Dhaka: From the southernmost tip of Teknaf to the northern boundary of Tetulia, entrepreneurs in Bangladesh are now able to access government startup funding through an entirely online system. This new development eliminates the need for long-distance travel to seek financial support, paving the way for a more inclusive startup ecosystem across the country.
According to Bangladesh Sangbad Sangstha, the digitalized system allows entrepreneurs to apply for funding, specify the amount they require, and submit their company details online. Prime Minister's Adviser on Posts, Telecommunications and Information Technology, Rehan Asif Asad, highlighted that this initiative grants nationwide access to financial support ranging from Taka 5,000 to Taka 5 crore, sourced from a Taka 500 crore budget allocation aimed at fostering employment through new startups and freelancers.
Rehan Asif Asad emphasized that the allocated funds are designed as grants, not loans, to stimulate job creation. The startup board responsible for fund distribution comprises bureaucrats, private sector representatives, angel investors, and members of the startup community, ensuring a non-political and transparent process.
Nurul Hai, Managing Director of Startup Bangladesh Limited (SBL), noted that the application process is conducted with a high degree of professionalism and flexibility, focusing on the merit of each proposal. He stated that even applicants with just an idea and no formal documents are given due consideration.
The government's election manifesto prioritizes employment creation, particularly for freelancers and startups in the ICT and telecom sectors. Rehan Asif Asad mentioned that freelancers are generating approximately US$ 1 billion in foreign currency, and the government has facilitated direct connectivity with global platforms such as Stripe, Payoneer, and Wise to streamline payment processes.
Further easing financial transactions, the requirement for repeated C-form submissions for freelancers has been abolished. Startups also benefit from zero income tax and exemptions from VAT, Custom Duty, and Regulatory Duty based on their specific needs. These measures have been implemented over the last seven months under the current administration.
Rehan Asif Asad underscored the government's role in creating a conducive environment and policy framework for startups, drawing parallels with initiatives in countries like India, South Korea, and China, which have successfully built robust startup ecosystems with government support.
Finally, he acknowledged ongoing reviews of past irregularities in the startup sector and fund allocation, with a white paper under examination. The Bangladesh Financial Intelligence Unit of Bangladesh Bank is tasked with probing allegations of fund misuse in the startup domain.