A Research Project On

“Exploring the Causes of Start-up Failures in Bangladesh:

A theoretical perspective.”

Supervised By
Md. Harun-Or-Rosid
Associate Professor
Department Of Accounting and Information Systems
University Of Barishal

Prepared By
Exam Roll:19 AIS 023
Reg. No: 101-023-19
Admission Session: 2018-19
Session: 2021-22

Date Of Submission: 20 May 2024

“Exploring the Causes of
Start-up Failures in
Bangladesh: A theoretical
perspective.”
 Table of Contents
Particulars Page No.
1. Supervisor’s Certificate I
2. Acknowledgement II
3. Letter Of Transmittal III
4. Abstract IV
5. Chapter One: Introduction
1.0: overview 1
1.1: Introduction 2-3
1.2: Background of the Study 4
1.3: Problem Statement 5-7
1.4: Research Question 8
1.5: Research Objectives 8
1.6: Scope of the study 9
1.7: Significance f the Study 10

6. Chapter Two: Literature Review

2.0: Overview 11
2.1: The failure rate 12
2.2: Factors affecting the failure rate 12

2.2.1: Financial Constraints 12

2.2.2: Market Challenges 13

2.2.3: Lack of Infrastructure 13

2.2.5 Conflict between Co-Founders 13

2.2.6: Fear of Failure 14

2.2.7 Cash Misallocation 14

7. Chapter Three: Methodology

3.0: Overview 15
3.1: Data Collection 15
 3.2: Data Analysis 15
3.5: Ethical Considerations 15
8. Chapter Four: Data Analysis and Result
4.0: Evaly
4.1.0: Overview 16-17
4.1.1: Causes of Faliure in Evaly 18-19
4.1.2: Graphical Dimension of Customer Satisfaction 20
4.2: Alesha Mart
4.2.0: Overview 21-22
4.2.1: The Failure Causes of Alesha Mart 22
4.2.1: The Failure Causes of Alesha Mart 23
4.3: E-Orange Shop
4.3.0: Overview 24
4.3.1: Why E-orange business has shut down? 25
4.4: Umbrii
4.4.0: Overview 26
4.4.1: Reason for Umbrii's Failure 26
4.5: Bagdoom
4.5.0: Overview 27
4.5.1: Challenges and Failure of Bagdoom 27
4.6: Grameen UNIQLO
4.6.0: Overview 28
4.6.1: The Closures of Grameen Uniqlo 29
4.7: Joldi
4.7.0: Overview 30
4.7.1: The main Causes of Failure 30-32
9. Chapter Five: Findings & Discussion 33-34

10. Chapter Six: Conclusion 35

11. References 36-37

 Supervisor’s Certificate

This is to certify that the research project paper on “Exploring the causes of start-up failures in
Bangladesh: A theoretical perspective.” has been prepared by 19 AIS 023 as a part of the BBA
program under Department of Accounting and Information Systems, University of Barishal.

He is permitted to submit the report.

…………………………………

Supervisor’s signature

Md. Harun-Or-Rosid

Associate Professor

Department Of Accounting and Information Systems

University Of Barishal
 Acknowledgement

At first, I would like to express my gratitude to the almighty Allah for giving me the capability
to participate in the BBA program under a renowned university and preparing my research
report within the deadline period.

My special gratitude goes to my honourable research project supervisor Md. Harun-Or-Rosid

Associate Professor, Department of Accounting and Information Systems, University of
Barishal for providing the guidelines and support to prepare my research project report.

Then, I want to thank Department of Accounting and Information Systems, University of

Barishal for providing all the required facilities and guidelines which helped me to complete
all the courses of the BBA program and prepare the research project report.
 Letter of Transmittal

Md. Harun-Or-Rosid

Associate Professor

Department Of Accounting and Information Systems

University Of Barishal

Subject: Submission of the research project on “Exploring the causes of start-up

failures in Bangladesh: A theoretical perspective.”

Dear Sir,

It is my immense pleasure to submit the research paper on the study of “Exploring the causes
of start-up failures in Bangladesh: A theoretical perspective.” as a part of BBA program. I have
studied in the field of my assigned research paper under the direct supervision and constant
care of Md. Harun-Or-Rosid, Associate Professor, Department of Accounting and Information
Systems, University of Barishal.

To make the study prudent and inclusive, I have analyzed the data of failure reason of each
start-up business in Bangladesh. I have collected all the necessary data from various secondary
sources for making the study insightful and designing the study informative. To prepare the
research paper, I have strongly followed your proper guidance and direction.

I have gathered valuable experience in the research project program under the supervision of
you. I would like to express my gratitude to you and to the department of Accounting and
Information Systems for providing this opportunity.
Sincerely yours,

…………………….
Roll:19 AIS 023
BBA, 7th Batch
Department of Accounting and Information Systems
University of Barishal
 Abstract

This study investigates the underlying factors contributing to the failures of start-up companies
in Bangladesh, with a particular emphasis on notable instances such as Evaly, Alesha Mart, E-
orange, Umbrii, Bagdoom, Grameen Uniqlo, and Joldi Delivery. The study examines these
firms and discovers shared variables that contribute to their decline. The primary factors
contributing to the issue include poor financial management, failure to comply with
regulations, insufficient understanding of the industry, and operational inefficiencies. Evaly,
Alesha Mart, and E-orange, for example, experienced financial issues and unsustainable
business practices that resulted in their downfall. Umbrii and Bagdoom were unsuccessful in
their attempts to expand because of inadequate strategic planning and commercial execution,
whilst Grameen Uniqlo had challenges with brand positioning and competition. Joldi Delivery
encountered logistical obstacles and a lack of adequate funding. The results indicate that
Bangladeshi start-ups frequently experience failure as a result of a mix of internal
mismanagement and external market constraints. This study gives a theoretical viewpoint on
the systemic challenges present in the start-up ecosystem of Bangladesh. It provides valuable
insights for entrepreneurs, investors, and regulators to improve the long-term viability of future
businesses.

Keywords: Bangladeshi startups, startup failure, market research, financial mismanagement,

regulatory environment, funding, digital skills, ecosystem development.
 CHAPTER ONE: INTRODUCTION

1.0 Overview:

The world is currently on the brink of the fourth industrial revolution, which began to emerge in
the last 25 years of the 20th century. The rise in market competition, significant cultural and
creative advancements, and the emergence of the knowledge economy have resulted in the
convergence of physical, digital, and biological realms, blurring their distinctions. This
convergence has laid a crucial groundwork for the Fourth Industrial Revolution.

Contrary to popular belief, the prevailing fallacy is that around 80 to 90 percent of businesses
experience failure within the initial years, but this is not accurate. Although Bangladesh has the
most favourable startup ecosystem globally, a staggering 80-90% of enterprises in the country
experience failure during the initial five years of operation.

Bangladesh, with a population over 165 million and a fast expanding economy, is an appealing
choice for entrepreneurs and investors seeking to establish new firms. Nevertheless, despite the
enormous prospects, establishing a startup in Bangladesh entails several obstacles. This report
investigates the challenges encountered by startups in Bangladesh and the consequences for the
country's entrepreneurial environment.

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1.1 Introduction:

Recently, Bangladesh has become a thriving centre for entrepreneurial endeavours, supported by
a lively startup environment driven by a youthful and energetic populace and an increasing desire
for creativity and progress. Nevertheless, despite the multitude of new business endeavours and
ambitious concepts, it is an undeniable fact that several startups in Bangladesh encounter
substantial obstacles, resulting in a considerable number of them meeting premature failure. An
in-depth analysis of the factors contributing to these failures is essential not just for prospective
entrepreneurs who want to navigate the business environment more effectively, but also for
policymakers and stakeholders who are focused on promoting sustainable growth and innovation
within the system.
The startup path is filled with several challenges, including regulatory impediments, financial
limitations, market saturation, and operational inefficiencies. In Bangladesh, the difficulties are
made worse by certain socio-economic conditions, cultural subtleties, and limits in infrastructure,
which influence the development of entrepreneurial endeavours in various manners.
An insufficient access to cash and funding possibilities is a significant factor that contributes to
the failure of startups in Bangladesh. Although venture capital and angel investment networks have
become more accessible, several businesses still have challenges in obtaining the required financial
resources to maintain and expand their operations. Aspiring entrepreneurs, especially those in
high-risk industries or untested businesses, face significant obstacles due to limited access to
formal banking channels, risk-averse investor emotions, and a lack of early-stage funding
possibilities.
Moreover, the intricate regulations and bureaucratic procedures provide significant obstacles for
entrepreneurs aiming to establish and expand their operations in Bangladesh. The complex and
burdensome licencing procedures, unclear legal frameworks, and unpredictable policy settings
generate a sense of uncertainty and hinder entrepreneurial efforts, therefore suppressing innovation
and deterring investment. Effectively navigating through this complex system of regulations
requires a substantial amount of time, money, and specialised knowledge, which takes away vital
energy from essential business operations and hampers opportunities for growth.
Internal problems among startups are as significant in contributing to their failure, alongside
external issues. Ineffective management strategies, absence of strategic foresight, and subpar team
collaboration all lead to operational inefficiencies and organisational dysfunction, ultimately jeo

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pardising the long-term sustainability of the company. In addition, if startups do not adjust to
shifting market dynamics, predict customer demands, and distinguish themselves from rivals, they
may become outdated in a progressively competitive environment.

As we explore the complex network of variables that contribute to startup failures in Bangladesh,
it becomes clear that effectively tackling these difficulties necessitates a comprehensive approach
that includes regulatory reforms, investment incentives, capacity-building programmes, and
cultural changes. By creating a supportive atmosphere that encourages creativity, promotes
cooperation, and recognises the ability to overcome challenges, Bangladesh can unlock the whole
capabilities of its startup community, leading to long-lasting economic development and societal
change. Through this research endeavour, our aim is to elucidate the fundamental factors that
contribute to the failure of startups in Bangladesh and facilitate the development of a more
successful and dynamic entrepreneurial environment.

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1.2 Background Of The Study:

In the last ten years, the startup ecosystem in Bangladesh has had a significant and rapid expansion,
characterised by a rise in the number of businesses, investors, and support organisations.
Notwithstanding the expansion, there is a scarcity of research specifically investigating the causes
of startup failures in the nation. The objective of this study is to address the lack of information in
this area.

An analysis conducted by The Daily Star (2019) emphasised that the startup ecosystem in
Bangladesh is flourishing, with technology-based enterprises causing significant disruptions in
several industries, including banking, healthcare, and education. Nevertheless, the survey also
highlighted that startups have other obstacles, such as limited availability of financial resources,
ineffective legal systems, and a scarcity of highly trained personnel.

Startup Dhaka's report from 2018 reveals that despite the government's efforts to create a
favourable environment for startups in Bangladesh, there are still substantial barriers that impede
their growth. These obstacles include bureaucratic red tape, corruption, and a lack of widespread
acceptance of startup culture.

In addition, the World Bank (2017) did a research on the entrepreneurial ecosystem in Bangladesh.
The country boasts a dynamic youth population with a keen interest in entrepreneurship, but, the
rate at which startups fail is significant. The survey also identified a dearth of information about
the reasons behind company failures, hence presenting aspiring entrepreneurs with unexplored
challenges to overcome.

The analysis by LightCastle Partners (2020) highlighted that although there has been an increase
in funding in Bangladeshi startups, the issue of scaling still persists. The paper highlighted the
dearth of research on the causes of startup failures, which hinders aspiring entrepreneurs from
gaining insights from past failures.

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1.3 Problem Statement

The business landscape in Bangladesh has a range of prospects as well as obstacles. Although the
country has seen substantial economic expansion, it also has distinct obstacles that startups may
confront, perhaps resulting in their demise.Inadequate strategic planning is a primary factor
contributing to the downfall of companies. Common startup challenges that contribute to startup
failure include ineffective leadership, lack of product differentiation, disregard for consumer
demands, and inability to learn from past mistakes. For instance, Evaly had a failed startup due to
insufficient market expansion and corresponding challenges. Challenges encountered by a new
firm include a deficiency in the necessary expertise and managerial abilities on the part of the
owner.

• Lack of sufficient capital.

• The disregard of individuals for small enterprises.

• Incapable of rivalling huge corporations.

• Insufficient guidance and support services.

• Unfavourable geographical placement.

• Rapid expansion.

• Insufficient data source

Startups must do an analysis of their existing issues, identify the processes that require
enhancement, and evaluate their available resources. Upon careful examination of each topic, it
becomes evident that they are all interconnected with the overarching notion of digital
transformation. Although it may not be their foremost concern, it does contribute to streamlining
their processes and facilitating their work. Several fundamental obstacles encountered by startups:

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1) Regulatory obstacles: Bangladesh is ranked 168th out of 190 nations in the World Bank's Ease
of Doing Business Index. The presence of protracted bureaucratic procedures, sluggish decision-
making processes, and intricate tax restrictions pose significant challenges for startups in
effectively conducting their commercial operations. Hence, the regulatory landscape in
Bangladesh might provide a substantial obstacle to the prosperity of businesses.

2) Restricted financial access: Startups in Bangladesh have significant challenges in obtaining

financial resources. Conventional banking institutions sometimes impose stringent financing
standards that startups, particularly those lacking a demonstrated track record or substantial assets,
struggle to satisfy. Consequently, startups may encounter difficulties in obtaining the necessary
funds for expansion and day-to-day activities, ultimately resulting in their demise.

3) Infrastructure deficiencies: Despite certain advancements in infrastructure development,

Bangladesh still has inadequacies, notably in terms of reliable energy supply, high-speed internet
access, and transportation infrastructure. These shortfalls can have a negative influence on the
operations of startups, leading to higher expenses and decreased competitiveness.

4) Skills Gap: Bangladesh faces a significant deficiency in skills, namely in the fields of
technology and management. Startups in Bangladesh may face challenges in recruiting and
retaining highly skilled individuals necessary for driving innovation and commercial growth.

5) Restricted Domestic Market: Bangladesh possesses a somewhat little domestic market.

Although the country has a substantial population, a significant portion of it consists of individuals
with low income, which restricts the potential market for various products and services. Startups
that depend on a sizable domestic market may encounter a substantial obstacle.

6) Political instability: Political instability may create an unstable business climate. Government
policy shifts, labour strikes, and public demonstrations have the potential to interrupt corporate
operations and generate ambiguity, posing significant difficulties for startups.

7) Gaining the Confidence of Customers: The client holds the highest authority. That is entirely
accurate. Establishing trust with customers is a crucial and significant obstacle that businesses,
particularly startups, encounter in the present day. Startups can achieve rapid growth and advance
towards exceptional performance if they cultivate a highly contented and devoted consumer base.

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8) Market research: Market research is a significant factor contributing to the failure of startups,
since it reveals that there is insufficient demand for their product or service. This outcome might
arise from inadequate market research, erroneous assumptions on client requirements, or a lack of
comprehension of the target market.

9) Marketing: The industry may be fiercely competitive, and startups sometimes struggle to rival
established competitors. This outcome may arise from a deficiency in distinguishing oneself,
ineffective promotional strategies, or a failure to comprehend the competitive environment.

10) Investment: Startups sometimes require a substantial amount of financial resources to start
operations, and a considerable number of them face failure due to their inability to obtain adequate
investment. This outcome may arise from inadequate fundraising techniques, a dearth of investor
enthusiasm, or a failure to comprehend the financial requirements of the organisation.

11) Product Development: A startup that develops a product or service of subpar quality is
unlikely to achieve success. This might arise from suboptimal design, insufficient testing, or a lack
of comprehension of user requirements.

12) Overall Strategy: Startups often face a multitude of challenges in managing their operations,
and a significant number of them fail due to their inability to prioritise the most critical activities.
This outcome may arise from inadequate strategic planning, insufficient prioritisation, or a failure
to comprehend the business requirements.

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1.4 Research Question

Developing clear and concise research questions is crucial for guiding your study. Based on the
problem statement and the context provided, here are a set of research questions for my study:

1) What are the primary factors contributing to the failure of startups in Bangladesh's
entrepreneurial systems?

1.5 Research Objectives

The present study aims to address the aforementioned concerns by achieving the following
research objectives:

• Assess the predominant patterns and causes that contribute to the failure of start-up
companies.

• The objective is to identify causes or trends that may have been disregarded or
underestimated.

• To identify the elements that lead to the elevated overall failure rate.

• The objective is to identify the primary determinants that impact the likelihood of achieving
success or failure.

• Examine the influence of socio-economic variables, regulatory obstacles, and cultural

barriers on the outcomes of startups in Bangladesh.

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1.6 Scope of The Study

This study primarily focuses on empirically examining the connection between Intellectual Capital,
Performance Measurement System, and organisational performance in firms listed on the Dhaka
Stock Exchange (DSE) in Bangladesh. The Dhaka Stock market (DSE) is the major stock market
in Bangladesh, established in 1954. Currently, the DSE has evolved into a dynamic and prosperous
market where both individual and institutional investors trade securities from over 266
organisations with a market presence. The reason for selecting DSE firms is that this directory
includes the largest and most technologically sophisticated enterprises in Bangladesh. This allows
the sample to include the largest and most advanced organisations, which can be beneficial due to
the fact that large companies are more likely to have greater resources available for investing in
knowledge-based resources. Additionally, these companies are more actively involved in
innovative management accounting and control systems (MACS), such as using a variety of non-
financial and financial measures, as well as maintaining a balanced approach to performance
measurement systems (PMS). This is in contrast to small companies. via addition, all the firms'
information and data are readily available via the DSE.

Furthermore, this study seeks to examine the Geographical Boundary, specifically focusing on the
entrepreneurial landscape of Bangladesh. The text examines the startup ecosystem in Bangladesh,
taking into account the distinct socio-economic, cultural, and regulatory factors that influence
entrepreneurial activities inside the nation. It includes startups from various businesses and areas
that are active in Bangladesh. The research encompasses a wide range of startup activity in the
country, including both emerging technological companies and established sectors such as
manufacturing, agriculture, healthcare, and service industries.

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1.7 Significance Of The Study

The significance of this research lies in its potential to fill a crucial knowledge gap in the
understanding of startup failures in Bangladesh. Despite the burgeoning startup scene in
Bangladesh and the growing interest in entrepreneurship, there is a dearth of research focusing on
why startups fail in this specific context. By examining the common factors that contribute to
startup failure, this research could shed light on the particular challenges faced by startups in
Bangladesh.

This study holds potential value for various stakeholders in the startup ecosystem. For
entrepreneurs and prospective startup founders, the findings could provide insights that help them
avoid common pitfalls and enhance their chances of success. For investors, the research could offer
valuable information for making informed decisions when assessing the viability of prospective
startups to invest in.

For policymakers and governmental organizations, understanding the reasons behind startup
failures could be instrumental in shaping policies and initiatives to support startups. It could guide
the development of training programs, funding schemes, and regulatory reforms that foster a more
conducive environment for startup growth and success.

For the academic community, this research could contribute to the existing literature on startups
and business failures, particularly in the context of developing countries. It could inspire further
research on related themes, such as the relationship between specific industry sectors and startup
failures, or the potential role of cultural factors in startup success and failure.

Overall, this research could play a significant role in strengthening the startup ecosystem in
Bangladesh by identifying potential barriers to success and suggesting ways to overcome them.

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 CHAPTER TWO: LITERATURE REVIEW

2.0 Overview

The literature review for this study on the reasons for startup failure in Bangladesh involves a
thorough examination of the current scholarly literature. The startup culture has experienced
substantial growth in Bangladesh, as young entrepreneurs opt to establish their own enterprises,
so making a valuable contribution to the country's economic progress and development. However,
despite the growing quantity of startups, a significant percentage of these businesses experience
failure during their initial years of operation. This literature study examines the causes of startup
failures, with a specific focus on the setting of Bangladesh.

An investigation conducted by The Daily Star in 2019 revealed that the startup ecosystem in
Bangladesh is flourishing, with technology-driven enterprises causing significant disruptions in
areas such as banking, healthcare, and education. Nevertheless, the survey also highlighted that
startups have other obstacles, such as limited availability of financial resources, ineffective legal
systems, and a scarcity of experienced personnel. Startup Dhaka's report from 2018 highlights that
despite the government's efforts to create a favourable environment for startups in Bangladesh,
there are still substantial barriers that impede their growth. These include bureaucratic red tape,
corruption, and a lack of widespread acceptance of the startup culture.In addition, the World Bank
(2017) did a research on the entrepreneurial ecosystem in Bangladesh. The country boasts a
dynamic young population with a keen interest in business, although the incidence of startup
failures is significant. The survey also identified a dearth of information about the reasons behind
company failures, hence presenting aspiring entrepreneurs with unexplored challenges to
overcome.

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2.1 The failure rate
An failed start-up may be characterised as a venture that fails to produce enough money to pay its
expenses. Nevertheless, failure may be defined in several ways. According to Mr. Ghosh's (n.d.)
research, if failure is defined as the complete loss of all assets and investors losing all their money,
the failure rate in Bangladesh is estimated to be between 30% and 40%. If failure is defined as the
inability to reach the predicted return on an investment by a certain break-even date or to attain a
particular revenue growth rate, then over 95% of start-ups fail (Ghosh n.d, as cited in Gauge, 2012).
Conversely, as reported by National Business Capital (2019), the rate of failure for new businesses
is 21.5% in the first year, 30% in the second year, 50% in the fifth year, and 70% in the tenth year
(National Business Capital, 2019). Other sources provide almost the same proportion for each year.
According to the U.S. Bureau of Labour Statistics (n.d.), the failure rate for new enterprises in
their first year is 20%. Based on Ghosh's (2012) research, the failure rate for venture-backed start-
ups is 75%. According to Small Business Trends (n.d.), just 40% of start-ups are profitable, while
30% break even and the remaining 30% continue to incur losses. As to Eisenmann (2021), a
majority of start-ups, namely two-thirds, fail to generate a favourable return on investment
(Eisenmann, 2021). Generally, the majority of sources provide similar figures.

2.2 Factors affecting the failure rate

2.2.1 Financial Constraints

Financial restrictions have been highlighted as one of the most important elements in the research.
Hossain and Islam (2016) found that entrepreneurs in Bangladesh frequently face challenges in
securing early investment and managing financial flow. Major issues are emphasised on the
scarcity of venture capitalists and restricted availability of financial facilities. Islam, M. (2020)
affirms that financial challenges, such as inadequate financial management, pose significant
obstacles for businesses in Bangladesh. As to Small business trends (n.d.), 33% of start-ups in
Bangladesh are initiated with less than ৳5,00000, while 58% are initiated with less than ৳25,00000.
Typically, when an entrepreneur or a group of founders seek to establish a start-up, they usually
need external financing due to the significant explicit expenses involved. Nevertheless, start-ups
sometimes have difficulties in securing capital (Small company trends, n.d.).

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2.2.2 Market Challenges

Market problems are another prevalent subject in the literature. Zaman (2017) posits that a
prevalent cause of failure among startups in Bangladesh is the absence of a comprehensive
comprehension of the market and the target audience. In addition, Rahman, M. (2018) highlights
the significance of comprehending the industry and achieving product-market fit, noting that
startups frequently falter in meeting market need or disregarding competition.

2.2.3 Lack of Infrastructure

Startups in Bangladesh confront a significant hurdle due to the absence of adequate infrastructure
and supporting legislation. Kabir (2019) demonstrates that the lack of a strong technology
infrastructure and a favourable regulatory environment frequently obstructs the development and
viability of startups. Similarly, Hossain, M. (2020) agrees that the absence of adequate
infrastructure, particularly in terms of technology and logistics, results in the failure of startups.

2.2.4 Management and Leadership Problems

The literature also emphasises the significance of management and leadership issues in the failure
of startups. Hasan and Mahmud (2019) assert that inadequate leadership and a dearth of strategic
guidance are primary factors leading to the failure of startups in Bangladesh. In addition, Islam,
M. (2020) contends that a deficiency in experience and knowledge among startup founders and
teams frequently leads to subpar decision-making.

2.2.5 Conflict between Co-Founders

The primary cause of failure in several unsuccessful enterprises may be attributed to conflicts
arising amongst the co-founders. This highlights the significance of achieving a state of agreement
and efficient exchange of information among the primary participants in a company. Conflicts can
occur as a result of divergent visions, contrasting decision-making styles, or conflicts in personality,
all of which can have a detrimental effect on the functioning and prosperity of the organization.

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2.2.6 Fear of Failure

Although the fear of failure is a genuine concern, the startup community typically emphasises the
idea of "fail fast, fail often". This implies that entrepreneurs should not be discouraged by failure,
but instead gain knowledge from it and rapidly make improvements.

2.2.7 Cash Misallocation

A significant number of companies experience failure as a result of inadequate financial

management, particularly the improper allocation of funds. An effective approach would involve
enhancing the financial education provided to businesses. These might encompass workshops or
courses on budgetary control, financial projection, and optimal resource allocation.

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 CHAPTER THREE: METHODOLOGY

3.0 Overview

The research methodology for this study on the causes of startup failure in Bangladesh will rely
on a qualitative approach. This technique is chosen due to its capacity to facilitate a comprehensive
comprehension of the underlying causes of startup failures, which frequently encompass intricate
and multidimensional elements that are not readily quantifiable. I conducted my research study
using secondary data, as well as gathering data from other sources such as research papers, articles,
newspapers, the internet, journals, and case studies.

3.1 Data Collection

The collection of secondary data will encompass a diverse range of sources, such as government
publications, reports from financial institutions, articles from prominent business periodicals and
magazines, and internet databases. The data collected would be exclusive to Bangladesh and will
concentrate on information pertaining to the failures of startups in the nation. I attempted to place
the reference list in the last chapter of the project, where I gathered the pertinent data.

3.2 Data Analysis

Following the completion of data collection, the subsequent stage will involve the examination
and interpretation of the collected data, commonly referred to as data analysis. This will require
the application of qualitative data analysis tools to discern patterns, themes, and trends in the data.
The objective is to reveal the fundamental causes behind the failures of startups in Bangladesh.

.3.3 Ethical Considerations

Ethical considerations are carefully considered and incorporated into every step of the study
process, including the protection of anonymity, obtaining informed permission, and maintaining
the highest standards of integrity in the processing and reporting of data.

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 CHAPTER FOUR: DATA ANALYSIS AND RESULTS

4.0: Evaly

4.1.0: Overview

Evaly is a Bangladeshi technology business that focuses on e-commerce, food and grocery
delivery, classifieds, accounting and inventory solutions, and other logistical services. The
launch occurred in December 2018. Established by Mohammad Rassel and Shamima Nasrin, the
firm sought to transform the online shopping landscape in Bangladesh by providing a wide array
of products, including groceries, electronics, home appliances, and fashion items.

As of June 2020, Evaly reported having 3.5 million registered users and 10,000 merchants with
different capabilities on its platform. An exemplary instance in this context is Evaly, which has
rapidly emerged as the preeminent brand in the market. Based on an examination and report
carried out by Bangladesh Bank about the e-commerce platform, Evaly's obligations to
customers and merchants have increased to 403.80 crores (4038 million) BDT. Simultaneously,
the stated sum of its current assets is at 65.17 crores (651.7 million) BDT. Furthermore, the
investigation indicates that Evaly has not yet fulfilled orders for a total of 213.94 crores (2139.4
million) BDT, which were paid in advance by consumers. Furthermore, the corporation has a
debt of 189.85 crores (equivalent to 1898.5 million) BDT in outstanding payments to merchants
and fees related to acquiring products. Following the release of the investigative report, major
banks including BRAC Bank and Bank Asia have halted the use of their credit, debit, and
prepaid ATM cards on the 10 platforms listed before, as well as on mobile financial service
(MFS) platforms. Considering these limitations. E-commerce platforms have been compelled to
modify their operational policies and provide comments concerning their policies and
procedures. Furthermore, the firm successfully obtained a substantial investment of 1000 crores
(10 billion) BDT from the enterprise conglomerate Jamuna Group, therefore solidifying its
position and assets. Nevertheless, this transaction was subsequently revoked due to Evaly's
insufficient disclosure.

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Evaly had substantial growth in its early stages, thanks to its assertive marketing tactics and
appealing incentives. The firm offered substantial discounts, cashback incentives, and interest-
free payment plans, which drew in a significant number of customers. Evaly successfully
obtained significant funding from both domestic and international investors, enabling the firm to
expand quickly.

Nevertheless, the company's progress was marred by difficulties. The underlying structure of
Evaly's business model was fundamentally wrong. The corporation engaged in selling items at a
price below the cost of purchasing, a practice that is not viable in the long term. The repayment
of past loans was significantly dependent on fresh investments and client contributions, bearing a
resemblance to a Ponzi scheme.

Figure 1: Primary breakdown and illustration of Evaly’s Business strategies and outcomes

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4.1.1: Causes of Faliure in Evaly

Evaly, a firm established in 2017, encountered substantial financial difficulties that ultimately
resulted in its demise. A primary factor contributing to this was the organization's poor financial
management, which is supported by the examination of its assets and liabilities. As of March 14,
2021, Evaly had assets of just Tk65.18 crore, but its total liabilities to its clients and merchants
topped Tk407 crore.

The failure of Evaly can be attributed to its business approach. The firm expanded by obtaining
prepayments from clients with the commitment to deliver items at a significantly deferred date.
This technique just postponed the financial problems, leaving hundreds of thousands in a condition
of ambiguity. There are several reasons as follows:

Financial Management:

Evaly's downfall can be attributed to financial mismanagement as the primary factor. The
corporation is facing allegations of embezzlement and financial improprieties. As to the
Bangladesh Bank, Evaly owes over BDT 4.38 billion to consumers and merchants, but its assets
amount to just roughly BDT 3.25 billion. The difference in the company's finances has prompted
inquiries over its financial integrity and long-term viability.

Lack of a sustainable business model:

Another factor contributing to the issue is the absence of a viable and enduring business plan.
Evaly employed a strategy of offering items at rates that were much below the prevailing market
rate in order to entice clients. Although this method initially facilitated the company's growth, it
proved to be unsustainable in the long term. The firm faced a supply chain issue as a result of its
inability to compensate its suppliers owing to the narrow profit margins.

Poor customer services:

Another contributing factor is inadequate customer service. There has been a significant number
of grievances regarding delayed delivery, items that were not delivered, and a lack of
responsiveness from the customer support department. Consequently, clients have seen a decline
in their trust.

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Regulatory issues:

Evaly has been subjected to many legal proceedings initiated by regulatory authorities such as the
Bangladesh Bank and the Ministry of Commerce due to accusations of financial improprieties and
failure to adhere to e-commerce regulations. Not only has this damaged the company's reputation,
but it has also caused operating difficulties.

Lack of transparency and corporate governance:

Evaly's collapse might be attributed to the absence of transparency and effective corporate
governance. The corporation is facing allegations of inadequate bookkeeping, infrequent board
meetings, and failure to provide essential information to stakeholders. Consequently, there is a
notable erosion of trust and confidence in the company's management.

Avoidance Strategy:

An effective finance management system should have been implemented. The corporation need
to possess a comprehensive comprehension of its financial well-being, encompassing cash flow,
expenditures, and income. Implementing regular financial audits and establishing a contingency
fund might have perhaps mitigated this failure.

Customer complaints and investigations

The year 2020 has been favourable for the corporation, but it did encounter some challenges along
the way. Despite the tremendous growth of the firm, it neglected to prioritise the optimisation and
scalability of its systems and procedures. The orders and campaigns were manually and
individually handled by staff, resulting in labor-intensive and poorly planned procedures that were
unable to effectively handle the high volume of marketing activities. As a result of mismanagement
by the vendor, orders were cancelled and customers had to endure the notorious wait times of 6-9
months.

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4.1.2: Graphical Dimension Of Customer Satisfaction

Let's see the graphical dimension of Evaly's Customers Satisfaction index which chronologically
decreased.

Figure 2: Customer Satisfaction index of Evaly's

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4.2: Alesha Mart

4.2.0: Overview

Alesha Mart, an online retail platform in Bangladesh, was established in March 2020 by Alesha
Holdings Ltd. The platform's objective is to provide clients an extensive selection of products,
encompassing food, fashion items, electronics, and several other categories. The startup aimed to
transform the online shopping experience in Bangladesh by offering superior items at cheap
pricing.

Alesha Mart was a digital marketplace created to cater to the increasing need for reliable and
reputable online retail. The platform received support from a consortium of enterprises established
by entrepreneur Manjurul Alam Sikder, renowned for his substantial financial resources.
Nevertheless, the e-commerce platform saw a decline. Manjurul Alam Sikder, the chairman of
Alesha Mart, was apprehended in the Banani district of Dhaka, the capital of Bangladesh. This
occurrence dealt a substantial setback to the company's functioning and standing. SK Traders, a
former promoter of Alesha Mart, said that items from the e-commerce platform were available at
discounted pricing. Nevertheless, the company's commitments and activities were not viable,
resulting in its downfall.

Alesha Mart successfully garnered a substantial client base during its early stage, mostly as a result
of its assertive marketing tactics and promotional incentives. The website provided a diverse range
of offers and reductions, which attracted the cost-conscious consumer market in Bangladesh. The
organization made significant investments in its logistics and delivery system to guarantee a
seamless and effective delivery procedure.

Nevertheless, over a span of one year from its inception, Alesha Mart encountered significant
obstacles that ultimately resulted in its demise. An unsustainable business plan was one of the main
factors contributing to its downfall. The firm mainly depended on discount techniques to entice
clients, resulting in a substantial impact on its profit margins. Furthermore, it was unable to sustain
a favourable cash flow, which is essential for the survival of any business. A significant factor that
contributed to the demise of Alesha Mart was its subpar customer service. The firm has received
a significant number of complaints involving delayed deliveries, faulty items, and inadequate

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responsiveness from the customer support personnel. This incident adversely impacted the
company's reputation and led to a decline in consumer confidence.

Moreover, the corporation encountered accusations of financial improprieties and deceitful actions.
In July 2021, the Rapid Action Battalion (RAB) apprehended many high-ranking executives of
Alesha Mart, including its Chief Executive Officer, on allegations of misappropriation and deceit.
This incident severely damaged the reputation of the corporation and resulted in a decline in
investor trust.

4.2.1: The Failure Causes of Alesha Mart

Alesha Mart's failure can be attributed to several factors influenced by this competitive landscape:

Lack of Differentiation: Alesha Mart was unable to distinguish itself from its rivals. The platform
struggled to attract and keep clients because it lacked a distinctive selling proposition, offering
products and services that were comparable to others in the market.

Poor Customer Service and Delivery: When compared to its rivals, Alesha Mart had an
unfavourable reputation in terms of customer service and delivery. As a result, this caused
unhappiness among customers and had a detrimental impact on company reputation.

Financial Mismanagement: Alesha Mart was accused of financial mismanagement. The

company was accused of failing to remunerate merchants and causing delays in client
reimbursements. Consequently, there were legal ramifications and a decline in confidence from
both customers and businesses.

Inadequate Marketing Strategies: Alesha Mart's marketing methods were comparatively less
efficacious than those of its competitors. The attempt to establish a robust brand image and
effectively captivate clients was unsuccessful.

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4.2.2: Alseha Mart Activities:

Alesha Mart, an e-commerce firm based in Bangladesh, saw a swift and substantial failure soon
after its inception. Here are several actions of Alesha Mart that have generated a large overall
quantity of revenue due to clients.

Figure 3: Illustration of Alesha Mart's Activities

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4.3: E-Orange Shop

4.3.0: Overview

E-orange store perpetrated one of the most significant instances of fraud amidst the multitude of
ecommerce websites. A lady, together with her brother and spouse, had high-ranking posts. Her
brother was an influential police officer who orchestrated everything from a position of authority
but without being directly involved. E-orange, in contrast to other family enterprises, has had rapid
sales development within just two years since its inception in 2019. In order to establish credibility
with clients, they also recruited a former member of the Bangladesh National Cricket Team. And
their scheme was successful. The majority of the orders were placed subsequent to the appointment
of the former cricket player as an ambassador of E-orange. The firm was operating successfully
until the implementation of a new government ecommerce rule, which mandated the delivery of
items within 10 working days from the date of order placement. However, their functioning was
effectively disrupted due to the implementation of this new legislation, leading them to cease their
office and delivery services in response to the COVID-19 shutdown. However, they were
becoming increasingly limited in their choices and devised a strategy to escape from their current
predicament and leave the nation without any harm.

Recently, the senior executives of E-orange, a company that imitates Evaly, have discovered that
the truth always becomes known. A midst a surge of consumer and vendor complaints over
unfulfilled orders and outstanding dues totaling Tk 1,100 crore, the fraudulent e-commerce site
shifted responsibility onto its former chief operational officer, seven vendors, and three other
individuals. E-orange, a company where the fugitive police officer Sohel Rana serves as a director,
alleged that the 11 individuals had misappropriated Tk 663 crore. As a result, consumers were
unable to get their items or refunds, and merchants were unable to receive their payments. However,
following a preliminary inquiry, the investigators have determined that they have been falsely
implicated. Md Amanullah Chowdhury, who was appointed as E-orange's Chief Operating Officer
(COO) in July, lodged a complaint with the Tejgaon Industrial Area Police Station on August 12.
The complaint was made against Md Nazmul Alam Russel, the former COO of the e-commerce
platform, as well as seven suppliers and three other individuals.

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4.3.1: Why E-orange business has shutdown?

The primary cause for the termination of the Bangladeshi e-commerce platform E-orange was the
presence of significant financial and operational issues. The platform had substantial obstacles,
such as widespread accusations of fraud and mismanagement. A significant number of consumers
lodged complaints over non-receipt of items they had purchased, despite having made payments,
resulting in a loss of confidence and the initiation of several legal proceedings against the firm.
Financial mismanagement was a significant factor, among operational difficulties. E-orange faced
challenges in effectively managing its cash flow, resulting in difficulties in meeting vendor
payments and fulfilling client orders. These issues significantly worsened the company's financial
condition. Following the filing of a lawsuit against the corporation, the situation intensified,
resulting in legal inquiries and the subsequent apprehension of important executives on allegations
of embezzlement and fraud. The confluence of these problems, along with inadequate governance
and regulatory supervision, finally resulted in the platform's downfall. This situation has
resemblance to previous e-commerce platforms in Bangladesh, such as Evaly, which saw
comparable closures as a result of equivalent issues.

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4.4: Umbrii:

4.4.0: Overview :

Umbrii, a startup specialising in social media management located in Dhaka, is introduced. Umbrii,
a tech firm, was established by Shahtaj Anwar and Aamer Ahsanullah, who are both Canadian-
Bangladeshis. It is the newest addition to the increasing number of digital businesses in the nation.
The freshly founded firm seeks to assist small companies worldwide in effectively managing their
social media platforms.Umbrii is a leading digital media management system in Bangladesh,
providing a range of services designed to improve the digital visibility and operational
effectiveness of enterprises. Umbrii is a complete platform that specialises in managing many parts
of digital media, such as social media marketing, content development, and digital advertising.

Umbrii utilises cutting-edge technology to deliver efficient digital marketing strategies to its
clients. The platform furthermore provides sophisticated analytics and data-driven insights to assist
organisations in quantifying the efficacy of their digital initiatives and making well-informed
decisions. This is consistent with the overall shift in Bangladesh towards more digitalization and
the rising significance of digital commerce in the country's economy. In addition, Umbrii assists
many industries in Bangladesh by addressing their digital requirements and guiding them through
the swiftly changing digital environment. Umbrii plays a vital part in the digital growth of
organisations nationwide by offering customised digital marketing solutions and utilising
advanced technologies.

4.4.1: Reason for Umbrii's Failure:

A key factor contributing to this issue was the absence of a distinct vision and plan. The corporation
faced difficulties in aligning its endeavours with business goals due to the absence of a clearly
defined plan and objectives. The absence of clear guidance was exacerbated by ineffective
communication, both internally inside the organisation and externally with stakeholders, resulting
in a lack of agreement and backing for the digital transformation initiatives. Another notable
concern was the inadequate involvement of all parties involved. For digital changes to be
successful, it is essential to have the participation and backing of all departments and levels within
the organization.

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4.5: Bagdoom:

4.5.0: Overview

Bagdoom, first introduced as Akhoni.com in 2010, is a prominent e-commerce platform in

Bangladesh, renowned for its extensive selection of lifestyle items, electronics, and groceries. In
2015, it underwent a rebranding process and changed its name to Bagdoom.com with the aim of
improving the online shopping experience for consumers in Bangladesh. Below are numerous
overviews of Bagdoom:

❖ Founding and Rebranding: Akhoni.com was the first e-commerce platform in Bangladesh,
rebranded as Bagdoom.com to cater to a broader audience and improve the online shopping
experience.
❖ Product Range: Bagdoom offers a variety of products including electronics, handicrafts,
lifestyle items, and groceries. It also introduced "Krishti," a section dedicated to rural
women entrepreneurs to sell their products directly on the platform.Market Position:
Bagdoom has been a significant player in the Bangladeshi e-commerce market, receiving
recognition such as The Daily Star ICT Award in 2018 for its contributions to the sector.
❖ Financial Performance: The company saw significant growth in its early years, achieving
revenues of approximately Tk 7 crore in 2017, with a substantial increase in orders year-
on-year.

4.5.1: Challenges and Failure of Bagdoom:

➢ Intense Competition: Bagdoom faces a significant challenge in maintaining its market

share in the extremely competitive Bangladeshi e-commerce business, which is dominated
by strong firms such as Daraz, AjkerDeal, and Rokomari.
➢ Operational Challenges: Overcoming logistical challenges and guaranteeing punctual
delivery have been major obstacles. Effective logistics are essential for ensuring consumer
satisfaction and fostering repeat business in the e-commerce industry.
➢ Financial Strain: The e-commerce industry necessitates significant investment in
technology, logistics, and marketing. Financial stress may have a significant negative effect
on both the functioning and expansion of a business. Bagdoom's persistent demand for
ongoing investment may have resulted in financial difficulties.

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4.6: Grameen UNIQLO

4.6.0: Overview:

Grameen UNIQLO(Bangladesh)

In 2011, we formed a social enterprise called "Grameen UNIQLO Ltd" in Bangladesh, in

collaboration with Grameen Bank, which was created by Nobel Peace Prize laureate Muhammad
Yunus. As of 2018, a total of 15 shops were established in Dhaka City. Grameen UNIQLO
manufactures and markets all of its products within Bangladesh, and any earnings are subsequently
reinvested into the company. Aside from offering casual and traditional attire, we also provide
charity t-shirts, with all proceeds going towards assisting individuals experiencing poverty.
Furthermore, our objective is to enhance the well-being of industrial workers by providing
education on topics such as nutrition and personal finance, as well as ensuring safe work conditions.

Figure 4: The Overview of Grameen UNIQLO

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4.6.1: The Closures of Grameen Uniqlo:

Grameen Uniqlo closed its operations in Bangladesh due to several key reasons:

❖ Economic Development: The substantial economic advancement in Bangladesh in recent

years was a pivotal aspect. Fast Retailing, the parent business, determined that Grameen
Uniqlo had mostly accomplished its main objectives of tackling social concerns like as
poverty, health, and education through the provision of inexpensive apparel.
❖ Changes in the Business Environment: The decision was inspired by the changing
business landscape in Bangladesh. Fast Retailing decided that the circumstances under
which Grameen Uniqlo first started operating had altered enough to justify ending its
activities.
Grameen Uniqlo will close its social business in Bangladesh by Jun 18, partly due to "changes to
its business environment”, according to a notice on their website.

Figure 5: Journey Of Grameen UNIQLO

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4.7: Joldi:

4.7.0: Overview:

Joldi is a delivery service that operates in Bangladesh, namely within the expanding e-commerce
and logistics industry of the nation. The service was specifically intended to provide prompt and
dependable delivery, addressing the requirements of both corporate entities and individual
consumers in an ever-growing digital economy. Joldi sought to take advantage of the increasing
need for effective logistics solutions fueled by the fast expansion of e-commerce in Bangladesh.
It also employs bicycle couriers to transport items inside the city of Dhaka. Joldi, established by
Fahad Ibna Wahab, offers expedited delivery services and prides itself on using very skilled
delivery personnel. The business intends to broaden its presence in all metropolitan areas by the
end of this year. Fahad Ibna Wahab, the founder of Joldi, had previously launched Rapidmail,
which was then renamed as SmileX. However, without any prior warning, the firm closed down
and transitioned into Joldi Logistics.

4.7.1: The main Causes of Failure:

➢ The utilisation of bicycles for distribution can actually pose substantial difficulties, which
may have played a role in Joldi's lack of success. Here are some explicit reasons why
depending on bicycles might have been harmful:
➢ Limited Capacity and Speed: Bicycles has a constrained cargo capacity in comparison to
motorbikes or vehicles, hence limiting the volume and dimensions of delivery. This
constraint significantly impacts productivity, particularly when dealing with substantial or
wholesale transactions. Furthermore, bicycles have a reduced speed, which might have an
effect on the duration of deliveries and the level of client contentment.
➢ Weather Challenges: The climatic conditions in Bangladesh, which include intense
rainfall during the monsoon season, might have a significant adverse effect on bicycle
delivery. The difficulty is worsened by the presence of inadequate road conditions and
rugged terrains, which make it tough to consistently and promptly make deliveries.

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 ➢ Physical Strain on Delivery Personnel: Delivery people may experience physical strain
while cycling long distances while carrying big packages. This particular strain can result
in increased rates of employee turnover within the delivery personnel, which in turn has a
negative impact on the consistency and reliability of the service.So, the main problem of
start-up failure was using bycycle in delivery services.

Some another causes of failure reason of Joldi:

➢ Market Competition: Joldi saw intense competition from established and well-financed
competitors such as Foodpanda and Pathao. These rivals have substantial financial support
and were capable of maintaining enduring expenditures in technology, marketing, and
customer service, hence posing a challenge for smaller or recently established competitors
to effectively compete.
➢ Financial Constraints: In contrast to its rivals, Joldi encountered difficulties in obtaining
the significant funding necessary to expand its activities. Joldi was unable to maintain large
upfront expenditure in the logistics and distribution business, unlike its rivals, due to the
lack of fast returns.
➢ Customer Retention: Joldi's deficiency in retaining clients was evident in its failure to
effectively employ aggressive pricing, large discounts, and exceptional service.

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In general, although Joldi joined a market that showed potential and was expanding, it was unable
to overcome the financial, operational, and competitive challenges presented by established
companies with greater financial resources and more advanced logistical systems.
Upon conducting data analysis of many businesses, I have identified common reasons for start-up
failures, which I have outlined above. The chart below outlines the common causes of failure.

Figure 6: Common reason of start-up failures.

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 CHAPTER FIVE: FINDINGS & DISCUSSION

I found through an in-depth analysis of failed startups in Bangladesh, including Evaly, Alesha
Mart, E-orange E Commerce business, Umbrii, Bagdoom, Grameen Uniqlo, and Joldi delivery
business, several recurring themes emerge as key contributors to their downfall.

A key reason that leads to the failure of startups in Bangladesh is a fundamental deficiency in
comprehending the market and establishing distinction. A significant number of startups failed to
fully understand the complexities of the local market and encountered difficulties in distinguishing
their products or services from those of established rivals. Consequently, they faced difficulties in
both acquiring and maintaining clients, which eventually had a negative influence on their capacity
to remain sustainable in a fiercely competitive environment. Operational inefficiencies proved to
be a major hindrance for several businesses. Their capacity to provide products or services
efficiently was hindered by problems such as subpar supply chain management, insufficient
infrastructure, and logistical difficulties. The presence of these operational obstacles not only
diminished consumer confidence and contentment, but also hindered the potential to expand and
seize possibilities for development. The downfall of countless startups was significantly influenced
by financial mismanagement. From excessive expenditure to insufficient distribution of funds and
absence of financial planning, many startups faced critical cash flow challenges that eventually led
to bankruptcy or insolvency. The inability to maintain a healthy financial footing undermined their
long-term viability and deterred potential investors. Ethical and governance issues further
exacerbated the challenges faced by startups in Bangladesh. Allegations of fraud, ethical lapses,
and governance failures tarnished the reputation of several startups, eroding consumer trust and
investor confidence. The lack of transparency and accountability in corporate practices not only
undermined their credibility but also exposed them to legal and regulatory risks.Moving forward,
addressing these challenges requires a concerted effort from stakeholders within the startup
ecosystem. Emphasizing the importance of market research, adaptability, and operational
excellence is essential for startup success. By investing in understanding local market dynamics,
optimizing internal processes, and fostering a culture of innovation and agility, startups can
enhance their competitive edge and resilience. Moreover, prioritizing financial prudence,
transparency, and ethical conduct are imperative for sustainable growth. Startup founders and
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management teams must adopt robust financial management practices, adhere to ethical standards,
and cultivate a culture of integrity and compliance. By fostering trust and credibility, startups can
foster stronger relationships with customers, investors, and regulatory authorities, paving the way
for long-term success in the dynamic landscape of Bangladesh's startup ecosystem.

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 CHAPTER SIX: CONCLUSION

This research investigated the downfall of Bangladeshi startups such as Evaly and Joldi. An
underlying pattern became apparent - a deficiency in thorough market research led to the creation
of items that did not connect with the intended audience. Furthermore, the presence of financial
mismanagement impeded their progress, impeding their capacity to overcome the obstacles of an
emerging industry. The startup ecosystem in Bangladesh has distinctive challenges. The regulatory
framework may be a convoluted labyrinth, impeding innovation and adaptability. Lack of access
to capital is a major obstacle for several entrepreneurs, constraining their ability to expand and
compete. Moreover, a deficiency in essential digital abilities might hinder the advancement of a
firm. Notwithstanding these challenges, the capacity for Bangladeshi startups remains significant.
By assimilating the lessons derived from the failures examined in this research, stakeholders may
strive towards constructing a more resilient environment. Establishing a culture that prioritizes
thorough market research and prudent financial planning will be crucial. Engaging in cooperation
with legislators to simplify laws and facilitate access to funds can significantly enhance the
situation. Allocating resources to initiatives that cultivate fundamental competencies, particularly
in the digital domain, will furnish prospective business owners with the necessary resources to
flourish.

The trajectory of these unsuccessful firms is a tremendous educational opportunity for budding
entrepreneurs in Bangladesh. This statement emphasizes the significance of acknowledging
deficiencies, adopting new ideas, and fostering the development of skilled individuals. By
implementing these measures, Bangladesh can foster a flourishing startup environment that
unleashes its whole economic potential and sets the path for a more promising future.

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