Bangladesh has made a notable leap in the global startup ecosystem, moving up six spots to the 83rd position in the latest Global Startup Ecosystem Index 2024 by StartupBlink. This improvement highlights the country’s growing potential in nurturing and supporting startups.
Key Highlights:
- Country Ranking: Bangladesh now ranks 83rd, up from 89th the previous year.
- City Ranking: Dhaka, the capital, climbed 115 places to secure the 211th position in the global city rankings.
- South Asian Comparison: Bangladesh has shown significant momentum alongside other South Asian nations, with Pakistan rising to 71st and Sri Lanka to 76th.
Factors Contributing to the Rise
Population and Market Potential
The report highlights Bangladesh’s large population as a significant factor, providing a substantial internal market for startups. This demographic advantage, coupled with a tech-savvy young population, sets a solid foundation for the startup ecosystem.
Key Sectors
Dhaka’s rise in the rankings is partly due to its startups’ impact, particularly in the transportation sector, where the city ranks among the top 100 globally. Additionally, Dhaka is recognized for its contributions to the Agtech industry, ranking 7th in South Asia.
Challenges and Recommendations
Infrastructure Needs
To continue its upward trajectory, Bangladesh needs to address several infrastructure challenges, particularly the need for high-speed internet access beyond major cities.
Funding and Regulations
The report points out limited access to funding, complex regulatory environments, and limited global exposure as significant hurdles. To mitigate these issues, the government should focus on:
- Improving Internet Infrastructure: Ensuring stable and widespread internet access.
- Corporate Venture Capital: Facilitating corporate venture capital to boost funding opportunities for startups.
- Startup-Friendly Policies: Establishing policies that simplify business operations and support innovation.
- Industry-Academia Collaboration: Strengthening ties between academia and industry to foster research and development.
Initiatives and Support Systems
Bangladesh’s progress in the startup ecosystem is supported by various initiatives, including:
- Bangladesh Hi-Tech Park Authority: Establishing high-tech parks like Bangabandhu Hi-Tech City to support tech startups.
- Startup Bangladesh Limited: Providing funding and resources for startups.
- IDEA Project: Encouraging innovation and entrepreneurship.
- Bangladesh Angels: An NGO connecting local entrepreneurs with global investors.
Notable Startups
Some of the standout startups from Bangladesh mentioned in the report include:
- Pathao
- ShopUp
- Shohoz
- Arogga
- 10 Minute School
These startups have made significant contributions to their respective industries and have been instrumental in propelling the country’s startup ecosystem forward.
Global Context
The Global Startup Ecosystem Index 2024 ranks the United States as the best startup ecosystem, followed by the United Kingdom, Israel, Canada, and Sweden. Among cities, San Francisco, New York, London, Los Angeles, and Boston top the list.
Conclusion
Bangladesh’s ascent in the Global Startup Ecosystem Index 2024 is a testament to its growing potential in the tech startup sector. While challenges remain, the country’s large population, coupled with targeted government support and robust infrastructure development, can pave the way for further growth. As Bangladesh continues to strengthen its startup ecosystem, it is poised to attract more foreign investments and gain greater global recognition.