Course Name: Introduction to Business

Course Code: 101

Small Business Ideas &

Opportunities in Bangladesh

Submitted to:
Ms. Tanuza Nath
Assistant Professor
Department of Management
Faculty of Business Studies
University of Dhaka

Submitted by:
Group Name: PIXIES (Group- 7)
Members Name:
Serial Name Merit

01 Mamata Sushil 793

02 Zarin Tasnim 794

03 Farjana Ahmed Tuli 805

04 Aurpa Dey 810

05 Amina Binte Elias 814

06 Hridoy Chandra Das 833

07 Ilma Islam 861

08 Sadia Islam Mithe 934

09 Elma Noorain Momo 6747(D Unit)

10 Ibrahim Khalil 108(Re-admission)

 Letter of Transmittal

25 July 2020
Ms. Tanuza Nath
Assistant Professor
Department of Management
Faculty of Business Studies
University of Dhaka
Subject: Request for considering the term paper.
Madam,
With due respect, I would like to state that, we are the students of Department of Management,
BBA 26th batch, University of Dhaka. We were assigned to prepare our Term Paper on “Small
Business Ideas & Opportunities in Bangladesh” under your supervision. It is our utmost pleasure
to inform you that we have completed our term paper. We have tried our best to gather vital
information and also tried to reflect the same in the term paper with our limited scope and
knowledge. We wish your hearty consideration, if there is any deviation in our term paper.
We, therefore, pray and hope that you would be kind enough to accept our term paper oblige
thereby.
Sincerely yours,
Elma Noorain Momo
Merit: 6747 (D Unit)
Section: B
Batch: 26th (2019-20), BBA 1st year
On behalf of the group “Pixies (Group No- 7)”
Department of Management
Faculty of Business Studies
University of Dhaka.

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 Table of Contents

Executive summary……................................................................................................................3
Chapter 1: Introduction………………………………………………………………………….4
1.1 Objectives of the Study………………………………………………………………………...4
1.2 Limitations…………………………………………………………………………………….4
1.3 Data Collection Method………………………………………………………………………..5
1.4 Sources of Data………………………………………………………………………………...5
Chapter 2: Small Business……………………………………………………………………….6
2.1 Definition……………………………………………………………………………………...6
2.2 History…………………………………………………………………………………………6
Chapter 3: Small Business Start-up……………………………………………………………..7
Chapter 4: Small Business Ideas in Bangladesh ……………………………………………….9
Chapter 5: Opportunities for Small Business Investment in Bangladesh……………………11
Chapter 6: Advantages of Small Business in Bangladesh……………………………………..13
Chapter 7: Restrictions Regarding Maintenance of Small Business…………………………14
Chapter 8: Sources of Funding…………………………………………………………………15
Chapter 9: Social Media Marketing Trends for Small Business……………………………...16
Chapter 10: Data Analysis……………………………………………………………………...18
Chapter 11: Conclusion………………………………………………………………………...19
Reference list……………………………………………………………………………………..20

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 Executive summary

This study tries to focus on the different aspects and ideas of small business in Bangladesh. It
upholds topics like ideas and opportunities of small businesses as well as ways to implement them.
The aspect of advantages and restrictions is also discussed in this paper.
The study collected information only from secondary sources such as various publications,
websites and academic books.
The paper is divided into different chapters based on the topics discussed. It begins with the first
chapter which covers the introduction of the paper, objectives of the study, limitations, sources of
data and the data collection methods for the study. In the next chapter, the meaning of small
business and its history in Bangladesh has been discussed. The third chapter is on small business
startups which discusses the respective steps to be followed to start a small business. Then the
study reaches its core chapters. On the fourth chapter, the ideas that can become successful small
businesses are discussed. The opportunities of small businesses in our country are discussed on
the fifth chapter. The next two chapters highlight the advantages and restrictions faced in small
businesses. It then proceeds to discuss sources of funding and the social media marketing trends
for such businesses on the eighth and ninth chapter respectively. After that the study highlights a
brief data analysis and concludes the term paper with a conclusion and references.

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 Chapter- 1
Introduction
Many people imagine themselves running their own business, making the key decisions, and
earning a profit. Becoming a small business owner can provide these opportunities. From the
perspective of Bangladesh, Small Business means an industrial establishment or unit which is run
mainly by hired labor and doesn’t normally employ more than 50 workers and whose land,
building, machinery doesn’t exceed tk 50 lakh to 10 crore . In manufacturing and service industry,
small business would be those respectively with assets worth tk 50 lakh to tk 10 crore and tk 5
lakh to tk 1 crore (excluding land, factory building but including replacement value). Employees
for manufacturing and service industry will be respectively 25 to 99 and 10 to 25. Small business
are privately owned corporations, partnerships, or sole proprietorships. There are successful small
business ideas in Bangladesh which are best for the people who want to start business with low
investment. The business option totally depends upon the individual. Through small business, there
create a lot of opportunities for a person to make a contribution to the economy of the country.
Besides, through small business, personal gratification, independence, financial gain and also
business control can also be gained. So, it needs no telling that small business contributes a lot to
the economy. Nevertheless, government regulation, competition, and labor problems may threaten
the business. But still small businesses are very popular in Bangladesh. Because anyone can start
a small business with his/her spirit, talent, own capital, capability of taking risk or by taking loan
from bank or NGO. Different organizations, NGOs and banks help the small business owners to
start their business properly. Small business contributes a lot to the economy. Besides, through
different ideas and opportunities of small business play a very important role in employment
generation, resource, utilization and income generation to a large segment of the society.
Therefore, they are vital for economic development of any country. So, small businesses are very
important for Bangladesh and for the economic welfare of the country.

1.1 Objectives of the Study:

The objectives of the study are given below:
 Find out the ideas of small business.
 Find out the opportunities of small business.
 Uphold the advantages and disadvantages of small business.
 Uphold the implementation of the ideas and opportunities of small business in Bangladesh.

1.2 Limitations:
With due respect to our teacher, we tried our best to get the best out of it but we have faced some
problems. Most of the problems were related with collecting necessary information. The others
are:
 It’s hard to work with the secondary data because of the authenticity.

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  Unavailability of information.
 Lack of experience.
 Lack of cooperation from people.
 Lack of connectivity among the group members because of network issues.
 Due to lockdown, we couldn’t work together as face to face teams.

1.3 Data Collection Method:

A quantitative data collection method is used for preparing this term paper. The survey was done
with the help of Google forms on social media.

1.4 Sources of Data:

For collecting the data, secondary sources were used-
i. Various publications & journals.
ii. Internet.
iii. Various websites related to small business.
iv. Book: Business for the 21st Century- written by Skinner and Ivancevich.

Small Business in Bangladesh

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 Chapter- 2
Small Business
2.1 Definition
People often imagine themselves running their own businesses, being the owner and taking
decisions on their own. But not everyone can do so for a variety of reasons including lack of
capital, shortage of manpower and other similar obstacles. The idea of small businesses made it
easier for people having a few drawbacks to start their own business and be the owner.
Small business is generally any business that independently owned and operated, is not dominant
in its own field and does not engage in any new or innovative practice. It is an integral part of the
total business scene in any country. It means the size of which is not big – the size again depends
on the yardstick one uses to measure. Small businesses are those type of businesses where the
production and rendering of service is done in a small scale. In manufacturing concern, a small
business involves converting raw materials into products needed by the society. On the other hand,
in the service sector, small businesses provide services like motels, accounting firms, advertising
firms, computer programmers, grocery stores, laundries, restaurants etc.

2.2 History
Before independence, Bangladeshi entrepreneurs owned about three-quarters of the total industrial
units but had very little control over them. After independence Tk 2.5million worth of small
industries were allowed to function under private ownership. Very soon after the independence,
the country’s inherited structural weaknesses were aggravated by mismanagement, inefficiency,
corruption and labor trouble. Until 1975, all sectors were in a chaotic situation resulting in a
stagnant economy. Government initiated to establish large number of nationalized industries. As
a result entrepreneurship development concept was totally lost.
1975-1982 Period: From this time government realized the need of entrepreneurship development
for economic growth. New private entrepreneurs were created with new enthusiasm. These
governments introduced mixed economic system.
1982-1990 Period: Privatization and deregulation policies started in some specific sectors.
Entrepreneurship was encouraged by formulating appropriate fiscal policies.
1991-2004 Period: Governments of these periods introduced market economy to a significant
extent. Initiated policies to liberalize the trade policies. Privatization board was constituted to
explore the environmental opportunities. Export-oriented privatization policy was introduced.
At present day, Bangladesh is striving to enhance the position as a middle income nation and pave
the way towards advanced economy. The small and medium industries have an increasingly
pivotal role to play. While our export is largely defined by the manufacturing sector, the small
businesses who generate majority of the employment are often not nurtured and do not get the
attention they actually deserve.

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Small businesses have been acting like a major tool of poverty reduction in Bangladesh. According
to BSCIC (2009) small industries accounted for 90.91% of total industrial establishments in 2008-
2009. The growth of small industries of Bangladesh is comparable with the growth of large
industries.

Chapter- 3
Small Business Start-up
Starting any business requires careful investigation, planning, determination, motivation etc. Small
business is not different from them. A person can improve his/her chances of business success by
taking the time to follow some steps.
The steps are given below:

 Identify Business Ideas and Opportunities

Choosing what kind of business to start can be an immobilizing task when confronted with the
multitude of opportunities. It’s important to determine where one’s lie and to understand one’s
personality type. Yet, equally important what skills are being brought to the table and whether one
is entering into a dying industry or a fast growing emerging business.

 Build a Business Plan

A person can improve his or her chances of business success by taking the time to write a business
plan. It is a written document that describes the business, the good or service, the customers, the
competition, the financing, and all activities necessary to enter business and make or sell a good
or service. It is the time game plan of the proposed new venture. The business plan is also called a
prospectus, proposal or blue book.

 Find Start-up Money or Capital

To start a business, one must invest in the business. The journey of finding start-up funds will be
different for each individual. It depends upon the individual. Finding the money one need may
come from a source one never thought of or may just end up being the frugal boots trap method.

 Business Name
What’s in a Business Name? The right business name will help distinguish one from a sea of bland
competitors provide the customers with a reason to hire that specific business and aid in the
branding of that company. Learn what one need to know to find a name for his/her business.

 Choose a Business Structure

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Deciding on the structure of business is not a decision to be taken lightly. Whether one choose the
popular LLC, a sole proprietorship or form a corporation; that choice will have an impact on one’s
business liability, fundability, as well as taxes due.

 Set-up & Determine Business Location

One of the multitudes of tasks in starting a business is the setting up of office. There are many
steps in office set up including where to locate the office (home or office space), buying the
necessary office equipment, designing the work space and getting supplies.

 Register the Business

Once one have picked the perfect business name, it’s time to make it legal and protect the brand.
If one is doing business under a name different than one’s own, he/she will need to register with
the federal government, and maybe state government too.

 Get Business License & Permits

Starting a small business requires the mundane, yet necessary paperwork and regulations. Setting
up a small business may require an employer identification number (EIN) which is also used by
state taxing authorities to identify business.

 Get Business Insurance

As a new small business owner, one have the responsibility to protect his/her business by doing
small business insurance.
 Create an Accounting System
Setting up accounting system will help one understand the financials of running a business.

 Others

 Know 4P
 Open a business account (Government or Private)
 Build local and international network
 Analysis the market and the competitors
 Pay tax and vat honestly

Starting a business with no plan, goals, or directions even with those steps will lead to failure. So,
to start a small business, one have to follow those steps as well as cope up in the competition with
its rivals. A small business organization must improve its personal skills. A program of growth
must be thought out carefully.

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 Chapter- 4
Small Business Ideas in Bangladesh
1. Stationary supply business:
A stationary shop is the best option while your investment is low. It is a local business idea but
very profitable. Stationary is needed by everyone from students to corporations little and
enormous. Besides school, college, the university is the perfect location to start.
2. Fruits plantation:
Bangladesh is highly suitable for the cultivation of crops such as banana, mango, tropical fruits
and pineapple amongst others. If you establish your own fruits plantation, you wouldn’t only have
to supply to the local markets but also to international market. Bangladesh is one of the largest
exporters of tropical fruits simply because it is cheaper compared to what you get from other
countries.
3. Cooking classes:
Starting cooking classes is one of the great business ideas from home. Just like fast food joint, this
business too requires minimum capital investment. If you cook delicious food then you should
consider starting a cooking classes.
4. Day-care Business:
Single parents and nuclear families are always short of time to take care of their children. Hence
there is always a demand for compassionate childcare professionals. It is not only the best business
to start with little money but also provides flexibility recession resistant and non-seasonal market.
5. Wedding Photography:
Wedding photography has become grander and fetches handsome pay per project. Photography
business often grow by word of mouth so create a Facebook page where you can tag recent clients
which will show up in their friends’ newsfeed as well. To hone photography skills one can either
take online wedding photography classes or learn by reading guide lines.
6. Business plan writing:
The business plan writing business is very unique in Bangladesh. One of the best small business
ideas for seasoned business owners ready for their next venture is a business planning services.
This is creative ways to make money in Bangladesh but needs hard work.
7. Open a juice bar:
Starting a juice business can be a healthy and profitable venture.The key is deciding on which
types of juice to sell.Some juice bars sell a variety of vegetable and fruit juices while other offer
protein shakes to attract body builders and workout enthusiasts.
8. Event management:

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Bangladesh is one of the good aspects where there is a great demand for the event management
business. This is because of not only the largest population but also the developing economy of
the company as well. Event management field is spreading like a forest fire as more and more
people are ready to throw any amount to make their parties, anniversaries and occasions to be
remembered for ages.
9. Dairy farming business in Bangladesh:
Starting a dairy farming business in Bangladesh is one of the best business ideas. This is a long
term business. Dairy industry is growing day by day in Bangladesh. A huge amounts of people
directly or indirectly related with this industry. A small dairy farm is better than a salaried job.
Because a very little number of people face losses on this industry. In the farming business, the
dairy farm would be the number one business
10. Book store:
Bangladeshis are avid book lovers. They prefer books over many things and buy books regularly.
This is the reason for you to consider the book store as a profitable business ideas in Bangladesh.
Apart from academic books, there are other useful books that people are loved to read. If you are
a book lover then you should definitely start your book store. Also, books have the highest margin
among other business.
11. Coffee shop:
In Bangladesh, the demand for coffee as a hot drink during an office meeting or leisure time has
increased quite a lot in recent years. The youngsters also prefer coffee shop as their hangout zone.
There are some popular name of coffee as Espresso, Cappuccino, Americano, Latte, Mocha etc.
The effect of inclination towards globalization among the youth has resulted in the preference for
coffee in Bangladesh because they consider it a symbol of globalization.

Different Small Business Ideas

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 Chapter- 5
Opportunities for Small Business Investments in Bangladesh

1. Food Processing Company

The food processing sector in Bangladesh is indeed a thriving industry simply because of the cheap labor
and cheap raw materials that are available in the country. If one is an accredited investor and is looking
for a place to establish a profitable company, then he should consider establishing a food processing
company in Bangladesh because of all the positives one stands to gain.

2. Rice Farming
If one is game with farming as an investor, then he may want to consider giving rice farming a
shot! Bangladesh is one of the largest producers and exporter of rice globally and the market is
still very much open for new investors. If he means serious business, he should not only engage
in rice farming, he should also be involved in rice processing, bagging and exportation as these
are ways to generate more profit.
3. Textile and Garment Manufacturing
No doubt Bangladesh is recognized globally as one of the leaders when it comes to the
production of textile and garments. This is so because the country can boast of cheap and vibrant
labor and also cheap raw materials. Some big – time textile manufacturing companies in
developed countries have their textile and garment factory established in Bangladesh because of
cost effectiveness.
So, even if one doesn’t intend to live in Bangladesh as an investor, he can consider establishing
his own textile and manufacturing company there and he will be sure to continue to reap good
returns on his investment.
4. Open a Micro – Finance Bank
Bangladesh is the birth place of micro financing and if one chooses to establish his own micro –
finance bank, then rest assured that he would sure make profits, because the business concept is
well understood and accepted by its citizens. If he intends establishing his own micro finance
bank in Bangladesh, he would be required to have certain financial base and pay an amount
before he can be granted a license operate.
5. Fruits Plantation
Bangladesh is highly suitable for the cultivation of crops such as banana, mango, tropical fruits,
and pineapple amongst others. If one establishes his own fruits plantation, he would not only
have to supply to the local markets but also to international markets. Bangladesh is one of the
largest exporters of tropical fruits simply because it is cheaper compared to what one can get
from other countries.

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6. Seafood and Fish Business
Another highly thriving business one can establish in Bangladesh is seafood and fish business.
With a population of over 160 million people, one can be sure of loads of people patronizing him
and if he chooses to go into exportation, there will also be a large international market waiting
for him.
7. Freight Forwarding Business
Most of the goods produced in Bangladesh are exported to the rest of the world hence a very
thriving Freight forwarding industry. All one would need to do to enter into this line of business
is to register his company, obtain his operational license from the government, get a good
location for his office and then market his services to companies that are into the production of
goods.
8. Tea Production Company
The soil composition and climatic condition in Bangladesh is highly suitable for the cultivation
of tea. So, if one is thinking of a business to establish in Bangladesh, then one should consider
starting one’s tea production company.
The good thing about this kind of business is that one might not only have the over 160 million
people in Bangladesh as his target market, but also the rest of the world. It is a viable business
and he won’t have to struggle to market his tea to the global market especially if it is well
packaged and branded.
9. Barbing Salon
If one knows how to give a good haircut and is looking for a business that requires low capital to
start in Bangladesh, then one should consider establishing his own barbing salon.
All he would need to get started are; a shop, one or more clippers, a big wall mirror, a small
power generator, supplies of powder, after shaves, amongst others. Once he rent a shop in any
part of town in Bangladesh, he is sure to have loads of people trooping to his barbing salon even
without advert.
10. Water Refill Station
Good and portable water is a major requirement by many household and even offices in
Bangladesh. If one is looking towards establishing one’s own business in Bangladesh, then he
should consider starting a Water Refill Station. It is indeed a profitable venture.
These are some of the highly profitable and easy to start businesses in Bangladesh. It is
important to point that one of the major challenges entrepreneurs face in Bangladesh is power; so
if one intends establishing one’s own business in Bangladesh, then he should create a budget for
power generating sets.

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 Chapter- 6
Advantages of Small Business in Bangladesh
Bangladesh is a second largest country who exports garments goods and a rising star in the industry
of pharmaceuticals. The government has adopted an ‘Open Door Policy’ to attract foreign
investment to Bangladesh to stimulate the rapid economic growth of the country. Besides, the
location of the country is ideal for global trade with access to the international sea and air routes.
The fiscal and non-fiscal incentives come with the ‘Open Door Policy’ for the investors. Here is
an open window of possibilities in the small business sector for some specific reasons.
There is the quota-free and duty-free access to some Bangladeshi products in the EU, USA, Japan,
and Australia etc. Also, it’s obviously potential for a further increase in domestic consumption
because it has a rapidly growing domestic market and, which is nearly 164 million.
Also, there are huge skilled workforces that are disciplined, easily trainable and low-cost workers
suitable for any labor-intensive industry.
An abundant supply of natural gas, water, and fertile land are great endowed of the country. Here
the potential investors can find a congenial investment climate, free from cumbersome procedures
and this is the primary objective of an EPZ.
Overview of the Advantages of Small Business in Bangladesh
1. Constantly growing GDP
Bangladesh’s rapid economic development is its surging GDP is one of the most notable indicators.
In 2017, the GDP of Bangladesh continued to increase at 7.3%. It’ll continue to grow in 2018 and
2019 as well, at 7% and 7.2%, respectively based on the current estimations by the Asian
Development Bank.
The average GDP Growth for emerging and developing countries is 4.9% according to the IMF
reports. As a result, the GDP growth of Bangladesh has been outstanding compared to other
emerging markets.
2. Lowest labor cost
Bangladesh is an over populated country. As a result, here labour cost is too much cheaper in
comparison with other countries. It is $63 (BDT 5300), the average garments worker salary
monthly while it is about $347 in China for example.
This is also why investors would like to invest in our country.
3. Vast, skilled and young workforce
We have a vast manpower. If we can give them proper training, they would become skilled and
asset for our economy. This young workforce must have dedication to their work which is also a
shining benefit of small business.
4. Self-employment- reduction of unemployment

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In our country, every year a large number of young people are graduating but job sectors are not
increasing in same ratio. So if they start small business, they will become self-dependent as well
as the unemployment rate of our country will also be reduced. So it is also another advantage of
small business.
5. Online based economy
At present people are being more attracted to online shopping. Here small business can play a good
role. By using internet, it is easier to promote of any kind of business and also effective to work
from home.
So we can see that small business has bright future in our country as it is a great source of self-
employment, entrepreneurship, reduction of unemployment problem and so on.

Chapter- 7
Restrictions Regarding Maintenance of Small Business:
Financial and non – financial indicators together are necessary for the economic success of this
sector. The country’s small businesses face problems like lack of technical know-how, shortage of
long term financial support, lack of skilled manpower, marketing links, research, and development
opportunities.
Small businesses often face problems like bankruptcy due to under capitalization. The owners need
to be mindful about having the proper amount of funds, generating enough revenue, having proper
contribution margins etc.
Many small businesses face problems like ‘entrepreneurial myth’ which is an assumption that an
expert in a given technical field will also be an expert at running that kind of a business. These
may arise due to the failure to distinguish between small business managers as entrepreneurs or
capitalists.
Small business is often outshined by larger business which reduces their chances of success. Such
businesses lack Business plans, a tool considered to be one of the most important factors for a
ventures success.

To overcome these problems & to develop small business in our country in future below mentioned
factors should be accepted:
 Training
 Motivation
 Loan facility
 Cost control training
 Proper application of rules
 Appropriate place
 Opportunity to capital utilization

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Small industries in Bangladesh have been flourishing due to the support received from
organizations like Bangladesh Small and Cottage Industries Corporation (BSCIC). BSCIC has
been supporting the small businesses of Bangladesh since 1957 through activities like flexible loan
policies, assistance in development, conducting advisory services, creation of jobs, skill
development, development of linkages with other industries etc.

Chapter- 8
Sources of Funding
Small businesses use various sources available for start-up capital:
 Self-financing by the owner through cash savings, equity loan on his or her home and or
other assets.
 Loans or financial gifts from friends or relatives
 Forming partnerships.
 Grants from private foundations, government or others sources.
 Private stock issue
 Angel investors
 Loans from banks ,credit unions, or other financial institutions
 SME finance, including collateral-based lending and venture capital, given sufficiently
sound business venture plans
 Some small business are further financed through credit card debt –usually a poor choice
,given that the interest rate on credit cards is often several times the rate that would be paid
on a line of credit at a bank or a bank loan.

Recent research suggests that the use of credit scores in small business lending by community
banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit
scores of the small business owners rather than the more encompassing small business credit scores
that include data on the firms as well as on the owners.
The SBA works with lenders to provide loans to small business. The agency doesn’t lend money
directly to small business owners. Instead, it sets guidelines for loans made by its partnering
lenders, community development. With a vision to take banking solutions to the ‘unbanked’ small
business, BRAC Bank Limited, commenced it as a scheduled commercial bank in 2001. Taking
inspiration from its parent organization, BRAC Bank introduced small ticket loans to bring the
grassroots entrepreneurs under the umbrella of formal banking. World Bank Group’s IFC and
Netherlands based FMO are major partners of BRAC Bank in offshore banking and SME
financing. BRAC Bank is the only active member of Global Banking Alliance for banking
practices. Governance compliance, ethics, transparency and accountability are the cornerstones of
the bank’s banking model. Today, BRAC Bank is the first Bangladeshi bank that has crossed USD
1 billion market capitalization. We have the highest rural penetration with 75% of our total Small
business. Since its inception in 2001, the bank has disbursed more than 650,000 SME

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entrepreneurs across the country and has contributed significantly, to the socio economic
development of Bangladesh.

Chapter- 9
Social Media Marketing Trends for Small Business
Small business owner constantly looking for new ways to get his/her company’s brand on the radar
of potential customers. Social media in business is a great way to engage with current customers
as well as attract new ones. In Bangladesh, social media has evolved over the last few years to
become the most affordable springboard for brand communication through engaging customers in
innovative ways. Interacting with customers on social media is an important marketing strategy
for small businesses.
Social Media Strategy for Small Business:
The Big Five:
One need to take the first step in creating social strategy for businesses by setting up business
accounts on page on each platform. If the username or URL will be his/her business name ( or as
close to his/her business name as possible), then the customers can easily find him/her online
platforms like-
 Facebook
 Twitter
 LinkedIn
 Instagram
 Youtube
-are very popular among all the social media sites. Once one has set up account on those platforms,
he/she needs to enter all the necessary information regarding their small business and most
importantly he/she has to add the logo of company as the account photo.
5 Reasons Why Social Networking can help ones Small Business:
The internet and particularly social media have opened the world of global interaction.
The reasons are:
i. Social networking makes relationships more personal.
ii. Helping to promote the small business more effectively.
iii. Helping to get valuable insights about audience and business.
iv. Social networking induces loyalty.
v. Social media increases website traffic.
Benefits of Social Media for Small Business:
Social media is the most fast, inexpensive, and effective way to reach almost half of the country’s
population. Small businesses and entrepreneurs are currently using social media sites to promote

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advertisement and sell products and also reach to its preferred customers. Besides, there are more
benefits of social media for small businesses. They are:
 Increase brand awareness, humanize the brand.
 Establish the brand as a thought leader.
 Increase website traffic, generate leads, and boost sales.
 Promote content, go viral.
 Helps in reputation and crisis management.
 Monitor conversations that are relevant to the brand.
 Keep an eye on the competitors.
Mostly Used Social Media Sites for Small Business in Bangladesh: Facebook
Facebook, one of the largest social networking platforms, has branched out from being a mere
culture sharing hub. Not only limited for communication and shading opinion, the networking
platform has also provided an arena for business across the world, including in Bangladesh. Small
business on Facebook is currently reshaping conventional marketing methods.
Products in Demand
According to various E-Commerce page owners, the most sold products on Facebook are cotton
clothes, Jamdani, Muslin and Silk sarees, and various types of dresses for girls and the women.
Meanwhile the male demographic of customers prefer buying Punjabi, formal to casual shirts, t-
shirt, jeans, leather belts etc.
Who are they?
Out of many categories of E-Commerce pages on Facebook, the Dhaka Tribune has found that
these entrepreneurs are mostly women who spend their leisure time running a page and
systematically doing business on Facebook.
What Do Data Say?
According to internet, World States data compiled as of June 2017, there are around 21 million
Facebook users in Bangladesh. According to Facebook analytics, “Mansha”- a virtual boutique
house for designer sarees, salwar kameez, and bridal wear currently has 8,37,138 likes and
8,31,579 followers as of November 8, 2018. All these pages are not only Facebook based shops,
as they all have their own websites through which they operate their businesses.
Risks of Cheating is Also Associated:
Even though Facebook business pages are at a rapid surge, risks of being cheated ensure as well.
As many customers perspective, if Facebook based businesses can be brought under a legal system,
for instance through the mandatory use of a trade license or any other document, for both customers
and entrepreneurs, it may improve the scenario.
So, social media plays a very prominent role to implement the ideas and opportunities of small
businesses in Bangladesh.

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 Chapter- 10
Data Analysis
In Bangladesh, micro, small and medium entrepreneurs contribute about 25% of GDP comprise
over 95% of industrial units, and provide 86% of industrial jobs. In 2019, there were 1.3 million
SME’s responsible for about Tk 400 billion a month in sales and Tk 60 billion a month in wages.
These number give us a general idea of the potential losses due to lockdown under pandemic.
To get a sense of expectations regarding
losses within SMEs, a survey was
conducted encompassing 375 businesses
and 365 workers. The sample was drawn
from 15 regional clusters mapped into 5
industrial sectors- electrical, light
engineering, and plastics, leather
processing and goods, garments, agro-
processing, and handicrafts.
Survey results were presented by the author
at a webinar sponsored by the Bangladesh
Institute for Development Studies. The summary finding is that, SME owners expect revenue
reductions in 2020 relative to 2019 to reach 66% on average. As shown in the graph, expected
revenue losses vary by industrial sector and by enterprise size measured in number of employees.
The most severely impacted groups, with expected revenue losses of more than 80% are large
manufacturers in the leather sector and small operators in the agro-processing sector. Because of
the pandemic, revenue losses in the agro-processing sector of small operators. That small agro-
businesses anticipate being hit so hard which may reflect supply and marketing disruptions.
Leather, garment, and handicraft businesses generally expect revenue reductions of 60% or more.
These are sectors in which purchases are more discretionary with demand thus likely to fall. In the
electrical, light engineering, and plastics sector; expectations are for revenue losses of around 50%
in small sector. In large and medium operators, revenue reduction is in average rate. But in the
smaller part, revenue reduction is more in all the sectors shown in graph.
So, from the graph, it is shown that, for the lockdown caused for COVID-19 pandemic, there
creates a huge revenue reduction in small, medium, and large sectors in Bangladesh, especially in
the small part.
Economic Contribution:
Small and medium sized Enterprises (SME) are the backbone of the national economy in
Bangladesh. This sector is playing a significant role in developing the economy of our country.
The total number of SMEs in Bangladesh is estimated to be 79,00,000 establishments. Of them,
93.6% are small and 6.4% are medium. The contribution of SMEs to the GDP is 25% in
Bangladesh. The role of SMEs sector is immense to alleviate for the densely populated countries

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like Bangladesh where SME sector provides huge employment opportunities with much lower
economy, especially in the small business sector. The govt. has taken necessary steps to improve
this sector which is a positive sign to improve the GDP growth rate.

Chapter- 11
Conclusion
Small business plays an important role to the welfare and economic development of Bangladesh.
Small business transform and develop communities. The research has demonstrated the ideas and
opportunities of small business, the startup process, advantages and obstacles, sources of funding,
and influence of social media. For the friendly environment, scope, business ideas and
opportunities, the popularity of small business are much in Bangladesh. But still, the entrepreneurs
face many difficulties to implement their ideas. The challenges towards success of entrepreneurs
of small enterprises have depicted several key issues relating to demographic and environmental
factors. Despite many barriers to success, a new entrepreneur clan has arisen in the country taking
on the challenge to work in competitive and complex economic and business environment.
Besides, the entrepreneurs of Bangladesh must be recognized as an important unit contributing to
the economic growth of the country since small business sector is going to attract and create jobs
for many more Bangladeshis. It will reduce employment and poverty as well as improve the
economic situation. So, Bangladesh government must come forward to enhance the entrepreneurial
capabilities of entrepreneurs through funding and by providing skill development facilities.

The End

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