Business-Analysis
An Overview of Shuttle: A Promising Mass Transit Startup in Bangladesh
Dhaka's roads are infamous for their chaos. Reckless rickshaws, daredevil bikers, and unruly buses are a nightmare for the commuters. Three friends tried to make sense of the madness and ended up creating a mass mobility service startup three years ago, aiming to simplify transportation in the capital.
Tapping technology, the mobility startup uses fewer vehicles to move more people -- particularly women and students -- conveniently from one part of the city to another. Launched in 2018, Shuttle has since expanded broadly and added 'Shuttle for Business' and 'Rental Services'. Besides, the company has also raised funds for future expansion.
How it all started
Shuttle was founded by Reyasat Chowdhury, Jawwad Jahangir, and Shah Sufian. The journey of Shuttle started by addressing the women's daily commuting problem. The overpopulated city does not even have a safe mass transportation system for women. Addressing this problem, Jawwad and Reyasat thought of making a change to the city's transportation system, which will also make a positive impact on society.
And in 2018, Shuttle started its journey on Dhaka's roads with two microbuses on July 15. It was initially launched for ferrying university students.
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Initial Investment
Investment is the core element to run a business or service, and it is very critical for any startup in its early stages. But Shuttle got lucky, and it received a considerable amount of investment from Robi through their r-Ventures programme.
Initially, they have started 'Shuttle for Women' service, focusing on the corporate women and university-going students. However, the company faced challenges in the first months of its service. Initially, gaining trust was highly challenging as they were working with a specific market segment. But, the founders were able to come up with a proper execution plan and that helped in establishing the brand.
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Shuttle Services
Although the company started as a women-centric transportation provider, they have introduced two more services in their product line. Let's get to know each of them.
Shuttle for Women
As we have mentioned earlier, it was the primary service. Shuttle for Women currently serves seven routes in Dhaka -- Dhanmondi to Rampura, Mirpur to Bashundhara, Mirpur/Mohammadpur to Gulshan, Mohammadpur to Bashundhara, Uttara to Bashundhara, Uttara to Gulshan-1, and Dhanmondi to Bashundhara. The fare starts from Tk 80 a ride. The service starts early in the morning and runs till late at night.
Shuttle for Business
Many companies provide their own transportation for their employees. Therefore, they need to maintain a different department for that. To eliminate this need, Shuttle started 'Shuttle for Business.' It is a corporate pick-and-drop service for companies with customised routes.
Suttle for Business provides service through a special app for businesses. Moreover, the 24/7 hotline support also helps to solve any problem. The app also has a real-time dashboard for human resources. Most importantly, late-night pooling can help an organisation to drop off their employees after dark to different areas through the shared transport facility.
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Rental Service
This is a new addition to the service. It works like a traditional car rental service but in a digital way. You can book a car for your trip early from four different vehicle types, including Hiace, Noah, Sedan, and Coaster. The company promises to get you the best price in the town. Besides, you can make the payment online and go anywhere in Bangladesh. The trained driver ensures the safety of the tour.
How Does the Shuttle Work?
The working procedure is simple, like a piece of cake. Depending on the service, you can book your ride via the website or the app available for both Android and iPhone. For the Shuttle for Women service, you will need to select the route and choose your time for the ride from the time listed. However, if you are an organisation and looking to offer a ride to your employees, you can contact Shuttle directly and or even register through the website and get your customized route.
Currently, they have two different apps to offer their service. One app is for the registered users, and the other app is used by trip managers. Using the app, customers can book riders, track vehicles, and know the approximate time of arrival along with the trip manager's information.
Shuttle offers air-conditioned micro-buses where around 10 people can commute together. Overall, Shuttle operates on 10 routes in Dhaka city and provides service to more than 30,000 users.
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Current Situation of the Company
Shuttle is growing, and recently it has managed to raise $750,000 in a seed round. Impact Collective (The Ventures, South Korea), Robi Axiata Limited (r-ventures), and Bangladesh Angels Network (BAN) participated in the seed round. Apart from these investors, Foodpanda Bangladesh's Co-founder & Managing Director and Uber's Head of Mobility Innovation Programs also participated in the round.
Moreover, the Shuttle is also eligible to receive Impact Ready Matching Fund of up to $100,000 from Biniyog Briddhi. However, the company also raised some investment from a pre-seed round from Robi Axiata Limited -- around $1 million in total.
The future is bright for Shuttle in Bangladesh. The journey continues...
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Top 10 Co-working Spaces in Dhaka
Whether you’re an up-and-coming startup or a small business, chances are you will focus on cost minimization opportunities. With the soaring rent prices in Dhaka, it is becoming increasingly difficult for small businesses to maintain an office space full-time. The pandemic has also reshaped how we interact in office space and it has become more and more apparent that works can be outsourced in homes. However, there is still the need for a physical workspace. Be it for meetings or going over the organizational strategies, the in-person interaction in office space trumps online communication. So what's the alternative to a full-time workspace? Enter co-working space where you can rent an office area for your desired amount of time.
Scopes of co-working spaces at Dhaka in Bangladesh
Let’s have a look at the 10 best co-working spaces in Dhaka.
Hub Dhaka
Situated in Mirpur, Hub Dhaka is a pioneering co-working space. The co-working facilities in Hub Dhaka are provided through membership. You can choose from either the basic or premium package. The Basic package comes at 5000 BDT whereas the premium one will cost you 9000 BDT. Each package has its features and you can choose as per your budget and requirements. You have access to the office 6 days a week. Hub Dhaka can be a perfect choice for up-and-coming startups that requires regular brainstorming and office works at a limited budget. You can check out more about their membership process on their website.
Read: Taxation of Bangladeshi Freelancers in 2021
inHouse
The concept of inHouse came from a simple thought, to flourish idea and creativity. Situated in Dhanmondi, the place is easily accessible and sits among the central hubs of Dhaka city. inHouse can be considered as a den for artists, startups, small businesses, and entrepreneurs. The overall environment is set up to flourish your idea and promote peer communication. You get access to all the standard amenities as well as a library. The environment is perfect for brainstorming your next big project. Pricing varies depending on the availability. You can visit their Facebook page.
Bonik Co-working
Bonik co-working is another dedicated co-workspace in Dhaka. Situated in the Merul Badda region, the location isn’t exactly on the central landscape which probably helps them to keep the workspace booking at an affordable. Unlike other ones, Bonik has six different packages to choose from. The interior itself speaks of a professional office setup with tall the standard amenities. You can even book a trial session to see whether it works for you or not.
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JMC Shared Office
The JMC is a foreign venture on local lands. The shared office space, situated in the diplomatic zone of Banani is owned by several Japanese people who ventured into the shared office scenario. In addition to providing state-of-the-art office space and amenities, the company also provides legal and HR support to aspiring and budding businesses. This is like a one-stop solution for all your office needs. The pricing of the office space is however on the expensive side compared to others. You can navigate to their website.
Moar
Moar is one of the first multi-location-based shared office ventures in Dhaka. Currently, they have a shared office in Banani, Gulshan Link Road, and Dhanmondi 27. Just like Bonik, Moar has put much emphasis to make the shared office area a utilitarian one. There is a separate meeting room, cubicles, and other standard setups as you would expect in any corporate-styled office. What's interesting is that even though the place differs, the pricing remains standard across all their locations. They have four different membership options to choose from, you can find the one that best works for you.
Read: The Difference between a Startup and a Small Business
Hive
Hive is another co-working space focused on the technopreneurs of Bangladesh. Situated right in the heart of Dhanmondi, Hive can be a perfect choice for you if you have a small team and need a place to go over your usual quirks. The place itself is essentially designed like a hive providing a quiet and perfect ambiance for office works. The package is designed based on the number of occupants. The usual facilities come standard as you would expect from a shared office space. You can directly contact them at the office or book a trial session online.
Shuru Campus
Derived from the Bengali word meaning ‘Start’, the Shuru campus offers unique stepping stones for all aspiring businesses and startups. Their shared office area, located in Banani is a huge open space that can be accessed without restriction. There are separate executive and meeting rooms as well but the open floor makes the environment more cordial all the while maintaining the office-like vibe. The views, as well as the setup, are perfect for office works with a dash of fresh nature all around. You can choose from their three existing plan. The plans are on monthly basis and that is something you should keep in mind before signing up.
Read The 7 Most Promising Tech Startups in Bangladesh
Locus BD
Locus BD is another virtual office space situated in Banani 11. The distinct feature of this co-working area is the range of facilities available. Locus BD promotes its office space as a one-stop solution for all its business needs. The floor space is designed as an open, semi-enclosed as well as a fully cordoned-off area for all types of business needs. The place is also offering special introductory rates for young entrepreneurs. Overall, if you want a co-working space that is easily accessible and has one of the better facilities, you should check them out. You can check for space available on their website.
Regus
The world-renowned co-workstation Regus has ventured into Bangladesh as well. Regus currently has two locations – one in Gulshan 2 and the other in Panthapath. Being an internationally acclaimed workstation, you can expect to see premium service and setup. Though the pricing is comparatively higher than similar co-workstations, there is a touch of elegance in everything that will surely make you fall in love with the place. You can book work hours here daily depending on availability.
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The Business Center
The last one on our list is the Business Center. Located in Gulshan 1, this cozy workstation is tucked among the greenery and concrete. The co-work space is inspired by workstations seen abroad. The distinct characteristic of this workspace is the flexibility of the schedule. Be it a small team or you alone, be it for a long time or a few hours, you can customize your booking however you like. There are several pre-fixed packages to choose from as well. Overall, the business center can be a great choice for co-work needs.
Bottom Line
With the increased integration of technology, much of office works can be done straight from home. But the quaint need for an office still remains and this holds strongly for up-and-coming businesses and startups. Luckily, there are a good number of co-workspaces running in the country which effectively helps you to cut out a fixed cost associated with office rent. A co-workspace is not only financially viable, but it also makes way for better flexibility and works life balance for the employees as well.
Read The Difference between a Startup and a Small Business
Taxation of Bangladeshi Freelancers in 2021
With over 650,000 freelancers in the country, the popularity and freelancing as a full-time profession have been on the rise in Bangladesh. The process got even more traction due to the pandemic and people losing jobs. For many, using their skills on an online platform has made way for an extra earning scope and in some cases, the only source of income. But with all that said, taxation is something that many freelancers do not consider while getting started on with freelancing. From the context of Bangladesh, freelancing doesn’t guarantee you a stable income and the job you’re going to get isn’t also regular. So, do Bangladeshi freelancers need to pay tax in 2021? Let's find out.
Taxation Law in Bangladesh
Before we dive into the details of the taxation law, the answer is no, freelancers in Bangladesh don’t need to provide tax against their income in Bangladesh as of right now. But the situation is soon going to change and it's something that you should prepare for.
The scope of taxation is huge and multidimensional. For relevancy, we will take into consideration the individual income tax that is in place in Bangladesh. Bangladesh has a no-tax threshold of up to 300,000 BDT and the minimum tax rate over the threshold amount is 5% going all the way up to 25%. So does the individual tax law apply to freelancers?
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State of Freelancing Earning
The individual taxation law doesn’t apply to freelancers in Bangladesh. Diving into the matter, we found two root causes.
First, most of the freelance work in Bangladesh happens through a middleman. That is, an established freelancer often outsources jobs to the relatively inexperienced freelancers in the country from freelancing platforms. There is often no proper official contract for this type of freelancing work. The jobs are also not listed as the outsourcers aren’t listed as an organization or a company. As a result, it becomes difficult to trace these incomes and bring them under taxation.
The second issue has to do with job regularity. Of the 650,000 freelancers in Bangladesh, some 200,000 of them gets the regular job. Even beyond that, only a handful of established and successful freelancers earn a taxable amount. In addition to that, the lack of a proper framework regarding freelancing has also been one of the reasons behind the proper estimation of freelancers and their earnings in Bangladesh.
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Taxation Law for Freelancers
In the income tax ordinance of 1984, it was clearly stated that if anyone who’s a Bangladeshi citizen provides service to a foreign organization or a person and receives monetary compensation, a 10% income tax will be imposed on the said earning. But according to the money law of 2018, anyone providing software or online service to any foreign entity or individual will not have to pay any tax. This applies to all the Information Technology Enabled Services or ITES. Almost all of the freelancers of Bangladesh are ITES providers in different freelancing platforms.
However, that isn’t the end of the problem. Due to the absence of PayPal, most of the freelancers of Bangladesh are forced to take their payment in dollars to their bank account through wire transfer. This is done through the Payoneer platform. However, since the bank doesn’t treat these transactions as service earnings from foreign entities, a 10% source tax is applied to them. As a result, even though the government has tax exemption in effect for the freelancers, the source tax still applies which ultimately drives down the earning of the freelancers.
The situation has been like this for quite some time now but due to exponential growth in the sector, and the growing surge of freelancers in the country, the government has decided to bring the freelancers under taxation. However, the move isn’t drastic and the entire sector will have tax exemption till 2024. That is, the freelancers will not have to provide any tax until 2024.
Read Passive Income Ideas in Bangladesh in 2021
Future of Freelance Taxation
To make the process of listing freelancing easier as well as get proper certification, the government has decided to introduce smart ID for freelancers. The smart ID feature, which is the first of its kind in Bangladesh will enable the government not only to track the earning but also bring all the freelancers into a single platform. The government plans on various developmental opportunities for the freelancers as well as skill generation to better compete in the international market.
Another scope of the ID is that from this year, the government would require freelancers to get a TIN certification. A TIN certification enables the freelancers to be government enlisted as well as legalize their earning. Even though the freelancers aren’t required to pay tax up until 2024, they will need to submit returns to the income tax division.
A comparative study found that the pay gap between freelancers depending on experience and the service sector is very high. Some freelancers may earn more than a million BDT in a single month whereas some can’t manage 10,000 BDT even. The case of high earners in Bangladesh is very low with the majority of the freelancers earning less than 15,000 BDT per month on average. Since there isn’t any proper framework regarding taxation rates for freelancers, it can be expected that the non-taxable ceiling of income should be higher than the individual income tax ceiling in existence.
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Bottom Line
Near about 65% of people in Bangladesh are below the age of 25. With a young population like ours, the scope of skill development and outsourcing the skills can be a promising end to reduce economic disparity in the country. Rather than going after traditional jobs, the youths can be encouraged to develop skills and start freelancing. With experience and proper skills, it is possible to earn a huge amount to address personal needs as well as contribute to the economic development of the country.
The 7 Most Promising Tech Startups in Bangladesh
Startups have been around for quite a while now in Bangladesh. The success of several startups has prompted many to venture into the field and take a dig at the market. However, the success of a startup depends on the idea, effort to realize the idea, and considerable risk intake. The high risk has caused many startups to fail. Yet there are some glaring examples of startups that are defying odds to make a change in the existing market process. Let's have a look at the 7 most promising tech startups in Bangladesh.
Pathao
One of the prominent startups of Bangladesh is Pathao. Founded in 2015 by Fahim Saleh, Hussain M Elius, and Shifat Adnan, the company is a major startup that changed the ride-sharing and delivery service landscape of Bangladesh. Initially, the company started its service as a parcel delivery platform through riders.
In 2016, the company started its ride-sharing service as well. The popularity of the platform grew instantly and in 2018, the valuation of the company stood at 100 million dollars. It was also the time the company reached a million registered user mark. Currently, Pathao operates in Dhaka, Gazipur, Chittagong, Sylhet, and Kathmandu.
In its initial days, the company received funding from RC Ventures, Alter Global, Provident Growth, and other firms.
Read The Difference between a Startup and a Small Business
bKash
Another prominent startup of Bangladesh is bKash. Back in the 2000s, mobile banking platforms were getting considerable traction. Two brothers Kamal Quadir and Iqbal Quadir wanted to introduce a similar platform in Bangladesh and to that end, they started holding talks with Sir Fazle Abed of Brac Bank. In July 2011, bKash came into existence as a joint venture between BRAC bank and Money in Motion LLC of USA.
bKash has been a key player noting that over 70 percent of the people lived in the rural area of Bangladesh and most of them were unbanked. bKash tapped into this need and initially started as a money transaction platform through mobile. With time, they have established other services like bill pays mobile top-up and payment to another e-commerce platform as well.
Today, almost 22% of the adult population of Bangladesh uses bKash with daily transactions of over 4.5 million times. bKash also gained investor from Bill and Melinda Gates Foundation as well as equity hold from Ant Financial. Due to the paradigm shift created by bKash in the banking sector, the platform was awarded the most innovative invention of Bangladesh in 2018.
Read Some Inspiring Women Entrepreneurs in Bangladesh in Diverse Sectors
ME SOLshare
One of the common gripes with developmental opportunity in Bangladesh is that the majority of the people lives in a rural area. Even though Bangladesh has made considerable strides in HDI, access to basic features like electricity is still a costly affair for many. To that end, ME SOLshare Ltd. ventured out to provide an affordable solar panel for electricity solution to the rural community of Bangladesh.
The technology introduced by ME SOLshare is revolutionary considering the peer-to-peer grid system where electricity from one home can be shared to another and excess energy can be sold as well. This not only helps people to illuminate their homes but also provides them with a scope to earn from the venture.
ME SOLshare has received backing from Sangam Ventures, Social Alpha, and Free Electrons and has been able to raise over 2.8 million in funding.
Read Online Business: How to Get Started from Home?
Zantrik
Most of the successful startups that you will see aren’t limited to traditional business models. Rather the idea is to better approach the client base with a solution that disrupts the market. For most of us, we go to a mechanic for an issue with our automobiles and bikes. But what if it's not in a state to be moved by itself?
The founder of Zantrik tapped into this necessity and created a platform where the automobile mechanic will come to you. suppose if your car or bike breaks down in the road, the company can send a technician in 30 minutes. You can also make use of their partner garages to get your cars or automobiles fixed or checked. They are currently available on both iOS and Android platforms. The company has managed to raise over 72k dollars in funding from black diamond ventures.
Read Passive Income Ideas in Bangladesh in 2021
ShopUp
The boom of e-commerce platforms in Bangladesh has been remarkable in recent years. Most of these e-commerce ventures are limited to run their business through F-commerce and social media platforms with manual handling of orders. ShopUp wanted to make changes to this existing process by introducing a software solution that will enable businesses to automate the ordering and product delivery process.
The cheap availability, as well as usability of the software, made ShopUp an instant hit among that retail online merchants. Since its foundation in 2016, the company has managed to garner over 28 million dollars in funding and has been one of the leading tech startups in Bangladesh.
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Gaze Technology
Silicon valley of the US is famous for all the tech and AI-related startups. It is almost like a hub for AI development. However, Gaze technology is an AI-driven tech startup right here in Bangladesh. with access to limited resources and funding, the company has been determined to make its mark in using AI and API integration to make Bangladesh safer. The company works to develop real-time tracking, facial recognition technology as well as a vehicle tracking technology.
The company has worked with Dhaka Metropolitan Police to make traffic monitoring easier by integrating AI in the recognition system. The company aims to grab the international AI-led recognition market which is estimated to be valued at over 50 billion US dollars. Gaze raised seed money of over 830 thousand dollars to develop their AI venture.
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Sheba.xyz
One of the most promising startups in the e-commerce sector has to be the Sheba.xyz venture. Whereas most of the e-commerce platform focuses on a specific niche of product or service, Sheba.xyz decided to incorporate everything under one roof.
The primary focus of Sheba is addressing the daily necessity of people. Whatever you might in your daily life, you will find it on the platform. From home shifting to the beauty salon to laundry service, everything will be brought to your doors. This not only made the life of people easier but also propelled the platform to one of the top e-commerce sites of Bangladesh with high client satisfaction and retention rate. The platform received an initial investment of 70 thousand dollars from Microsoft and Facebook.
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Bottom Line
The tech startup scene in Bangladesh is still in its nascent stage with more and more companies waiting to have their breakthrough moment. However, the ones that we mentioned here have already been successful in creating a model that would effectively make them useful for the people and grow at a profitable rate. These startups can work as inspiration for others to develop their strategies to better generate ideas and processes.
The Difference between a Startup and a Small Business
If we look around we see businesses that have seen exponential growth in a short period. Popularly termed as startups, these businesses are getting more and more popular as it works centering an idea and leveraging on the success of the efforts encompassing the idea. As the business efforts of startups keep rising, many people liken and often confuse a startup as a traditional business. But that’s not the case as there is a significant difference between a startup and a traditional small business. Let's look at them from the context of Bangladesh.
What is a Startup?
A business model that is designed to rise significantly – that is the easiest way to define a startup. However, the process is much more complicated and there are a lot of underlying factors that determine whether a business is a startup or not.
The most comprehensive way to put forward the idea of a startup would be a business model that focuses on exponential growth in a short period. The model would also have to be repeatable and scalable, that is to say, the business would sustain the initial growth and build on it as time passes. For a startup, there is no limit to the opportunities and as a result, the risk involved with startups are also very high.
Read: Digital Currency: Benefits and Risks of the Cashless Economy in Bangladesh
Notable Startups
In recent years, Bangladesh has seen a surge of startups. Some of them have been successful in making their mark and scale up their operations, but others not so much. The key driving factor remains the same here with priority in operation and execution of the plan.
Pathao is arguably the biggest startup in recent times. the company started its journey in 2015 as a ride-sharing platform. Today Pathao is one of the key players in the transportation sector of Bangladesh with the motto of “Moving Bangladesh”. one of the main characteristics of a startup is its scalability and Pathao is a prime example of how to scale up a startup. Rather than sticking to ride-sharing, the platform now offers food delivery service, parcel as well as grocery delivery service. This range of services means Pathao can effectively capture the market as well as create a disruption in the existing system.
Read Small Business Ideas for F-commerce Startups in Bangladesh during Pandemic
The story is somewhat for other successful startups as well. Bkash, a concern of Brac Bank has revolutionized the mobile transaction system and has been an important milestone in the endeavor to promote digital transactions.
The story of Shohoz and Foodpanda is similar to that of Pathao. These are effectively the same business model specializing in the service front for an increasingly online-centric client base. Other ventures like Sheba.xyz, Daraz, Chaldal has also had a significant contribution to change the overall market processes in their respective business areas. Some of these ventures operate as local startups and some are part of a foreign startup that has ventured into the Bangladeshi market.
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Renowned Startups in the Overseas Countries
For foreign startups, the case is similar to Bangladesh as well. The startups that are doing well or are scaling up their business ventures are practically the ones that focus more on the customer end features rather than initial growth. It is to be noted that customers are the key and once there is sufficient engagement within a service it becomes even easier to secure funding.
Startups like air garage that lets you share your garage space operate on a similar business model to the ride-sharing platform. Other successful ventures like Chime, Petal, Verkada, and Dispatch all work on the principle of ensuring end-user satisfaction. This is also a key difference between a startup and a small business as the scalability of the startup depends grossly on the engagement of the clients.
Read Online Business: How to Get Started from Home?
What is a Small Business?
Small business is a form of traditional business approach. Unlike startups, the intention of small businesses is not to disrupt the market or ensure quick growth by introducing a new idea. Rather the focus is to build on an existing system and grow slowly. Small businesses are often associated with entrepreneurs with limited scope and funding. You might have an idea that is not revolutionizing to be a startup, rather an idea that simplifies an existing system and can become a compliment for that market system.
Most of the successful small business eventually ventures out as conglomerates or industries. Though this is a general presumption and this is not the case always. In the context of Bangladesh, all the successful businesses of the present-day started as small businesses. With the availability of the internet and marketplace access in social media platforms, it is now easier than ever to run a small business with virtually no investment.
Read Some Inspiring Women Entrepreneurs in Bangladesh in Diverse Sectors
Difference between Startups and Small Business
We will highlight some key points of difference between startups and small businesses.
Growth Opportunity
The initial growth is the prime focus of startups. The strategy here is to capitalize on the idea to capture the market as fast as possible. This gives them better leverage over the customer and creates links with other services to scale up the business.
However, a small business focuses on building a client base over time and follows the traditional route of business advancements. A small business might never aspire for growth to the level of startups and that is completely acceptable due to the nature of the operation.
Business Strategy
The business strategy of a startup is growth-oriented. The main idea here is to generate growth at the fastest pace possible.
This is not the case with small businesses. As a traditional business model, the requirement here is not to break into a completely new market to create disruption, rather find a suitable customer base and cater to their needs.
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Final Goal and Risk Involved
The end goal of a startup is to make sure the business can be scaled up multiple times. in the process, the business strategy might shift gears multiple times until the desired model is achieved. As a startup continues to build on the model, it eventually unveils itself as a company or a corporation. Due to changing strategies, the risk involved is also very high with startups.
For a small business, the case is completely different. Here the end goal is neither to scale up nor to become a company. It can be something as simple as passing the business down to an heir or changing ownership. The need for scalability doesn’t concern a small business and as a result, the risk involved with small business is also very minimal.
Bottom Line
To sum up things, startups and small business both have their limitations and prospects. Though the growth opportunity of startups may seem lucrative for many, it is not easy to come up with such an idea to be scaled drastically to ensure easy profit. However, small business holds much better prospects if you are willing to put in the effort and see it pan out over a long course of time as the risk involved is minimal.
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Digital Currency: Benefits and Risks of the Cashless Economy in Bangladesh
The modern-day monetary transaction has its roots in the barter system of ancient times. Over the course of thousands of years, physical money has become an integral part of our daily life – until the idea of replacing cash with digital currency was propagated.
The idea of replacing cash has been around for a long with cheques and bonds. However, the true idea of replacing cash has not been possible to implement up until recently with the advent of Mobile Financial Services and cryptocurrencies. Let's take a look at how they are impacting the economy of Bangladesh and what are the prospects and risks of a cashless society.
What is Digital Currency?
Digital currency is a form of currency that is available only in electronic form. That is, the transactions will take place virtually without any physical interaction. The idea of digital currency was popularized in 2009 after the initiation of Bitcoin by a certain unidentified individual named Satoshi Nakamoto. Harnessing the blockchain mechanism, Bitcoin slowly gained traction and today it is one of the leading cryptocurrencies in the world.
The individual Bitcoins and other cryptocurrencies like Ethereum are stored in an e-wallet from which transactions can be made digitally. Currently, more and more organizations are opening up to crypto transactions as it is secure and an effective monetary system against cash-based transactions.
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State of Digital Currency in Bangladesh
However, the popularity of cryptocurrency is also a headache for central regulatory authorities like Bangladesh Bank. Cryptocurrencies are decentralized monetary systems meaning they are not regulated by any central bank or government. The valuation of cryptocurrency is solely dependent on the stock market fluctuations. The lack of control over the system makes many central Banks skeptical about its usage as well as long-term implication in the economy. As a result, Bangladesh does not allow the mining or transaction of any form of cryptocurrency.
However, with the increasing popularity and adoption of cryptocurrency, we are only putting ourself at disadvantage for not making use of the potential posed by the system. Currently, the market capitalization of Bitcoin alone stands at over a trillion-dollar, several times more than the GDP of Bangladesh. It is to be noted that a large population of Bangladesh is still unbanked. And without the inclusion of people in the banking system, it's nearly impossible to move forward with the idea of a cashless society. So what is the answer of Bangladesh to this? How are we trying to keep with the increasing trend of digital transactions?
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The answer is Mobile Financial Service. With over 47 million internet users and 165 million mobile subscribers, Bangladesh is rapidly moving into the age of the internet and digitalization. Leading banks tapped into this opportunity to introduce Mobile Financial Services like Bkash, Nagad, and Rocket.
The platforms aim to bring micro banking to the unbanked and make a transaction to various sectors a matter of a few taps on phone. Almost all the leading business including government channels now accepts payments through these MFS which is complementing the idea of a digital currency to some degree.
Read Small Business Ideas for F-commerce Startups in Bangladesh during Pandemic
Graphic Designer Salaries: How Much Can You Earn from Graphic Design?
Like most of us, the thought probably crossed your mind that how much can you earn by drawing stuff digitally? Graphics designing has been around since the dawn of the internet days and over time, the demand has increased exponentially. From a simple poster design to full-scale web UI development, graphics design is involved in every aspect. So you might think it should pay well to be a graphics designer. But that’s not the case. From the perspective of Bangladesh and other developing countries, there are other factors as well that determine the pay of a graphics designer. So how much can you earn from graphic design? Let's dive into more details.
Factors that Impacts the Earning of a Graphic Designer
Experience Matters
Experience is the first threshold that determines the highest pay gap between graphics designers. And this is true for freelancing as well as full-time employment. There is a drastic pay gap between a graphics designer with 0 to 2 years’ experience compared to someone with over 5 years of experience.
Looking at the popular salary site payscale, we saw that a graphics designer with less than 2 years of experience makes somewhere around 15 dollars per hour whereas someone with over 5 years of experience stands to earn between 25 to 30 dollars per hour.
Now, this is a rate that generally applies to graphics designers from developed countries like the UK and USA, and European regions. As you will see in the latter part of the article, the pay gap isn’t only determined by experience alone.
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Location Factor
Another aspect that determines the pay scale of a graphics designer is the location. If you are someone from a developed country, your payment will be significantly higher compared to someone from a developing country. The economic, as well as lack of regulatory authority in the industry, means that a graphic designer from a developing country stands to earn over 5 times less compared to a designer from a developed country.
A detailed look into the Payoneer blog, which is one of the leading digital transaction platforms across the globe reveals that a beginner designer from India or Bangladesh stands to earn less than 5 dollars per hour for their work. For an experienced designer, the rate stands at around 15 dollars per hour. It's clear that there exists a pay gap no matter how you look at it.
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Freelancing or Full-Time Graphics Designer: Which one is better?
Now you might be thinking, whether you should go for freelancing or should you get a full-time job as a graphics designer? The answer is a bit tricky. Freelancing pays much better compared to a full-time job as a graphics designer. And especially if you are someone from a developing country and have your gigs in platforms like Upwork, Fiverr and 99designs, the pay gap due to the geographical position gets grossly reduced.
There are other factors as well, often people from these platforms outsource the jobs acting as secondary media. They in turn end up paying starting designers much less compared to what they could be earning from these platforms.
To get back to our initial point, the answer is, it goes both ways. You can earn significantly higher through freelancing in the established platforms but works aren’t always guaranteed. You won't is making a stable income. In contrast, the pay from a full-time job might be significantly less, but you will earn a stable income.
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How Much Can You Earn from Graphic Design on the Freelancing Platforms?
With all the pros and cons out of the way, now let us look at how much can you earn from platforms like Upwork, Fiverr, and 99designs.
Logo design costs around 30 to 50 dollars per hour on Upwork depending on the complexity of the logo a well as the experience of the designer. In Fiverr, the rate has significant variance with starting price at 10 dollars and going all the way up to 200 dollars. In general, you can expect to earn an average of 40 dollars per design. 99designs however pays much better but here, your entry has to win the competitions. A winning entry can earn more than 500 dollars depending on the buyer.
UI UX designing also pays similar to logo design. It might be something a low as 20 dollars per hour or as high as 150 dollars per hour. It all depends on the details and experience of the designer. However, the problem with the freelancing platforms is that a significant amount gets deducted by the platform and tax. So if you can curb the fact that almost half of your earnings will be gone before it reaches your pocket, you can sign up any day.
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How are Bangladeshis Doing as Graphics Designer?
You will be surprised to know that there are quite a few top-rated Bangladeshi designers on platforms like Upwork and 99designs.
Mahadi Hasan is a top-rated designer in Upwork with over 124 completed projects. He charges 50 dollars per hour. His expertise and access to the freelancing platform allow him to get past the price gap that we talked about earlier.
The story is the same for AHM Mahmudur who has over 380 completed projects in his name. He charges around 45 dollars per hour in Upwork. The story of Bangladeshi graphics designers is one of success. However, very few break into the top category to earn as much as they are earning. Most are still bound by intermediary hire or low-cost labor.
Compared to the international platforms, Bangladeshi platforms like Belancer aren’t doing enough. The competition is comparatively low as it is centered around Bangladeshi designers but the pay is significantly less compared to Upwork or 99designs. Prices hardly break through the 10-dollar mark with the majority in the 5 dollars bracket.
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Bottom Line
To sum it up, graphics design can be a great career option. You have the flexibility of earning from graphic design or doing something you like and that in itself is a huge gain. However, the pay disparity is something you should keep in mind. With the market becoming more and more saturated with each passing day, the best approach would be to develop your skills and put your entries in various competitions to break into the top margin.
Online Business: How to Get Started from Home?
With the rapid digitization in the country, connecting with people has become easier than ever. And the increased connectivity and digitization of processes, have opened a host of opportunities for small and large scale businesses. But not just the SMEs, social media platforms like Facebook and Instagram have made it possible for people to start a business right from the comfort of their home. For some, it can be a source of side income and for others, it can be a full-scale earning source. However, there are some essential steps that you need to follow to make sure your business kicks off on the right note. So, how to start your online business from home? Let's take a look.
How to start an online business from home
Identifying the Business Idea
The first and foremost thing to be considered is the business idea. As a business that is effectively going to be run from home, what business would be most feasible? Not just home, it also depends on other factors like what you are an expert in. For example, if you have no experience in cooking but want to run a food business, that would not be very fruitful.
In the context of Bangladesh, the most profitable business ideas are dropshipping and home cooking. There is a huge demand for online-based products that can be easily availed as home delivery instead of scouring physical marketplaces. Part of the increased interest in online shopping is attributed to the pandemic situation. However, you can play on your expertise and comfort zone and come up with a business idea depending on the demand and size of the online market.
Read: Top Insurance Companies in Bangladesh in 2021
Setting up a Platform
This stage of the business needs to be accomplished in two steps. The first one is using the existing platforms and the second is setting up a personal platform. As a home business, the priority should be to minimize the cost associated with business operation. The existing platforms like Facebook and Instagram can be used to showcase the product as well as sell them. The number of users on these platforms in Bangladesh is comparatively higher. So this can be a good starting ground for your home-based business.
In the later stage, after your business has gained sufficient traction, you can set up a personal website to better interact with your customer base as well as address their queries.
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Formulate the Business Plan
The next step is formulating the business plan. A business plan is essentially an outline of operations that goes behind running the business. Depending on your business idea, the business plan will differ.
The business plan should include a detailed overview of the product or service you are offering, a detailed analysis of the market and competitors, identifying the advantages and disadvantages of your business model, a financing module for your business as well a customer retention strategy. These might feel a bit too much to get started, but they will ensure that you have a clear vision of your business and won’t run into issues down the line.
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Registering the Business
The next step is a legal requirement. I need to come up with a name that embodies your ideas as well as your business. You will also need to register your business with the local authorities to make sure that you do not run into any legal trouble. For a home-based business, the business entity should be a sole proprietorship. This Will provide you with considerable control and flexibility over your business processes and rebates when it comes to taxes.
Separate Personal and Business Finances
As a home-based business, the initial growth will take some time to take off. You will need to reinvest your profits as well as source additional financing for your business. That all depends on the nature of the business. But the right approach is to ensure that personal finance and business finance are separated.
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You can set up a separate account for your business and handle the finances on that account. Separating personal finances from business finance will help to better track business progress and financial gains. It will also help to better assess how much additional investment would be required to finance the business.
Engage Your Customer Base
Another prominent aspect that should be taken into consideration is engaging the customer base. Naturally, as a home-based business, the reach and the brand image would be minimal while starting. To counter this, widespread promotional activities including discounts should be undertaken. Customers should be encouraged to share their thoughts on their social media. That way it would be possible to spread the business brand through word of mouth. In the end, it's all about maintaining quality as well as customer satisfaction.
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Review the Business Strategy
The thing about the market is that it is constantly changing. What might be in demand today might not be in demand tomorrow. As a home-based growing business, you need to understand the changing dynamics and adapt your business to face the change.
The right thing to do in this aspect is to review the business strategy to make sure the product or the service stays relevant to the customer. If you run a B2C business strategy, try and understand what your customer shows interest in. Change your product line up to better address the customer needs.
As a home-based business owner, you need to stay up-to-date with the changing trends. Introducing innovative products at a competitive price will surely give you an upper hand among the startups.
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Final Words
The current landscape of the digital market in Bangladesh is expanding rapidly. More and more people are getting into online business and trying to make a profit out of it. The pandemic even forced some reputed businesses to implement online business strategies. Thanks to the widespread use of social media, showcasing your product and growing your business is now easier than ever. With that said, we tried to outline the key aspects that make or break a starting home-based business. With proper planning and conviction, it is easily possible to grow your business to a large scale and initiate substantial profit from it.
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Top Insurance Companies in Bangladesh in 2021
Insurance companies have been around since the pre-independence period in Bangladesh. However, it started to pick up traction after independence when all the insurance companies were nationalized. From the 80s, the competitive landscape grew again after the inclusion of private companies. Today there are over 62 companies that offer insurance over various schemes. So, which ones are the best insurance companies in Bangladesh in 2021? Let's have a look.
Top Bangladeshi Insurance Companies in 2021
Metlife Insurance Co Ltd
Formerly known as American Life Insurance Company Ltd, Metlife Insurance started its journey in 1952 in the country. Over the years, the company has established itself as one of the most reliable insurance companies in the country. The company has over 1 million clients in Bangladesh and a robust workforce of over 16000 employees.
You can choose from a range of services offered by Metlife. Their primary services include Individual Life Insurance, Education Protection Plan, Retirement Plan, Accident, and Health as well as Employee Benefits. The financial strength of the company is also noteworthy as it holds an AAA rating. As the largest insurance company in Bangladesh, Metlife is leading by example when it comes to clients as well as employee satisfaction.
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Jiban Bima Corporation
Jiban Bima Corporation or the Life Insurance Company is the state-run insurance company in Bangladesh. The corporation came into existence in 1973 after an ordinance decreed the nationalization of all the private insurance companies in the country except for the foreign ones. The company has had a humble start with just a 1.5 million BDT life fund in 1973. Over the years, the company has earned the trust of the people as a leading government life insurance company and despite a decline of the client base, the corporation was able to maintain profit year on year. In 2020, the life fund of the corporation stood at 20 billion BDT which is a huge jump compared to its initial days.
The corporation has a diverse range of schemes constituting over 30 different sectors. The premium plans are also flexible and slightly less compared to the privately-owned companies. There are service centers all across Bangladesh, so premium deposition and claims shouldn’t be an issue.
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Delta Life Insurance Co Ltd
After the reversion of the nationalization ordinance in 1984, Delta Life Insurance Co was among the first companies to jump onboard in the private insurance scenario. The company was started by a few Bangladeshi citizens who were working abroad at that time. The idea was to deliver top-notch insurance service to the people of Bangladesh that is available in western countries. With this vision in mind, the company didn’t have to look back since its inception.
For over 3 decades in business, Delta Life Insurance registered a year-on-year profit with the latest fiscal year growth standing at 5.35% more than that of 2018. The company holds about 38 billion BDT in insurance funds which are also one of the highest in the country. They offer a range of services in over 5 different sectors. You can register from any of their numerous customer service points.
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Popular Life Insurance Co Ltd
Popular Life Insurance Co is another prominent Life Insurance company in Bangladesh. The company was founded in 2000 and has since been one of the leaders in the insurance sector of the country. Over the years, the company has grown its customer base and has registered profit year on year. At the end of the 2018 fiscal year, the company had 17 billion BDT and 13 billion BDT of cumulative life fund and cumulative investment respectively.
The company boasts a robust workforce of over 15000 employees. Basically, in addition to the corporate offices in the city and divisional areas, Popular Life also offers insurance services through their agents in remote areas. Currently, the company offers 15 different schemes based on their personal as well as micro-insurance platforms.
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Meghna Life Insurance Co Limited
For over 20 years, Meghna Life Insurance has been diligently providing insurance solutions to the people of Bangladesh across all economic levels. The company was founded by some similar-minded professionals in 1996 and since then, the company has strived to achieve excellence in the field. The company had a very humble beginning compared to other similar insurance companies but their reliability and service soon made it one of the prominent players in the insurance market. Currently, the company holds an asset of 15 billion BDT which has seen increment year on year since the inception. The company has a total workforce of about 14000 across Bangladesh. The notable thing about Meghna Insurance Co Ltd is the easy disbursement of the claims.
Currently, the company offers 8 different schemes under 5 different sub-heads. The company also provides an Islamic Insurance scheme which is quite popular among the people.
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Golden Life Insurance Limited
Golden Life Insurance Limited started its journey back in 1999. The company got its PLC leasing in the same year before starting its operations. Golden Life insurance aimed to make microinsurance more accessible. The company wanted to bridge the gap of maturity which at that time stood at between 10 to 20 years. Due to this revolutionary approach, the company soon gained popularity among the masses.
The company offers a cumulative of 10 different schemes most of which are based on the Islamic Shariah. The company has more than 8000 business development executives all across Bangladesh who works to ensure that insurance is made easy and accessible even from remote areas. Golden Life has disbursed over 35 billion BDT worth of claims which speaks of their commitment to the sector as well as their client base.
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Bottom Line
The insurance sector of Bangladesh is pretty diverse. There are life insurance companies as well as general insurance companies that provide services across a range of schemes. However, it's not all smooth sail and there have been reports of mismanagement of claims against many insurance companies. However, the ones that we have mentioned here have maintained a good track record over the years and has been a trusted insurer for the people. These are easily the top insurance companies in Bangladesh in 2021 and you can easily sign up with them depending on your preference.
Best Credit Cards in Bangladesh: A Comparative Analysis
The idea of a cashless society is not new. A cashless monetary system not only eases the transactional processes but also helps to reduce the emergence of black money in the market. And one of the important stepping stones to this cashless transaction system is credit cards.
The concept of credit cards is not new in Bangladesh. ANZ Grindlays Bank (now Standard Chartered bank) first introduced credit cards to the masses in 1989. The bank was also the first to introduce Visa and Mastercard as well. Since then, every major bank and NBFI has introduced a credit card system.
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A simple look in the first quarter of the 2020-21 fiscal years shows the steady growth of credit card adoption and usage. Even in the pandemic, banks have seen transaction levels to be almost similar to the pre-pandemic level. This goes a long way to show that more and more expenditure opportunities are opening up for the cardholders and people are becoming more and more inclined to use them.
However, it is not all smooth sailing. Credit cards are, after all, a loan system issued against your card and account and you will need to pay your debt that is your expenditure amount back. Failing to meet deadlines will land you in default and harm your creditworthiness and CBI value. Not to mention, the compounding interest on your expenditure.
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But everything's aside, credit cards are still a good option to make your transactions easier. So, which credit card should you get? Let us take a deeper look into the individual offerings against the cards to see what facilities the clients are getting.
Top Credit Cards in Bangladesh
The City Bank Amex Card
City Bank is one of the few banks that offer Amex Cards to its clients. The Visa and Mastercard may be the most popular transaction routes but the Amex card also has its certain niche in Bangladesh for local and international transactions. The Regular APR stands at 27% and the grace period ranges up to 45 days. The renewal fee is slightly higher ranging from 1500 BDT to 25000 BDT depending on card facilities. There is a 5% outstanding fee applicable and there are no installment facilities available with this card.
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Standard Chartered Bank Credit Card
As one of the oldest and an international bank in our country, the Standard Chartered bank is much reputed. The bank offers a range of credit cards depending on the creditworthiness of the client. This card varies in limits and other facilities. However, the standard regular APR is 26% across cards.
The grace period is 45 days as well and the maintenance and renewal fee ranges from 1500 BDT to 10000 BDT. Standard Chartered provides an installment facility which is a bonus. You can also get an additional supplementary card which is subject to charges.
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BRAC Bank Credit Card
BRAC Bank is another pioneering bank in Bangladesh. The main idea behind BRAC bank was to increase the inclusiveness in the banking sector by making banking more accessible to the rural as well as economically drawn part of our society.
Over the years, the bank has expanded its horizon of service and has introduced several cards. The renewal fee for the cards varies from 1500 BDT to 25000 BDT. However, you can waive this fee by making at least 18 transactions a year. The APR stands at 27% and the grace period is 45 days. You also get installment facilities and the supplementary card with this one is free of charge.
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Eastern Bank Credit Card
EBL was a pioneer of mobile banking in Bangladesh and to this day, they have the most robust infrastructure when it comes to mobile banking. They are also equally adept with their card services.
One of the more lucrative aspects of EBL cards has to be the privilege of using EBL SkyLounge while traveling abroad. That alone might incline a client towards EBL. You’re getting a standard APR rate of 27%, a grace period of 45 days, and installment facilities. You can also avail of their supplementary card subject to additional charges.
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DBBL Credit Card
Bangladesh’s first joint venture bank DBBL has been the pillar of ATM service in our country. They have made banking more accessible through agent points and ATMs even in remote locations. Their credit cards also offer lucrative facilities making them one of the top credit issuers on the list.
The APR is significantly low at 15% and in addition to that, you get a 50-days grace period. Depending on cards, you will also get waivers on the renewal fee. However, there are no installment facilities but you do get a supplementary card for free.
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Verdict
So far we have discussed the leading credit cards in Bangladesh. It is clear that each bank has services that they are excelling in. Standard Chartered will provide you with a unified experience, DBBL will give you low APR and with EBL and City Amex you are getting a host of transactional benefits including lounge access.
However, the issuance of cards isn't the only factor that determines the performance of cards. In fact, it all comes down to personal preferences and your expectations from the bank itself. Of course, other financial institutions are working alongside to provide better services.
As long as people aren’t actively using the cards, the banks don’t stand to gain anything. In order to get the most out of your credit card facilities, you as a client need to decide what the purpose of your credit card is. The credit card landscape of our country is expanding at a rapid pace and if you’re willing and your means support, you should avail the services as well.
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