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Bangladesh Bank (BB) will provide financing and other support to 5,000 young entrepreneurs every year under its new “UDYOG” programme aimed at identifying, developing and financing promising young entrepreneurs at the upazila level.
Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan disclosed the initiative at a press conference at the central bank’s Motijheel office.
He said the programme will initially be launched in 64 upazilas across eight districts, with 10 young entrepreneurs selected from each upazila, resulting in 640 beneficiaries in the first phase.
The programme will gradually be expanded to other districts, with an annual target of supporting 5,000 young entrepreneurs.
Each selected entrepreneur will be eligible for a financing package of up to Tk 20 lakh, depending on actual business requirements.
Of the total package, 50% will be provided as a bank loan and the remaining 50% as a grant. The customer-level interest or profit rate will range between 4% and 7%, while entrepreneurs will not be required to provide collateral.
Under the programme, beneficiaries will also receive entrepreneurship development training, mentoring and assistance with business registration and preparing business plans. They will also be provided with opportunities to establish market linkages.
Arif Hossain Khan said the initiative is expected to make a significant contribution to employment generation and overall economic development by encouraging young people to become entrepreneurs.
He noted that a successful small entrepreneur generally creates three to five jobs, meaning the programme could potentially generate thousands of employment opportunities as it expands.
The initiative is expected to promote entrepreneurship at the grassroots level while improving access to finance for young people who have viable business ideas but may lack sufficient capital or collateral.