An Exploration of Constraints Faced by Bangladeshi Start-up Companies and Proposed Recommendations

Abstract

Abstract—The 4th industrial revolution is knocking at the door. The high-end technology, machine learning, industrial Internet of Things (IOT), cyber security, big data & analytics and artificial intelligence are in finger tips of this young generation. The concepts of Start-up come up with a revolution of technology across the world in recent years. Especially, the enthusiasm of the youth of developing countries likes Bangladesh that context very effectively. Establishing start-up is becoming a new trends and opportunity to them. Both the developed and developing economics are witnessing lot of new start-up in recent year. But the growth and success rate are relatively low due to many constraints. Globally the failure rate of start-up is high. Around half of companies are failed during their first five years’ operation. This paper is intent to explore the challenges faced by the start-up companies of Bangladesh so that future start-ups can avoid those pitfalls. The researchers interviewed 38 start-up companies’ top executives, managers to achieve the objectives. This study is conducted in qualitative way to get depth knowledge. The findings from the interviews shows that lack of awareness, education among customers, inadequate trust on online marketplace, price sensitivity, logistical and infrastructural problems etc. are main challenges start-up’s facing right now. Finally, this paper suggests some recommendations to solve those problems and develop the scenario.

Abstract—The 4th industrial revolution is knocking at the door. The high-end technology, machine learning, industrial Internet of Things (IOT), cyber security, big data & analytics and artificial intelligence are in finger tips of this young generation. The concepts of Start-up come up with a revolution of technology across the world in recent years. Especially, the enthusiasm of the youth of developing countries likes Bangladesh that context very effectively. Establishing start-up is becoming a new trends and opportunity to them. Both the developed and developing economics are witnessing lot of new start-up in recent year. But the growth and success rate are relatively low due to many constraints. Globally the failure rate of start-up is high. Around half of companies are failed during their first five years’ operation. This paper is intent to explore the challenges faced by the start-up companies of Bangladesh so that future start-ups can avoid those pitfalls. The researchers interviewed 38 start-up companies’ top executives, managers to achieve the objectives. This study is conducted in qualitative way to get depth knowledge. The findings from the interviews shows that lack of awareness, education among customers, inadequate trust on online marketplace, price sensitivity, logistical and infrastructural problems etc. are main challenges start-up’s facing right now. Finally, this paper suggests some recommendations to solve those problems and develop the scenario.