Published: 12:27 AM, 29 October 2026
Doing Business Appears to Be Getting All the More Complicated!
Jamal Uddin Sarker
Doing business is becoming increasingly complicated in Bangladesh, where entrepreneurs must navigate rising operating costs, bureaucratic delays, complicated tax procedures, energy shortages, difficulties obtaining bank loans, and uncertainty over government policies. Although the country has considerable economic potential, a large workforce, a growing domestic market, and an established export-oriented manufacturing sector, these advantages cannot be fully realized unless the business environment becomes simpler, more predictable, and more supportive of investment. For many entrepreneurs, running a business has become a daily struggle to survive rather than an opportunity to expand and prosper.
Bangladesh has made remarkable progress in economic and social development over the past several decades. The ready-made garment industry has established the country as a major global manufacturing hub, while remittances, agriculture, pharmaceuticals, information technology, and small businesses contribute significantly to economic activity. However, the challenges facing businesses are becoming increasingly difficult to ignore. The World Bank's October 2026 Bangladesh Development Update projected economic growth of 3.4 percent for fiscal years 2025–26 and 2026–27, citing persistent energy-sector difficulties, financial-sector vulnerabilities, and weak revenue mobilization. It also highlighted subdued investment and elevated inflation as major concerns. These conditions make it harder for businesses to plan, invest, and create jobs.
One of the most persistent obstacles is bureaucratic complexity. Entrepreneurs frequently need to obtain licenses, certificates, permits, tax registrations, and other approvals from different government offices. When procedures are complicated, overlapping, or poorly coordinated, business owners must spend valuable time and money completing administrative formalities. According to a World Bank report published in April 2026, senior managers in Bangladesh spend an average of 13 percent of their working time dealing with government requirements. Such a burden reduces the time available for innovation, production, marketing, and business expansion. A system intended to regulate commercial activities can therefore become an obstacle to the very investment it is supposed to facilitate.
The situation is particularly difficult for small and medium-sized enterprises. Large companies may have dedicated legal, accounting, and administrative teams, but smaller businesses often depend on their owners to perform several functions simultaneously. A delay in obtaining a permit or receiving a tax-related approval can disrupt their operations and increase costs. Many promising entrepreneurs may even hesitate to formalize their businesses because they fear excessive paperwork, unpredictable enforcement, and additional expenses. Simplifying registration and licensing procedures, expanding digital public services, and introducing clear deadlines for approvals would help address these problems.
Rising operating costs present another serious challenge. Inflation increases the prices of raw materials, transportation, rent, packaging, and other essential inputs. Businesses that depend on imported machinery, fuel, chemicals, or industrial components also face uncertainty arising from exchange-rate movements and international market fluctuations. When production costs rise faster than selling prices, profit margins shrink. Small businesses often have limited bargaining power and cannot easily pass the additional costs on to consumers. As a result, some reduce production, postpone expansion, or lay off workers.
Energy shortages and unreliable electricity supplies make matters worse. Manufacturing companies require a dependable supply of electricity and gas to maintain production schedules, protect equipment, and meet delivery deadlines. When power disruptions occur, factories may have to rely on expensive generators or suspend operations temporarily. These interruptions increase production costs and weaken the competitiveness of Bangladeshi products in international markets. Businesses outside major industrial centers may face additional disadvantages because of inadequate infrastructure and unreliable utility services. Ensuring affordable, uninterrupted energy supplies should therefore be a national priority.
Access to finance is another major concern. Entrepreneurs need affordable credit to purchase equipment, hire workers, introduce new technology, and expand production. However, high borrowing costs, strict collateral requirements, and weaknesses in the banking sector can prevent viable businesses from obtaining the funds they need. The World Bank reported that the banking sector's nonperforming loan ratio reached 33.2 percent in June 2026, highlighting the severity of financial-sector vulnerabilities. When banks struggle with bad loans and inadequate capital, their ability to provide productive businesses with reliable financing may be constrained. Small and emerging enterprises are especially vulnerable because they often lack sufficient collateral and an established credit history.
Corruption and unequal treatment can create additional barriers. When businesses believe that personal connections matter more than established rules, confidence in public institutions declines. Entrepreneurs should not have to depend on informal payments or influential intermediaries to obtain routine services. Transparent procedures, effective complaint mechanisms, independent oversight, and strict action against corruption are essential to establishing a level playing field. Investors are more likely to commit their money when they believe contracts will be enforced, regulations will be applied fairly, and commercial disputes can be resolved efficiently.
Doing business may be getting all the more complicated, but the situation is not beyond improvement. With consistent policies, accountable institutions, effective regulation, and genuine cooperation between the public and private sectors, Bangladesh can turn its challenges into opportunities. The goal should not be to eliminate necessary regulation, but to make it transparent, efficient, and proportionate. Ultimately, when doing business becomes easier, the benefits extend beyond entrepreneurs to workers, consumers, investors, and the economy as a whole.
Jamal Uddin Sarker is an ICT
trainer and a columnist.
