IT entrepreneurship is one of the fastest growing sectors in the business industry in Bangladesh. The country is part of the South Asian region which is recognized as having great potential for IT sector development because of the availability of skilled labor force and affordable wage rates. Bangladesh also has an advantage against its competitor countries as the English language has long been entrenched in its educational system, making it the country’s second language.
However, the country is not excused from facing challenges that might hinder its IT entrepreneurs to move forward.
Bangladesh has been building its infrastructure for the past few years. Recently, the country has established global connectivity by connecting to the Information Super Highway. However, while IT entrepreneurs could highly benefit from this expanded connectivity, the cost for high-speed internet connectivity remains a little high. This poses a problem to local IT entrepreneurs who are not as financially capable as their foreign counterparts.
Moreover, electricity supply in the country remains inadequate. Stable electricity remains to be the top concern for the IT industry in Bangladesh. This means that while IT entrepreneurship in Bangladesh has become very promising because of global interest in investing in country’s IT sector, it might experience difficulty in responding to the needs of larger firms.
While the government of Bangladesh is convinced that IT sector development is an important economic activity, it has been observed that only a small number of IT firms have access to formal financial institutions. Small and medium IT entrepreneurs wanting to expand their business might not be able to do such because access to these financial institutions is limited.
IT entrepreneurs are challenged to seek for alternative sources of financing which delays the process of actually putting up their business. Moreover, applying for the necessary licenses and permits to operate business in Bangladesh also takes a very long time. It may even take six months to secure all permits and licenses.
The online payment processing system is not yet satisfactory in Bangladesh. Paypal is yet to come though moneybookers/skrill and Payza is operating in Bangladesh with certain limitations. The banking structure has not been fully familiar with online payment processing system. So, IT entrepreneurs often face problems to convert their dollars into Bangladeshi taka.
Recent studies have shown that the flourishing IT sector in Bangladesh is attributed to the growing investment of foreign companies and because of the country’s highly educated, skilled, and self motivated young graduates and professionals. IT entrepreneurship in Bangladesh is propelled by the dynamism of its young population.
However, the country is faced with the threat of experiencing brain drain as its young and skillful labor force are still thinking of working overseas rather than staying in their locale. The absence or lack of training institutes or so-called IT parks form part of the reason why the country’s young work force would opt to seek employment abroad. Studies have shown that IT practitioners favor the establishment of IT parks and training institutes in the country to support IT sector development. In this way, more of the country’s young professionals will have an opportunity to develop their skills and abilities in their homeland.
Just like any other business, IT entrepreneurship in Bangladesh needs to be nurtured and developed. Its great potential will be of no worth if nothing is done to address the challenges it faces today.
