Youth unemployment is a pressing issue, with 48 per cent of Bangladesh鈥檚 population under the age of 24. Entrepreneurial hubs can engage young people by offering training, mentorship and funding to start their own businesses, writes Mostafizur Rahman
BANGLADESH is facing a serious unemployment problem, with the number of unemployed individuals rising to 2.66 million in 2024, according to the Bangladesh Bureau of Statistics. Youth unemployment has reached 7.2 per cent, while a mismatch between education and job market demands has left many university graduates without work. Rural areas, where farming remains the dominant occupation, suffer from underemployment and urban centres like Dhaka and Chattogram are overcrowded with job seekers. The reliance on ready-made garments, which accounts for 85 per cent of the country鈥檚 exports, has further limited job diversity, especially as global demand slows.
Entrepreneurial hubs, if implemented strategically, can provide a solution to this growing problem by creating jobs, promoting innovation and diversifying the economy.
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How entrepreneurial hubs work
ENTREPRENEURIAL hubs serve as platforms where entrepreneurs can give their ideas, validate business concepts, access funding and receive ongoing mentorship. The process begins with idea validation, where a panel of experts evaluates the viability of a proposed business idea. If the idea is approved, the entrepreneur is provided with funding, often in the form of government subsidies or low-interest loans.
The hub assigns a monitoring team to oversee the progress of the startup and provide support when challenges arise; it can be coordinated from the central unit. For instance, if a business faces a supply chain issue or natural disaster, emergency funds are allocated to ensure continuity. Once the business achieves profitability, government subsidies are withdrawn and the entrepreneur begins contributing a small tax to reinvest in the hub. For businesses with export potential, the hub offers additional resources to connect them with international markets.
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Reducing rural-urban employment divide
ONE of the key strengths of entrepreneurial hubs is their decentralised structure, which ensures equal access to resources for rural and urban entrepreneurs. Hubs located at the district and sub-district levels allow rural communities to benefit from job creation without needing to migrate to overcrowded cities.
For example, a hub in Khulna could focus on agro-processing industries, enabling farmers to produce value-added goods like packaged foods. Similarly, a hub in Sylhet could support tourism-based businesses, helping entrepreneurs establish eco-resorts and cultural tours to attract both domestic and international visitors. By creating jobs locally, these hubs reduce the rural-urban employment gap and contribute to balanced regional development.
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Empowering youth and women
Youth unemployment is a pressing issue, with 48 per cent of Bangladesh鈥檚 population under the age of 24. Entrepreneurial hubs can engage young people by offering training, mentorship and funding to start their own businesses. For example, tech-focused hubs can equip youth with skills in e-commerce, app development and software services, preparing them to compete in the global digital economy.
Similarly, hubs can empower women by providing tailored support for women-led businesses in areas like handicrafts, textiles and food processing. Programmes that offer flexible work options and targeted funding for women entrepreneurs can significantly increase female participation in the workforce, which currently stands at only 36 per cent.
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Diversifying the economy
BANGLADESH鈥橲 overreliance on the ready-made garments sector has left the economy vulnerable to global demand fluctuations. Entrepreneurial hubs can promote diversification by supporting startups in high-potential sectors such as information and communication technology, renewable energy, agro-processing and light manufacturing.
For instance, a solar panel assembly startup in Barishal could create jobs in production, installation and maintenance while contributing to the country鈥檚 renewable energy goals. With proper guidance from the hub, the business could eventually export solar panels to neighbouring countries, boosting both employment and foreign exchange earnings.
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Learning from global success stories
ENTREPRENEURIAL hubs have proven successful in other countries, providing valuable lessons for Bangladesh. India鈥檚 Startup Village in Kerala helped launch over 1,000 IT startups within five years, creating thousands of jobs. Rwanda鈥檚 youth-focused entrepreneurial hubs reduced youth unemployment by 15 per cent in targeted regions by providing training, seed funding and mentorship. Ethiopia鈥檚 agro-industrial parks supported rural entrepreneurs, boosting exports and creating jobs in coffee processing and other industries. These examples demonstrate how targeted support can transform local economies.
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Economic models supporting hubs
ENTREPRENEURIAL hubs align with economic models that emphasise job creation and economic growth. The Keynesian Multiplier Model also demonstrates the power of government spending. By providing subsidies and support through hubs, the government can create a ripple effect of increased demand and job creation, boosting GDP and reducing unemployment.
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Challenges and solutions
WHILE entrepreneurial hubs have immense potential, they also face challenges such as limited awareness, funding constraints and bureaucratic hurdles. To overcome these, the government must launch nationwide awareness campaigns to educate people about the benefits of entrepreneurial hubs. Partnerships with international donors and venture capitalists can ensure consistent funding, while simplifying business registration processes can make it easier for startups to formalise.
Another challenge is ensuring equal access to resources across regions. By standardising facilities and support systems at district and sub-district levels, the government can prevent regional disparities and ensure that entrepreneurs in rural areas receive the same opportunities as those in urban centres.
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Way forward
BANGLADESH鈥橲 unemployment crisis demands bold and innovative solutions and entrepreneurial hubs offer a practical path forward. By providing a platform for entrepreneurs to turn ideas into businesses, these hubs can create jobs, drive innovation, boost investment and diversify the economy. With the right investments in infrastructure, training and policy support, entrepreneurial hubs can become a cornerstone of Bangladesh鈥檚 economic future, developing sustainable livelihoods and inclusive growth for all.
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Mostafizur Rahman is a research officer the economics department in the North South University.