Bangladesh Bank Launches ‘Initiative’ to Support Young Entrepreneurs with up to Tk 2 Million

The government has launched initiatives to help young people at the upazila level become entrepreneurs. Bangladesh Bank has announced the implementation of the “Upazila-based Young Entrepreneur Identification, Selection and Financing Programme.”

The central bank said the initiative is not a conventional competition. Under it, scheduled banks will proactively identify promising young entrepreneurs through their branch networks, assess their business ideas and provide financing as needed.

Each selected entrepreneur will receive up to Tk 2 million, half as a bank loan and the remainder as a grant. The interest rate will range from 4% to 7%, with no collateral required. However, if the loan is not repaid within the stipulated period, the grant will also be converted into an interest-free loan, and the borrower will be classified as a defaulter.

Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan made the remarks at a press conference held at the central bank’s Motijheel office on Thursday (September 3). He said increasing employment opportunities abroad and engaging the country’s young population in productive sectors are among the new government’s priorities. Properly utilising the current demographic dividend could help Bangladesh move closer to becoming a high-income country. However, the benefit is expected to decline within the next 20 to 25 years, making it necessary to develop skilled human resources beforehand.

Applicants must be aged 28 or below and residents of the respective upazila. Previous business experience is not required; a viable business idea will be sufficient. Initiatives in any lawful sector, including agriculture, handicrafts, fisheries, livestock, tourism, services and technology, will be considered.

Applications will be free of charge and may be submitted to any scheduled bank branch in the respective upazila. A detailed circular will be issued on September 16, after which applications will remain open for one month.

Initially, the initiative will be launched in 64 upazilas across eight districts—Manikganj, Feni, Naogaon, Jhenaidah, Bhola, Habiganj, Rangpur and Netrokona—one district from each of the country’s eight divisions. Ten entrepreneurs will be selected from each upazila, bringing the initial total to 640.

It will gradually be expanded to other districts, with plans to finance and support 5,000 young entrepreneurs annually.

Alongside financing, selected entrepreneurs will receive training, guidance from experienced mentors, assistance with business registration and business-plan development, and opportunities for market linkages.

The central bank believes a successful small entrepreneur creates an average of three to five jobs, meaning the initiative could play an important role in employment generation and overall economic development.

Arif Hossain Khan said its main objective is to turn young people into job creators rather than job seekers. Those with innovative ideas and entrepreneurial potential will receive the necessary financing and other support. Banks and development partners will also participate in the initiative, he added. He also highlighted the importance of young people’s contribution to economic development and foreign-exchange earnings. In particular, remittances sent by young migrant workers are playing an important role in strengthening the economy.