Barriers to Green Startups in Bangladesh

Authors

  • Rafin Rayhan Independent University, Bangladesh image/svg+xml
    Competing Interests

    -

  • Fatima Sadiya Khan Independent University, Bangladesh image/svg+xml
    Competing Interests

    -

  • Mir Mahaddi-UL-Islam Independent University, Bangladesh image/svg+xml
    Competing Interests

    -

Keywords:

Green startups; sustainable entrepreneurship; Bangladesh; green finance; circular economy

Abstract

This study examines the barriers that constrain green startups in Bangladesh and 
explains why formal sustainability policies have not translated into accessible support 
for early-stage entrepreneurs. Using an exploratory mixed-methods design, the study 
combines a structured entrepreneur survey, interviews with green business founders, and 
secondary evidence from policy documents and academic literature. The findings indicate 
that green startups face four interconnected barriers: limited access to appropriate 
financing, weak startup-oriented institutional support, moderate confidence in intellectual 
property protection, and low market acceptance due to price-sensitive consumer behavior. 
This paper argues that the main problem is not a lack of policy but a policy-practice gap 
that prevents small ventures from using available instruments. It recommends targeted 
equipment finance, climate-focused incubation, stronger regulatory coordination, green 
product certification, and consumer awareness programs to improve the sustainability
oriented entrepreneurial ecosystem in Bangladesh.

Author Biography

  • Rafin Rayhan, Independent University, Bangladesh

    -

References

Bangladesh Bank. (2020). Sustainable Finance Policy for Banks and Financial Institutions. Dhaka:

Bangladesh Bank.

Government of Bangladesh. (2023). Bangladesh Patent Act, 2023. Dhaka: Government of the

People’s Republic of Bangladesh.

LightCastle Partners. (2024). Circular financing in Bangladesh: Policy barriers. Retrieved from

https://lightcastlepartners.com

Ministry of Environment and Forests. (2010). National 3R strategy for waste management. Dhaka:Government of the People’s Republic of Bangladesh.

Uddin, B. (2021). Consumers’ purchase behavior in Bangladesh: Green products perspectives.

Journal of Sustainable Tourism and Entrepreneurship, 1(4), 305-318. https://doi.org/10.35912/joste.

v1i4.475

United Nations Development Program. (2025). UNDP and FBCCI-IRC empower green startups to

drive the circular economy transition. Retrieved from https://www.undp.org/bangladesh

World Bank. (2024). Extended producer responsibility for advancing circular economies for plastics

in Bangladesh. Washington, DC: World Bank.

World Economic Forum. (2025). Why unlocking finance is essential for Bangladesh’s green energy

transition. Retrieved from https://www.weforum.org

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Published

2026-07-09

How to Cite

Rayhan, R. R., Sadiya, F., & Islam, M. M. (2026). Barriers to Green Startups in Bangladesh. Independent Business Review, 15(1), 71-86. https://ibr.iub.edu.bd/Journals/article/view/34

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