business-analysis
Is Sanchayapatra a Good Investment in 2023?
The aim of any investment has always been to grow the initial capital. People invest hoping to double or triple their initial sum and get a substantial ROI. But investment strategies are not that simple. With the risks associated with investments, there are more ways to lose money than gain. This is where Sanchayapatra, the national saving scheme of Bangladesh is different. The scheme offers a secure haven for investment at flexible conditions and good returns on investment.
What is Sanchayapatra?
In short, Sanchayapatra is a national savings certificate. It is a saving scheme implemented by the government of Bangladesh through its different financial subsidiaries.
In hindsight, the initial intention for introducing the savings certificate was different. Sanchayapatra was first introduced in 1972 against the backdrop of a war-torn economy. The government encouraged people to save money to finance deficient economic spending. The extra expenditure of the government was financed from the savings received against the issued certificate.
Read Is Gold a Good Investment in 2022?
Historically, Sanchayapatra provided a good ROI through its interest schemes. This has grossly motivated people to save more and more. And soon enough Sanchayapatra became one of the top investment schemes in Bangladesh.
The government of Bangladesh introduced more and more saving schemes over the years. Currently, there are 11 different types of national saving schemes of which 4 are of different Sanchayapatra schemes.
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Types of Sanchayapatra
There are a total of 5 different types of Sanchayapatra. The difference is based on benefits and heads who can apply. Each scheme is unique to its own and caters to its targeted audience.
The 5 Year Bangladesh Sanchayapatra
This Sanchayapatra scheme provides profit every 3 months. It has an investment cap of 30 lac for single applicants or 60 lac for joint applicants. It provides one of the highest interest rates at 10.75% in the 4th year with 11.28% on maturity. Small enterprise and provident funds do not have any investment cap within this scheme.
3 monthly Profit Basis Sanchayapatra
The 3 monthly profit basis scheme has a 3 year maturity period. Just like the Bangladesh Sanchayapatra scheme, the individual investment cap is 30 lac whereas a joint investment has a cap of 60 lac. The scheme doesn’t allow organizations or provident funds to invest. The interest rate is 10.50% in the 2nd year with 11.04% payable on maturity.
Read Investment: What Factors to Consider before Investing Money?
Pensioner Sanchayapatra
The pensioner Sanchayapatra is a 5-year investment with a 50 lac investment cap. A person has to be a retired government, semi-government, autonomous, or semi-autonomous official to be eligible for this scheme. The interest in the 4th year is 11.00% with an 11.52% interest payable at maturity.
Poribar Sanchayapatra
The Poribar Sanchayapatra is exclusively designed for adult Bangladeshi females. The investment cap for this scheme is 45 lac BDT. There is no option for joint investment in this scheme. The interest payable in the 4th year is 11.20% with 11.76% on maturity.
Each of these schemes has a profit accrual period of 1-year. Meaning if the savings are withdrawn before the completion of the first year, the investor will not receive any form of profit. In addition to that, a standard 5% tax will be accrued on the profit.
Read Investment Opportunities in Bangladesh amid Pandemic
Pros of Investing in Sanchayapatra
So, why should someone invest in Sanchayapatra? There are several reasons to justify the investment.
Secured Saving
Sanchayapatra is a national saving certificate meaning it is directly run by the government through its subsidiary, the Bangladesh post office. Being a national scheme, there aren’t any underlying security issues with this investment. an investor can stay worry-free that their investment is safe and secured.
High-Interest Payable
Sanchayapatra offers some of the highest interest payable on a fixed investment across any savings denomination in Bangladesh. The high-interest payable combined with the security offered by the government can be a huge motivator to invest in Sanchayapatra.
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Tax Rebates
This is another benefit of investing in Sanchayapatra. At 25%, Bangladesh has a fairly high-income tax. However, the NBR allows for tax rebates on income invested on Sanchayapatra. Meaning a person is not only benefitting from the saving but are also getting a tax cut for doing so.
Cons of Investing in Sanchayapatra
While there aren’t any personal cons of investing in Sanchayapatra other than the investment getting locked in for a certain period, there is some negative implication for the overall economy of the country.
Investment Diversion
The high interest payable on Sanchayapatra has been heavily criticized considering it is over the inflation rate. The rate is not matched by private organizations or high-risk investment instruments like stocks. As a result, people are becoming more and more inclined to invest in Sanchayapatra compared to other heads of investment which is creating an imbalance in the economy.
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Added Liability for the Government
The national savings certificate is essentially a scheme outlining a system where the government borrows from individual investors. With more and more Sanchayapatra being sold, the government liability is also increasing at an equal rate. And with the high return on the NSC, it might soon go out of hand and create a liquidity trap for the government. Organizations like CPD and IMF have suggested the government reduce the rate of return and sale of NSC and eventually phase them out in the near future.
Should You Invest in Sanchayapatra in 2022?
Sanchayapatra is the perfect savings choice for risk-averse investors. In recent years, the rate of return has been considerably reduced. Yet Sanchayapatra remains one of the highest returning individual options in Bangladesh. Along with the high return, capital security is also something that makes investing in Sanchayapatra a good decision.
Even at a reduced rate, the economy will still take considerable time to properly pick up its pace from the economic downturn of the pandemic. Against its backdrop, Sanchayapatra can be a safe bet against volatile times.
Read SM²: Bangladesh-Focused Seed Accelerator by SBK Tech Ventures, SOSV, Miaki
Final Thoughts
Though Sanchayapatra has a negative implication for the government liability and investment distribution within the economy, it is still a preferred investment mode for many. Considering the benefits, returns, and safety, investing in Sanchayapatra in 2022 is definitely on the cards for the veteran as well as first-time investors.
Is Gold a Good Investment?
Is gold a good investment? However, the answer is not as simple as the question. Is the investment long-term or short-term? What is the investment amount? Since gold has historically been a significant fixed asset across economic denominations, it easily comes up as the top choice for asset investment.
The History of Gold Investment
The use of gold as a trading instrument dates back to almost 4000 BC. Back then it was mostly used as a bartering tool. Historically, gold held a high trading and asset value in all the large civilizations beginning from the Egyptian to the Roman empire.
The first minted gold coin dates back to 500 BC under the rule of King Darius I of Persia. Over the years, regulations and acts saw gold become a significant tangible asset. In addition to offering significant value storage, there are some other benefits associated with gold that make it an investment haven for many.
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Why Should Someone Invest in Gold?
The main reason to invest in gold is because of the safety it provides. Risk-averse investors tend to look for three key things – rewards, liquidity, and safety. Historically gold has been a go-to option considering the high liquidity value and price fixations. In recent years, the reward system from gold is also catching up with the other two because of newer investment options.
To answer why should someone invest in gold? One needs to look at two market-related factors:
- Gold always outperforms inflation. Regardless of the inflation condition, the tangible value of gold remains almost unchanged thanks to its international valuation as a reserve determinant.
- Gold investment is inversely proportional to any form of equity investment. Meaning every time the stock market goes down, the price of gold goes up. So, for anyone looking to play safe on their investment, gold can be an ideal choice. Having a mix of gold investments on the portfolio will help to maintain some ground even if the overall investment goes down through equities. Gold can act as a good buffer for investment.
Read Frozen Food Companies in Bangladesh: An Overview
Investment proposals grow 46.33 pc in July-September 2021: BIDA
The investment proposals registered by Bangladesh Investment Development Authority (BIDA) grew by 46.33 per cent in July-September 2021.
This has been a marked improvement from July- September period of 2020 when the investment inflow fell due to worsening Covid-19 pandemic situation.
BIDA, an entity attached with the Prime Minister Office, provided registration to 189 companies with investment proposals of Tk20463 crore in the three months (July-September) this year.
A total 177 domestic companies have taken registration in July-September 2021 period with investment proposals of Tk18586 crore.
Read: 184 industrial establishments get BIDA registration in 3 months
In the similar period 7 foreign nationals-owned companies and 5-joint venture companies have taken registration with investment proposals of Tk 1877crore.
The investors have preferred the agriculture based industries to textile, services and engineering sector to invest money.
If the proposed investment is executed, the jobs opportunity of 28850 would be created.
Bangladesh, growing rapidly over a decade, is on its way to becoming the next Asian Tiger. Economic and political stability are driving its journey towards the future. Currently the world’s 41st largest economy, Bangladesh will be the 25th largest economy by 2035, according to BIDA.
Read: BIDA, BBF join hands to boost FDI
BIDA is working to accelerate industrialization and employment. The entity has been providing transparent investor services of different organizations all in one place.
SM²: Bangladesh-Focused Seed Accelerator by SBK Tech Ventures, SOSV, Miaki
Bangladeshi is going to see a new world-class seed accelerator “SM²” for the high potential local startups. SBK Tech Ventures along with SOSV and Miaki have taken this initiative which will be launched in November 2021. The program will be based on three seed-stage Bangladeshi startups. However, the detailed plan is yet to be announced. Here is what we know so far about the SM².
What is a seed-stage accelerator program?
You have a brilliant start-up idea, or product and want to launch a company. Money is going to be tight, however, there are some companies or people who can help guide you in the right direction for your business along with the funding in the initial stage. That is what the seed-stage accelerator program is about.
Further, accelerators provide education as well as financial support to young entrepreneurs just starting out with their businesses. These programs vary from several thousand dollars to hundreds of thousands of dollars, depending on what stage of development your business is in when applying and how long it's been operating (e.g., tech start-ups vs other types).
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The acceleration process usually takes between three and six months; the beginning stages often consist of individualized meetings with mentors and members working within the program where they discuss your company's goals and the steps needed to get there.
Many programs have a required number of hours that each team must commit to each week, as well as specific office hours set aside for weekly meetings with mentors. However, the seed-stage accelerator works with a limited number of the selected startups in a given period.
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What is SM²?
SM² is basically an equity-free 6 -month accelerator program that will offer the necessary tools to Bangladeshi startups. Currently, SM² is composed of three partners SBK Tech Ventures, Miaki, and SOSV. However, if you don’t know about them, keep reading and we will discuss each of these founding organizations.
SM² aims to provide guaranteed investment for the selected startups. Each cohort will have 3 Bangladeshi startups and each of them will be selected based on the strength, potential impact, and scalability. Hence, it will be competitive and the best of the best will get the opportunity. So, what benefits will the selected startups get?
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First of all, each of the selected startups will receive approximately $100,000 with the option for follow-up. Secondly, the chosen startups will get access to the tools, mentors, and investors. Further, upon selection, the companies will also get access to the investors’ network, other startups in Asia, and subject matter experts. These will eventually boost their chance of success.
In the first session, SM² has already selected three startups and they will start the journey this November.
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SBK Tech Ventures
SBK Tech Ventures is one of the leading startup investors in Bangladesh. Founded by Sonia Bashir Kabir, SBK aims to help startups and support digital developments in several fields such as AgriTech, LegalTech, FinTech, e-commerce, and more. Further, the venture offers fast growth investment opportunities for the companies.
They have already invested in some top startups such as Sheba, Praava Health, Jatri, Deligram.com, and more. SBK has the interest to invest in technology platforms that are scalable and social impact-driven. Moreover, they aim for a market that has a unique value proposition, delivery, and capture.
Read Agro-Tech Startups in Bangladesh: Tech revolution in Agriculture Sector
When it comes to investment SBK looks for a company that can make an impact tackling the root causes of a problem. Moreover, SBK invests in a company that doesn’t create demand, rather works on serving the existing demand.
SOSV MOX
When it comes to investing in startups, there's no better company than SOSV. They have a full-stack model that has delivered net IRR over the last 20 years putting them among one of the best venture funds out there and SOSV doesn't stop at just providing seed-stage funding either!
Read 7 Local Startups Get Tk 150m Funds from Startup Bangladesh Limited
Their vertical programs provide more guidance for talented entrepreneurs building groundbreaking new businesses on every continent around the world. Besides, SOSV MOX also offers invaluable advice on how they can make their ideas come true faster than ever before possible through a unique approach that includes running multiple successful ventures simultaneously.
With the help of SOSV, founders are able to take their big ideas and turn them into reality. The organization provides support for entrepreneurs in various stages including funding through programs like HAX (hardware and connected devices), Chinaccelerator, and MOX (cross-border internet and mobile in Asia).
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Further, the mentorship from industry leaders who have attained success in entrepreneurship themselves; as well as access to venture capital that can be used outside traditional channels such as blockchain-backed funds. SOSV has been funding more than 150 startups each year. To support the startups SOSV has more than 1000 mentors around the world.
Miaki
Bangladesh-based tech company Miaki is one of the pioneers in digital services for user-centric products. However, they also have experience providing services in Southeast Asia and beyond. Founded back in 2010, they have gained significant expertise to create innovative content such as health care apps, Education, Agriculture, and entertainment including casual mobile gaming platforms.
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With over a decade worth of experience across different industries including Miaki has a partnership with Robi Axiata to support the young tech entrepreneurs through the National App Store platform known as BDAPPS.
Miaki claims that they have the most qualified resources for providing outstanding service. Further, they always go above and beyond our customers' expectations with a commitment to delivering on projects quickly and efficiently. Moreover, they have round the clock support service.
Read Common Challenges faced by Startups in 2021
Conclusion
The birth of SM² is definitely a new hope for Bangladeshi startups. Hence, some successful startups might emerge in the next few years. The country need more seed accelerator programs like SM².
Frozen Food Companies in Bangladesh: An Overview
The frozen food industry is one of the most thriving industries in Bangladesh and has become an integral part of the country's economy. The frozen food industry in Bangladesh is expected to be worth over $420.48 million by 2024 and has been experiencing a 6.2% significant growth rate. Currently, the local brands are in the driving seat. This blog post lists some of the best companies that are leading this industry. The list includes brands like Kazi Farms Group, Golden Harvest Agro Industries Ltd, Pran Rfl Group Ltd, and more.
Top Frozen Food Brands in Bangladesh
Golden Harvest Agro Industries Ltd
Golden Harvest Agro Industries Ltd., which is one of the pioneers in frozen food manufacturing, has built its reputation on providing customers with a wide range of ready-to-cook products. The company's locally well-known brand name brings peace and comfort to people. The brand is getting popular abroad too. Their frozen foods include paratha, chicken nuggets, samosa, french fries, daal puri, Singara, and more. Although the Golden Harvest parent company was established in 2000, the frozen food verticals were started in 2006.
Read Top FMCG Companies in Bangladesh: At a Glance
Jhatpot Brand from Pran RFL group
PRAN is a well-known consumer brand that has around 10 different categories and produces more than 200 agro-based food items and delivers to 110 countries. This company's frozen food has been on the go for a while now. They have already established themselves as one of the top players in this industry and their success just shows how innovative they are with what they do! Their most popular items include Jhatpot paratha, Jhatpot wonton, Jhatpot sausage, Jhatpot onion paratha, Jhatpot spring roll, Jhatpot samosa, and other 30+ items.
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AG Agro Foods Ltd. (AG)
The AHSAN Group is one of the most influential agro-business in Bangladesh. Although the parent company was established in 1986, they founded AG Agro Foods Limited in 2015 which operates diversified sectors like dairy production and fishing industry with their own brands. Since its inception, they have been marketing halal processed whole chicken. Gradually the company has expanded to its frozen food category. AG Agro produces all of the products in their facility with strict quality control through European automated machines, making sure it adheres to international standards. Now they produce high-quality frozen items such as meatballs, nuggets, burger patties, sausages, marinated chicken parts, and more.
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Kazi Farms Group
Kazi Farms Limited is one of the leading companies in Bangladesh in agro-based business. Kazi Food Industry, a company that produces chicken (boiler, layer) chicks, eggs, meat, and food, produces food for people, poultry, and cattle also has a private entertainment satellite television channel Dipto TV. Kazi Zahedul Hasan founded the Kazi Farms Group and the company started its journey in 1996 through importing hatchery eggs. However, they entered the frozen food industry in the last decade. Now they have a wide range of frozen products including paratha, sausages, singara, samosa, meatball, dal puri, and more.
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Bengal Meat
Bengal Meat has a wide range of product frozen food categories from raw meat to read to cook snacks. Starting in 2007 they offer a variety of family-friendly frozen snacks to suit your needs. Whether you are looking for something quick and easy, or want the most exotic flavors around; they have got it all! We also provide great deals on the products. Bengal Meat produces beef burgers, Kolija singara, chicken drumstick, chicken nuggets, meatballs, etc.
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Frozen Foods Ltd from Aftab Group
Frozen Food Ltd is literally part of AFTAB GROUP, an enterprise that started its journey back in 1961. This company made history by processing and packaging frozen shrimp, seafood products, and freshwater fish. They process the foods through modern machinery & scientific methods with trained professionals ensuring quality output checks on every product marketed under FFL's name globally. They supply foods both at home and abroad. They export to Canada, China, the USA, EU, Saudi Arabia, Taiwan, and UAE.
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Paragon Food Products
Paragon's Paradigm Shift is a revolutionary change in the poultry industry. They have created an integrated solution for securing your daily consumption by providing high-end feed, breeding grandparents, and processing plants that go all of those steps from Farms-to-Fork to deliver you wholesome meat at every stage. To ensure the safety of all the products, Paragon has a strong technical team and laboratory ready to go around the clock. With an emphasis on antibiotic residue-free birds formulated with scientifically backed ingredients from industry experts for human consumption. They produce frozen chicken mainly and other items such as dal puri, paratha, chicken momo, and more.
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Roja, Sea Natural Food Ltd
Sea Natural Food Ltd. is an initiative from Rangs Group, with Roja wishing to convey the value-added range in the seafood category through their innovative safe food strategy “Ocean To Plate” that allows customers access to sustainable sources for a healthier living while providing affordable prices they can afford. The company works tirelessly on all fronts - from hygiene practices that ensure only top-quality products are delivered assuring total customer satisfaction throughout its supply chain processes. The products include shrimp puri, seafood popcorn, fish burger, fish nuggets, shrimp nuggets, and more.
Read Top Biscuit and Bakery Companies, Brands in Bangladesh
BD Sea Food
BD Seafood Limited, a subsidiary of the BD Group has been specializing in providing high-quality seafood from Bangladesh for years now. Started in 2007 they are mainly an export-oriented company, but they also supply seafood items in the local market. They are committed to ensuring that their standards exceed international expectations with state-of-the-art processing plants designed and engineered by European experts. The experts personally oversee every detail along this unique process all while maintaining global excellence through quality assurance programs that have become industry standard over time.
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Apex Foods Limited (AFL)
Apex Foods Limited is a 100% export-oriented value-added shrimp processing company. It has invested heavily in the latest technology to create high-quality products, which are well known across Asia and internationally for their consistency of taste. AFL was incorporated on 21 March 1979 under The Companies Act 1913.
Bottomline
With so many choices in the frozen food aisle, it can be difficult to find a brand that is both affordable and tasty. But, the list we have compiled here are the top frozen food companies in Bangladesh. We hope these brands help you stay healthy with their delicious snacks and meals.
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How can social entrepreneurship contribute to society?
The idea of social entrepreneurship has been around for decades. However, it has emerged as a powerful tool for change in the past decade. Many social entrepreneurs give their time to make the world better for future generations, but how can they contribute to society? This article will explore some ways of social entrepreneurship that can promote positive change for society and highlight some leading examples of successful enterprises.
What is Social Entrepreneurship?
Social entrepreneurship is the application of business tools and entrepreneurial skills to achieve social change. Where traditional entrepreneurs want to sell a product, create employment or make profits, social entrepreneurs also pursue some form of social benefit in addition to financial return. However, social entrepreneurship can also be not for profit.
Further, it is an innovative way to balance work and life and has been identified as a driver for sustainable development. Social entrepreneurs are individuals or teams that have come together with the common goal of not only generating profit but also creating positive impacts for people within their community. Moreover, it focuses on the double bottom line for both businesses' profits and improvements in society, communities, markets, health care, education systems, civic life, etc. Ultimately, social entrepreneurs innovate across different types of organizations through systems that change the lens in order to improve the way society functions.
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Although Bill Drayton is considered one of the pioneers of social entrepreneurship, it was originally advocated by Nobel Prize winner Muhammad Yunus.
How can social entrepreneurship create impacts on society?
Social entrepreneurship is running a business with the main aim to solve certain social problems. Hence, it can positively impact society in various ways, such as an increase in employment rate, better distribution of wealth and income, reducing poverty, hunger, disease, etc.
Millions of people can get employed through social business, and this includes health care services, educational institutions, arts & crafts marketplaces, and so on. The increase in employment increases economic growth, which ultimately improves the standard of living to a greater extent.
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Further, social entrepreneurship makes sure that it helps people from all economic classes like poor, middle class, and rich. This nature of social entrepreneurship ensures not only equality but also spreads benefits among the different groups in the society. The businesses run by social entrepreneurs do not make large profits as they are there to fulfill certain necessities and offer services at very low costs, if not for free.
Eventually, social entrepreneurship encourages innovation which results in minimizing poverty as well as diseases such as those caused by unclean drinking water, lack of sanitation facilities, and other factors. Social entrepreneurs try to attain this aim through research and development in order to provide quality food, clothes, and shelter for all.
Despite having all those benefits, social business has some drawbacks too. It doesn't fix the structural issues of society. Moreover, this kind of business aims to reform society instead of transforming it. Most of the time, media, investors, and influencers appreciate for-profit social entrepreneurship.
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Some bright examples of social entrepreneurship ventures
With an ever-growing concern for social and environmental responsibility, it's no wonder that we are seeing such a rise in the number of entrepreneurs who are setting up companies to make a difference. Rather than solely focusing on making money, these social entrepreneurs are adamant about spreading awareness and doing their part to be good stewards of the environment.
Following are some of the bright examples of social businesses that aim to change society.
Toms
TOMS Shoes was founded by Blake Mycoskie, who witnessed first-hand the struggles of children without shoes while he was on a trip to Argentina. He started his company with the intention that for every pair sold, they would donate one shoe, and fund other initiatives such as eyewear or water programs in developing countries where poverty is rampant but resources are few.
Read Furniture Brands and Companies in Bangladesh: An Overview
To date, the company donated more than 60 million pairs of shoes helped to restore eyesight to more than 400,000 people. Furthermore, they also provided more than 355,000 weeks of safe water.
Grameen Bank
Another organization that has become a synonym of social business is Grameen Bank, founded by Muhammad Yunus. The Grameen Bank has been working as a poverty-fighting bank. Dr. Yunus founded it in 1983 with a simple mission: to provide small loans for those living below the poverty line so that they could become self-sufficient members of society.
It has a mission statement of providing financial services for those who need it most at little cost or risk involved. This institution has come into being as one with no requirements other than honesty from borrowers. It simply makes small loans without ever having asked for security beforehand! However, the plan may seem unrealistic, but Grameen Bank has been successful. 90% of the borrowers are female who are working to become self-sufficient.
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Charity: water
Scott Harrison is the founder of the nonprofit organization Charity: Water, which he founded after returning from Liberia with an experience that had humbled him. He wanted to dedicate his life not only towards working in humanitarian aid but also to bringing clean water access for everyone worldwide!
The organization, charity: water, has funded around 25,000 projects and is currently operating in 24 countries. Together, the projects provide fresh water to more than 7 million people while also using all profits for future or current project development.
Seventh Generation Inc.
Jeffrey Hollender, the founder of Seventh Generation, is an example of how a socially responsible company can grow.
The company produces eco-friendly household cleaning products that are free of harsh chemicals. He started this company with one goal: to provide people with environmentally friendly household cleaners without harming their health or Earth's natural resources. Not only did they develop new formulas made entirely out of eco-friendly sources, but they also decided to donate 10% profits from sales back into society!
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Conclusion
Social entrepreneurship has helped an incredible number of people in different parts of the world. If more such social entrepreneurs take initiatives, it will certainly lead humanity towards a better place.
Sohopathi: An Emerging Online Education Platform in Bangladesh
In this age of information technology, when the internet has spread its wings in every single sector of human life, an EdTech startup found out the loophole in the Bangladeshi education system and started an online education platform for academic students. We are talking about "Sohopathi," a visionary education platform in Bangladesh. However, the platform might not be familiar to many, but they are growing silently. Although EdTech is a hot topic worldwide, many entrepreneurs do not dare to venture into this field due to a lack of knowledge or capital. The founders of Sohopathi took the dare and successfully managed the fund! Let's explore more details about Sohopathi.
What is Sohopathi?
Officially launched in 2019, Sohopathi is basically an online education platform to facilitate students and mentors. It is a place where anyone can learn or teach lessons online on different SSC and HSC level subjects.
Sohopathi aims to provide personalized education to students online. They provide the service the experienced mentors from top universities such as BUET, DU, SUST, NSU, KUET, and more. Further, they have specialized mentors for each subject. Currently, Sohopathi has more than 70 mentors. Further, the web platform has videos on different subjects and different chapters.
Read: Distance Learning: Grab foreign degrees online while staying in Bangladesh
How does Sohopathi emerge?
Sohopathi was an initiative by a group of BUET and MIST students. All the founders were educators when they were in their undergrad. So, they used to visit different suburban and rural places, and they felt that the majority of the students did not have access to quality education.
Furthermore, they also realized that the student-teacher ratio is quite skewed, and as a result, teachers cannot pay attention to each student. Hence, the students outside of Dhaka city miss the quality education. With that note, the founders started a Q & A based Facebook group and pages, where the students can ask about anything, and they would supply the right answer. Gradually they got a huge response.
Later they appointed a group of volunteers consisting of 60 members, who used to answer the questions in the Facebook group. Back in 2017, they were quite popular, and within two years, they built a database of 15,000 questions. In their early days, it was known as Online Sohopathi.
Read 20 Most Promising Education Start-Ups in Bangladesh
The idea of launching a platform came from that Facebook group based on academic questions and answers. Although they began their journey in 2017, Sohopathi incorporated in 2020 as Mainframe Lab.
They launched the website in the same year, but they did not have any business model for the first two years. Nevertheless, they were not sure if anyone would be willing to pay for their services as it was not
common during those days. But, their confusion got clear when 100 students paid for a programming workshop they took at Dhaka University.
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Later they introduced a paid online model test option for the students looking for admission to universities, which led them to earn revenue and improve their business model. Later they started personalized support for the students for a fee. That's how the mentor service emerged. However, the Q&A section is still free.
How do they work?
Back in 2019, Sohopathi used to run through the earnings from paid online exams, workshops, and other sources. Later in the same year, they rented a co-working space in Daffodil Business Incubator Center. Later they applied to the Grameenphone pre-accelerator in 2019 and eventually got selected, which was a turning point to shape their business. Further, they competed in Tiger IT Innovation Challenge 2019 and earned top three positions, and received investment from Tiger IT Foundation.
Read: Top 10 Free Online Digital Marketing Courses in 2021
They already had mentor service, and later they launched the B2B platform to collaborate with the coaching centers and eventually sold the service to several coaching centers. It later included the main model of Sohopathi. However, they didn't have an actual operation until September 2020.
The Sohipathi platform is fully automated now, and students can purchase the courses they want and start the course after making payment. Throughout this process, no human interaction is needed.
For the mentors, Sohopathi has a commission-based model as well as a fixed payment model. For the commission-based structure, the platform takes a certain percentage from the mentors' earnings, and the rest of the amount directly goes to the mentors' bank account without any manual interaction. The fixed payment model is applied to the courses with big batches.
Read Agro-Tech Startups in Bangladesh: Tech revolution in Agriculture Sector
When it comes to the sales side, they have a full-proof pipeline to find, acquire and register students. They use calls, SMS, and other promotional activities. Sohopathi has more than 1000 campus ambassadors in different schools and colleges. Mostly the ambassadors are school and college students who help the company with marketing and sales. The ambassadors get good incentives to bring the leads.
For the content side, they are an open platform in which students, mentors, and anyone can submit content. However, they had an unorganized content library, but now they have an organized content library as the company hired people for video editing and illustration. That's how their revenues have grown to almost five times since 2020.
For the B2B segment, Sohopathi has an online exam solution for educational organizations.
Read Can E-Learning Substitute Classroom Learning?
Pricing model
Sohopathi has a different price for different segments. For instance, students can have the option to take courses for Tk. 500/month to Tk. 5000/month. The differentiation happens due to the personalized service as the student will need to pay more for the personalized service.
Future Plan
Sohopathi is proceeding with a solid plan as they have a target to collaborate with 50 top-level high schools or colleges from 30 districts in the next 1 year. Further, they also aim to create a network of top 3,000 educators across the country. The company also plans to introduce skill-based courses in the future.
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Apart from these long-term goals, the founders also aim to increase the daily app users to 50,000. Through all these targets, they want to get ready to raise VC investment word $1.5-2 million by the end of 2022.
Further, the organization also aims to improve the platform gradually while they integrate online exams and mentorship programs for educational institutions.
Final words
While the Sohopathi develops its business, they face challenges too. The main challenge they face is the reach, and they want to improve it by reaching more students. Now, Sohopathi is a team of 20 members who have expertise in different domains, from software development to marketing. The company has more than 3500 active recurring paid users. Their B2B platform has collaborated with 5 educational institutions, and most of them are located outside of Dhaka. So, the founders see a good prospect of providing quality education outside of Dhaka.
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Brand Ambassadors: Who Are They and What Do They Do?
We all are familiar with the term "Brand Ambassador." You may often see in the news that a celebrity, media person, or athlete has become a company's brand ambassador. The brands pay a hefty amount of money to recruit a brand ambassador. Have you ever thought about why the brands would do that? What benefits are they getting after spending money on a celebrity? Let's get to know the details of brand ambassadors, who they are, and what they do for the company.
Who is a Brand Ambassador?
The average person assumes that a Brand Ambassador is a sponsored actor who will bring in more sales/clients to a company by bringing attention to its product. In a sense, they are correct, but it's much more than that.
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A brand ambassador is a representative of a company or a product that promotes the product or brand as best as possible. In simple words, a brand ambassador is the face of a company. The person is willing to actively help you increase the company's sales or lead others to an event through various forms of communication.
However, there is no specific requirement to become a brand ambassador. Usually, the person with a huge fan base is a perfect match to become a brand ambassador. An ambassador's job requires a passion for what he does because it can get pretty exhausting sometimes being on your feet all day long. But the benefits are worth every ounce of effort!
They can be paid employees of the company or just regular people working side by side with other employees selling products. In most cases, companies will pay these individuals either out of pocket for expenses such as travel and hotel costs or compensate them with compensation benefits such as gifts cards, cash, free food, and many other things, usually depending on the company.
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What Does a Brand Ambassador Do for a Company?
The primary role of a Brand Ambassador is to build relationships with current customers as well as new customers and market your product to them. The Ambassadors make the most out of every opportunity they have to promote, such as giving seminars at colleges or universities, attending community events, and managing their own personal networking efforts.
The ambassadors can do a lot for a company: they strengthen the marketing team and offer what customers are looking for in terms of authenticity. Furthermore, ambassadors provide excellent service by communicating with people who might eventually become customers outside of their usual surroundings. What's more, through activities like giveaways or contests, brand ambassadors can influence potential customers. Apart from boosting the sales, what more can they do for the company? Let's have a look.
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Give the Brand a Human Touch
A company is nothing without its customers – that's why it has to establish a connection with them to be successful. This is where ambassadors come in, who are equipped with the knowledge of the company and product as well as skills from communications or engagement management.
Personal contact becomes an essential part of establishing this relationship, especially since consumers tend to trust recommendations from people they know. That means an ambassador can offer convincing arguments for customers who might be on the fence regarding making a purchase.
In addition, ambassadors will do their best to make customers feel comfortable when using your product or service. Brand ambassadors present companies in a different way than ads or pictures do because they actually offer people advice about what to buy. They can explain complicated things in simple terms, which eventually assist customers with purchasing decisions.
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Boost the Marketing Team
Ambassadors are not necessarily marketers themselves, but they have knowledge of the company that will help them talk to people. Further, the ambassador provides an excellent first impression regarding the business. Thus, ambassadors can be an excellent help for marketers as the person becomes the face of the brand, and as a result, the marketing team's job becomes easier.
The ambassadors' ability to communicate and network is key in helping bring potential customers and contacts together and establish business relationships outside of the event location. Apart from this, the person can sometimes answer questions that would come up during meetings or training for marketers or other employees who don't always have time to do so.
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Assist Social Media Presence
Social Media has a huge influence when it comes to business branding. It is therefore extremely beneficial if the brand ambassador takes on this task as they usually have a huge fanbase. As we have mentioned earlier, brand ambassadors are very good at communicating with other people. Basically, they are social media "experts"! Even if it is only one particular channel, the ambassadors are well versed in all the tools that help promote the company through photos or videos and then share them on the go.
Social Media has become so important for businesses these days that it would almost be irresponsible not to take advantage of this free marketing, especially when the ambassador has millions of followers who can do just that. Instead of paying someone for this task, ambassadors give companies the opportunity to take advantage of their content without spending any extra money for paid social media marketing. The fact that they are actually present during any event ensures authentic posts on social media.
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Is there any Negative Impact?
Over the years, brand ambassadors have become a common phenomenon in advertising. However, there are also times when brand ambassadors fail miserably at their jobs because they are not careful enough with what they say. Nevertheless, it all depends on how the company uses them or what kinds of messages the company wants them to relay. A brand ambassador's bad reputation or any emerging scandals may negatively impact a company. Further, negative media coverage of a particular person could impact the brand negatively.
Bottom line
In general, a brand ambassador can have overwhelmingly positive impacts on your product. There could potentially be some negative impacts from involving a famous figure in your product, but these could easily be outweighed by the benefits that a brand gains from it.
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Cosmetics and Toiletries Brands, and Companies in Bangladesh: An Overview
The annual market for cosmetics and toiletries in Bangladesh is over Tk 10,000 crore. Although it is a potential sector of the country, the products of local companies are facing a lot of challenges due to the abundance of multinational products. Research into the growth and sales of cosmetics and personal care products in the country has shown that most of the growth in this sector is still in favor of multinational corporations. But, still, there are many local brands that are doing great in the local market. Let’s get to know the top cosmetics and toiletries brands in Bangladesh.
Renowned Bangladeshi Cosmetics and Toiletries Brands and Companies
Square
Square Toiletries started its journey in 1988 with Jui coconut oil as the only product. Next, they introduced the Meril brand to expand their toiletries categories. Although the parent company was started in 1958 by four friends, Samson H Chowdhury is the main leader.
Square Toiletries produces toothpaste, soap, lotion, shampoo, detergent, handwash, diaper, etc. under the names of several brands. They have already taken their products abroad beyond the borders of the country. Now Square Group wants to be another step forward to become a Bangladeshi multinational company.
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ACI
"Imperial Chemical Industries or ICI" was formed in 1926 through the merger of four British chemical companies. Since its inception, ICI has been operating in several other countries as a multinational company. Following this, the company started doing business in the Indian subcontinent through a subsidiary called "ICI India Limited".
Subsequently, on May 5, 1992, ICI, the parent company, sold 70% of its shares to local shareholders. And after this change, ICI started business in Bangladesh through self-disclosure under the name "ACI". Savlon is the main brand of the company which has existed in the market for more than 4 decades.
In the wake of the coronavirus, the ACI Toiletries business has seen an increase in sales of products such as soap, handwash, hand sanitizer, etc.
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Keya
Keya Cosmetics started its journey in 1996, but the parent company Keya Group of Industries was established in 1983. They market their product under the brand name Keya. The products include soap, toothpaste, men's care items, and winter care items. Started as a private limited company, Keya Cosmetics went public in 1999. At the beginning of the establishment, it was one of the most popular brands in Bangladesh. Now they have 9 industrial units on over acres of land.
Kohinoor
Kohinoor Chemical Company Limited (KCCL) started its journey in 1956. This brand has gained popularity for manufacturing standard quality products including cosmetics, soap, toiletries, glycerin, etc. Nevertheless, Kohinoor is widely known for its Xpert, Tibet brand, which is a legendary brand in Bangladesh. Moreover, Kohinoor owns some other brands such as Bactrol, Sandalina, Clean Master, Genstar, Ice Cool, Fair & Care, Heel Guard, etc. All of these brands from Kohinoor are equally famous in the Bangladeshi cosmetic and toiletries market.
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Lalbagh Chemical
Established in around 1980, Lalbagh is another top cosmetics and toiletries brand in Bangladesh that moved in the market with several brands such as ‘Nirala’, ‘Gandharaj coconut oil’ and ‘Hash Marka’. Although these brands might not have domination in the urban area, they have a reasonable market share in the rural part of Bangladesh.
Unilever Bangladesh
Unilever is basically one of the largest and multinational companies in the world. At present, Unilever's 400 brands are available in thousands of products. Among them, we know about most of the products of popular brands. Notable among them are Lux, Rexona, X Body Spray, Sunsilk Shampoo, Surf Excel, etc.
The world uses about 2.5 billion Unilever products, which is about one-third of the world's population. But they have local manufacturing plants in Bangladesh. Hence, they can be treated as one of the local brands. In Bangladesh alone, 90 percent of the people are using Unilever products daily.
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Marico
We all are familiar with Parachute coconut oil, which is one of the top brands for women's hair oil. It is a product by Marico, which is a multinational company from India but has a local production facility. Nevertheless, they have other brands in different product lines such as Livon, Revive, Set Wet, Studio X, and more.
Kumarika
Although Kumaria is not a local brand, they along with other co-brands from Hemas Consumer Brands Private Limited hold some market share in Bangladesh’s cosmetic and toiletries industries. They also have other brands such as Paris, but Kumarika is the most popular one.
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Cute
Who doesn't know about the brand Cute! It is from Mousumi Chemical Industries which has several product lines under the brand name Cute. For instance, they have health care, oral care, perfume, winter care, skincare, men’s care, baby care, and cosmetics items. Mousumi Chemical started its business with Cute in 1972.
Lily Cosmetics
Starting in 2001, Lily Cosmetics are specialized in manufacturing both Toilet & Laundry soaps. However, the company may not be so popular as the other big players, they hold a reasonable market share.
Bottom Line
Research into the growth and sales of cosmetics and personal care products in the country has shown that the most share of growth in the sector is still in favor of multinational Unilever as it is ahead in market share. However, the performance of local companies like Kohinoor Chemicals and Square Toiletries in the fight along is satisfactory too.
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Bangladesh is not out of the dominance of multinational companies in the world cosmetics and toiletries market. However, local companies are gradually grabbing their share in the country's market by reducing the power of strong brands. Bangladeshi brands are achieving steady growth in the cosmetics market by adding variety to their products keeping in mind the consumer taste and comfort.
Furniture Brands and Companies in Bangladesh: An Overview
Whether it is your home or office, furniture is essential to carry out the daily activities in everyday life. Not to mention, furniture can enhance or degrade the beauty and elegance of space several times. You can hardly decorate a space aesthetically without furniture. People are therefore naturally attracted to furniture. There are numerous furniture manufacturing companies in Bangladesh. Among them are some companies that make world-class furniture. Moreover, some companies even export furniture abroad after meeting the demand of the country. Let's know about some of these international standard local furniture brands in Bangladesh.
Popular Bangladeshi Furniture Brands and Companies
Hatil Furniture Limited
Hail is considered one of the best game changers in Bangladesh's furniture industry. Caution in raw material selection, eco-friendly business practices, and customer-centric approaches have established Hatil as one of the best furniture brands in Bangladesh. However, it would be wrong to call Hatil one of the top brands in the country's furniture sector.
Hatil has reached the top in furniture export too. In the last few years, the brand Hatil has spread to neighboring countries, India, Nepal, and Bhutan. In the 2019 financial year, Hatil has sold furniture worth Tk 323 crore at home and abroad. Hatil started its journey in 1989. Later in 1993, Hatil started making furniture by renting a 5,000 sq ft factory in Kuril, and now they are holding a 10% market share.
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Navana Furniture Limited
Founded in 2002, Navana Furniture Limited started its journey as a sister concern of the Navana Group. In a very short period of time, the company has taken a strong place in creating beauty in upper- and middle-class homes. Starting with many uniquely designed furniture keeping in mind the needs and satisfaction of the customers, this company now has showrooms across the country. Navana made wooden as well as processed wood furniture.
Akhtar Furnishers
Akhtar Furniture, which started with a small furniture shop in 1976, is now one of the best furniture manufacturing companies in Bangladesh. With the help of high-quality products and innovative and unique designs, Akhtar furniture has been meeting the furniture enthusiast's demand. The company uses 100% solid wood to make furniture.
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According to the advertisement, Akhtar furniture products are made only from solid trees and after seasoning for a long time. That is why the products of Akhtar furniture are free from the risk of being bitten or eaten by insects .
Akhtar Furniture achieved ISO 9001 certification in 2001. Further, the Akhtar Group has been awarded various prizes and honors for its contribution to the development of the country. Among them, the Quality Award at SME Fair and Home Show, Kanthakharu and Raozan Samiti's Award for Furniture Business, Mercantile Bank Limited, and Ekta Cultural and Social Organization's Award for Business Performance are notable.
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Otobi Furniture Limited
October is one of the best furniture companies in Bangladesh to come up with a highly acceptable lifestyle solution for people from the middle class to the upper class. This furniture brand is famous for its modern manufacturing capacity, advanced and innovative design, and vast distribution network.
Hence, it has become one of the reliable brands for all levels of customers. October started its journey in 1975, and as of 2020, the company is tied with Nadia and Navana furniture with a 5% market share. They are mainly famous for affordable furniture made with boards.
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