TVET Entrepreneurship: Unlocking the Possibilities of Small Business in Bangladesh

TVET Entrepreneurship: Unlocking the Possibilities of Small Business in Bangladesh

In a country teeming with youth potential and dynamic grassroots ambition, Bangladesh finds itself at the crossroads of economic transition. Amid global technological shifts and local employment challenges, Technical and Vocational Education and Training (TVET) has emerged as a powerful enabler of self-employment and small business development. Yet, the real revolution lies not only in skilling youth for jobs, but in empowering them to create jobs—by becoming entrepreneurs themselves.

TVET entrepreneurship is more than just a catchphrase in national development plans—it is a strategic imperative. For Bangladesh, where the informal sector dominates and microenterprises account for over 85% of business activities, fostering entrepreneurship through TVET can unlock unprecedented opportunities. From village-based welding workshops to solar-powered irrigation ventures, from digital tailoring studios to mobile phone repair hubs, the possibilities are as diverse as they are transformative.

The Promise of TVET: Skills That Build More Than Jobs

TVET has long been viewed as an employment-focused stream, equipping learners with practical, market-relevant skills. In Bangladesh, institutions under the Bangladesh Technical Education Board (BTEB), Directorate of Technical Education (DTE), and NGOs like BRAC, UCEP, and others have been instrumental in shaping a skilled workforce. Yet, a shift in narrative is gradually gaining ground—TVET not just for employment, but for entrepreneurship.

In a context where unemployment among youth remains stubbornly high—despite rising educational attainment—the need to foster job creators instead of just job seekers becomes urgent. Entrepreneurship, supported by hands-on technical training and soft skills, offers youth the independence and resilience needed to thrive in uncertain labor markets.

Demographic Dividend Meets Microenterprise Boom

Bangladesh’s demographic profile offers an unprecedented opportunity: over 60% of the population is under the age of 35. This massive youth cohort, when trained and empowered, can fuel a vibrant economy through micro and small enterprises. According to a recent BBS report, the SME sector already employs nearly 25% of the total labor force, contributing around 20-25% to the national GDP.

Yet, a major segment of this sector consists of informal businesses, many of which lack formal training or access to market linkage. TVET graduates—with their practical skills and industry exposure—are well-positioned to upgrade and formalize such microenterprises, contributing to both employment and national productivity.

Stories of Success: TVET-Fueled Entrepreneurship on the Ground

From the rural edges of Barisal to the bustling alleys of Chattogram, TVET-fueled entrepreneurship is quietly transforming local economies. Take the story of Rina Begum, a graduate of a 6-month tailoring course from a local TVET center in Rangpur. Within two years, she scaled her home-based tailoring unit into a boutique employing five other women in her community.

In Khulna, a group of solar technician trainees partnered with an NGO to set up a solar panel installation service, now servicing rural schools and small businesses. Their training didn’t just give them technical know-how; it gave them confidence to approach banks, pitch to NGOs, and deal with real clients.

Such stories, while still under-reported, are multiplying across Bangladesh—offering proof that with the right training, mentorship, and ecosystem, TVET graduates can become local changemakers.


Gaps and Challenges: What’s Holding Back the Potential?

Despite the potential, challenges remain in fully realizing TVET’s role in entrepreneurship:

  1. Curriculum Limitations: Many TVET curricula still prioritize job-readiness for existing employment roles, with limited modules on entrepreneurship, business planning, or digital literacy.

  2. Access to Finance: TVET graduates often lack access to startup capital or microfinance, especially women or those from marginalized backgrounds.

  3. Stigma and Perception: Vocational education still carries social stigma in many parts of the country, limiting its appeal compared to traditional academic routes.

  4. Mentorship and Business Support: Unlike large-scale startups, small business entrepreneurs rarely have access to coaching, market research, or incubation support.

  5. Policy-Practice Gap: While national policy documents highlight entrepreneurship, the ground-level implementation often lacks cohesion or inter-agency coordination.

Gender and Inclusion in TVET Entrepreneurship

Empowering women and marginalized groups through entrepreneurship is not just an economic issue—it’s a matter of equity. Programs like the Skills for Employment Investment Program (SEIP), run by the Finance Division with support from ADB, have begun targeting female participation in TVET. But the leap from training to enterprise remains steep.

Women face additional barriers—limited mobility, lack of collateral for loans, and restrictive social norms. Tailored entrepreneurship support, women-only financing products, and digital outreach can be game-changers here. The same applies to persons with disabilities, ethnic minorities, and youth from climate-vulnerable areas.

Inclusion must be built into every layer of the TVET entrepreneurship model—from access to training, to business support, to leadership opportunities in trade associations and cooperatives.

The Digital Edge: Technology as a Multiplier

In a country where mobile penetration exceeds 90%, and digital platforms like Facebook and Daraz have become common sales channels, technology is a key enabler for TVET entrepreneurs.

Mobile repair technicians, computer hardware specialists, digital designers, and online service providers are examples of how digital skills gained through TVET can create sustainable micro-businesses. Moreover, the use of mobile wallets and e-commerce tools allows small entrepreneurs to bypass traditional constraints of geography and capital.

Integration of ICT modules in vocational curricula, digital entrepreneurship training, and partnerships with fintech and e-commerce platforms are essential next steps.

Ecosystem Approach: The Need for Multi-Sectoral Coordination

To truly unlock the potential of TVET entrepreneurship, a coordinated ecosystem approach is required. This means:

  • TVET Institutions must embed entrepreneurship across all levels—not as electives but as core learning outcomes.

  • Government agencies like NSDA, BTEB, and SME Foundation must align their policies, funding schemes, and support services for a seamless entrepreneur journey.

  • Private sector must be brought in not just as employers but as buyers, mentors, and supply chain anchors for TVET-led small businesses.

  • NGOs and development partners must continue piloting, documenting, and scaling inclusive models.

The creation of Entrepreneurship Hubs within polytechnic and vocational institutions—with space for incubation, mentorship, market linkage, and digital support—can be a game-changer for the ecosystem.

Global Lessons, Local Adaptation

Countries like the Philippines and Kenya have made strides in integrating entrepreneurship into their TVET systems through competency-based training, microenterprise certification, and startup incubation programs.

Bangladesh can learn from these models while adapting to its socio-economic context. For example, mobile pop-up training centers in coastal regions, digital micro-business licenses via Union Digital Centers (UDCs), and partnerships with social enterprises for backward linkage can all accelerate TVET-driven entrepreneurship in Bangladesh.

The Road Ahead: Policy to Action

Bangladesh’s National Skills Development Policy (NSDP), the Eighth Five Year Plan, and the National Youth Policy all emphasize the need to promote entrepreneurship through skills development. However, the transition from policy to practice remains uneven.

To catalyze real change, we need:

  • Mandatory entrepreneurship modules in all TVET programs.

  • Credit-linked certification, where passing a course gives access to subsidized loans.

  • Entrepreneurship fairs and demo days hosted by training institutions.

  • Recognition systems for “TVET Entrepreneurs of the Year” to inspire youth.

  • Public-private partnerships to mainstream small business procurement from TVET graduates.

A Nation of Makers, Not Just Workers

As Bangladesh marches toward middle-income status and beyond, the model of development must shift from labor export and low-cost manufacturing to knowledge-driven, enterprise-led growth. TVET, when paired with entrepreneurship, becomes more than just training—it becomes transformation.

From self-employed plumbers in Sylhet to mobile app developers in Dhaka, the seeds of change are already there. What we need is an enabling ecosystem, forward-thinking policies, and a societal mindset that respects and rewards vocational entrepreneurship.

Because the future of Bangladesh is not just in factories or farms—it is in the hands of skilled youth who dare to start small, think big, and build something of their own.

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