High-Potential Business Sectors

Probability of New Business Success

• Market Entry Trends: Over 4,000 new businesses were registered in 2018. While new registration numbers fluctuate, the overall startup ecosystem is growing rapidly.

• Startups & Innovation: Government initiatives such as Start-up Bangladesh and iDEA Project support new ventures with funding, mentorship, and legal facilitation. The target is to foster 50 unicorn start-ups by 2041.

• Risk Factors: Like all emerging markets, Bangladesh presents challenges—75% of new businesses may not survive the first 15 years due to competition, regulatory hurdles, and economic shocks.

• Government Incentives: Tax holidays, free trade zones, and duty-free machinery import significantly improve the odds of business viability in prioritized sectors.

• Sector-Specific Success: Sectors with the highest probabilities for success include IT, RMG, e-commerce, agri-processing, pharmaceuticals, and digital services, owing to low competition, government focus, and continuous local demand.

Challenges and Mitigation

• Regulatory & Infrastructure: Starting a business requires navigation of complex regulations, occasional delays in licensing, and compliance with tax/VAT requirements. Partnering with expert local consultants and leveraging digital government systems can ease these processes.

• Economic Fluctuations: Inflation and energy shortages can impact profits. Diversification, efficient supply chains, and prudent financial management are necessary.

Summary Table: Key Factors for New Business Prospects

Conclusion

Bangladesh’s dynamic market, policy incentives, and demographic strengths create strong prospects for new business ventures in 2025. With targeted research, compliance planning, and sector selection, the probability of establishing and scaling a successful business in Bangladesh is higher than ever before—especially in technology, manufacturing, retail, and SMEs.