Performance and prospects of family businesses in Bangladesh
- Around 91% of family-owned businesses in Bangladesh expect their business to grow over the next 2 years.
- Around 84% of Bangladeshi family businesses have grown in the past financial year.
- 13% of family businesses in Bangladesh work in multiple sectors and multiple countries.
Financing growth of family businesses in Bangladesh
- Family-owned businesses in Bangladesh overwhelmingly use bank lending and credit lines as a major source of financing.
- Family businesses in Bangladesh also use capital markets, venture capital and stock market sources.
- Internal resources are used by only 63% of Bangladeshi FBs.
- Bangladesh FBs are also very open to private equity (59%) and going public.
Diversification, adaptation and expansion
- 75% of FB owners are seeking professionals outside the family to help them run their businesses.
- Bangladeshi FBs are slightly more likely than the global average (28% compared to 20%) to change their business models or to earn significant revenue from new products or services.
- More than half of family-owned businesses in Bangladesh believe that they will be exporting to new markets.
Goals to achieve
- Maintaining the best talent (via recruitment and retention) for the business is crucial (94% cite this) for Bangladeshi FBs.
- 84% of the family businesses in Bangladesh have made professionalising the business their personal and business goal.
- The broader aim to internationalise the business (56% of FBs aspire to do so).
Challenges to overcome
- Accessing the right skills and capabilities ranks as the key issue for Bangladesh, with 66% of family-owned businesses in Bangladesh identifying it as such.
- Domestic competition (63%) and prices of energy and raw materials (63%) are also more significant challenges, when compared to the global averages.
- The need for innovation has also been identified as a major challenge (63%).