business-analysis
Bangla QR Payment: The Contactless Payment System of EBL
The idea of a cashless society is not new. In this day and age, technological innovations and new methods of payment are aiming to replace the age-old monetary barter system through cash. To provide easier everyday transactions, EBL’s launched Bangla QR payment solution in its EBL SKYBANKING app on September 02, 2020, . This comes in line with debit cards, credit cards as well as the MFS in Bangladesh. The specialty of the new system is that it focuses on contactless payment using Quick Response or QR code technology. Traditional banks and financial institutions will now be able to access contactless, interoperable transaction systems.
Importance of Cashless Payment System
The importance of a cashless payment system is immense considering several factors. There is a long-standing idea that “Cash is King”. While cash is still the major economic transactor in the world, its benefits fall much short compared to the cashless payment system.
The reason is primarily because of the drawbacks of using cash. A physical currency makes way for easier counterfeiting. It is also susceptible to being stolen.
Read:Agricultural Loans in Bangladesh: Banks Offering Loans to Farmers and Farms
There is also the sunk cost of transporting, counting, and storing physical currency. There is also a bar on the international transaction as local currencies don’t work for foreign payments. Cash-based economies are also susceptible to a higher risk of corruption.
All of these drawbacks of a cash-based economy can be negated by the introduction of a cashless payment system.
What is Bangla QR by EBL? How Does it Work?
Bangla QR is an interoperable QR-based payment solution. It’s a step forward in the cashless and contactless payment system in Bangladesh. The payment system is based on the mVisa platform which brings all the utilities and services of Visa without the need of a POS machine.
Though QR code-based transactions have been happening in Bangladesh, these transactions aren’t directly regulated by the central bank. Rather the transactions are carried out by the own regulation of fintech services like bkash and Nagad.
Read:Best Business Ideas Amidst the Pandemic and New Normal
It's important to note that none of the existing contactless payment systems of Bangladesh are a direct-service of any bank. Rather it's limited to fintech organizations. Bangladesh Bank created a regulatory guideline for the contactless payment system. It was done to make the system more streamlined. And Bangla QR is the direct product of the new policy guideline.
Bangladesh bank opted for the merchant presented QR code transaction or EMVQRCPS. It lets a user scan a QR code displayed by the merchant and make instant payments.
Read Digital Currency: Benefits and Risks of the Cashless Economy in Bangladesh
Banks and lenders are exclusively dependent on Point of Scale (POS) for payment gateway through their card or internet banking app. The internet banking app is also designed for internal and external account fund transfer rather than merchant payment. The Bangla QR will help to eliminate the need for POS machines and bring the lenders hand in hand with the MFS in terms of merchant payment.
EBL was the first bank to adopt the Bangla QR as a payment option back in 2020. This is the first major private bank of Bangladesh that has opted for the platform as a payment solution. However, it wasn’t just aimed at going cashless.
Read:How to Test and Validate Your Startup Idea?
Potentials of Bangla QR by EBL
The managing director of EBL, Ali Reza Iftekhar thinks that this new horizon of payment option will be a great addition to ensure health safety by going contactless during this troubled time of the pandemic. The MFS sector itself brought banking to a huge chunk of the unbanked in the country. Now leading financial institutions and lenders can play a key role to make their services more easily accessible like that of the MFS.
From the context of Bangladesh, beyond the existing mobile financial services there are other online monetary services like debit cards, credit cards, e-wallet, bank accounts, and prepaid cards. Bangladesh Bank aims to create a uniform payment solution for all these services. The aim is also to include the MFSs to better streamline the cashless payment systems and bring efficiency. Rather than having a multiple QR code option, it will be a one for all system.
Read Renowned online payment gateways in Bangladesh for domestic, international transactions
There are about 15.99 Lac credit cards and over 1.93 crore debit cards in circulation in the country. Out of them, over 80% are based on the Visa platform. There is a huge opportunity here for all the banking institutions to tap into this new payment system. In recent years, people’s banking habits are changing. As more and more people get initiated with the digital transaction, the service is expected to be even more popular among the youths.
EBL itself has over 5 Lac debit cards and 1.6 Lac debit cards in circulation. Initially, the bank plans to work with 2 to 3 thousand merchants. Sequentially they plan to include more merchants and sectors within this payment system.
Read:Women Loans in Bangladesh: Best Schemes for Female Entrepreneurs
The Emergence of the Cashless Payment System in Bangladesh
Even though the pandemic has accelerated the use of a cashless payment system in Bangladesh, the system itself isn’t new. A cashless payment system, specifically the QR code-based transactions came into Bangladesh through the hands of the MFS.
A record 40 million users are registered in the network of Nagad, one of the leading MFS of Bangladesh. The company has a daily transaction of over 400 crores. bKash is also another major player in the sector with over 2.2 million registered customers.
The services have been especially popular among the youths due to the seamless and instantaneous performance of cashless payments.
Read Fintech MFS: Best Mobile Financial Services in Bangladesh
However, almost 71% of the overall economic transactions still occur in the traditional cash system. As a country, Bangladesh still has a long way to go to properly implement the cashless payment system. However, steps like the MFS and Bangla QR are making the process increasingly simple and more penetrable to the general masses.
Final Thoughts
Bangla QR is a positive step towards making Bangladesh a cashless society. The contactless payment system offers a huge opportunity for the banks to compete with the MFS in retail transactions. The increased competition will only help to make the transaction process more seamless as well as open up new opportunities. The change in people's transaction habits won't come overnight. However, it's still a significant leap towards digital economic growth.
Read Best Credit Cards in Bangladesh: A Comparative Analysis
Agricultural Loans in Bangladesh: Banks Offering Loans to Farmers and Farms
In Bangladesh, agriculture is the biggest employment sector, making up 14.2% of the country’s GDP in 2017 and employing about 42.7% of the workforce. The government has always provided special subsidies in the sector. Furthermore, easy loans for farmers are being offered by different government and private banks. The specialized schemes make it easier for the farmers to avail the loan to keep the cycle of production going. However, several factors should be considered before opting for an agriculture loan. Let's look at some of them as well as the best loans for agriculture in Bangladesh.
Factors to consider before applying for Farming Loans
Business Solvency
It is important to have a proper business plan before applying for an agricultural loan. Like any loan, agriculture loans, in general, require a statement of solvency to ensure debt repayment. Having a proper business plan allows a farmer or farm owner to better show the repayment procedure making them easily qualified for the loan.
Down payment
Almost all agricultural loans require some form of down payment. This usually ranges from 20-25% of the sum of the loan. In the absence of down payment, many banks accept the farm areas like security. The actual rate of down payment differs from bank to bank. However, every bank requires some form of down payment as a security.
Read Top 5 Mobile Apps for Farmers in Bangladesh
Microloans
There are often situations where the farmers may not need full-scale loans. The difference between a regular loan and a microloan is in the rate of interest and flexibility. While traditional loans will require security and down payment, taking microloan farmers can enjoy flexible repayment options as well.
Investment or Operational Loan
There are mainly two categories of agricultural loans – operational loans and investment loans. A farmer can apply for operational loans when he aims to use the money to operate the existing logistics and grow crops. The other form of loan is the investment one where the farmer uses the money to buy logistical necessities associated with farming. There are different subsidies available for operational loans. Therefore, it is important to know about the type of loan before applying.
Read: Women Loans in Bangladesh: Best Schemes for Female Entrepreneurs
Best Agricultural Loans in Bangladesh in 2021
Prime Bank Agriculture Loan
Prime Bank is one of the leading private banks of Bangladesh established in 1995. As a reputed Bangladeshi bank, it has had its contributing share in the agricultural development of Bangladesh. Their agriculture loan schemes are the result of that continuous effort.
The Abad or Crop loan scheme is an operational loan intended for the farmer, shared croppers as well as landless farmers to operate their production capabilities. It is a general loan scheme that can go up to 3 Lac BDT as per the need and qualification of the farmer. The loan tenure is for 6 months with the option for an extension as per the guideline of Bangladesh bank.
Read Sofol App from iFarmer: A Revolution Towards the Agriculture Digitization
In addition to grass-root farmers, Prime Bank has loan schemes for large-scale farms and farmers. Any established farms can avail of a loan of up to 1 crore BDT as part of their “Khamar” loan scheme. The loan covers a diverse range of farms and the tenure ranges from 1 year to 3 years for long-term projects.
Established farmers can take a loan of up to a similar amount of “khamar” as part of the “Nabanno” project. The loan is aimed at setting up a new agricultural base as well as expensive machinery and utilities. The core details are similar to that of the “Khamar” scheme.
Bangladesh Krishi Bank Loan
Bangladesh Krishi Bank is the only specialized agricultural bank in the country. The bank, founded in 1973, is a fully government-owned and operated bank with a complete focus on the agricultural development of the country. As a result, the bank has several loan schemes and opportunities for the farmers as well as the farms.
Read Sources: Agriculture to get increased subsidy in the upcoming national budget
The core credit program of the bank focuses on crop and fisheries loans. These two are the main aspects that the bank focuses on their credit system.
In addition to the crop and fisheries, the bank offers several specialized farm loans. The bank has livestock and continuation loans as well. The specialty of the Krishi bank is that it provides microloans to grassroots farmers without any deposition and security.
From micro to large farms, the bank offers varied sums to qualified farmers and farms. The bank has a specialized loan scheme for cattle raising which offers a maximum of 25 thousand BDT for a total of 5 calves.
Read Student Loans in Bangladesh: Banks Offering Education Loans for Higher Studies
The interest rate varies by farming sector but it's subsidized owing to subsidization from the government.
Uttara Bank Limited Agricultural Credit
Uttara Bank is one of the oldest and pre-independent private banks of Bangladesh. The bank is one of the largest in the private sector and offers loan schemes for diverse sectors including agriculture.
The specialized agricultural credit of Uttara Bank provides short, mid-term as well as micro-credit schemes for farmers and farms.
Read Motorcycle Loans in Bangladesh: Turning Your Two-wheeler Dream into Reality
The bank offers loans for operational as well as investment in the farming sector. Any eligible farmer or farm owner can avail of this loan and the bank decides on the loan sum as per the Bangladesh Bank (BB) policy. They exclusively follow the BB policy for loan head generation. The loans are provided at a competitive rate of 10% which is subject to changes based on the loan details. The bank doesn’t require any down payment but it does require 2 personal guarantors.
EXIM Bank Agricultural Loan
EXIM Bank offers agricultural loans as part of their EXIM Kishan as well as EXIM Farmer scheme. These two schemes serve two different purposes as per the regulatory directives.
The EXIM Kishan is designed as an investment loan without any collateral for the farmers. This is a specially suitable scheme for sharecroppers and marginal farmers. The investment size reaches from 10 thousand BDT to up to 20 Lac BDT.
Read Best Home Loans in Bangladesh to Build Your Dream Nest
The EXIM bank farmer initiative is another investment scheme against a deposit scheme. The minimum deposition starts at 12500 BDT. All the standard agricultural investment procedures apply in this scheme as well.
IFIC Bank Suborno Gram
The Suborno Gram scheme of IFIC bank is a specialized loan scheme devised for the crop and the fisheries sector.
The loan is available for the crop sector on a short-term loan basis. The maximum loan amount for the crop sector is 20 Lac BDT. The tenure is fixed at 12 months along with the standard interest rate as per the policy of BB.
Read: Chaldal Pet Care: Story of on-demand pet food and products delivery service
The fisheries sectors can also receive short-term loans at a small scale or medium scale. The short-scale is capped at 50 Lac BDT whereas the medium-scale goes all the way up to 2 crore BDT. The repayment and other details are similar to that of crop one. A beneficiary may choose between one-time repayment within the allocated time or EMI options.
BRAC Bank Tara
The BRAC bank Tara is another excellent loan choice when it comes to the agricultural sector. This is an all-in-one loan scheme devised for the manufacturing, trade business as well as agriculture.
The interest rate of the scheme is flat at 7%. But the Covid situation has had the subsidization from BB which is currently 4% for the time being. Another key feature of the loan is that there is no processing fee involved.
Read Best Car Loans in Bangladesh to Grab Your Dream Car
The loan can be availed as a secured one but in that case, the bank would require a specific mortgage based on the allocated sum. For medium to large farms, the loan limit is between 10 Lac BDT to 5 crore BDT. The loan can only be availed as part of a sole proprietorship or partnership.
EBL Agricultural Loan
EBL is one of the premier private Banking organizations of Bangladesh. As part of their diverse financing scheme, the bank also has a standard agricultural loan scheme.
The bank provides agricultural loans mainly in sectors including crops, fisheries, and livestock.
The tenure of the loans ranges between 6 months to 5 years. A competitive loan structure is available for qualified farmers and farms. The loan amount varies between 10 thousand BDT to up to 1.5 Lac BDT. The loan can be availed as both one time grant or as a revolving scheme. Since this is a loan scheme geared towards the sharecroppers and marginal farmers, there is no need for collateral or deposits. The bank also does not charge any form of processing fee.
Read: ShopUp Raised $75 million, Largest Series B Funding for a B2B E-Commerce Platform in South Asia
Final Thoughts
As an agrarian country, Bangladesh’s dependence on agriculture for GDP growth is immense. As a result, almost all the leading banks and financial institutions of the country have credit systems for agricultural development at the root level. So far, we have discussed the best agricultural loan schemes in Bangladesh offered by different banks. Not to mention, these banks are the leading ones when it comes to pioneering agricultural empowerment in the country.
Best Business Ideas Amidst the Pandemic and New Normal
The Covid-19 pandemic has left most of the economies of the world in a downward spiral. Businesses across sectors have suffered much. Some were even forced to shut down. As the world grapples with the new normal, not all hope is lost for businesses. Some existing businesses took a new approach in their operations, while other completely new ones cropped up as well. And what are these pandemic proof business ideas? Let's find out.
Difficulties to start a new business during the pandemic
Starting a new business is a complex task. There are a lot of legal as well as product-related aspects that hinder a business.
While businesses are adopting online platforms, physical business still makes up for the considerable chunk of revenue. One of the common issues faced by businesses during the pandemic is the lack of favorable conduction to carry on physical business. This is true for new businesses as well.
Read: How to Test and Validate Your Startup Idea?
In addition to that, the lockdown in certain countries has caused product sourcing issues. Lack of external funds and worker shortage are also some other aspects that are working as a constraint to start a business during the pandemic.
However, the scenario is changing. As the world is coming to terms with new normal, businesses are finding workarounds to their daily processes. New opportunities are showing up regardless of the situation. Let's look at some of them.
Small businesses ideas during the pandemic
Online Reseller
One of the paradigm shifts has been the move of businesses from localized stores to online platforms. In the context of Bangladesh, the change has been even more apparent. Out of the total 7000 Crore BDT of commercial transactions, 1000 Crore BDT was through e-commerce in the FY 2019-20. This says a lot about the potential of the sector as an effective alternative to the traditional business models.
Online reselling has had the gross chunk in the F-commerce share. With appropriate patronage, the sector can move further forward.
Read Women Loans in Bangladesh: Best Schemes for Female Entrepreneurs
Social Media Services
The move of businesses to an online platform has opened new opportunities surrounding it. Most of the traditional retail businesses in Bangladesh are run by people with little knowledge of F commerce or digital platforms. As a result, there was an innate need for F-commerce and digital platform solutions that can cater to the growing urge of shifting business to online platforms.
In addition to these, the new startups require the help of social media specialists and digital marketers for the online promotion of their products and services. Whether it is digital marketing, marketplace creation or simply handling social media, there is a robust business opportunity for the individual as well as teams. And that is the focus of the next point.
Digital Consultation
Digital consultation is the online-based version of traditional consultation. With the pandemic in effect, the change in work and business conduction can work in favor of transforming consultation services.
Read:Late Blooming Billionaires: Story of successful people who started late in life
Consider the impact of Covid-19 on a field and get familiarized with the change management process. There are a lot of businesses waiting to make the jump to the online platform. It is now easier than ever to offer consultation as well as logistical and training for the shift to these businesses.
Graphic Design Agency
This one is stream-based and only applies to people with considerable graphics skills. While businesses shift to online, there arises the need for advertisement. In addition to adverts, there are various other types of graphical needs, like creation of logos, business cards, brochures, etc. Whether its office or businesses, the need for graphics designers are there irrespective of the sector.
This can be a great opportunity for the up-and-coming graphics designers. They can start a graphics design industry alone or by being part of a team. Those who are looking for zero investment business ideas can opt for the skill based startups. This service based business ventures can be a good way to utilize skills without considerable investments.
Read:Investment: What Factors to Consider before Investing Money?
App Development
Whether it is a small-scale food startup or big transportations service, the customers can reach the service providers through an efficient app.
A study conducted on American phone users found that over 90% of mobile phone users use their mobile time browsing apps. Though exact data are not available, the situation is somewhat similar for the Bangladeshi demographic as well. This is a wonderful scope for the app developers. With the app service industry expected to cross 800 billion USD in revenue by 2022, this is a golden opportunity to tap into the ecosystem.
The developers can focus on service integration for various business platforms. The shift of business to online platforms is opening up service needs that were not present previously. Apps can work as a great business and revenue generation source by addressing these needs.
Read Common Challenges faced by Startups in 2021
Virtual Tutoring
The paradigm shift is not noticeable in the service and business sector only. Its implication is seen in the educational sector as well, especially in the case of Bangladesh. As schools and other educational institutions are going through shutdowns, online learning has become a sort of new normal for the students.
Virtual tutoring can be a great option to utilize this shift. It can be premade courses on a specific subject topic or even live classes. Regardless of the means, the opportunity can be endless considering there is no boundary or limitation involved in teaching online.
Read:Investment Opportunities in Bangladesh amid Pandemic
Cloud Kitchen
Love cooking? Then now is the time to turn it into a profitable business. Like everything else, the pandemic has also shifted people's focus from eating out at restaurants to eating from the comfort and safety of their own homes. And that has increased the dependency on food delivery services like Pathao, Foodpanda, and Shohoz in Bangladesh.
The fortunate thing is in addition to restaurants, these delivery platforms also partner with home cooks to showcase their menu on their app. As a result, it's possible to build a robust cloud kitchen business from the comfort of the home. Culinary skills are all that’s needed to shine in this line.
Read Seed Fund Raising for Startups: Things to Know About
Virtual Medical consultation
While the country battles the impact of Covid-19, the need for general consultation for other diseases has not stopped. But many people are fearful of going out to chambers or hospitals due to the fear of the pandemic. Virtual medical consultations can be a great workaround in this regard.
Common and basic diagnostics can be done through verbal communication and checking the symptoms of the patient online. As a doctor, this can make way for added service generation in addition to normal duties.
Read:F-commerce in Bangladesh: Problems and Prospects
Final Thoughts
The overall impact of the pandemic has been negative on every aspect of life. However, that does not take away the opportunities it has presented. With the changing social interactions and processes, it may very well make way for innovative pandemic-friendly small business ideas not thought of before.
How to Test and Validate Your Startup Idea?
One of the most common intimidating things with entrepreneurship is that many people are first-time entrepreneurs. The serial entrepreneurs already know the ins and outs of the initial process associated with entrepreneurship. There is no fixed way of starting a startup, as every sector and market are different. As a first-timer, it might seem hard for a potential entrepreneur to test his/her own startup ideas. One of the key ways to overcome this initial barrier is through testing and validating the startup idea. Here is a step-by-step guide for the market validation process.
Why is it necessary to test the startup idea before starting the business?
Prior to understanding the necessity of testing a startup idea, it is important to understand what market validation is. The term ‘Market validation’ refers to the simple process of assessing whether the startup product or service is in demand in the market. A product might be a great fit in a niche but if there are not enough buyers for the product, it is ultimately slated to be a failure.
Testing the startup idea gives first-time entrepreneurs and often serial entrepreneurs a detailed insight into the product demand in the market. A product or service fails because of three things – lack of planning, lack of marketing, lack of custom-tailoring. Testing and validating the startup idea helps to eliminate all of these scopes and eventually drive up the success rate.
Read Common Challenges faced by Startups in 2021
Best ways to test and validate a startup idea?
Pen out the product outline
Many people confuse the product outline with a business plan. In reality, a business plan is a dynamic tool that is susceptible to many changes. A product outline is more like an answer to certain questions on which the foundation of the startup will be based.
Think of the things the product or service aims to achieve. Who is the target customer for the product? What utility will the product bring in the market and to the customer? Does it solve a problem enough to generate a market cap? What is the minimum viable product of the startup? These are just the basic questions when it comes to drawing a product outline. It helps to effectively plan around the product and customer and build a better connection among them.
Read Seed Fund Raising for Startups: Things to Know About
Conduct a survey
Market surveys are a key part of every stage of any startup. It is important to take note that customers and their tastes are dynamic. It is not going to stay constant over time. As a result, the business plan of any startup needs to be molded and upgraded accordingly.
A customer and market survey will help an entrepreneur assess the demand for their product as well as market competition for the product. Furthermore, it is a great way to assess whether a market is already saturated or not. Understanding the needs of the customer will help to better tailor the product to their needs.
Read: ShopUp Raised $75 million, Largest Series B Funding for a B2B E-Commerce Platform in South Asia
Know the market competitors
It is important to find out the competitors in the market. There might be sufficient demand for any product but what if the competitor is a multi-industry conglomerate? They will have far more resources to better manipulate the market.
But that does not mean it should deter someone from entering the market. The competitors can act as a good insight on how a product should be designed, how to market the product and target customers. Instead of getting deterred by competitors, potential entrepreneurs can get better insights from their business models and marketing techniques.
Read: Vroom App: End-to-End Platform for Car, Automobile Related Services in Bangladesh
Create a Value Proposition
Too many startups these days focus on product features compared to value generation. Instead of stuffing features that the customer might not need, the right approach is to generate value for them. In simple words, highlight the value generation in lieu of features. People are motivated by productivity and the idea of value generation will help the customer to respond in a better manner.
Use Product Hunt
Product Hunt is an amazing platform for up-and-coming startups. If you are just getting started with entrepreneurship, Product Hunt can be a great place to see how well your startup ranks among the customers.
Read 7 Local Startups Get Tk 150m Funds from Startup Bangladesh Limited
The platform is like a social hub for startups. Here users get to understand your product in its initial stage and decide whether it adds any value to them or not. It is possible to categorize the target customer and many more on the platform. In addition to these, aspiring entrepreneurs can easily conclude market acceptability through the platform. More details here.
Create a landing page
In this day and age, online marketing is one of the most effective business strategies. Almost everyone seems to have some form of internet connectivity. Depending on the nature of the startup, it is better to create a “Coming Soon” landing page. This will have a triple impact on the business – draw the attention of the customer, assess product interest and initiate a brand valuation.
Read: Late Blooming Billionaires: Story of successful people who started late in life
Once marketing is done through the page, it becomes easier to check the buzz around the product through analytics.
Create an MVP
All of the above processes are meant for superficial market assessment. But a customer needs to see and use a product to deliver their ultimate verdict. This necessitates the need for a market viable product (MVP).
In the pre-startup stage, the MVP can be launched to a limited customer base to assess their feedback. The real-world product usage will help the customer make a more informed decision and ultimately either discard or validate the product.
Read:Investment: What Factors to Consider before Investing Money?
Find the gap between liking the product and buying the product
There have been several scenarios where a product has been liked by a great many people but when it came to product launch, not many people were buying it. Why so?
It is mainly because of dainty features. These features can be better classified as something good if they exist, but will not make much impact if they are absent. A startup needs to refrain from falling in this category as it will give entrepreneurs false understandings of the market. Rather the approach should be a value proposition focused on creating utility for the customer in mind.
Read: Investment Opportunities in Bangladesh amid Pandemic
Final Thoughts
Testing and validating a startup is very much important to ensure its sustainability in the long run. This often acts as the make-or-break factor for any business. Properly assessing the market before making market entry will help to ensure profitability and business survival.
Women Loans in Bangladesh: Best Schemes for Female Entrepreneurs
Bangladesh is an emerging economy of the world. However, it's still lagging in inducing entrepreneurial ventures on a local level. The situation is even direr for women. A study conducted by Mastercard Index ranks Bangladesh as one of the toughest places for females to emerge as entrepreneurs.
However, the situation is slowly changing. Most of the leading banks including the government ones are introducing women loan schemes for personal as well entrepreneurial needs. In this article, let's look into the details of the leading banks offering loans for women in Bangladesh.
Factors to consider before taking a women loan
A women’s loan doesn’t divert much from the traditional loan schemes. As a result, the general factors to be considered before taking a loan also apply in this regard. Here are some of the important aspects to be kept in mind.
Read: 'Women entrepreneurs get less than 4% of MSME loans'
Credit Score
The credit score determines the credibility of the borrower. It’s a point system to determine how good a borrower is at giving back the borrowed money. Naturally, this becomes a determining factor for most banks before sanctioning loans.
Most banks do not disclose the actual minimum credit score to be eligible for a loan. Even though the minimum score isn’t disclosed, it should generally be between 700 to 800.
Value of collateral
Collateral is the agreed asset to be paid to the bank in case the borrower fails to repay the loan. The amount of the loan depends on the value of the collateral asset. However, these are only applicable for secured loans.
Unsecured loans don’t require any collateral asset disclosure. But they come with higher interest compared to the secured loans.
Read Student Loans in Bangladesh: Banks Offering Education Loans for Higher Studies
Liquid asset
Borrowers with a considerable liquidity asset hold priority when it comes to loan sanctions. There are always chances of temporary setbacks when it comes to repayment. Having some form of a liquid asset will help to keep the repayment rolling.
Loan Duration
The duration of the loan will impact the overall interest paid against it. Banks often feel comfortable lending for a shorter period. It's also a better choice for the borrower as well since the interest against it will be less.
It's better to avoid long-term loan commitments because even if the borrower wants to close early, banks charge an early settlement fee against the loan.
Read: Covid: A catalyst for women entrepreneurship in Bangladesh!
Best Banks for women loans in Bangladesh
EBL Women’s Loan
EBL Women’s loan is a tailored unsecured EMI-based loan specially designed for professional women. The loan amount ranges from 1 Lac BDT to up to 20 Lac BDT. A borrower must be at least 22 years old to be eligible for this loan.
The salary requirement varies across professions for this loan from a minimum of 15,000 BDT to 30,000 BDT. The loan can be availed with a tenure of 12, 24, 36, 48, or 60 months, whichever works better for the borrower. EBL has a standard loan processing fee of 1% and relevant early settlement fees will also apply.
DBBL Women Entrepreneurs Financing
DBBL Women Entrepreneurs Financing is for women looking to venture into entrepreneurship. As a result, this loan scheme offers several facilities which make it one of the best choices out there.
The maximum loan amount is 50 Lac BDT which is designated keeping the small and medium enterprise entrepreneurship in mind. The loan is applicable for women undertaking cottage, small or medium scale businesses. To facilitate the process, DBBL doesn’t charge any processing fee for this loan. The interest rate is fixed at 9%. The loan can be tenured for any duration between 12 to 60 months.
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IFIC - Prantonari (Women Entrepreneurs Loan)
The Prantonari scheme by IFIC bank is designed for women from the grassroots level. The scheme is part of the initiative to empower rural women to increase the life and livelihood of the people.
This is a term loan that can be borrowed as both secured and unsecured loans. The limit for an unsecured loan is up to 5 Lac BDT and for a secured one, it goes all the way up to 20 Lac BDT. However, the loan has a higher minimum repayment period of 24 months. The term goes all the way up to 36 months at a 9% rate.
There is no scope for early settlement with this loan scheme. To be eligible for this loan, a borrower needs to have at least 2 years of experience in the relevant business field in addition to belonging to the grassroots level. The bank requires that the business should generate a sufficient return to ensure loan repayment.
Read Economy faces challeges of revenue shortfall and defaulting bank loans: Document
MTB Women Entrepreneur
When it comes to the private sector, MTB is one of the leading banks of Bangladesh. The bank has made its mark through competitive service and ease of banking. The MTB women entrepreneur loan scheme is part of their entrepreneurial lending venture aiming to facilitate entrepreneurs with a need for capital.
One of the schemes under this venture is the MTB Bhagyaboti loan. The range of sum is between 1 Lac BDT to 25 Lac BDT which is one of the highest in Bangladesh. The maximum repayment duration is 36 months. The standard 9% interest also applies to this loan.
A useful feature of this loan is that this is an unsecured loan so no collateral is necessary. In addition to that, the bank also doesn’t require any guarantor to be eligible. However, the borrower needs to have at least 1 year of experience in the relevant business field.
Read Relaxation of GTF loan conditions to help private sector exporters: BUILD
Shakti (Women Entrepreneur) by Union Capital Limited
This woman entrepreneurial loan by Union Capital is geared for an already established business looking for capital to expand or scale up its business. As a result, the loan gets disbursed to the company rather than the individual owner. However, the owner still needs to be a woman to be applicable for this loan.
The upper limit of the loan is at 50 Lac BDT. The loan is geared toward SMEs. However, the borrower can access up to 25 Lac BDT without any collateral. There’s also provision for prioritized service and grace period. The individual details of the loan will vary from business to business and loan amount. A borrower should directly contact the loan department of Union Capital for further details.
Read Legendary Women in Bangladesh with Pioneering Contribution in Diverse Fields
MDB Nari Uddog
The MDB Nari Uddog by Midland Bank is similar to the women's entrepreneurial loan offered by DBBL. It's applicable for women who are running a business under the cottage, small or medium enterprise as defined by Bangladesh Bank.
The bank is offering loans of up to 5 crore BDT for eligible businesses. However, it comes with its own set of collateral requirements. The business should be at least 2 years old with a viable market strategy to be eligible for this loan.
Just like Union Capital, the loan is classified as a business and can only be availed by established businesses. There are also refinancing opportunities as outlined by the Bangladesh Bank. The borrower will have to visit their nearest Midland Bank branch to get more information.
Read Best Car Loans in Bangladesh to Grab Your Dream Car
Shikha Loan by LankaBangla Finance
LankaBangla Finance is one of the premier financial institutions of Bangladesh that run on joint ownership. The organization has a line of loans under its Shikha scheme. Most of them are geared toward women's empowerment through entrepreneurship.
The ‘Anonnya loan scheme’ is designed for women who have already ventured into entrepreneurship or are looking to get into it. The upper limit of the loan is set at 50 Lac BDT. A borrower can avail up to 25 Lac BDT without any form of collateral. The time duration for the repayment is 60 months.
The financial institute is also offering EMI on the repayment which makes it even easier for businesses to undertake the loan. There is no need for a guarantor and the organization offers priority service during and after loan allocation.
Read Best Home Loans in Bangladesh to Build Your Dream Nest
Purnota by IDLC
IDLC Finance is also one of the leading financial institutions of Bangladesh. The organization has a range of loan options for borrowers of every need. Their Purnota scheme is part of the SME loan for women entrepreneurs.
The loan ranges from 2 Lac BDT to 35 Lac BDT. There is no need for any collateral even for the upper limit. The institute also allows flexible repayment based on the revenue generation by the business.
In addition to refinancing opportunities under Bangladesh Bank, Purnota has one of the most competitive interest rates among SME loans. You can avail of this loan with 2 years of business operating record and proof of revenue generation.
Final Thoughts
That concludes the list of the best banks offering entrepreneurial loans for women in Bangladesh. Though there are other banks as well and each has its unique schemes, these banks and financial institutions stand out because of their service and features. Before getting into one, it's important to read all the loan-related disclosures carefully or better yet, talk with a representative to actually determine the worth and feasibility of the loan.
Read Govt mulls a watchdog for defaulting loans, financial stability: official document
Chaldal Pet Care: Story of on-demand pet food and products delivery service
Many people keep pets as a hobby, and this pet once became the companion of all time. Although, this scenario might be common in first-world countries. Even a few years ago, rearing a pet was more like a luxury and troublesome hobby in Bangladesh. The main reason was the wide unavailability of pet food. However, over the last few years, the situation has improved. Having a pet is not a luxury anymore, and many people are buying and adopting pets. Furthermore, buying pet foods is not troublesome at all due to Chaldal.com's vertical product line Pet Care.
Dogs and cats are on the list of many people's favorites in Bangladesh as pets. But, it was difficult to find proper nutritious foods for the pets; many people refrained from keeping dogs and cats at home. So, for the pet owner's convenience, online grocery shopping site Chaldal.com has created a special Pet Care category for dogs' and cats' food. From where customers get SmartHeart, Whiskas, Me o, Lara, Drools Fiskis, Mio, Delico, Purina, etc., for cats and Kennel, Bonacibo, Drools, SmartHeart, Maxi, Goodies, etc. for dogs. Let's get to know more details about Chaldal Pet Care.
Read ShopUp Raised $75 million, Largest Series B Funding for a B2B E-Commerce Platform in South Asia
What is Chaldal Pet Care?
Pet Care is a new product line from Bangladesh's largest online grocery shop Chaldal.com. The Pet Care industry has experienced a rise in the last few years. Chaldal’s Pet Care service came into action around 2014. When the Chaldal saw a growing demand for pet food as well as pet care items, they started the journey. Over the last few years, this product line has seen excellent growth. And currently, Per Care is one of the largest categories on Chaldal.
The company started this service with dog food initially and now sells pet foods alongside the accessories for dogs, cats, rabbits, and fish. Since the demand for pet foods is increasing, the company works hard to ensure the best quality product from authentic suppliers and sources. Nevertheless, they also ensure the best possible prices for pet owners.
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Chaldal treats ‘Pet Care’ as a regular food category. So, it works as a demand pet food and products delivery service. The good thing is that anyone from all four markets- Dhaka, Narayanganj, Chittagong, and Jashore can access the pet food.
How does Pet Care source its products?
When Chaldal started the pet food business back in 2014, they struggled a lot to find the best quality product. As they were sourcing from the third party, the margin was low. Furthermore, the unavailability of the products was another concern.
But, in the last few years, they have improved significantly. They work closely with pet care products, pet food suppliers, and merchants in Bangladesh. They have built a strong supply chain. Further, they also work directly with the importers with a standard payment deal and buy upfront. Needless to say, Pet Care sources high-quality products and foods from reliable sources and then brings them to the warehouse to ensure quality and proper packaging.
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The evolution of Pet Care
In the early days, Chaldal had seen a preview of the pet products prospect. The company realized that pet care products and foods would lead them to acquire a new market. But, the company took this new market seriously in 2016, and they decided to give importance to human products.
The company made a small team and a strategy for the business development. The team contacted the vendors directly and made sure of the consistent availability of the products. Further, the company also emphasizes marketing and managing. As the company learned about the market, they managed the inventory accordingly. And finally, they have seen some excellent results.
Chaldal's Pet Care products grew significantly in 2016. After that, in 2017, they became the market leader in the online pet food business. However, they are yet to beat the largest offline pet care market, Kataban.
Read Key Challenges to Start E-Commerce Business in Bangladesh
After seeing the prospect, the company set up a proper supply chain as well as a mechanism to manage the customers. Now the Pet Care category in Chaldal.com has everything related to pet care which includes food, toys, accessories, and more.
Challenges
While Pet Care aims to offer uninterrupted supplies, it faces some supply chain-related challenges. For example, sometimes the importers for the high demand products stop the operation or stop importing. Further, if an importer ends the agreement, the company faces a problem.
The shortage of supply has become a consistent challenge for the company during this coronavirus pandemic. It is because of the border closure and delay in international shipping. Hence, the company is facing issues to ensure the availability of popular products.
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But they try to recover the issue by offering alternatives. However, they are working to solve those challenges.
The future
Having a pet has been becoming a norm in Bangladesh, especially in the posh area of the country. In the old days, people used to have local cats as a pet, which didn't need much attention. However, a certain social class now adopts or buys foreign breeds, and special care is needed for them. And this is on the rise. Hence, pet foods and products will see a steady rise in Bangladesh. Currently, the pet market is worth BDT 5 crore and growing.
Nowadays, pet owners in Bangladesh treat their pets lavishly. Hence, the demand for different pet products will increase in the coming years. So, Chaldal's Pet Care is a bright prospect. However, the growth of the market is lucrative, and many entrepreneurs have already emerged in the past few years. But, Chaldal doesn't seem to pay much attention to the competitors as they are working hard to improve the service along with the quality.
Read 7 Local Startups Get Tk 150m Funds from Startup Bangladesh Limited
ShopUp Raised $75 million, Largest Series B Funding for a B2B E-Commerce Platform in South Asia
Starting a small business in a country like Bangladesh can be a difficult task. Traveling around the globe to sourcing wholesale products, arguing with shopkeepers over prices, stockpiling products, looking for customers' homes in the city's alleys for delivery, and much more! Now, if you are told that you can get all the solutions from online business sourcing to delivery without any investment by downloading a free app on the phone! Isn't that cool?
More than 6 lakh entrepreneurs have already succeeded in their online business using a single platform. There is a platform where you can get a huge collection of more than 1 lakh wholesale products spread across the country sitting at home! ShopUp has accomplished this impossible task. Now, they have raised $75 Million in new funding to reach more people in Bangladesh as well as abroad.
Read Vroom App: End-to-End Platform for Car, Automobile Related Services in Bangladesh
What is ShopUp?
ShopUp works toward bringing different small and medium traders under one roof. In addition, ShopUp connects the manufacturer with the wholesaler, further, the wholesalers are connected with the retailer and the retailer with the buyer. ShopUp offers a variety of online business services, including promotion of products, timely delivery of products, and high-quality packaging. Besides the website, the platform also has three apps in the Google Play Store.
Afeef Zaman, Siffat Sarwar, and Ataur Rahim Chowdhury launched the ShopUp in February 2016 with the aim of turning the country's potential entrepreneurs, especially women, into successful entrepreneurs by using various services of Facebook and information technology.
Read ToguMogu: One Stop Solution for Bangladeshi Parents
Before that, Ataur Rahim Chowdhury, who has passed Computer Science and Engineering from East-West University, started the smashboard, which used to work with query management through social media. During that time Ataur came to know about the various problems of product delivery services of e-commerce companies in Bangladesh. He discussed the matter with his friends Afeef Zaman and Siffat Sarwar, who graduated from the Institute of Business Administration (IBA) of Dhaka University.
All three agreed that the solution to the delivery problem would change the face of Bangladesh's e-commerce business. Soon after, they started ShopUp in a small office in Lake Circus, Kalabagan. In the beginning, they used to provide service on managing Facebook pages as well as order and manage products.
Later, they added the merchant delivery service. Gradually ShopUp also started giving loans to entrepreneurs for business development. Later, the company also launched a mobile app. That's how today's ShopUp was started.
Read 7 Local Startups Get Tk 150m Funds from Startup Bangladesh Limited
How ShopUp works?
ShopUp works through a few simple steps, but you will need to put some effort into it. However, you can find out whether the product has been delivered or not from the ShopUp app, sitting at home. ShopUp will do all the work for you, which can make your business successful easily and hassle-free.
Firstly, you will need to install the app on your phone. Register in a few easy steps and get more than lakhs of wholesale products for boys and girls, including fashionable dresses, cosmetics, gazettes, and accessories. Download pictures of your favorite products and share them on your business page or do online marketing. When the customer places an order, you will need to place the order in the app and enter the delivery address. Fill out the delivery details, selling price, and other relevant information.
You can find out the real-time updates and payment details of delivery through the app. Profits on full-week sales will go directly to your bKash account next week.
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ShopUp services
ShopUp offers different types of services to make the business easier. Services include delivery, shop management, and ShopUp assist.
Own delivery service
Delivering products on time to buyers is a challenge for any entrepreneur. That is why ShopUp has its own delivery service to provide entrepreneurs the opportunity to deliver products all over the country quickly.
Shop management services
Entrepreneurs have to update their Facebook pages regularly to make their products attractive to buyers. But everyone cannot do that on their own. Hence, ShopUp has shop management services to solve the problem. The service provides the opportunity to create a business-friendly page on Facebook as well as add up-to-date information.
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Shop Assist
There is no substitute for product promotion to reach online business buyers. But due to a lack of direction, many people cannot promote the product properly. Many also annoy the buyers by promoting the same product over and over, which later becomes a threat to the business.
ShopUp Assist can give a solution to that. Through the service, an entrepreneur can post product promotion or page promotion on Facebook. Even if you need a credit card for that, ShopUp offers the opportunity to pay through a bKash account.
To accelerate the business, ShopUp has three additional services, Mokam, REDX, and Baki. ShopUp delivers daily necessities to the grocery store in the neighborhood in 24 hours through the B2B business app Moka. For this, the startup has entered into agreements with various product manufacturers, distributors, and wholesalers.
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Apart from that, the products are delivered to the traders through REDX. Launched last year, RedX is currently serving 493 Upazilas. And small traders can buy products on credit through the Baki service.
How did they start raising investment?
Over the last 4 years, ShopUp raised investments in several steps. Their investment came from an Angel round in 2017, and they raised $120k. Next, the company proceeded to the seed round in 2018 and received $1.6 million funding from Omidyar Network, USA.
After that, ShopUp participated in three more seed rounds in 2019 and raised $4.2 million in total. Their second largest investment came in October 2020 from Flourish Ventures, Sequoia Capital India through Series A, and the company received $22.5 million. Finally, ShopUp raised $75 million last week from the Series B round.
Read Angel Investment 101: Is It the Right Track for Your Startup?
How did ShopUp raise $75 million from Bangladesh?
Basically, when a new venture shows good results in the market with initial capital, they become eligible for Series A investment. After that, they can proceed to Series B investment. ShopUp has proved its ability through footprint in all 64 districts in Bangladesh and Bengaluru, India.
As a result, they received $75 million from Series B financing led by Peter Thiel's Valar Ventures. The investment also includes, from "Proses- the investment arm of Naspers, Pierre Omidyar's family office, as well as existing investors Sequoia Capital India, VEON Ventures, and Flourish Ventures." As a Series B, it is the largest investment in any startup based in South Asia.
Read The 7 Most Promising Tech Startups in Bangladesh
Vroom App: End-to-End Platform for Car, Automobile Related Services in Bangladesh
What do you do when your car/ automobile breaks down? Many people become worried about repairing a damaged car in Bangladesh as finding a reliable mechanic or company is troublesome. Again, if the car parts are damaged, many people get in trouble about where to find the original equipment. Keeping these problems in mind a mobile application-based service has been launched to relieve car owners from these difficulties. The name of this app-based service is 'Vroom'.
What is Vroom?
Now you can search for damaged car parts with the smartphone at your fingertips. Further, you can also properly manage the fuel of the car through your phone. Such services have been created by Bangladeshi software entrepreneurs. Mobile application-based service Vroom is providing hassle-free service to car owners.
Vroom is an online car service provider. Its journey started in July 2017 and the company has been successfully providing services for more than four years.
Read Best Car Loans in Bangladesh to Grab Your Dream Car
How did Vroom Start its journey?
A few friends started this service in Dhaka with the aim of providing benefits to car owners. Everyone felt that there needs to be a company that can come home and takes care of the car. With this goal in mind, they started a journey by forming a company. The entrepreneurs involved in creating this service came from different backgrounds and professions. But everyone's goal was to provide the service right and this is how the Vroom was born.
However, the initial goal was to provide home services and establish a network of professional workshops in the country. So, the car owners can take safe service with confidence and guarantee. Besides, car owners could buy original parts at the right price.
Confidence is the key to success for Vroom workers. In the beginning, they inspected 300 workshops before starting the journey and considered only 31 workshops that had the quality in terms of skilled manpower and equipment. With them, Vroom launched an app called Vroom 24x7 on Android and iOS platforms. Home service can be taken through the app.
Read Bangla Car: The First Car Made in Bangladesh
Apart from this, Vroom offers a membership card so that the users get various benefits. Later, fuel cards were introduced for the first drivers in association with Eastern Bank. Drivers can buy fuel without any hassle. The fuel bill is paid on a monthly basis. Hence, this reduces the daily hassle.
Gradually, they have enhanced their services. Vroom didn’t want to be limited to just home or workshop services. For this reason, they introduced the fuel management card. In addition, fleet management solutions have been introduced for corporate customers. The entire service is available on a single screen.
With this software, the corporate customer can know the cost of each of his vehicles instantly. In addition to that, cost management, control, movement issues can be monitored too. This is the advantage of information technology and Vroom brought these advantages.
Read Metro Rail: The Magic Wand to Improve Dhaka's Transport System
Vroom Services
Although Vroom started their journey by home service and workshop service, they have expanded their service into more categories. Currently, they offer 11 services in total. All the services are essential for car owners or future car owners. In other words, you can say that over the last 4 years Vroom has become a one-stop solution for car owners. Following are the details of the services provided by Vroom.
Buy and Sell
Vroom has their very own e-commerce platform for buying and selling cars. New, used and reconditioned cars are available to buy from different sellers and organizations. Selling a car on Vroom is easy as a piece of cake. Anyone can list a car for sale by filling out a form containing car details.
Read Motorcycle Categories: Different Types of Motorbikes Explained
Wash and Polish
Vroom wash and polish service let the car owner take home service instead of sending the car to the workshop. Once the owner sets the schedule, the Vroom team will visit the place and do the wash/polish/oil and filter change or whatever service you want. The fees depend on the service you want to take. You will find the complete list of the service fees on their website www.vroom.com.bd.
Bank Loan
Vroom has a collaboration with Eastern Bank Limited. So, the buyer can submit a loan application right from the Vroom website. After that, the bank will call the applicant for further processing.
Inspection
With the Vroom inspection service, a potential buyer can hire an automobile engineer to inspect a car before making the buying decision. The Vroom specialist will provide an unbiased comprehensive report on the car after the inspection.
Read Motorbike Buyer Guide: Some popular models with price in Bangladesh in 2021
Transfer
The company also helps the buyers to complete the ownership transfer process. Once the selling or buying is finalized, the Vroom team will take all the hassles of the transferring process. However, you will have to provide all the necessary documents.
Workshop
With the Vroom’s trusted workshop partners, car owners can conveniently set a schedule through the Vroom website.
Parts
Another e-commerce platform by Vroom. Anyone can buy the car parts and accessories from the parts section at the right price. You can filter the item according to the category.
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Fleet
With the Vroom fleet management service, users can manage all the cars and track the vehicles. They have a list of the services for managing the cars properly.
Tracking
Vroom offers a well-equipped world-class vehicle tracking system though easytrax limited. Starting from Tk. 2,999, users can check the vehicle on Android, IOS App, and web platform.
Oil and Gas Card
Vehicle owners who are members of the Vroom Service can get the co-branded card facility. Cardholders will have the opportunity to receive fuel at more than 100 fuel stations across the country.
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LPG
Vroom also offers LPG conversion service at a reasonable price. However, the price varies on the cylinder size. You will get a price list on their website.
Apart from these services, Vroom will introduce insurance services for the vehicle owners.
Final Words
A team of 25 people is currently working in Vroom. The company has an aim to expand the service. As per a report in 2019, Vroom had five competitors in the market. But when they started, the market was absolutely unprepared. Now the market is getting bigger and awareness is growing. Vroom is working to achieve new customer satisfaction with more advanced services.
Read Truck Lagbe: Story of a Successful Digital Trucking Startup in Bangladesh
Late Blooming Billionaires: Story of successful people who started late in life
More often than not, the story of entrepreneurship is associated with young people. It’s like a dream story of a fresh mind finding a magic idea that transforms the world around for the better. But how much of that has to be the case always? Truth is, there are numerous examples of people finding success late in life. Some even go beyond to outshine so much that they achieve almost legendary status. Here’s our take on 10 business icons who started late in life. These heroic people defined that age as nothing more than just a number.
Legendary entrepreneurs who started after 35
Ray Kroc
The word fast food and McDonalds goes so much hand in hand that in some parts of the world, they are almost inseparable. As the global leader in the fast-food chain, McDonald’s has brought a paradigm shift in the food culture across the globe. But the story of McDonald’s didn’t start until Ray Kroc was 51 years old.
From being a mixer salesman to founding a multi-billion-dollar food chain, it all started with Ray Kroc’s fascination with the McDonalds brother’s burgers. Kroc saw an immense opportunity in the California-based business. Using his several decades of sales expertise, Kroc turned McDonald's into what it is today. A global brand of 400,000 employees, an annual turnover of over 22 billion, and a name that’s close to every foodie's heart.
Read Some Inspiring Women Entrepreneurs in Bangladesh in Diverse Sectors
Reid Hoffman
The story of Reid Hoffman is of a chance entrepreneur. Being a Stanford graduate, he was well set to be an academician of Ivy league standards. However, he ended up at Apple computers as part of their eWorld project. This is where Hoffman first got an insight into the earliest version of social media. But he had to wait till 35 to achieve what he has created today.
Over the years, Hoffman worked on several social networking ventures. However, none of them saw the expected result. But based on his previous failures and a chance need for a professional networking opportunity, LinkedIn was born. Today Reid Hoffman is worth 3.2 billion dollars.
Read The World's 10 Self-made Youngest Billionaires in 2021
Stan Lee
Anyone who’s into movies has heard of Marvels. You don’t even have to be a movie fan to know about them, as they are one of the largest comic booksellers in the world. And it all started with the illustrations of a 39-year-old man back in 1961.
Stan Lee, together with Jack Kirby has created, what is now the epicenter of pop culture and superhero genre craze. Credited as the father of Marvel Comics, Stan Lee helped create a multi-billion-dollar empire that has achieved worldwide hype and recognition.
Read Mukesh Ambani no longer among world's top 10 richest billionaires
Chaleo Yoovidhya
We can guarantee you that this is the least known name on this list. But wait till you find out what he founded. Chaleo Yoovidhya was born in a poor farmer family and lived most of his life as a farmer. This was until he moved to Bangkok to start his own pharmaceutical company called TC Pharmaceuticals.
He specialized in a rejuvenating tonic drink. It wasn’t until he had a chance encounter with Australian businessman Dietrich Mateschitz that his life changed forever at the age of 61. Now you might be thinking what’s so fascinating about a tonic drink? Well, that’s because it's Redbull.
Read IT sector creating more billionaires in China: report
Henry Ford
Ford motors are known for their iconic cars which have impressed generations of customers. However, the start of the company wasn’t how you’d expect it to be.
Henry Ford ran away from home at the tender age of 16 and started working as a mechanist. His fascination with cars leads him to found Ford motors at the age of 40. What soon followed was automobile history. It was estimated that he had a net worth of near 200 billion dollars.
Read COVID-19 Enterprise Response Fund launched for entrepreneurs
Peter Thiel
Peter Thiel is another genius mind to come out of Stanford University. A graduate of law, Thiel didn’t enjoy much the legal works as he did as an investor. It's his innate passion and foresight in investing that made him into what he is today.
He was the co-founder of widely acclaimed payment gateway Paypal and served as its CEO until it was sold in 2002 to eBay. But his genius stroke was yet to be made until he invested in Facebook. Thiel is widely regarded as the first professional investor to invest in Facebook, a move that made him a billionaire over time.
Read F-commerce entrepreneurs rising significantly: Palak
Jack Ma
Jack Ma is the leading example that you don’t have to be tech-savvy to make it big as an entrepreneur. The story of Ma is a truly fascinating one, considering he failed his high school entrance exam twice and got rejected for different jobs over 30 times. It wasn’t until he was 35 when he founded “China Yellow Pages”, which saw rapid success.
However, that’s not where Ma’s story ends. He then went onto finding Alibaba, the global leader in B2B and B2C sales. Ma is currently worth over 28 billion dollars.
Read KOICA unveils multi-component cooperation aimed at youth entrepreneurship
Robert Noyce
Robert Noyce is another glaring example of a lesser-known founder of something so well known; it will have you rubbing your eyes. If you are reading this article from a windows laptop, it's almost certain that it's powered by Intel. And Robert Noyce was an intricate part of the foundation of Intel.
Coming from a humble background, Noyce worked on several ventures before stumbling upon Intel. He was 41 years old when he, along with Gordon Moore founded Intel back in 1968. He was estimated to be worth over 3.8 billion dollars.
Read Humayun bats for women entrepreneurs at SME Foundation event
Donald Fisher
The story of Donald Fisher is an interesting one. It was the summer of 69 when Donald went through a little clothing crisis of not being able to find a pair of jeans to fit him. His wife Doris Fischer reluctantly decided to take the matter into her own hands and made a pair for her husband.
What followed from there on was a complete takeover of the fashion market and GAP became what it is today, a multi-billion-dollar fashion line. Donald was 40 when he decided to start GAP along with his wife as the co-founder.
Read Covid: A catalyst for women entrepreneurship in Bangladesh!
Harland David Sanders
Most prominently known as Colonel Sanders, this man had nothing to do with the military. What he did, however, shaped the modern food industry alongside McDonald’s. After a series of misfortunes, Sanders found himself selling fried chicken in a service store in Kentucky using a secret recipe that he devised himself. After the place burned down in a fire accident, Sanders moved to a nearby motel to start his restaurant.
And that was how the global brand of KFC was born. Today they serve in over 18 thousand restaurants across 118 different countries. What's truly fascinating about all this is that Colonel Sanders was 62 years old when he founded KFC. A true example of glorious late achievements.
Read Energy Investment: Entrepreneurs want arrangements for easier partnership with foreign companies
Bottom Line
So far, we have mentioned some highly successful people who started their business or company late in life. These entrepreneurs are the shining example that you don’t need much beyond will and dedication to make it big. So, if you are thinking of giving up on your ideas, think again. Who knows, you might also become a late-blooming success story.
Read Greatest Business Movies for Entrepreneurs: Inspiration to Start Something New
Investment: What Factors to Consider before Investing Money?
Investment is one of the best ways to increase your wealth. It’s a proven means to generate more money as well as a source of passive income for the investor. Compared to savings, the investment provides a higher return. However, a higher return comes with its own set of risks. If you aren’t careful enough, you might end up losing more money than making through investment. So how do you make sure your investment is safe? What are the things to be considered before investing? Let's find out.
Why are you investing?
Before anything else, you should find out the reason for investment. Savings are something that can work as your financial cushion. Investments are a bit different considering your money gets locked up for a considerable period.
As a result, you should carefully evaluate whether you’ll have any immediate need for the money. You should also assess whether you want to make a short-term investment or a long-term one. Based on your investment period and the risk factors, your return will vary. Therefore you should be clear on your goals and strategies to make sure of the correct investment decision.
Read: Investment Opportunities in Bangladesh amid Pandemic
What should an investor consider when making an investment?
Life stage
Where are you in your life right now? This is an important factor many people ignore when investing. If you are a young professional with a steady income source, it becomes easier to take risks. However, if you are someone at a late stage of your life, or you are planning on child education support or retirement, it becomes increasingly difficult to make risk-related decisions.
All of it depends on your commitments. Usually, it's ideal to invest at a young age where you will have sufficient time to turn things around in case anything goes south. The same doesn’t hold for someone who is investing their life’s saving at an old age.
Read Investment Guide: How Bangladeshi Youths Can Invest money and Create Wealth?
Time frame
We have already talked about the ideal stage of your life for investment. But what is the ideal period for investment? Truth is, there is no fixed answer for this. You can invest for a long time or for a short time. The choice is yours.
However, each short-term and long-term investment has its own perks. Long-term investments tend to generate a higher return. Short-term investments will give you profit much faster. If you are looking for long-term investment opportunities, you should consider stock and mutual funds. These are the best long-term investments out there. But if it’s short-term that you’re looking for, a fixed deposit can be a good option.
Read Saving vs. Investing Money: Know the Pros and Cons
Income or increment of capital
Some people use investment as a steady source of income. Some invest to increase their existing capital. While both of these are meant to generate money for you, there are some subtle differences between them.
Investments are through and through associated with risks. So if you are looking for a steady income source, the common investment strategies might not be a good option. You can invest in MIP, MIS, or fixed deposit as it will guarantee a return after a fixed interval. And if growing the existing wealth is your priority, you can consider investing in equity or real estate.
Read:Real Estate Business in Bangladesh is booming again overcoming the brunt of Pandemic
Return on your risk
Depending on your investment strategy, risks will vary. There are countless streams of investment that will provide you with more return than the usual interest on your savings. However, the more the return there are, the merrier the risk will be.
If you are someone willing to play in a high-risk scenario, you can consider investing in equity-related investment strategies. If you want a quick return on your investment, there are high-risk bonds. As long as you are willing to play on the market fluctuations, you can be sure to make a good return on your investment.
Read: F-commerce in Bangladesh: Problems and Prospects
State of taxation
Many people don’t consider the tax burden that comes along with investment. As you start receiving a return on your investment, the tax will start to add up on your investment.
However, there are different tax waivers and rebates associated with investments. The only downside of the waiver is that there is a minimum lock-in period of investment. Depending on the investment strategy, the lock-in period can be as high as 10 years. So you should be careful before choosing an investment strategy as it can effectively lock you out of your capital for a long time.
Read Angel Investment 101: Is It the Right Track for Your Startup?
Liquidity of the investment
In layman’s terms, ‘liquidity’ is the state of how soon an asset can be sold off in the market in exchange for a good return. Risks on investment are directly associated with the liquidity level of any asset. The more the liquidity, the lesser the risk, and the lesser is the return.
If you are someone looking for an easy investment scheme without having to worry much about capital loss, then you should invest in high liquidity assets. But if you are a risk-taker looking to make a good profit out of your investment, then you should go for low liquidity assets.
Read Investing in startups second innings of Sachin Tendulkar's life
Emergence Capital
The last factor here isn’t directly related to investment; rather it’s a precautionary measure for you. Investments are high-risk games no matter how you look at them. There’s no guarantee that you will end up losing all your investments in a matter of hours or days. There might be situations where you will have an emergency need for funds but you won't be able to access them because of lock-in periods or losses.
The ideal approach would be to set up an emergency capital fund before you embark on investments. This will not only cushion you against any investment-related drawbacks but will also be a source of capital for future use. No matter how you use it, an emergency fund can always be your plan B.
Read:ToguMogu: One Stop Solution for Bangladeshi Parents
Bottom Line
Investments aren’t for everyone. But if you are willing to take the risk, you can be sure to make a good return out of it. But for that, you will need careful planning and consider your options. In this article, we have discussed the key factors to consider before making investment decisions. We hope our discussion will help you to lay the groundwork for your investment options and make a good fortune in the process.