Why Entrepreneurs Bear the Burden — and Why Reform Can No Longer Wait

Bangladesh’s real economy is held together not by theoretical frameworks but by millions of entrepreneurs who operate deep within the national supply chain. They move fuel, construction materials, agro-inputs, industrial raw materials, FMCG distributions and logistics across all 64 districts. If their activities pause for a few hours, markets distort. If they stop for a day, districts freeze. A week-long disruption collapses national supply-chain operations entirely.

This backbone is now under unprecedented pressure—not due to global instability or competition, but from an unpredictable, inconsistent and structurally unaccountable banking system. The greatest hidden threat to Bangladesh’s economic stability today is the silent dysfunction in financial operations that entrepreneurs must confront daily.

Every day, 7–8 lakh supply-chain entrepreneurs rely on real-time access to finance. Yet they face verbal assurances, unexplained delays, opaque file movement and desk-level gatekeeping that are neither acknowledged in policy discussions nor reflected in regulatory documents. In my earlier editorial, “Challenge for SMEs” (The Daily Observer, 5 February), I highlighted structural barriers faced by small and medium enterprises. Today’s crisis is deeper, broader and more alarming because the very institutions responsible for supporting the real economy are themselves failing systematically.

In a supply-chain economy, time is economic currency. A three-hour banking delay disrupts distribution cycles across districts. The financial losses are significant: fuel distributors lose Tk 3–5 lakh; construction suppliers Tk 10–15 lakh; industrial processors Tk 20–30 lakh; import-based businesses Tk 30–50 lakh; and large operators Tk 70 lakh to 1 crore or more. These losses appear nowhere in annual reports, BRPD interpretations or regulatory compliance reviews. Yet they silently drain the national economy every single day.

One of the most severe structural weaknesses is the disconnect between branch-level communication and corporate-level decision-making. Branches often provide verbal assurances while corporate offices communicate contradictory messages. Entrepreneurs are left without written decisions, timelines or accountability. This uncertainty disrupts production and distribution planning at every level.

A second breakdown arises from desk-level gatekeeping. Mid-level officials—largely invisible in formal policy frameworks—effectively decide file movement. Approvals slow, queries accumulate and communication becomes opaque. This hidden layer of authority shapes outcomes without oversight or transparency, undermining the trust required for stable economic operations.

A third and more alarming issue is coercive financial action. Banks increasingly deduct large sums—1 to 6 crore taka—from accounts without overdue liabilities, without formal notice and without written justification. Many entrepreneurs are pressured into selling family property simply to satisfy conditions they never violated. This is not legitimate banking conduct; this is financial coercion that weakens honest businesses and destabilizes families.

A deeper problem is systemic inequality. Those who follow rules face the greatest obstacles. Those with informal influence move forward effortlessly. Meanwhile, non-operational or artificially inflated projects worth Tk 200 crore obtain approvals with minimal scrutiny, while genuine operators in essential sectors struggle to secure routine facilities. This is legalized inequity enabled by selective application of regulations.

Bangladesh frequently debates money laundering, yet one unspoken truth persists: when honest entrepreneurs lose confidence in formal banking channels, informal alternatives grow stronger. Bureaucratic friction forces legitimate businesses into risky paths. Institutional unreliability indirectly fuels capital flight. Money laundering, therefore, is not only a crime; it is a symptom of systemic dysfunction.

Bangladesh’s financial structure is governed by the Bank Company Act, BRPD circulars, prudential regulations and national laws. Yet selective enforcement of these rules has become widespread. Regulations are interpreted inconsistently. Circulars are applied at convenience. Accountability becomes optional. Written decisions are replaced by verbal assurances. This is no longer inefficiency; this is systemic non-compliance that threatens national economic stability.

An issue entrepreneurs rarely discuss publicly—but which severely damages economic confidence—is retaliation after filing complaints with Bangladesh Bank. Even when the central bank identifies wrongdoing, entrepreneurs fear new harassment when officers are transferred or replaced. Old files are revived. Facilities are slowed. Psychological and financial pressure intensifies. A system where reporting misconduct increases vulnerability cannot sustain national economic growth.

Bangladesh must ensure that Bangladesh Bank decisions become binding, irreversible and immune to internal interference. Post-complaint retaliation must be treated as a serious violation with enforceable penalties. Entrepreneurs must receive institutional protection, not institutional threat.

To restore trust and discipline, Bangladesh requires a strict, non-negotiable compliance regime: written decisions within 48 hours; a national file-tracking dashboard; 24/7 priority banking for essential sectors; a one-page transparent charge sheet for all fees and deductions; and personal accountability for officers, including penalties for delay and suspension risks for repeated violations.

Policy directives from the Finance Division and Bangladesh Bank are not reaching the ground. This is no longer an operational irregularity; this is a national economic risk. When entrepreneurs collapse, markets collapse. When supply chains weaken, employment weakens. When confidence breaks, the economy breaks.

Bangladesh cannot progress with a banking system that slows the very economy it is meant to support. To protect the nation, we must protect the entrepreneurs who keep it alive. To secure the future, we must restore discipline in the institutions that manage its financial lifelines. Reform cannot wait. Action must begin now.

The author works in Bangladesh’s national supply-chain operations and previously wrote “Challenge for SMEs”, addressing structural barriers facing small and medium enterprises