The sudden withdrawal of Startup Bangladesh’s proposed investment of Tk 5 crore in 10 Minute School (10MS), Bangladesh’s largest edtech platform, sent shockwaves through the startup community. It emphasizes the delicate balance between entrepreneurship and political expression in Bangladesh.
The spark that ignited this controversy was a series of Facebook posts by Ayman Sadiq, the co-founder and CEO of 10MS. On July 13, Sadiq openly expressed his support for the ongoing student movement advocating for the reform of the quota system in government jobs. His post, “We want quota reform. Merit should be the biggest quota. #QuotaMovement,” resonated with many, garnering approximately 2.5 lakh likes, 38,000 comments, and 6,400 shares. The movement, which demands a fairer distribution of government job quotas, had gained significant momentum among students and activists across the country.
Sadiq, an alumnus of the University of Dhaka’s Institute of Business Administration, further voiced his dismay over the violent crackdown on quota reform protesters by Chhatra League activists at Dhaka University, resulting in around 300 injuries. His poignant post, “Dhaka University is bloodied. Why is there blood on my campus? I protest,” was accompanied by 10MS changing its profile picture to a black screen in solidarity.
Just 16 hours after Sadiq’s post, Startup Bangladesh announced the cancellation of its planned investment in 10MS on its officialFacebook page.Zunaid Ahmed Palak, the state minister of theICT Division, reiterated the announcement shortly after.
Despite requests for comments, both Startup Bangladesh and 10MS remained silent. In a dialogue organized by the Bangladesh Secretariat Reporters Forum, Palak cited non-disclosure agreements as the reason for not providing specific details about the funding withdrawal. However, he emphasized the importance of upholding the sovereignty of Bangladesh and the spirit of the Liberation War, suggesting that any deviation from these principles, regardless of the individual’s success, would not be tolerated.
The cancellation of 10MS’s funding underscores the challenges faced by entrepreneurs in Bangladesh who must often prioritize staying in the government’s good graces over freely expressing their opinions or supporting popular movements. This dynamic fosters a climate of self-censorship and fear, stifling innovation and the open exchange of ideas crucial for a thriving startup ecosystem.
The Quota Reform Protests: A Background
The quota reform movement began as a call for a more merit-based system in government job allocations, challenging the existing system that reserved 56% of government jobs for various quotas, including those for freedom fighters’ descendants, women, and other groups. While the movement gained widespread support among students and young professionals, it also attracted significant opposition from government-aligned groups, leading to violent clashes and a heavy-handed response from law enforcement.
The government’s response to the protests has been severe, with reports of over 200 deaths, thousands of injuries, and numerous arrests. This crackdown has created an atmosphere of fear and repression, discouraging public figures and entrepreneurs from supporting the movement or speaking out against the government’s actions.
The Internet Blackout: A Case Study in Economic Impact
In a related development, the government’s recent internet blackout has further illustrated the delicate interplay between governance and economic stability. On Thursday night, without prior warning, Bangladesh experienced an internet blackout that severely disrupted the operations of export-oriented IT firms and business process outsourcing (BPO) companies, which collectively generate close to $1 billion annually.
The nature of their work requires these firms to provide round-the-clock services and adhere to strict deadlines. The abrupt blackout left these companies unable to inform their clients about the impending service disruption, jeopardizing their reputations and contracts. Md Riajul Islam, CEO of Bright River Bangladesh, which serves clients in 16 countries, expressed his concern: “We have not been able to inform our clients of our current situation — even during the depths of the pandemic there was no service disruption.” He fears losing clients to other countries, even if those countries offer less competitive rates.
Similarly, BZM Graphic, which processes photos for e-commerce companies with tight deadlines, faced potential ruin. Its Managing Director, Apel Mahmud Khan, stated, “Our clients would not only be deserting our company but also our country. They may lose confidence in Bangladesh completely.” This sentiment was echoed by Russell T Ahmed, president of the Bangladesh Association of Software and Information Services, who estimated daily financial losses to the IT industry at about Tk 80 crore. He warned that prolonged outages could tarnish Bangladesh’s image as a reliable IT services partner and halt progress in digital services.
Rashad Kabir, managing director of Dream71, a software firm, highlighted the long-term consequences: “The international buyers won’t consider Bangladesh as an outsourcing destination in the future because commitment and timely delivery are most important for them.” He noted that these buyers are likely to shift to competitors like India, Vietnam, and the Philippines.
Frustration with Silence from Celebrities and Entrepreneurs
A significant source of frustration for many in Bangladesh and abroad has been the conspicuous silence of prominent public figures, including celebrities like cricketers Mashrafe Mortaza and Shakib Al Hasan. These individuals, admired and influential, have not publicly supported the quota reform protests.
Similarly, many entrepreneurs, who often present themselves and their startups as solutions to important national issues, have also remained silent. This silence is viewed with contempt by those who expect leaders in various fields to stand up for their countrymen.
However, the reasons behind this silence are complex. Entrepreneurs fear not only the negative impact on their businesses but also the possibility of being blacklisted or worse for speaking up.
They risk their ventures being ostracized, losing crucial government support, or facing bureaucratic hurdles. Additionally, they may fear detention, jail time, or charges under the Digital Security Act for speaking out against the government.
While many Bangladeshis are now vocal about the protests and the associated violence, there was a long period when fear of retribution silenced many. The hesitation of entrepreneurs to speak up, therefore, is understandable, even if not condoned. Their silence reflects a broader societal issue where fear suppresses the willingness to advocate for justice and reform.
How Entrepreneurs Can Help
Despite these challenges, there are ways in which entrepreneurs can support the movement and aid those affected by the violence without putting themselves directly at risk:
- Anonymous Contributions: Entrepreneurs can make anonymous donations to funds supporting the injured protesters or legal funds aiding those arrested.
- Support Services: Businesses can offer pro bono services, such as legal aid, mental health support, or educational resources, to those impacted by the violence.
- Safe Platforms: Entrepreneurs can develop or support platforms that provide a safe space for discourse and raise awareness about the issues without directly implicating themselves.
- Collaborative Efforts: They can work collectively to draft and sign petitions calling for peaceful resolutions and reform, leveraging their collective influence to minimize individual risk.
- Mentorship and Guidance: Providing mentorship and guidance to student leaders can empower the younger generation to continue advocating for change.
The withdrawal of Startup Bangladesh’s funding from 10 Minute School following Ayman Sadiq’s support for the quota reform movement, coupled with the economic fallout from the recent internet blackout, paints a troubling picture of the state of political freedom and economic stability in Bangladesh. These incidents highlight the broader issue of how governmental influence can stifle innovation and silence dissent in the business community.
As the country continues to develop its startup ecosystem, ensuring that political views and business ventures can coexist without fear of retribution is essential for fostering a truly vibrant and dynamic entrepreneurial landscape. The government must recognize the long-term damage these actions can inflict on the country’s economic and social fabric and strive to create an environment where businesses can thrive independently of political pressures. Entrepreneurs, while cautious, have a role to play in supporting the movement in ways that align with their capabilities and risks, contributing to a more just and equitable society.
