Executive summery:

This report focuses on the entrepreneurial challenges and the process of overcoming them
specially reinforcing the financial issue. The report presents both the entrepreneur and financial
institutions view on financing opportunities for SME institutions. As a financial organization the
report shed light on BSRS and its BCC/BASIS/ICT Incubator and its adjacent financing modules.
From entrepreneurs point of view a number of incubator listed firms were selected and their
financing process has been introduced.
This report exclusively focused its view toward ICT SMEs. The fact that ICT Incubator is only
accessible to IT companies and the importance of ICT in Bangladesh economy growth has an
implicit importance in this regard. The report took this issue further by listing the bars that remains
in todays financial market for an ICT SME.
The report also contains critical analysis of the whole financing process and its pro/cons. The
submitters took the liberty of comparing BSRS normal SME financing schemes and its past data
with BSRS/BCC/ICT Incubator financing schemes. This report also showed the Requirements,
Paper works, Validation process, Other payment options & Follow through of the whole financing
process. Past data of BSRS financial investments and loan disbursements as well as data on
participation in ICT incubator has also been included.
Recent times have seen an encouraging up rise of women participation in SME institutions. This
fact has not been ignored and an analysis with relevant data on women participation in BSRS
and ICT Incubator scenario has been introduced.
The investment process for SMEs has been presented with diagrams and charts. A relatively
unique data follow through method has been introduced with computerized application attached
with this report. The software (Internally developed by the submitters) sheds a birds eye view of
the whole report and its contents.
Introductory Words:
As a term paper on the course of Entrepreneurship, in this report we wish to focus on the
entrepreneurship development process by sequencing both the financier and the entrepreneur
point

of

views.

As

financial

organization

we

have

selected

BSRS

( Bangladesh Shilpa Rin Sangstha ) following their track record of successfully implementing
growth prospective financing to entrepreneurial ventures and their active part in the industrial
development process of SME ( Small and Medium Enterprise ) sectors. We have followed their
financing process closely and documented it step by step. We have also enriched the report by
adding BSRSs previous years records in loan disbursement and recovery data.

To make the view point more focused, we narrowed our search to the ICT field and included the
ICT Incubator program of the Ministry of Science and Information, BASIS & BSRS. We have also
focused on the entrepreneurial view by including Fornix Software Limited as a recipient of ICT
Incubator program and also a debtor of BSRS. We followed their development process from
inception and have shown how they have used the loan and the Incubator program to improve
and develop their business.
This paper also includes a very unique feature worth mentioning; an interactive CD has been
prepared showing the whole report in a presentation format also includes interactivities
concerning all relevant industry, sector and organizational data.
By showing the entrepreneurial development in a unique point of view; following step by step
process of financing as well as their uses by historical data, we hope to combine both the
financier and financed organization views.
We didnt overlook the improvement in current gender inequality position in our country. We have
investigated the women participation in the relative field ICT.
Overview

of

Bangladesh

ICT

Industry:

Bangladesh ICT industry has come a long way in last several decades. Particularly, in recent
years, ICT in Bangladesh is experiencing an exponential growth and making its presence strongly
felt both in the public & private sector in the country. Some of the major driving force of the
industry are Increasing availability of computers (PC import in the country has been growing by
more than 35% during last five years; current number of PCs stands at 1.5 million), widespread
Internet

availability

(nearly

million

Internet

users)

and

the

recent

explosion

of

telecommunication network across the country (number of mobile connection projected to reach
10 million from the current 3 million in next three years; more than 20 PSTN license issued to
private sector Telecommunication companies in recent months and average growth of number of
connections is also projected more than 200% for next years). But, perhaps the most important
factor in the continuing development of the sector is the presence of a large number of good
quality software application development houses (more than 350 companies with 15,000+
programmers

&

technical

staffs).

The ICT industry in Bangladesh is thriving in a positive business environment. The legal and
policy framework for the industry is already in place. ICT policy has been formulated in 2002. The
IPR Law has already been enacted in the parliament in 2000. To monitor the development of the
sector and formulate action plans, there is a very high level Task Force for ICT sector that is
headed by Prime Minister. Already, different Ministries & agencies of the Government have
initiated e-Governance projects for delivering service to the citizens in efficient ways. The existing

government policy of allocating minimum 2% of the Annual Development Budget for ICT
procurement is a big encouragement for the industry. During recent times, the private sector
organizational

buyers

are

also

increasingly

emphasizing

on

using

ICT for

tapping

competitiveness in business, both at domestic and international market level. Increasing ICT use
at both the public and private sector has initiated good demand situation for software and ICT
services

industry

in

the

country.

In the International Software and ICT market, Bangladeshi companies have started to make their
mark. The country is already exporting software & ICT services to 23 countries. Last year, the
sector

achieved

43%

growth

rate

in

export.

The sector is well prepared for high growth in the next few years. A lot of young & talented
entrepreneurs are joining this sector and putting their creative effort in new business ideas. To
ensure the human resource requirement of the sector, more than 10,000 ICT students are
graduating from around 300 good quality Universities & IT Training Institutes every year.
The incubator Business concept: Bangladesh perspective
As Entrepreneurs generally are in need of finding a market and a base for start as well as growth,
Incubator Business concept provides the necessary nurturing to pull them through the most
difficult first few years.
In the incubator facility (Usually a set of offices in the same building), different businesses share
the cost of services. The purpose is to help the businesses grow so they can graduate from the
incubator to full fledged independence. The services that the incubators generally provide are
ranked here in order of importance:
1.

Business

2. Marketing advice/
3.

Information

marketing
on

4.
5.

plan
government

plan
grants

Computer
Guidance

in

government

guidance
development.
and

loans
training

procurement

procedures.

6. Financing for selected sectors.

Incubator business process is relatively new in Bangladesh. The government faced the need of
rapid growth in ICT industry in the challenging 21st century, and established an ICT Incubator,
bringing 3 organizations together, BSRS, BCC & BASIS.
The BSRS/BCC/ICT Incubator :
Under the government ICT policy and BCC code, the government took the initiative of creating a
short sized silicon Valley for Bangladeshi IT industry and thus ICT Incubator came into being.

In 2002, Science, Information and Communication Technology Ministry took the initiative and
brought BSRS and BCC together in forming the ICT incubator. Under the MoU, BSRS will provide
housing and space for the Incubator companies and possible future financing while, BCC will
overview the IT enabled services as well as sort the IT company applicants for Financing from
BSRS.
Distribution of space for the software exporters and IT-enabled service companies in the newly
set up ICT Incubator began on 1st January 2002. The government provided 68,000 squire feet of
area at Bangladesh Shilpa Rin Sangstha (BSRS) Bhaban at Kawran Bazar to install the incubator
costing Tk3.6 crore. Under the agreement, spaces from the 3rd to the 9th floors of BSRS are
provided for the software exporters and IT-enabled service companies at a subsidized rate.
BSRS also prioritized its financing process for incubator participants and many of the firms took
loans from BSRS. BCC provides a generator for round-the-clock uninterrupted power supply and
a broadband Internet connection for the software exporters and the IT-enabled service
companies. So far, 63 software exporters and IT-enabled service companies have joined the
Incubator.
BASIS
Bangladesh Association of Software and Information Services (BASIS) was formed in 1997 with
the mission to mobilize regulatory and policy support to this industry and to assist member firms
in building capacity for better addressing the needs of the domestic and overseas markets.
BASIS started with 17 charter members. Today the membership stands at 116 (January 2004).
Members of BASIS account for more than 90% of the total software and IT services revenue of
the country. Its members have among their clients, fortune 1000 companies in Europe, North
America and Austral-asia. On a regular basis its members export software and IT services to
more than 20 countries of the world.
BASIS has meticulously fostered close working relationships with the policy makers, government
functionaries and the academia to ensure unhindered growth of this industry in Bangladesh.
BASIS was instrumental in getting software Copyright Amendment Law enacted in the year 2000.
BASIS is also working with other chambers in scrutinizing the Draft Electronic Transaction and
Cyber Crime Law. BASIS actively provides assistance and support to all overseas clients of
software and IT services and also to overseas investors looking for business opportunities in
Bangladesh.
BCC
The main objective of establishing BCC was to ensure the effective application and expansion of
the use of information technology. In view of this BCC has been formulating appropriate policies

and implementing them since its inception. The description and the lists depicting the steps taken
and other activities are presented in the following sections.
We have chosen BSRS to portray the financier point of view in the process of entrepreneurial
development.
BSRS History
Bangladesh Shilpa Rin Sangstha (BSRS) was established on October 31, 1972 under the
Bangladesh Shilpa Rin Sangstha Order, 1972 (Presidents order No. 128 of 1972) to provide
credit facilities and other assistance to industrial concerns and encourage and broaden the base
of investment in Bangladesh.
BSRS extends medium and long term credit facilities to industrial projects mainly in private
sectors. Besides, it provides, underwriting advance /bridge finance/debenture loans to public and
private limited companies. BSRS also guarantees under certain conditions, deferred payments of
machinery imported under suppliers credit and provides guarantee and counter guarantee for
loans for loans , debts, credits, performance of contract and financing arrangements with foreign
leading agencies as well as local banks and financial institutions. BSRS is an active member of
Dhaka Stock Exchange (DSE), engages in trading securities in both the primary and secondary
securities market. It also acts as a manager and banker to the public issues of the securities.
BSRS started commercial banking operations from 4th may, 1997.
Organizational setup:
BSRS has 18 operational departments under 4 divisions at its head office in Dhaka. It has one
commercial banking branch at Motijheel and a corporate branch in Karwan Bazar, Dhaka. BSRS
has four branch offices outside Dhaka, one each at Chittagong, Rajshahi, Khulna and Sylhet.
Capital and Resources:
Currently the resources of BSRS consist of local currency funds only. Since 1985, BSRS has not
received any foreign currency fund. Prior to 1985, the foreign currency funds were the lines of
credit channeled by the government from various international and regional leading agencies.
The foreign currency reserves were also augmented by contracting direct credit lines from
different foreign countries and by borrowing foreign currency from the Government or from any
bank or financial institution in Bangladesh or from any foreign countries, governments, or foreign
banks or financial institutions. The local currency fund of BSRS consists of paid up capital,
reserves, deposits and borrowing from the Government.
The authorized and paid up capital of BSRS are Tk. 2,000 Million and 700 million respectively.
BSRS equity as on june 30, 2001 stood at Tk. 1,573,707 million ( Including reserves and surplus )

The

resource

position

of

BSRS

as

on

June

30,

2001

is

shown

below.

Table -1: RESOURCES

30th June

Source

2001

2000

Paid up Capital

700.000

700.000

Reserves

873.707

755.654

Borrowing / Term loans

500.667

584.000

Deposits

135.445

89.447

Total

2,209.819

2,129.101

Major sectors of BSRS loan disbursement:

BSRSs major sector wise loans and advances are presented here. Please note in point that ICT
loan is not indexed separately as it constitutes a very little part of the organizations total
disbursement. It has been included in the miscellaneous section
BSRS
Sector wise loan and advances
Industry Sector

Long term loan

Debentures & underwriting

Total

loan
Food & Allied

3,004.699

47.045

3051.744

Jute & Allied

5,596.139

61.660

5657.799

Textile & Allied

3303.556

41.444

3345.000

Paper & Printing

71.348

60.218

131.566

Chemicals, Pharmaceuticals

2379.390

37.957

2417.347

Tannery, Leather & rubber

159.014

3.472

162.486

Transport

1196.791

2.155

1198.946

Services

698.147

39.003

737.150

Engineering

556.756

20.656

577.412

Misc.

92.334

92.334

17371.784
Others
Commercial Loans
Loan

Under

2.228
investors

2.445

scheme
Staff loan

88.658

Total Taka

17058.174

313.610

17465.115

Project Implementations and Recovery:

Close monitoring & supervision of projects are undertaken to ensure that the projects are
implemented on schedule. During the year, 2 projects went into commercial operations and 1
project went into partial operation. At the end of FY 2000-2001, 11 projects were under different
stages of implementation.
Table -2: Stages of Implementation of Projects
(No. of Projects)
Sl. No.

Status of Projects

1999-2000

2000-2001

Commercial operation

02

02

Total Operation

02

01

Under construction

03

03

Documentation not completed

04

05

Total:

11

11

Chart 1: Sector wise recovery during 2000-2001

Recovery trends and status:

In order to ensure credit discipline, BSRS strictly observed the credit guidelines of the
Bangladesh bank. as on 30 June 2001, 91.10% of industrial term loans was classified. The
amount of provisions (including interest suspense) kept in books of accounts was 91.05% of the
loan portfolio.
Recovery of due / overdue loans received utmost priority during FY 2000-2001 as in the previous
years. BSRS provided a number of incentives, rebates and concessions to the borrowers for
repaying the dues on or before scheduled dates. (This trend continues throughout the better part
of 2004 as increasing pressure from government forced BSRS to close many of its overdue
accounts as bad debts and reconcile many others. Relevant data and trend graphs are presented
afterwards. )
During FY 2000-2001, BSRS recovered a total amount of Tk. 351.506 million. It comprised of
recovery of 334.709 million in respect of term loans in foreign and local currency and Tk. 16.797
million on account of other operations such as dividends on shares and interest on debentures.
Chart2: Recovery in respect of sanctions commitment and Disbursement 2000-01

Outstanding and overdue loans of BSRS during the 1997 to 2001

Outstanding

Overdue

Overdue as %
of outstanding

Year

Private

Public

Total

Private

Public

Total

1997

15,249.02

391.58

15,640.60

12,987.76

203.55

13,191.31

84.34

1998

16,513.44

369.60

16,883.04

14,271.06

219.63

14,490.69

85.90

1999

17,865.91

353.98

18,219.89

15,141.05

230.87

15,371.92

86.58

2000

17,578.73

274.86

17,853.59

15,517.55

207.00

15,724.55

88.07

2001

17244.02

221.10

17,465.12

15232.47

207.00

15,439.47

88.40

Highlights of BSRSs Activities in the last six years

Particulars

Years

Cumulative

(Since

Inception)

Years >>

2002-

2001

2000

1999

1998

1997

2001

2000

1999

1998

1997

1996

Net Approvals:
Term loans
Underwriting

23.47
Advance

&

83.70

6.38

97.17

241.55

226.61

5183.58

34.67

20.00

48.20

132.31

8.84

42.42

31.46

259.34

Debenture loans
Equity Investment

27.42

35.13

Debentures Investment

63.43

Disbursement:
Term Loans
Underwriting

advance

&

65.52

121.98

199.90

212.41

6.38

29.09

40.38

18.20

27.42

35.13

8.84

42.42

114.18

4899.49
115.65

debenture loans
Equity investment

31.46

Debenture Investment
Recovery:

259.34
64.43

351.51

278.13

261.52

302.85

291.03

7905.45

Gross Investment

41.82

659.70

508.32

970.43

607.00

10246.74

Job Creation (nos)

80

628

658

1135

213

3117

Paid up capital

700.00

700.00

700.00

700.00

700.00

700.00

Reserves

873.71

755.65

690.61

620.07

547.32

873.71

Borrowings/term debts

500.67

584.00

584.00

584.34

501.00

500.67

Total Assets

18608.43

18834.46

19212.21

2429.56

2366.14

18608.43

Economic
Highlights

Financial Highlights:

Total Income

247.35

196.14

161.63

174.19

260.90

7205.06

Total Expenses

139.24

129.30

121.96

119.02

215.56

5507.54

56.29

65.92

75.65

68.33

82.50

56.29

1.33

1.04

6.17

7.17

11.65

1.33

0.75

0.69

4.60

4.90

9.62

0.75

Net Income before tax

108.11

66.82

39.25

55.17

44.54

1908.78

Net income after tax

69.11

44.42

39.25

55.17

32.92

832.03

Tax paid

22.45

7.29

6.52

19.64

47.77

1649.28

DSL payment to GOB

135.68

115.00

32.99

44.00

1790.00

5541.94

0.69

0.69

350.07

Total

expenses

to

total

Income (%)
Total Income to total Assets
(%)
Total

expenses

to

total

Assets (%)

DSL payment to Donors

Contribution

to

national

8.75

8.75

7.00

7.00

7.00

168.18

Debt-equity ratio

0.32:1

0.40:1

0.41:1

0.44:1

0.40:1

0.32:1

Debt service coverage

2.58

5.28

4.53

3.23

0.25

2.58

Exchequer

Notes:
a. Color codes:
Approximate position as on June, 2001

Percentage

Ratio

Numbers

b. These data have been provided by BSRSs MIS department and DSE Library and subject to
changing in approximate values.
Investment process for BSRS:
To apply for financial assistance from BSRS and inclusion in ICT Incubator a potential SMEs has
to go through a set schedule of processes. They have been described below.
1. Formal Application to BSRS for loan or financial support:
1. The applicant company has to acquire formal application from BSRS office paying
Tk 100 as pay order to BSRS chief disbursement officer.
2. While receiving the form these documents have to be shown.

1. The memorandum of association. ( For Limited Companies )

2. Listing certificate from Registrar of Joint Stock companies. or
3. Listing from city corporation as registered partnership or proprietorship

Business.
4. The VAT certification Number or
4. TIN number ( Tax Identification Number )
4. List of Directors and their consent letter.
2. The Application submission :
The formal application consists of primarily information about the applicant and the intended
business pattern he or she likes to chose. Please refer to appendix 1.02 for a demo of the formal
application form/
3. The application Processing:
The BSRS authority takes a disclosed time (Usually 2 to 3 weeks) to process the submitted
application. This time is spent evaluating the given data in the application and a preliminary
assessment of the applicant for loan purposes. The data collection usually revolves around:
1. The assessment of truth in
Business Address
Business Capital
Business Partners
Business Registration
Government taxes payment trends.
2. Eligibility findings.
This process is dedicated in assessing whether the applicant passes the
Eligibility qualifications, as in education, financial solvency, nationality,
Affiliation with government service, etc.
4. Preliminary interview & submission of project proposal:
If the application passes through the preliminary application processing, he/she is notified of the
eligibility and is asked to appear before an assessment officer with a copy of the financial
proposal paper for the financing asked from BSRS. The project paper or proposal is an integral
part of the processing as the actual loan disbursement decision largely depends on the
soundness of the report. The report paper should contain
1. The proposed financial structure of the organization after the receiving of the financial
assistance from BSRS.
2. The allocation of funds from the financing opportunity.
3. The forecasted company / organization accounts.
4. Future payment method preference.
5. Possibility survey and product line feasibility study.

6.
7.
8.
9.
10.
11.
12.

Market structure for the organizations products.

The administrative structure and future capabilities.
Past and future forecasted growth rate of the profitability.
Market share status and achievement report.
Total overview of the company / organization operations.
Current accounting methods.
If previously any finance acquired, the name of the FI and the payment history.

In the interview the applicant is asked on these and other relevant issues focusing on the above
noted issues. Then the applicant is asked to come back when the project proposal passes the
investment board of BSRSs approval.
5. Final approval for BSRS financing:
If the board of BSRS finds the project proposal lucrative and feasible, it passes through the
investment board. The applicant is asked to appear before the board for the final time and submit
the final proposal regarding the financing interest rate and payment method. Here some distinct
points are settled. They are
1. The interest rate set by the BSRS.
2. The Payment method and period
3. Whether BSRS holds steak in the new organization.
4. If so, the applicant is asked to increase its capital by the financing and issue new shares on
behalf of BSRS. BSRS follows a rule where the new organization is financed up to 49% of its
working capital and 33% if the company or organization already has other institutionalized
financing options received.
Upon the settlement of these factors, BSRS instructs the applicant to open a new account in any
nationalized commercial bank and transfers the money ( Amount financed ) to the account. The
account is jointly held by the applicant and BSRS.
6. ICT incubator Space allocation process:
In this segment if the company chooses to take part in ICT Incubator, the applicant has to apply
formally to BSRS for allotment of space and take part in the ICT Incubator program. Upon
application BSRS instructs the applicant to collect a separate application form from BASIS under
BCC (Bangladesh Computer Council) for space allocation in ICT Incubator.
The form is given in the appendix
7. Receiving of the allotted space:
The ICT incubator form from BASIS should be taken from BSRS Bhaban, BASIS office in ICT
Incubator. The paperwork that includes in this form are
1. The trade license
2. Registrar certificate
3. Form of organization
4. Required space, (Minimum 500 sft.)

5. Vat/ TIN number.

After submitting the filled out form with all the paperwork, BCC evaluates the request and if
accepted instructs BASIS to allocate space and necessary infrastructure to the applicant
organization.
8. The final allotment:
After the space allotment the applicant organization has the choice to join BASIS, which enables
the organization to receive added infrastructural and market support from BASIS. The applicant
occupies the ICT Incubator space and informs BSRS about the allotment. The allottee should first
pay BCC/BSRS 3 months rent in advance as required by the space taken.
Thus concludes the entrepreneurial financing process of BSRS/BCC/Basis ICT Incubator.
The flowchart of the financing process:
Critical Analysis of BSRS Investment process:
Though in truest sense, BSRS is one of the most prominent among the handful of financing
options available for ICT companies, the financing process is not without its critics. A long
process of finalizing the disbursement and sanctions makes BSRS ICT loans one of the costliest
in the country. Also, BSRS deeply divides its ICT Incubator financing with its normal industry
financing. The terms and conditions for ICT institutions on or off Incubator are distinctly different.
The case stands, a company cannot achieve easy financing without participating ICT Incubator.
On the other hand ICT Incubator loan consists of 3 organizations. BASIS for space allocation,
BCC for Incubator participation and BSRS for Financing. The continuous and often unduly
strenuous paperwork reduces the competitive edge of the participating companies.
On another somber note, even the normal financing rate and the Incubator financing rate also are
different. Where a firm outside Incubator can be subjected to loan interest according to the
Governments industry policy, the Incubator participants have the opportunity to have reduced
interest rates.
Reduced interest rate is not also without its demerits. It is often seen that the firms needing most
( Startups, Small Entrepreneurs ) are deprived while big names in ICT industry get the often
reduced loan interest rate from BSRS. The time frame of the total allocation and financing
process is too long to be comfortable for any enterprise. As the space allocation is overseen by
BASIS and financing is overseen by BSRS any lagging in either part causes further time
delay.The entrepreneurial View:
This report is rightly divided into two parts. In Entrepreneurial development, the first part focuses
on the financiers point of view, while the second part focuses on the entrepreneurs perspective.

To emphasize and present the Entrepreneurial perspective as closely as possible, we have

chosen an IT/ICT company that falls in the category of SME institution But have taken part in both
BSRS and other FI financing and the ICT Incubator.
Fornix SOFT Ltd: An overview:
Company Name

Fornix Soft Limited

Address

Shahara Monjil, 3/2 Lalmatia, Block C, Dhaka-1209, Bangladesh.

Telephone

(880-2)9122351, 011-804448

Fax

(880-2) 8121000

E-mail

info@fornix-soft.com

1998

Software

Year

of

Establishment
Sectors

Development

Implementation,

and

Hardware

Marketing,
Marketing,

Networking
Web

Design

and

and

E-Commerce,

Multimedia Authoring, IT Training.

Chief

Executive

Engineer Kazi Mah-dee Hasan, Managing Director

Employee Strength

Marketing

Officer

(2001)

Personnel

Software

Professionals

Hardware

Engineers

Finance

&

Administration

8
:

Personnel

Total

:
:

a)

Standard

2,

Chartered

Dilkusha

Grindlays

Bank

Commercial

Area

Dhaka-1000,
b)
Dhanmondi

Ltd.

Bangladesh.

Standard

Chartered
2,

Dhaka-1209,

Bank

Ltd.
Bangladesh.

5
7

Bankers

10

30

c)
Firmgate,

Sunali
Dhaka-1209,

Bank
Bangladesh.

d)

BSRS
Corporate Branch, Karwan Bazar,

Dhaka 1011

Fornix Soft Limited is the member of the following organizations.

1. Bangladesh
Computer
Somity
(BCS)
2. Bangladesh Association of Software Development and Information Services (BASIS)
3. Institute of EngineersBangladesh ( IEB )
Fornix Soft: Organizational structure:
From Inception to achievement: FORNIX SOFT
From the beginning of its outset, Fornix Soft Limited has taken up bold and innovative
assignments in IT Sector. The company has emerged as a system integrator with a vision to
develop customized and tailored software, Multimedia programming, Networking and Data Entry
for domestic and international market. The other objective of the company is to incorporate
advance level computer education & training with an intention to make the company instrumental
in reducing the existing wide gap between huge demand and very low supply of the IT
Professionals by creating skilled manpower in the IT field of the country. This would also help in
recruitment of IT professionals and to develop a continuous process for development and keep
abreast of latest technological advancement for the in-house professionals. Fornix Soft Limited
(Training Division) has a computer education and training center at Dhanmondi, Dhaka for
development of human resource in IT field. Since its inception the company has grown
moderately into a medium sized organization employing over 20 professionals of Computer
Science and other academic backgrounds.
Fornix Soft Limited has a set of experts who have proficiency in Database, graphics, multimedia
and web based software. The IT professionals of the company has combination of educational
qualification and years of experience in the field of information Technology which is very much
required to implement successfully any sort of project from tailor made Database Software to
establishment of LAN/WAN, Intranet and Internet systems. With the latest in-house equipment
facilities, resources and project management skills, the company has the capability to undertake
large Turn-key software development projects, based on collection of information needs,
feasibility study, design, development and implementation, comprising of distributed and
heterogeneous data environment. Its primary objective is to be a One Stop IT Solution Provider,
and is thus dedicated in providing services that enable its clients to meet their business goals and
challenges through interactive information technology solutions and expertise in cutting-edge

technologies. The driving policy is to meet customer satisfaction and build a lasting partnership
with its clients. A team of experienced and budding professionals is the driving force of
Fornix Soft Limited and dedicated to make the enterprise IT enabled. The company believes
every business should operate with cutting edge technologies to make its operation globally
competitive and innovative. We are always interested to provide total solution for our subscribers.
Whenever they needed for network based database application. We are providing the
establishment of network connectivity and all the relevant hardware setup with the software
application also using UTP, Co-axial and fiber Optic Module even VSAT and Microwave Linking
for wide aria network if required.
Line of credit taken by Fornix Software & description:
Year and source

Amount

Portion

of Debt 0Finance

in Total

Utilization Sector

Repayment/

Rate

Provision

Debt

(Relative to
the

year

taken)
Sonali Bank

Tk.2,50,000

85%

(1998)

Inception, Structure,

Nil (1997),

Facilities,

Tk.

Equipment, recruiting

periodical bi

9.75%

20000

monthly
after words
Standard
Chartered
(2000)

Tk.2,00,000
Bank

5%

(Not in cash but

as

VISA

Business

service

Tk. 85,000

expansion

(1999)

Structural

Nil / 221,115

11.75%

and

MASTERCARD
acceptance
license on credit)
BSRS (2001)

Tk.20,00,000

98%

improvement,
Equipment
expansion

Fornix Soft Development and growth: form inception to date

and

10.49%

[1] The last two phases in timeline can overlap each other bearing a total time frame of 10
-12 weeks.

Critical Analysis of Fornix Softs Performance in growth:

As one of the pioneers of Bangladeshi multimedia software arena, Fornix Softs growth is
admirable. Unlike all other IT companies, Fornix Softwares growth was very rapid in the
early years. From 1998 to 2000 it has achieved nearly the top spot in Bangladeshi retail
software industry. But from 2000 it has changed its business process somewhat. By
expanding its services horizon, Fornix decided to enter the international outsourcing
market. Heavy structural changes and improvements followed.
The effect of the change in business strategy is yet to be seen. As the new quota less
market shows startling promise ahead, the lack of proper support in the sector also poses
a problem. The company never suffered difficulties in repayment of its loans while growing.
All predictions points to a steady growth in near future.
Fornix can be termed as a small enterprise as not having employees over 100 persons.
But in Bangladeshi ICT industry context it is a considerable achievement, as most of the
outsourcing and programming/data entry jobs are handled by part timers in adhoc pay per

work basis. Fornix took a bold step in not outsourcing its gathered jobs outside the firm to
other local IT companies but attempt to provide total service in house.
Although Fornixs admirable business strategy, in Bangladeshi context, where market does
not always react to positive inputs, it remains also to be seen, how much the company can
forward itself in the coming years.
A

look

in

ICT

entrepreneurial

sector:

Problems, prospects and recommendations

Problems

in

financing

for

Bangladesh

ICT

SMEs:

Software industry is one of the essential components of IT industry with global market of
US $ 276 billion in 1996. It is still largely dependent on human resources and some of the
developing countries are taking advantage of this opportunity. India is one of the most
successful countries in developing its software industry and in 1996, it generated revenues
totaling US $ 3.20 billion (out of which export was around 40%), with an annual growth rate
of

about

70%.

The present size of software industry in Bangladesh is very small. Only a few firms are
involved in export of software and data entry services, and the total volume of revenue
generated is negligible. These factors can be identified as the major problems which are
impeding the growth of software industry. These are summarized in the following tables
under

four

functional

areas:

Fiscal

Human

Resource

Development

Infrastructure

Marketing

A.
1.

FISCAL
High

rate

2.
3.

Absence

8.

Taxes

Bank

Domestic

in
Absence

of

sources
Absence

prohibitive

Customs

clearance

computer

funds

for

market

of
of

funds

industry
procedures

is

for

Software
incentive

software

rate

constraints
9.

and

banking

Difficulties
Absence

Hardware
export

borrowing

Fund

on

of
of

of
10.

&

Complicated

6.
7.

Duties

Absence

4.
5.

of

PROBLEMS

purchase
promotion
financing

for

R&D

B.

HUMAN

RESOURCE

DEVELOPMENT

PROBLEMS

1. No strong Government agency for promoting growth of IT, particularly HRD.

2.

Acute

3.
4.

shortage

Graduates
Number

of

of

lack

graduates

in

tutors

computer

computer

related

skills

subjects

is

very

low

5. Course curricula for computer related subjects do not reflect market needs.
6.

Quality

7.
8.

control

Low
for

Interaction

training

of

high

courses

training

industry

in

literacy
IT

and

inadequate.

academic

INFRASTRUCTURE

1.

No

copyright

Foreign

protection

firms

Facility

for

3.

software,

out-sourcing

high

speed

BTTB

communication

Customs

8.

Lack

9.

facility

satellite

7.

Association
Data

10.

Strengthen

12.

firms

13.

Lack

updating

in

consuming

Software

Development

the

implementation,

of

Bangladeshis

in

country

monitoring

software

and
export.

MARKETING
Capability

export

infrastructure

in

for

exists.

software

telecom

for

manuals.

not

support

hub

expensive

and

does

to

policy

D.

and
time

involved

communication
of

slow

journals

role

mechanism

video-conferencing

books,

National

of

limited.
expensive

is

Services

EPBs

No

14.

ports

Processing

Poor

links

at

latest
of

and

is

slow.

for

communication

clearance
of

Bangladesh.

connection

No

6.

deters

connection

Internet

5.

which

from

data

Internet

4.

lacking.
PROBLEMS

for

from

lacking

computer

level

between

C.

1.

computer

level

Facilities

9.

2.

of

PROBLEMS
software

sector

is

not

known

foreign

firms.

internationally.
2.

Tendency

3.

use

Domestic

4.
5.

to

Efforts
No

organized

to

pirated

software

market
market
publicity

of

deters

is
Bangladeshi

capabilities

of

very

small.

ability/products
firms

involved

lacking.
in

software

development.
6.
7.

Difficulties
No

participation

in

obtaining

in

international

direct
fairs,

access

which

provide

to

market.

opportunities

for

marketing
8.

No

opportunity

9.

Marketing

10.

Information

11.

Quality

for

efforts

in

on
of

exhibiting
large

software

Bangladesh
Bangladeshi

local
IT

software

software

capabilities.

markets

non-existent.

professionals
developers

lacking.
unknown.

12. Opportunities for IT manpower not exploited.

The barriers in ICT SME financing in Bangladesh:
There are many integral barriers standing in the way of ICT SMEs today. As this report
focuses on entrepreneurial development in ICT industry, the barriers have been divided in
some logical segments. They are described below.
1. The Lack of Seed capital
One of the first and foremost barriers for ICT Industries in Bangladesh is the lack of seed
money for ICT companies. As an unrealistic trend goes on here, where the fresher form IT
related institutions are more interested in entrepreneurial steps more than the seasoned
veterans, the obvious inexperience in the business field makes it very difficult for new start
ups. Two of its more dominant features are

Idea

generation,

concept

demonstration.

Nurturing startups
The first problem is with market worthy product design and new ideas. The entrepreneurs
here lacks the proper knowledge of demonstrating a concept to financiers as well as have
minuscule opportunity from the financier themselves for doing so. The other great problem
is for the startups to nurture their institutions, i.e to ride out the potential loss in the first few
quarters and gain experience to developed improved and business worthy strategies. The
two reasons are interlinked as nurturing a startup often requires more work in the field of
financing as well as idea generation.
2. Lack of Long-term capital
Our local ICT companies suffer most from the lack of long term capital. Though the current
history in global economic scene encourages more financing in IT sector, Bangladesh is
surprisingly different in this respect.
Banks and other Financial Institutions are legendary in their un-acceptance of an IT
Entrepreneurial idea. Despite having record growth rate in the region and all over the world

the trend for Bangladeshi FIs are heartbreaking in the sense that more than 100% less
productive sectors like real estate development is given more preference over IT
entrepreneurships. Which originates these related problems for a startup.
a.
b.

Company
Process,

level

technology

c.

infrastructure

and

Human

quality

development.

capacity

resource

development.
development.

d.

Product

development.

e.

Business

development.

f. Management capacity development.

3. Short-term capital
The same problems apply for this segment. As a highly dynamic field the sudden increase
in working capital requirement is not unexpected. IT entrepreneurs in most cases fail to
attract working capital finance which in turn makes them unable to meet client
requirements and loose more money in turn. More on this genre are
a.

Working

capital

against

work

orders.

b. Short-term loan dealing with cash-flow gap.

4. Capital for clients for sourcing software solutions.
The most profitable venture for IT companies is the growing mega market of outsourcing.
Without unfettered financial support they fail to accept sourcing requirements from clients
from abroad. The lack of capital here constitutes of Human resource development, working
capital and outsourcing from within.
Sources of finance for ICT SMEs:
As this report focuses on the entrepreneurial development for IT sector the current
possibilities for finance in this sector are also listed below.

Love

money.

In

house

investments

accumulated

by

the

Public
R&D,

concept

generation,

entrepreneurs)
grants.

company

incubation.

Angel investors. ( Silent or sleeping partners, financing the project not operating it )

Loans

from
Venture

financial
capital

institutions.
fund.

Capital market.
Current status of access to finance:
The current position or status is more or less discouraging for an ICT company. The
current status for IT financing is listed below.

Limited

availability

Limited

availability

Limited

or

Limited

of
of

love

money.

public

grants.

non-availability

availability

of

institutional

of

VCs.

financial

products.

Constraints in implementation of available products.

Causes of Current Status:
Causes of current status cannot be summarized in one point. During our preparations for
this report, we came across some of the leading causes that proponent the current position
or status in IT financing in Bangladesh. They are listed below.

Lack

of

awareness

and

confidence.

Weak capability of making the valuation of intangible assets of software companies.

Low

risk

management

capability.

Lack of demonstration that substantial return could be obtained by investing in software

(both in vendor and user levels).
Propositions:
This stalemate can be overcome by taking both short and medium term consideration for
strengthening the current IT sector. In our view, they can be divided in two segments
a.

The

structural

or

integral

change

propositions

and

b. The policy propositions

The structural or integral change propositions

To

convince
To

financial

mobilize

agencies

to

provide

love

money

seed
and

capital

for

startups.

angel

investors.

To develop, promote and implement the guideline for making valuation of intangible
assets

of

software

companies.

To work with financial institutions for developing and offering financial products.

To

encourage

homegrown

and

international

VCs.

To demonstrate that investment in software is low risk with the potential of high return.
Proposition on policies:
It is easily recognizable that it is not possible to implement all the recommendations at
once, and that all the suggested measures are not needed at the same time. Therefore,
recommended actions can be classified under Short Term and Medium Term, depending
on the priority and importance. (The time frame for Short Term should be in our view a year
and for Medium Term 3 to 4 years). We feel that in the very rapidly changing scenario of IT
Industry

growth,

it

is

very

difficult

to

go

for

longer

time

horizon.

The recommendations have been grouped under the following areas , the same way that
the

problems

have

been

identified

elsewhere

in

this

report:

Fiscal

Human

Resource

Development

Infrastructure

Marketing
Short

Term

Fiscal
a) To exempt Computer Hardware, Software, Peripherals, Communication Equipment,
related components, and spare parts thereof, from Import Duty, VAT, Infrastructure
Development

Surcharge,

Import

License

Fee,

Advance

Income-Tax

etc.

b) To allow Tax Holiday for the export-oriented Software and Data Processing Services
Industry, for 10 (ten) years (a unit will be considered export-oriented, if at least 70 % of its
revenue

comes

from

export).

c) To give a 15 % price advantage (i.e. domestic preference) to local Software developers

over

import

of

the

same

products.

d) To allow export of Software and Data Processing services through Sales Contract,
instead

of

Letters

of

Credit.

e) To bring the Bank interest rate on loans / advances / overdraft down to the level
applicable

to

other

export-oriented

thrust

sectors.

g) To create a Special Fund to be administered by the Ministry of Science and Information

& Communication Technology for giving interest-free loans to teachers and students for
purchase of computers and related equipment, through financial institutions who should be
reimbursed

with

the

interest

lost.

h) To create a Venture Capital Fund of at least Tk.10 Crore at Export Promotion Bureau for
equity participation in export-oriented Software and Data Processing Services Companies.
Human

Resource

Development

a) To introduce Basic Computer Skills as a Compulsory Subject for all students in all
Universities

of

the

country

at

Graduation

level,

starting

from

1998.

b) To introduce Computer Science Department in all Polytechnics, BITs, Universities and

selected Colleges, with at least 50 seats per class per year per institute.
f) To empower Bangladesh Computer Council to develop a national examination and
certification system for the private IT Training institutions, to give Certificates to those

passing such examinations, and to encourage employers of both Government and Private
Sectors to give preference to such Certificate holders for jobs.
Infrastructure
a) To enact appropriate laws for the protection of Intellectual Property Rights, as required
under

the

WTO

Charter.

b) To set up low-cost high-speed data and voice communication link with the USA and the
UK, with a minimum speed of 2 Mbps. Private Sector should be allowed to provide such
service
c)

along
To

set

up

an

with
Internet

Node

BTTB.
in

the

country.

d) To make Internet connectivity available at affordable rate, not exceeding Tk.0.50 (fifty
paisa)
e)

To

per
make

Video

minute
Conferencing

facility

of
available

use.
through

VSAT.

f) To allow Private Sector to set up their own Satellite Communication links in order to
obtain competitive price advantage and greater availability of Communication facilities.
g) To create separate Cells at Chittagong, Dhaka, Kamalapur and Benapole Customs
Houses to handle all incoming and outgoing equipment / documents /data media of exportoriented IT Industry, so as to ensure clearance of such equipment / documents within 24
hours.
h) To create a Central Resource Center at Bangladesh Computer Council with current
Books, Magazines, Periodicals, Software, Manuals etc. on IT related subjects.
i) To encourage software firms to form an association primarily to protect the interest of the
Software and Data Processing Services Sectors, in line with NASSCOM, ASOCIO, WITSA,
JISA

etc.

j) To assign one Assistant Director of Export Promotion Bureau for this sector on a full time
basis.
Marketing
a) To arrange meetings/seminars in selected locations in USA with a concentration of IT
Professionals of Bangladeshi origin (e.g. Silicon Valley, California, USA) to inform them
about the incentives being provided by GOB and mobilize their support to help
Bangladeshi entrepreneurs. These meetings should be addressed by policy makers/high
officials/IT

professionals

representing

GOB.

b) To ban use of all pirated Software in all organizations, both in the public and private
sectors.
c) To encourage all Government, Semi-Government, Autonomous organizations, Sector

Corporations, Banks, Insurance Companies etc. to replace the manual system of

documentation and records by Computerized system through the use of locally developed
Customized

Application

Software.

d) To send Marketing Missions to North America / E. U. consisting of Members from IT

Associations and EPB, on a regular basis, with a view to publicizing Bangladesh Software
and Data Processing Services capabilities as well as establishing personal contacts with
the

prospective

customers.

f) To explore the possibility of obtaining business on sub-contract basis from the suppliers
of Software and Data Processing Services in India, Sri Lanka and the Philippines etc.
g) To empower Export Promotion Bureau to ensure regular participation in all major
International

Exhibitions

Fairs

for

IT

products

and

services.

h) To ask the concerned Trade Associations to organize International Exhibitions / Fairs in

Bangladesh for IT products and services, in collaboration with Export Promotion Bureau.
In recent years, like other developing countries of the world, Bangladesh has been
focusing attention on the most disadvantaged group in the society the women.
Realization has gradually dawned on all concerned that a society cannot afford to waste
half of its human resources by discrimination on grounds of sex. This increasing
awareness on the part of the government has led to the adoption of national policies to
facilitate a development process involving women in all spheres particularly in economic
activities focusing especially on entrepreneurship development. The overwhelming majority
of women in Bangladesh are not only poor, but also caught between two vastly different
worlds the world determined by culture and tradition that confines their activities inside
family homesteads, where they are regarded more as a commodity necessary only for
bearing and rearing children and the world shaped by increasing landlessness and poverty
that focus them outside into various economic activities for survival. In Bangladesh, the
women entrepreneurs, who have accepted the challenges of life and have emerged as
leaders in the socio- economic development, earn for themselves and for their families or
contributing towards the socio- political upliftment of the women. In our country women
lack assistance is in the access to credit, provision of skill training, and market facilities.
Women entrepreneurship in the rural industries is a new arena in the socio- economic
environment of Bangladesh. In view of the need to bring the rural womenfolk in the
development stream of the country, both the Government, the NGOs and other related
agencies have provided ample opportunities to promote entrepreneurial skill among
women. Income- generating activities, credit facilities, skill training, market opportunities

have all combined to pave the way for the emergence of entrepreneurial development
among women in rural Bangladesh.
Women have achieved good prospects in industry, especially the small and cottage and
micro-home-based ones. Their present involvement in manufacturing and in the recent
trends of their involvement in construction activities in growing numbers is likely to
continue. Women have emerged as exporters and their control of export- oriented
industries, are promising areas for enhanced female participation and employment.
Womens growing involvement in the construction of civil works gives evidence to their
potential regarding market growth opportunities and should be encouraged. To stimulate
female entrepreneurship and create further employment opportunities, training programs
for relevant issues, need to be provided to women currently in business. Where women
have access to market information and display of products they can increase their
business acumen, especially with respect to demand for a wide- range of products they
might choose to produce.
Types of Production Units and Trades include the common small scale production units
such as Handicrafts with various types of raw materials, Handloom Weaving & Spinning,
Basketry, Mat making, Manufacture of Coir products. Fishing Net making, Paddy husking
by Dheki, Oil production by Ghani, Jute production and sale, Jute goods production.
Pottery, Cane and bamboo products, Seri culture, Silk weaving, Honey Making, Screen
print

&

Batik,

Embroidery, Dressmaking.

Tailoring,

Puffed

Rice

Making,

Food

production( packed or retail sale of dry food), Food Processing, Wood craft & Furniture,
Molasses making, Biri( indigenous cigarette made with special leaves) production, Milk
production units, dairy and milk products, Dyeing and printing, Book Binding,
Confectionery, Urea Molasses Block( cattle feed) etc., Nursery and Horticulture production.
Kitchen gardening, poultry rearing( sale of eggs, poultry, chicks), goat and sheep rearing,
cattle fattening are common agro- based occupations.
Women entrepreneurs should be provided special facilities to develop their enterprises.
These include:
(1)

Development

(2)

Separate

Banks

counters

with
in

separate
counters

advisory
in

service

commercial

cell

banks

for

women;

for

women;

(3) Arrangement of exclusive fairs to promote products manufactured by small & cottage
based
(4)

Fixed

units;
quota

of

stalls

for

women

entrepreneurs

at

(5) Special market facilities both in the domestic and the international arena.

export

fairs;

Government resources are limited. Infrastructure development and other broad sectors of
economy demand and consume major share of the national development budget. It is thus
sometimes said that poverty alleviation goal receives more palliatives than substance. In
face of things as they stand, both the GOs and the private sector have a major
responsibility to promote entrepreneurship development for women. Without that the
advancement of women will remain a far cry.
Role played by BSRS for women entrepreneur development:
On behalf of the government BSRS has arranged some policies and schemes to promote
the development of women entrepreneurship. Very few women entrepreneurs have so far
taken loan from BSRS. This is due to the loan granting process and the formalities that are
required to meet make a bit difficult for women to get the loan amount. However BSRS
with the help of some other NGOs has taken initiatives such as:
(1)
(2)
(3)

Setting

up

of

Identification
Planned

addresses,
(4)

Publication
forms

Organizing

a
of
of

of

Women

Entrepreneurship

women

entrepreneurs

directory

of

business,

women
products

entrepreneurship

Development
of

entrepreneurs

Cell;

Bangladesh;
with

manufactured

development

their
etc.;

training;

(5) Co-organizing convention of women entrepreneurs, discussion meetings on the

problems and prospects of women entrepreneurship in Bangladesh in the grass root level
(7) Arranging market opportunities.
Women in ICT: Bangladesh View:
General perception of ICT sector comes as a non discriminatory sector. With intellectual
labor as its capital, ICT can become as a magic wand to disseminate all inequality.
This year marks (March 08) the 96th International Womens Day (IWD). Pursuant to the
declaration by the Socialist Party of USA, the first National Womens Day was observed
across the United States on February 28, 1909. But in the 2nd International Conference of
Socialist Women, held in Copenhagen in 1910, it was resolved to observe an annual
womens day as a uniform international action. The date was nominated in recognition of
the United States Garments workers demonstration, which was held on March 08, 1857.
The purpose of the demonstration was to increase the wage and reduce the working hours
of the Garments workers. Government of Bangladesh started to observe the International
Womens

Day

since

March

08,

1984.

International Womens Day stands for equality between women and men. During
International Womens Year in 1975, International Womens Day was given official

recognition by the United Nations and was taken up by many governments throughout the
world. International Womens Day is a time to reflect on progress made to call for change
and to celebrate acts of courage and determination by ordinary women who have played
an

extra

ordinary

role

in

the

history

of

womens

rights.

In our country also women are being seen in frontlines to fight against hunger, poverty and
environmental degradation. So, on this day, let us think about empowering women also
through ICT (Information and Communication Technology). Because it is an essential part
like other goals for winning the fight in the lives of women. It will increase resources in their
hands to be self reliant and empowered and reduce discrimination against them. It is a part
of

placing

their

issues

at

the

forefront

of

policy

action.

Micro-credit for self-employment empowers womens decision-making capacity. Likewise,

an amount of money, which women need to be ICT experts and to establish ICT firms, will
help them earn more money and to be more empowered. 2005 has been declared as the
Year

of

Micro

Credit

by

the

United

Nations.

This is why Government of Bangladesh as well as the non governmental organizations

(NGOs) should start to distribute small loans among interested women to encourage them
to be self-reliant by learning and working in ICT sector. The third of the Millennium
Development Goals (MDGs) of the United Nations is to achieve gender equality and
empower women. It seeks to rectify the disadvantages through policies and programmes
which build womens capabilities, improve their access to economic and political
opportunity guaranteeing their safety. So, ICT will definitely play a supportive role to reach
this goal soon.
How can ICT help women?
ICT can benefit women in many ways. It can facilitate their participation in different sectors
and different regions. It can provide the information women need to improve their own wellbeing and that of their families. The introduction of computers into offices has improved the
quality of work and scope for women in data entry, analysis, programming, clerical and
administrative occupations. More over ICT allows them to exchange views, opinions and
information

so

much,

which

may

not

be

possible

through

other

media.

ICT has a strategic link with poverty reduction. The Internet, email and mobile phones top
the list of new tools. ICT can directly empower women as well as the poor people by
offering access to services historically unavailable to them because of high cost or lack of
infrastructure, particularly in rural areas. Now buying-selling or renting ICT equipment itself
is a source of income. Mobile phone has already ushered in such income among many a

rural woman in Bangladesh. The computer training institutes in our country should set the
course curriculum in accordance with the need and demand of our country. Access to the
Internet is still very limited for several reasons, like poor teledensity, poor electricity, poor
affordability of computer and knowledge about the Internet. Public Internet access is very
limited in the private telephone canters and cyber cafes. Though the divisional
headquarters and some district towns have access to Internet, but the commercial use of
Internet is limited due to the bandwidth limitation. Despite the rapid fall in the cost of the
Internet services, it is still high for the general people and students. That is why it is
necessary
*Access

that,
to

Internet

exchange

should

be

at

par

throughout

the

country.

*A high-speed national data network for the country connecting all important cities, district
headquarters and important upazilas should be established. BTTBs upazila level Internet
project

should

be

implemented.

*Technical assistance from internationally reputed companies should be sought to build

proper networking infrastructure throughout the country. The relationship with International
Telecommunication Union (ITU) should be strengthened for reducing digital divide.
*Proper

use

of

Global

Information

Superhighway

should

be

ensured.

*All schools, colleges and universities should be brought under Internet network. This is an
emergency programme to be initiated earlier. As a result women from rural areas will be
able to get access to use of Internet as well as to be trained up on ICT.
Access to ICT at university level has achieved a very limited success. The ICT penetration
in primary, secondary and higher secondary level is not satisfactory at all. Only a limited
number of urban schools and colleges have ICT facilities for education purpose. There is a
huge mismatch between the market demand and the courses offered. We do not produce
adequate number of qualified ICT professionals in our educational and training institutions
to cater to domestic demand. The migration trend of quality ICT professional is alarming.
So,

we

should:

*Implement education programme in software engineering, computer communication and

multimedia

with

curriculum

that

incorporates

the

latest

technology.

*Introduce basic computer skills as a compulsory subject for all students at Intermediate
and
*Polytechnics

Graduate
and

other

training

institutes

level.
should

offer

diploma

in

ICT.

*Unemployed girls, women and youth should be encouraged and given priority for ICT
training

courses

vis--vis

market

demand.

*Diploma and trade courses should be introduced in distance education system through
ICT

network

under

Open

University.

* A national specialized training of teachers centre should be established for solving the
problem

of

acute

shortage

of

quality

teachers

in

ICT.

* Female students and teachers of university and colleges should get free or subsidized
access

to

Internet.

*All universities and higher educational institutions should be networked for better access
to

knowledge

and

information.

*Primary and secondary level education should be emphasized for long run return in ICT
industry.
*More training institutes on ICT for the girls and women should be established. Poor and
meritorious students, unemployed girls, women should be given free of cost training,
accommodation,

training

materials

etc.

* After completion of training, bank loan may be offered to them on easy terms to set up
cyber

caf

or

computer,

training

institute

in

urban

and

rural

areas.

*JAWS talking software can be given free of cost from the educational institutes or Govt.
offices to the visually impaired female and male students as well as the normal software to
the

disabled

students.

*Govt. of Bangladesh, BTTB as well as the mobile phone companies in our country should
encourage more unemployed women to run business of phone, FAX, computer compose,
etc.
ICT policy : Women Issues
Honorable Prime Minister has already declared ICT as the thrust sector. The ICT policy
aims at building an ICT-driven nation comprising of knowledge-based society by the year
2006. According to the ICT policy, to implement the target areas, we should work hard from
now and take necessary initiatives earlier. On the other hand, more female IT professionals
should be encouraged to join in accomplishing the policy and to reach the goal of ICT also
as a part of opening and building up their carrier.
Conclusion
To be kept focused on the subject of entrepreneurship during the course of this report was
one of the most rewarding experiences. As we took BSRS to portray the investor outlook
on entrepreneurship, in our view, a rare glimpse inside the corporate mindset toward SME
entrepreneur development has been unveiled. We have explored both the entrepreneurial
and the facilitator viewpoints as we have also introduced Fornix Soft Ltd. As a case study

to see the results of BSRS financing in entrepreneurship. We tracked the growth of Fornix
Soft. We connected the reality with the theory of entrepreneurial development that we
studied in this course, in the critical analysis section. We have also tried to analyze the
performance of BSRS by introducing numerical data for the past 6 years. We explored
their loan disbursement/recovery performance critically.
In this paper we focused on the ICT industry. As we were to produce this report on SME
entrepreneurial development, our view of ICT industry both as a thrust potential industry
and an industry consisting SMEs largely made us focus on that. We also explored the
participation of women issue in view of the ICT industry. At the end, we followed the market
trend and tried to piece together a case in point of the prospects and barriers; and
propositions for the ICT industry for entrepreneurial development.