from any bank. Moreover, it is important to have a concrete business plan, which must include a proper budget scheme. If you are a young person who intends to request a business loan from a bank, I would advise you to include provisions for legal fees, licensing fees, wages, alongside supply costs, in your budget plan,” says Shafayet.
Thirty-six-year-old Rajeeb Samdani's Golden Harvest has become a pioneer in manufacturing and distributing frozen ready-to-cook products. The company buys the best raw materials from all over Bangladesh and procures them from the regions known for these materials. Samdani, the director of Golden Harvest Agro Industries Ltd, says that launching the first ever purpose-built frozen food processing plant in the country was a great challenge. “Initially, we were only export-oriented but as our business grew, we discovered that our local market also had a demand for these kinds of ready-to-cook food,” remarks Samdani. From the last four years, Golden Harvest has been collaborating with the USAID, which helps them to source raw materials from all over the country, and also assist them in product development and local and global marketing under the organisation's cold chain management programme.
“If you need capital for your enterprise, you could approach foreign development agencies like USAID which are ready to invest in unique initiatives of young entrepreneurs,” he added.
However, would-be entrepreneurs cannot merely focus on financial assistance while starting their own enterprise. Starting from writing a proposal for loan sanctions to developing a business plan focusing on marketing strategy and developing a production plan, an entrepreneur needs to know it all.
“We have observed through interactions with these young entrepreneurs that they are mostly in need of knowledge, skill and confidence to start their projects. Considering the importance of training for skill development, the Dhaka Chamber of Commerce and Industry (DCCI) with the help of Bangladesh Bank have taken the decision to continue with their training programme of entrepreneurship development as an ongoing process through their own business institutes,” says Kazi Md. Shafiqur Rahman consultant of the DCCI E2K Entrepreneurship Development Programme.
Even Shafayet Bin Nabi believes that financing is not all you need if you want to start your own business; having better skills than your competitors in the market helps you to scale the mountain faster and more efficiently. “I believe a young entrepreneur should determine how he can serve his customers better than the competition. It is unlikely that they will have a cost or price advantage in comparison to established enterprises. So instead I would suggest they optimise their customer service, convenience, design and customisation, and deliver speciality goods. In all cases, focus your efforts so that you stand out from the rest,” he adds.
If you want to enjoy the benefits of something in life, you have to be prepared to incur the costs. While you read about and hear of instant millionaires and billionaires, who seem to have the touch of magic that turns any business opportunity to gold, in reality every success story is more a path full of thorns than a bed of roses. Instead, the path is filled with entrepreneurs' consistent efforts to realise their dreams, the risky moves that you take, the hard work, disappointments, and repeated failures. At the end of the day, it's the passion of entrepreneurs and their determination that will decide whether they can or cannot sustain in the overly competitive market.
"Nothing good in life comes easy,” asserts Shohag. Knowing that struggle is inevitable if you seek success in any enterprise, Shohag has learnt to enjoy the difficult process. “A few years back the government ordered us to evacuate the land that our café was situated in but that was not the end of our problems; political leaders would claim free services in our cafe and this one time, a powerful government official even claimed a share in our profits. These problems only made us stronger. I believe that if the government didn't force us to evacuate our café in Kolatoli, I would definitely not have achieved the kind of success I did with Mermaid Café,” says the passionate businessman.
Terming Bangladesh as a land of opportunity, Rajeeb Samdani also believes that in order to be a sustainable young leader in the business world, you need to find your own way to combat the consistent challenges that you are bound to face. “You can't create entrepreneurs; one is born with a sense of business. Bangladesh being a developing nation, I believe that young people have a higher chance to grow and be successful in our country than in any developed country,” he says. Samdani argues that one couldn't even think of creating a business model based on frozen food production even ten years back in the country. But over the years, we have witnessed a dramatic change in our lifestyle and technology with local electronic companies opening up a huge market for this particular sector with the production of efficient refrigerators. “Keeping this in mind, the next batch of business leaders must be aware of the challenges and the opportunities for innovation that are evolving in this country,” says Samdani.
Tania Wahab complains that the leather industry of the country has not developed to the extent that it was hoped for. “Traders are partly to be blamed for that as they still prefer to import products made in China,Thailand and Taiwan instead of opting for local products. They need to realise that the same product of the same quality can be produced in our country. And the fact that we manufacture for the export market as well is testament to our capabilities,” she emphasizes.
Young entrepreneurs are brimming with ideas but the lack of financial assistance and government opportunities often crush their enthusiasm and energy to set up their own business. “After the recent bank scams, the government has put restrictions on the availability and accessibility of loans”, says Shafayet Bin Nabi. “Interestingly, you won't find a single young entrepreneur who is involved in any scam or engaging in irregularities. They are usually extremely diligent with the repayment of their loans. So I believe that the government needs to think up new strategies for the new generation of entrepreneurs.”
The government does not put much effort for the development of tourism in our country, believes Anisul Haque Shohag. “If you look at the allocation for tourism in the government's budget, the picture will be even clearer to you. Moreover tourism is not considered an industry so the facilities provided in this sector is still extremely poor. Porjoton Corporation, a government owned organisation for the development of tourism, concentrates on its own project. It only looks after a few government owned motels and nothing more than that,” states Shohag.
Despite the allegations against the government and government bodies, Bangladesh Bank's role as the central bank of the country towards development of entrepreneurship in the country is worth mentioning.
“The central bank is doing an appreciable job in creating funding opportunities in the agro industry,” says Rajeeb Samdani.
Bangladesh Bank has taken remarkable steps to ease young entrepreneurs' struggle of gathering initial capitals. A special provision is given for potential women entrepreneurs in respect to Small and Medium Enterprise (SME) credit disbursement of the bank to encourage enhanced participation of women entrepreneurs in the industrial development of the country. The government is also taking positive initiatives for young entrepreneurs to engage in sectors like agro-based SME enterprises. According to a report by DCCI, an amount of Tk 4.98 billion has been disbursed for young entrepreneurs till the end of June 2014.
If you are young and about to start your career, starting your own business might seem overwhelming. If you are equipped with funds, be it meagre and training, all you need is a little bit of motivation and support. Have them all? You are ready to go!
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