Will higher education in Bangladesh continue to produce only job seekers, or will it also nurture entrepreneurs, innovators, and future job creators? This question has become increasingly important today. On one hand, the country’s unemployment rate stands at 3.51 percent, with nearly 2.59 million unemployed people. On the other hand, around 2 to 2.2 million young people enter the labor market every year. Although the average unemployment rate in 2023 was 3.36 percent, pressure on the labor market has not eased; rather, anxiety among educated youth has continued to grow. In this context, the question of why seed funding is important for young people deserves national attention.
Against this backdrop, the idea of introducing seed funding on university campuses is highly significant. The announcement and commitment made by Prime Minister Tarique Rahman to launch seed funding initiatives in universities carries an important message: encouraging young people to move beyond a job-dependent mindset toward entrepreneurial thinking. If policymakers can integrate this initiative into broader higher education reforms and employment strategies, it could become not just a political promise, but a genuine tool for transformation.
What Is Seed Funding?
Seed funding refers to financial and institutional support provided to a new initiative, startup, or innovative idea at its earliest stage. For example, a student may have a promising idea related to agricultural technology, food safety, dairy and poultry, artificial intelligence, cybersecurity, healthcare, or digital services, but lack the capital, training, or guidance to begin. Seed funding can open that first door of opportunity.
In other words, seed funding is not just about giving money; it is about helping transform an idea into a real initiative. When combined with training, mentorship, and market access, it enables students to become creators of opportunities instead of merely searching for jobs.
Why Is It Important for Young People?
To understand its importance, we must look at the realities of Bangladesh’s labor market. The country’s total labor force stands at 73.05 million, of which 70.47 million are employed. However, a large portion of these jobs are informal and lack stability, productivity, and long-term security.
At the same time, every year another 2 to 2.2 million young people enter the workforce. It is impossible for the government or private sector alone to absorb all of them through conventional employment. Therefore, new sources of employment must be created. This is where seed funding becomes crucial, because it encourages young people to shift from seeking jobs to creating jobs.
Does Money Alone Create Entrepreneurs?
No. Simply providing money does not create entrepreneurs. Turning a good idea into a sustainable business requires training, mentorship, business planning, market understanding, technological support, and accountability. Therefore, seed funding should not be viewed merely as financial assistance; it must be part of a comprehensive support system.
If universities establish innovation and entrepreneurship cells involving teachers, researchers, successful entrepreneurs, bankers, industry representatives, and technology experts, students receiving funding will also receive guidance and direction. This would reduce the risk of wasted resources and increase the likelihood of successful ventures.
Should Universities Only Provide Degrees?
This discussion naturally raises questions about the role of universities. Educated unemployment has become deeply concerning. Nearly 800,000 university graduates in Bangladesh are unemployed. The youth unemployment rate stands at 10.6 percent, while unemployment among graduates and postgraduates is nearly 45 percent. In addition, 83 percent of unemployed people are between the ages of 15 and 29.
These statistics clearly show that universities cannot remain institutions that only distribute certificates. They must become centers of research, innovation, problem-solving, and entrepreneurship. Students’ ideas in agriculture, food safety, dairy, poultry, healthcare, technology, education, and environmental sustainability should be transformed into practical products and services. Only then will higher education become truly meaningful.
From Political Commitment to National Program
To make this new university role effective, campus-based initiatives alone are not enough; a coordinated national strategy is required. Another important reality is that the government recruits only around 71,000 people into public sector jobs annually. Furthermore, only about one-quarter of “decent” jobs exist in the public sector. For each BCS position, nearly 200 candidates apply. At the same time, 78 percent of young people express concerns about employment.
This means that most young people are still competing for a narrow employment path that cannot accommodate everyone. Therefore, Prime Minister Tarique Rahman’s seed funding initiative should not remain just a promise—it should evolve into a national program. University-based funding, idea competitions, mentoring, prototype support, industry partnerships, and market access should all be integrated into a comprehensive ecosystem. Only then will young people have meaningful alternatives.
Which Sectors Should Be Prioritized?
Seed funding should focus on sectors closely connected to Bangladesh’s economy, society, and future development goals. These include:
- Agricultural technology
- Food safety and food processing
- Dairy and poultry industries
- Fisheries
- Healthcare services
- Environmentally friendly products
- Waste management
- Artificial intelligence
- Cybersecurity
- Digital services
- Educational technology
This approach would ensure that startups are not merely personal business ventures but also contributors to solving national challenges.
Will Universities Outside Dhaka Receive Equal Opportunities?
Another important issue is whether these opportunities will remain limited to Dhaka and a few major universities. If the initiative becomes too capital-centric, its impact will be limited. Universities in Chattogram, Rajshahi, Khulna, Sylhet, Barishal, Rangpur, and Mymensingh must receive equal importance.
Every region of Bangladesh possesses unique economic strengths and opportunities. Local universities should be connected to local challenges and industries so that entrepreneurship development can directly benefit regional economies.
What If Transparency Is Missing?
Even the best initiative can fail if transparency and accountability are absent. Favoritism, political influence, paper-based projects, and opaque management systems could weaken the entire program. Therefore, project selection must be conducted through open competition. Independent evaluation boards should oversee the process. Information regarding funding allocation, project selection, and progress updates should be made public.
Step-by-step funding mechanisms would also increase accountability and reduce misuse of resources.
The Role of Teachers and University Administration
Teachers are not merely classroom instructors; they can become mentors, advisors, and guides for innovation. University administrations must create environments where students can experiment with ideas, launch pilot initiatives, and learn even from failure.
Developing a culture of entrepreneurship within campuses requires active support from both faculty members and administrators.
Implementation Matters More Than Announcements
Ultimately, Bangladesh’s labor market realities are clear: on one side, there are nearly 2.59 million unemployed people; on the other, another 2 to 2.2 million young people enter the workforce every year. At the same time, there are around 800,000 unemployed university graduates competing intensely for limited jobs.
In this reality, seed funding is not merely a financing initiative—it can become a practical pathway toward innovation, entrepreneurship, and employment generation.
If Prime Minister Tarique Rahman’s announcement is implemented effectively, universities in Bangladesh could produce not only job seekers, but also job creators. With proper planning, transparency, mentorship, and institutional support, seed funding could truly become a new pathway for empowering young entrepreneurs.
Written by: Dr. A.K.M. Humayun Kabir (Teacher, researcher, and writer) at Chattogram Veterinary and Animal Sciences University.
Email: [email protected]
