Doing business in Bangladesh remains under intense strain as a tightening credit environment, rising production costs and structural inefficiencies continue to erode enterprise confidence, even as the number of economic units expands at a robust pace, according to the latest economic census released by the Bangladesh Bureau of Statistics (BBS).
The survey, covering a broad cross-section of enterprises nationwide, reveals a business climate weighed down by persistent financial constraints.
An overwhelming 86 per cent of respondents identified inadequate capital as their foremost challenge, underscoring the depth of the liquidity squeeze facing businesses. Cumbersome lending procedures, limited access to formal credit, and elevated borrowing costs have further tightened financing conditions, particularly for small and medium-sized enterprises.
Compounding these pressures, entrepreneurs pointed to an acute shortage of skilled labour, erratic supply of raw materials, and sharply rising production costs as key operational hurdles. Chronic infrastructure gaps, alongside recurring power and fuel disruptions, continue to undermine productivity and inflate the cost of doing business, weakening overall competitiveness.
Yet, beneath these constraints lies a striking expansion in economic activity. The number of economic units surged to 17.2 million in 2024, reflecting an increase of nearly 50 per cent over the past decade. These enterprises now employ more than 30 million people, highlighting their critical role in sustaining livelihoods and anchoring domestic economic resilience.
The BBS defines an economic unit as any establishment-formal or informal, permanent or temporary-engaged in income-generating activities, including household-based operations.
A sectoral breakdown shows wholesale and retail trade dominating the landscape with approximately 4.9 million units, followed by transport and a wide spectrum of service-oriented activities, illustrating the commerce-driven nature of Bangladesh's economy. Addressing the launch event in Dhaka, State Minister for Planning Jonayed Abdur Rahim Saki emphasised the government's commitment to evidence-based policymaking, noting that transparency and data-driven planning remain central to its development strategy. The census findings come against the backdrop of a fragile economic stabilisation phase following political restructuring in August 2024.
While exports and remittance inflows are showing early signs of recovery, private investment remains subdued, reflecting cautious investor sentiment. Private sector investment has declined to around 22.5 per cent of GDP in FY2025, weighed down by high financing costs and persistent uncertainty.
Stress within the financial sector continues to intensify, with non-performing loans exceeding 20 per cent in 2024, among the highest levels in Asia. This has significantly constrained the flow of credit to the private sector, amplifying the challenges identified in the census. Meanwhile, the ready-made garment sector-the backbone of the export economy-is facing renewed headwinds from shifting global trade dynamics, including tariff adjustments in key markets such as the United States.
Bangladesh's structural bottlenecks are also reflected in its global competitiveness metrics. The country ranks 168th out of 190 economies in the Ease of Doing Business Index, the latest available assessment by the World Bank. Although incremental improvements have been recorded in areas such as business start-up procedures and electricity access, Bangladesh continues to trail most regional peers.
