United News of Bangladesh

Small investors in Bangladesh’s stock market remain trapped, with their woes persisting due to a lack of confidence, weak governance and economic instability, despite assurances from regulators of an eventual market rebound, according to experts. “No one, not even the regulator or stock market authorities, pays heed to our screams,” said Saiful Islam, a grocery owner and one of the affected investors,” in a broken voice while talking to UNB regarding the capital market. Saiful invested Tk 14 lakh in 2010 to buy shares of different companies listed in the Dhaka Stock Exchange (DSE). Dhaka stocks drop in early trading today After graduating in 2004, Saiful found no suitable job and then started a small business in the Motijheel area in 2007 with support from his father-in-law. He made a good profit in the business and invested the money in the share market. In 2010, Saiful invested around Tk 14 lakh, of which Tk 6 lakh was his own and Tk 8 lakh he borrowed from relatives. All of his investment was stuck in shares of different companies due to a major scam in the capital market in 2011. Like Saiful, thousands of investors lost their hard-earned capital in 2011, and after that, some were able to regain part of their capital. However, most of them left the capital market, losing nearly all their investment. Many such investors are still in the market, hoping for a rebound in the DSE, but without any good news. DSEX drops by 43 points as prices of 288 companies fall, Chittagong Stock Exchange follows suit There is no sign of lifting the floor price before the next election. However, economists say that people do not have confidence in the market. The BSEC advises investors to remain patient. Analysts say that the small investors’ woes in the capital market are unlikely to end before the national election as their wait for a good time is prolonged by Bangladesh’s recent ‘instability’. The small investors’ shares were once stuck at the floor price (minimum sale rate) due to the overall economic downturn. The floor price barrier ended after the change in government in Bangladesh. However, the prices of most companies' shares have not increased to the desired level for small investors. Dhaka Stock Exchange sees early week gains This has been painful for many unfortunate small investors in the capital markets, according to market analysts. Policymakers and the Bangladesh Securities and Exchange Commission (BSEC) paint a rosy picture for small investors, saying that the stock markets will rebound with the enlistment of new companies and the injection of large investments. However, the situation for small investors seems hopeless. A large number of shareholders have been stuck with their investments in the capital market for over a decade amid fading hopes. Experts' Analysis Dr ABM Mirza Azizul Islam, an economist and former adviser of a caretaker government, told UNB that there has been a crisis of confidence among investors in the stock market for a long time. “To this are added various economic crises, the international situation, and everything, including elections and national politics. As a result, first of all, steps should be taken to eliminate the trust crisis. In this case, trust should be ensured by establishing good governance,” he added. Dhaka Stock Exchange slips below 5,400-point as Islami Bank shares plummet nearly 10% “That means investors have to be assured that if someone steals their money through manipulation, they will be prosecuted. Besides, the supply of good shares should be increased. Through these two steps, it is possible to solve the market problem. But it is not easy at all,” said Dr Azizul Islam. Dr Abu Ahmed, Chairman of the Investment Corporation of Bangladesh (ICB) and former professor of Dhaka University’s Economics Department, said there are two crises in the market: one on the demand side and the other in investor confidence. On the supply side, he said, the problem is that there are fewer good companies. As a result, it is a win-win situation for manipulation and syndicates. “All in all, the stock market is currently in an unstable condition and the situation is gradually getting worse. The passage from here is very difficult,” he said. Ahmed also noted that people are sometimes investing in weak shares with the expectation of a big profit, which is not the right way of investing due to a lack of financial literacy. Read mnore: Share Market Investment Guide: How to Invest in Stocks in Bangladesh

The government plans a special Value Added Tax (VAT) reduction facility for small businesses to rebound the sector from the adverse impact of the pandemic. Though the large manufacturers have rebounded from the pandemic's impact, the small sector is struggling to survive. The government is considering reducing existing VAT from 5 percent to 1.5 percent as an incentive to boost the small sector. The budget related official of the national board of revenue (NBR) said in the global economic context, the country's small businesses are at risk. In the post pandemic period, they are going through various adversities including high VAT and capital crisis. If the proposed rate is implemented, the tax burden on the retail and wholesale business sector will be reduced and goods and services will be cheaper. The consumer will be benefited. Small traders said that 5 percent VAT is too much for them. In order to pay VAT at this rate, their business has to add at least 33 percent value addition. Read: Traders urged to keep market stable ahead of Eid-ul-Azha  But in the current reality, the maximum value addition in this sector is 10 to 15 percent. So, VAT should be levied from this sector on the basis of what is net or actual value addition. As per rule, the government levies VAT at the applicable rate based on the amount of value added in any business. This VAT is paid at the time of monthly return. Dr Abdul Mazid former chairman of NBR told UNB, "The main problem of small traders is that they do not keep any account for the transactions they make. That is why no rebate or VAT is refunded from the government. If this could be done, the VAT burden would be reduced.” Read: Inflation, unstable forex rate major challenges: BB governor He said, "In order to increase the collection of VAT from this sector, it is necessary to automate all the eligible businesses. In that case, the collection will be many times more than at present.”

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. Read Top Bookstore Cafés in Dhaka: 6 Places Bringing Back the Joy of Reading 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. Read: Graphic Designer Salaries: How Much Can You Earn from Graphic Design? 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. Read Top Baby Products based eCommerce Sites in Bangladesh

As Bangladesh tackles the Covid-19 situation, the impact left behind by the pandemic has been quite significant. Not just in terms of loss of lives but economic downtrend as well. Many people lost jobs and many businesses saw themselves on the brink of shut down. However, many businesses are opting to shift their offerings to what’s known as Facebook Commerce or F-commerce. With 22% of the population of Bangladesh being active users of Facebook, the platform can provide a strong foothold to reach customers on a far wider and diverse scale. In this article, we will take a look at some of the best small business ideas for F-commerce in Bangladesh during a pandemic. Small business ideas for F-commerce in Bangladesh Clothing Line With a country of festivities, we sure do have a knack for clothing. That is reflected in the apparel market as the market cap stands at around BDT 250 billion. There is a huge opportunity of taking this apparel market to the online platform. As a startup, you can source apparel locally from wholesale dealers and create an apparel niche of your own. With the Flexibility of F-commerce, it becomes very easy to reach your target customer base. You can even jump-start your business with little to no capital. You can start by having a small exclusive line of collection or simply set up a system of pre-order. That will ensure that there isn’t any loss to your startup venture. Also Read A Bangladesh startup that aims at saving the world! Book Store Nothing like a good book in days of lockdown, right? There is a high number of book readers in Bangladesh. The numbers add up as the Amar Ekushey Boi Mela saw a 70 crore BDT jump in sales from 2013-2018. With a growing demand for books, selling them on an online platform can be a good startup venture. The goal here is to find the targeted customer base and set up your business to attract them. Just like the apparel line, you can list your collections or simply deliver on a pre-order basis. Nilkhet being one of the largest markets of all sorts of books, sourcing shouldn’t be an issue and you can make a profit straight away with very little investment. Read How to Earn Money from Facebook Consumer Electronics The consumer electronic market is another potential sector for F-commerce startups. In 2017, the total market cap on consumer electronics stood at 1.38 billion BDT. However, as a startup, it's not possible to sell large-scale consumer electronics because of regulation and investment. You can start with smart gadgets and portable electronic items. The pandemic has seen people shift to online platforms for their gadget fix. You can either start by offering a certain product category or you can add multiples depending on your investment scale. The most important thing here is to plan. You should have a definitive F-commerce marketing strategy to attract customers. And since this is a consumer electronic sector, there should be ample focus on the after-sales service as well to ensure customer retention. Read 24pc of female online entrepreneurs shut businesses in June: Study Home-Based Catering There is a huge untapped opportunity in the home-based catering service in our country. With the easy parcel delivery services in Bangladesh, it is now possible for the home cooks to deliver on-demand food items concurrent to the restaurants. A home-cooked meal is not only a healthier choice for many but also a comparatively cheaper alternative to restaurants and takeaways. Just like the other F-commerce ventures we have mentioned in this article, the capital investment in home-based catering is little to nothing. The variety of cuisines on demand is what makes this start-up idea a thriving one. Based on expertise, a home cook can significantly monetize their skills and convert them into a functional earning source. And with the pandemic in question, the demand is also at an all-time high. Also Read: What Is Passive Income? Pros and Cons of Passive Earning Online Grocery Store An online grocery store is another business idea that has been propelled to the forefront in light of the pandemic and ensuing lockdowns. The idea of having all the daily necessities right at your fingertip is lucrative for many. This not only reduces the hassle but also ensures that you won't have to risk your safety by visiting crowded places. As a small business, focus can be put on a certain niche of groceries. It can be cooking essentials, dairy items to frozen goods. This solely depends on the target market. It is possible to source goods from wholesalers depending on the niche. As long as you can ensure competitive pricing, the F-commerce platform can be the perfect place to kickstart your venture. Read Zero Investment Business Ideas to Try Amidst the Pandemic Cosmetic Line Beauty products have a considerable market cap in Bangladesh. In addition to local brands, there is a high demand for the international cosmetic brands and their products. A cosmetic line can be a good small business idea because the online market is still in its budding state. People are getting more and more used to buying goods from online stores as the pandemic has reshaped the idea of how we shop. Depending on your niche, you can source products from the local market or use importers to source products from an international brand. Needless to say, the latter would require a significantly larger investment. But the ROI of this venture is high and considering there is no sunk cost involved, you stand to make a profit in a considerably short time. Art & Craft Recent trends show that the millennials of Bangladesh are significantly interested in local arts and crafts. It can be attributed to the widespread cultural promotion and in the general interest of the mass. If you are someone who is an artist, you can sell your work on the F-commerce platform. Not just art itself, there is a huge of demand for local craft utensils. Whether it's for home decoration or part of utility needs, as a business, you can produce or source these local crafts for online clients. Also Read: Domestic electronics, technology products should get priority in govt procurement: Speakers Sell Your Expertise If you are an expert in your trade, you can set up your online consulting firm. There are endless niches where there is a demand for expert consultation on different subjects. The same stands true for skills as well. If you are good with graphics designing or web content development, you can sell your expertise on the F-commerce platform depending on your niche. This doesn’t require any investment to begin with and also makes communicating with the clients easier. Bottom Line There is a huge untapped opportunity when it comes to the startups in the F-commerce sector of Bangladesh. The pandemic has paved a way for many new Facebook-based business ideas in the existing niche as well as creating demand for new ones. Sure enough, you won't see success upfront, and you would need to develop a sizeable community around your product. But the efforts and investment are much more risk-free when it comes to F-commerce and has a high ROI. Read Bangladesh Cloud Kitchen Business Heralds Improved Food Delivery Services

Business requires investment. But due to the multifarious effect of the COVID-19 pandemic situation, it is difficult for many people to start a business with huge investments. What if you want to save money and simultaneously want to start a new business? Interestingly! some business ideas require creativity and exclusive ideas rather than lump sum money! Here are a few zero investment business ideas to try amidst the pandemic. Low investment business ideas Starting a Dropshipping Store E-commerce hasn’t seen a surge quite like 2020 as the pandemic has forced many at home. With many retail outlets shut and lockdowns becoming routine in some parts of the world, the online platform was the immediate option for shoppers globally, while delivery services were working overtime. Dropshipping is a business model that resembles e-commerce, but the goal is to be a third-party distributor that coordinates with suppliers, locally or globally. When supplied to your e-store, customers can enjoy your catalogue of products with an altered price based on your targeted figure. Read Work from Home, Earn and Be Your Own Boss Without any investment, this becomes a solid way to serve as a platform for affordable goods and experiment the demand for certain products within your demographic. Committing to a small portion for a couple of months is a safe start and feeling your audiences from there would give you a better indication of which suppliers are better suited to your needs. Committing to a niche range of products in a specific market has its pros and cons: One of the biggest pros would be reducing your competitors, establishing a better organized network of suppliers and a better understanding of your customers. The cons would be its toll on your company’s branding during the early phase, being overshadowed by newer trends and unprecedented costs as suppliers change prices. Read How to Earn Money from Instagram Design and Sell Printed Merchandise Kind of dropshipping, but headed towards a niche. Websites like Redbubble and Society 6 offer brandless products such as bags, mugs, t-shirts and much more to consumers - strictly online. But the twist is that these companies collaborate with artists from all over the world who want to showcase their art pieces on a commercial scale. The term is Print On Demand (POD) and designers who successfully sell their pieces online receive a cut from each sale, giving consumers the flexibility to be the selling party as well. Also Read: Bangladesh achieved commendable success in e-commerce during pandemic Designs do not necessarily have to equate to art; logos, doodles and even texts can make their mark as the next big thing on your platform, while you get to keep at 70% to 90% margin. If you choose to go down this path, getting suppliers of your brandless products becomes easier and harder at the same time. Easier because you can go for the absolute cheapest products in the market as its quality is superseded by the print on them. It gets harder reading the market and knowing the print industry, as certain products will be in demand that you might have missed out on, or certain products that have already been procured may translate print poorly. To commit to this field also means incentivising artists to upload their work on your platform, rather than your competitors - which is where assessing your costs and risks delicately becomes incredibly important. Read How to Earn Money from YouTube Channel  Sell For a Charitable Cause This is where product sales can start to go offline if retail restrictions are not hindered in your area. Regardless of what you sell, the marketing strategy is to highlight the cause of each purchase and how much of the money will go to a charitable organization. Collaborating with various charities is a good way to raise awareness for the specific field - where your company becomes a bridge for charities and the average consumer, while still getting to make a profit. Much like the design idea, a cut of each sale will go to your partner and making 100% of the sales is something to avoid expecting when getting into this area of business. Read Quarantine Income Opportunities: How to Earn Money during Lockdown Period? The most important strategy to get started on this business model is to find a charity that truly resonates with you. Whether it is the elderly, students who can’t afford an education or abuse victims, finding “your calling” is the key to making the entire business process seamless and even exciting. Believing in a cause and spending some time with the charities before approaching the marketing and sales angle will give you more insight into ways the profit can actually help the organizations. Consumers love to be informed and giving a cost breakdown with testimonials added to the mix can make all the difference in the success of your business. Read Best Personal Loans in Bangladesh to Make Your Dream Come True Sell Digital Services The online world is vast; so vast that your options to start up a digital service are almost endless. A mix of software knowledge, understanding of the market trends and creativity are all needed to pull this off. Although it may seem intimidating at first, the large pluses stem from not needing to coordinate with suppliers, distributors, manufacturing and shipping. Providing an online service doesn't have to be a radically new idea that revolutionises the commercial market; it can also be a massive improvement on a digital platform that already exists. Also Read: How to Earn Money from Facebook Whether it is photo editing, project management, fitness scheduling or even music editing - the key is to find the niche that best suits your talents and interests, then set up from there. A user-friendly interface can be considered as the meat and potatoes of your selling point to begin with. Notice certain companies making stellar business models on desktops that poorly translate mobile? Your digital service can take advantage of this and provide consumers with hassle-free solutions. Innovation doesn’t come easy, but market statistics have never been more transparent, which allows you to identify gaps in certain\ industries that will let you make your mark seamlessly. Read How to Create a Personal Website on WordPress. Bottom Line The pandemic has turned a lot of businesses over on their heads; with certain industries taking the brunt of the global economic downturn, while other unassuming businesses rising to demand spikes globally. Pay cuts and layoffs have made the economy an intimidating place for new businesses to strive while struggling workers turn their attention to more cost-effective fields to make ends meet. In this article, we have discussed some low investment business ideas that you can try during the pandemic situation. Pick the idea that suits most your interest, passion, and creativity. Hope it helps! Read F-commerce entrepreneurs rising significantly: Palak