Give entrepreneurs with good ideas easy loans: Niaz Morshed Elite

Niaz Morshed Elite is the president of Junior Chamber International (JCI) Bangladesh Chapter and Executive Director of Digital Financial System 'Nagad'. This young entrepreneur is also involved with Baratakia Construction, an equipment supplier and civil construction-based company.

He has established Chittagong Khulshi Club to create a network among young entrepreneurs. Currently, more than 1,000 young entrepreneurs are members of this club. The club is contributing to the development of business and professional careers through the exchange of experiences. They are constructing an international standard club complex in the Foy's Lake area of ​​the city at a cost of around Tk100 crore. Niaz Morshed is also the founder of Junior Chamber International Chattogram Cosmopolitan.

Niaz Morshed Elite started his business in 2006 at the age of 25 with TK20 lakh given by his mother. After overcoming various ups and downs, he has taken himself to a unique height as a young entrepreneur in 13 years. 

At present, the 38-year-old entrepreneur's businesses, excluding digital financial services Nagad, has an annual turnover of around Tk1,000 crore. Extraordinary leadership qualities have taken him to the pinnacle of success at such a young age.

Besides business, Elite is associated with a variety of professional, sports and socio-cultural organisations. He is the president of the cricket committee of Brothers Union Dhaka and Chattogram, councillor of Bangladesh Cricket Board, chief coordinator of Bangladesh Chess Federation, vice chairman of Chattogram District Sports Association Cricket Committee.

He is also involved in politics. He is currently serving as a member of the Central Committee of Bangladesh Awami Jubo League.

Niaz Morshed Elite was born on 13 October 1983 in Mirsarai upazila of Chattogram. His father Monirul Islam Yusuf is the chairman of Baratakia Group and his mother Lutfun Nahar is the vice-chairman of the same group.

Elite completed his BBA in 2007 from North South University. He joined the family business at the age of 20 while still studying. At one stage in 2009, he also served as the managing director of the industrial group. Later, in 2012, he left the family business and started a separate business on his own.

This young entrepreneur talked with The Business Standard (TBS) on a variety of issues, including the survival of young entrepreneurs in difficult times, JCI's views on young entrepreneurs, and the problems and prospects of Chattogram Port.

TBS: What role does JCI play in the creation of young entrepreneurs in the country?

Niaz Morshed Elite: Sixty-five percent of the total population of Bangladesh is under 45 years of age. JCI is an organisation of entrepreneurs aged 18 to 40. It is working for socio-economic communication, awareness and business development. It has 18 chapters across the country.

JCI arranges training for young entrepreneurs and young professionals. We try to solve the problems of young entrepreneurs by highlighting them. In addition, JCI organises the Entrepreneurship Summit. Here members can display their products and services. Different investors and different bank representatives come to the summit. JCI always serves as the voice of young entrepreneurs.

What are the obstacles for young people in becoming entrepreneurs?

The first problem is capital. While in school, most young people set goals for themselves. They dream of starting a business. But that dream remains unrealised due to a lack of capital. If an entrepreneur in Silicon Valley, USA, has an idea, he can start a business with funding from them if he shares it with venture capitalists. But this culture has not developed in Bangladesh yet. Young entrepreneurs cannot go ahead due to the lack of capital and investment even if they have good ideas.

What initiatives can be taken to address these obstacles?

There are two ways to solve this problem. One is through a bank loan. Another is through angel investors. To solve this problem, first restructure the funding policy through Venture Capitalists. Another is to arrange loans on easy terms for the youth. Bangladesh Bank can create a fund if it wants. We can set up a cell under Bangladesh Bank where business ideas will be submitted by the youth. If ideas are approved, they will be able to take those loans from various private banks. 

Bangladesh Bank has a fund for women entrepreneurs. There should be a policy for young entrepreneurs. Bangladesh Bank can provide a fund of Tk500 crore for young entrepreneurs between the ages of 18 and 40. Besides, the youth should be allocated in the special economic zone. The government should give them tax-VAT benefits and arrange training for them. Young entrepreneurs should be given incentives if they want to do something export-oriented. A 360-degree plan will benefit young entrepreneurs, which will create many employment opportunities.

What kind of problems are young entrepreneurs facing during the Covid-19 period? What is your advice to them to overcome these problems?

Covid-19 is a global disaster. Young entrepreneurs are in financial trouble and struggling to keep their businesses afloat. Now, it is very important to be in a sustainable mood. It is not the time to think about profitability. Businesses must be sustained by minimising costs. When the situation returns to normal, they should be able to go into aggressive business quickly.

What are your expectations for young people in this year's budget?

Since everyone has an NID card, Bangladesh Bank can make a special allocation of Tk500 crore to Tk1,000 crore for young entrepreneurs in line with a policy. Bangladesh Bank can transfer this fund to a private bank. The young entrepreneurs should get such funds, like the way special loans are being given to women entrepreneurs. 

What are your plans as the President of the JCI Bangladesh Chapter?

We are going to arrange an Entrepreneurship Summit and Job Fair in September this year. Many entrepreneurs are losing money during the Covid-19 period. Many have lost their jobs. To get out of that situation, we are organising a three-day Entrepreneurship Summit and Job Fair at Bangabandhu International Conference Center where entrepreneurs can display their products and services. 

The fair will have various banks and financing institutions. We will collect the CVs of job seekers and promote them in corporate organisations. There are also plans to launch the JCI Academy. There will be training opportunities for members of the organisation.

How did you start your business?

My angel investor is my mother. In 2008, when I was 25 years old, my mother gave me Tk20 lakh to run a business. I started the business with that money and imported 3,500 three-wheeler human hauliers, step by step. Besides, I also got involved in importing motorcycles. Later I got involved in the various construction businesses in the port, including the supply of container handling equipment at Chattogram Port, Mongla port and Payra port through Baratakia Construction. Now I am running a business worth Tk1,000 crore.

You are involved in the automobile business. What are the problems and possibilities of this business in the country?

The amount of tax on some items in car imports is very high. For this reason, customers have to buy products at higher prices. In Bangladesh, the government is not giving incentives or tax benefits to those who are only manufacturing motorcycles in the automobile sector. As a result, the automobile factory in the country is not growing. If the government wants to encourage automobile manufacturing, it should provide tax benefits for automobile assembling and special tax for those who want to manufacture. This sector has the potential to export. This will brighten the brand value of the country abroad.

What are your thoughts on Nagad for the country's economic development?

Sixty-five percent of the country's population is still out of banking services as they do not have a bank account or even a mobile bank account. Financial inclusion is a fundamental right of every citizen. In that case, Nagad wants to bring people in remote areas of the village into financial inclusion. We want a safe financial ecosystem for people. That is why Nagad has been able to cover 45% of the market within two years. I think in the next 20 years, 100% of the citizens of the country will be covered by financial inclusion.

The amount of tax on some items in car imports is very high. For this reason, customers have to buy products at higher prices. In Bangladesh, the government is not giving incentives or tax benefits to those who are only manufacturing motorcycles in the automobile sector. As a result, the automobile factory in the country is not growing. If the government wants to encourage automobile manufacturing, it should provide tax benefits for automobile assembling and special tax for those who want to manufacture. This sector has the potential to export. This will brighten the brand value of the country abroad.

What are your thoughts on Nagad for the country's economic development?

Sixty-five percent of the country's population is still out of banking services as they do not have a bank account or even a mobile bank account. Financial inclusion is a fundamental right of every citizen. In that case, Nagad wants to bring people in remote areas of the village into financial inclusion. We want a safe financial ecosystem for people. That is why Nagad has been able to cover 45% of the market within two years. I think in the next 20 years, 100% of the citizens of the country will be covered by financial inclusion.