PASSING the TORCH the Next Generation Taking Over Family Businesses
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August 2014 Tk. 100 cover story PASSING Rabindranath THE TORCH Who tried rural banking The Next Generation Taking & use of technology Over Family Businesses Today’s youths need mentoring CSR for business A Confused Reality? ‘Values are stronger than rules in banking’ – Ali Reza Iftekhar LETTERS TO THE EDITOR I do not agree to the fact that some 90% of the mangoes sold in the market Write to us at are formalin treated. How is that even [email protected], or send us a note on our acceptable? As far as I know, if the Facebook Timeline at formalin story is true, the numbers www.facebook.com/icebusinesstimes. could be around 50% to the highest. It is the season for mangoes, and if sellers Be sure to visit our website opt to sell old mangoes under formalin, for online viewing then the rest of their seosonal sales at www.icebusinesstimes.net would be relied on formalin. How is this even beneficiary to the sellers? July 2014 Tk. 100 Shahed Mahmood, Chittagong cover story I am just sharing my knowledge, GROWTH because I think it is related with your WITHOUT cover story. I once visited one of Islami INTEREST The state of Islamic Banking Bank Manager with my father. Father in Bangladesh asked him about the interest rate that they offer, although Islam prohibits Pains and gains interest. The manager then said, that from the budget their interest was different from other banks, he said it was dependent on the Pool of manpower needs market bank’s ability to make profit after connectivity investing our deposits. So it was not - Dr. Abdul Mazid constant and so did not violate Islamic laws. I did not understand that fully. But ‘Bangladesh is an Important Country for Development Potential’ I think it is because both the bank and the customer shares the risk and benefits, where in other banks, it is always the bank. Anika Tasfia, Bashundhara Vol. 4 No. 12 August 2014 Great story on Pubishing Industry. I guess the advent Publisher & Editor : Abul Khair of technology is partly Executive Director : Nawshin Khair responsible for the current Managing Editor : Nobonita Chowdhury story of this industry. Who Executive Editor : Khawaza Main Uddin woud take the hassle of Great photos, but really Editorial Assistant : Wafiur Rahman buying books when you can depressing story. Hard to Ahmed Noushad read digital copies believe that sellers are Chittagong Correspondent : Md. Shah Nowaz exploiting this seasonal treasure anywhere like this. Very bad. I hope there Designer : Sk. Yeahhia will be strict regulations. Head of Marketing : Lucky Begum Assistant Manager Marketing : Farha Tani Finance & Accounts : Md. Abdul Alim COMMENTS Sales & Distribution : Md. Manik Mollah, Md. Raju Hossain Published by Abul Khair on behalf of ICE Media Limited, Kushal Centre, Plot 29, Sector 3, Uttara C/A, Dhaka- 1230 and printed at M.K. Printers,189/1, Tejgaon I/A, Dhaka-1208 Editorial and Commercial office: Bengal Centre, Plot-2,Civil Aviation. New Airport Road, Khilkhet, Dhaka 1229. Editorial Queries: [email protected], [email protected] Advertising, Sales, Subscription and Distribution: 01711339587, 01819412035, 01920335953, 01716783698, 01675736760 Tel: 880-2-8901132, 8901135, 880-2-8901202 Fax: 88-02-8901205 E-mail: [email protected], [email protected] Creating Opportunities DIMENSIONS OF FESTIVAL ECONOMICS By Hossain Zillur Rahman* It has been seen in the clothing industry or personal ware industries that the sale volumes are targeted to the festival periods. Over the year, a significant portion of the sale volume is during this time. The festivals are a big economic opportunity. We are also trying to increase the number of festivals, such as Pohela Boishakh, Valentine’s Day, Ekushey February and others to keep consistency in the volumes. Some are targeted to popular segments, i.e – youngsters for Valentine’s Day. The religious festivals are the most important and enormous. I think such economic opportunities should be exploited. It is only valid if the consumer tastes are taken into account. If they are not, then foreign products would overpower local products. The opportunity is local, but the buyers have a global taste. If the local products are up to mark, then the opportunity persists. 10 ICE BusinessTimes August 2014 Creating Opportunities As far as Boishakh and other festivals are The festivals are a big concerned, the local furniture is also desired by economic opportunity. We the consumers. The food industry is also strengthened during these festivals. Tourism are also trying to increase packages are also emerging during the festivals. Linked to urbanisation, tours are not the number of festivals, just sightseeing new destinations, but also such as Pohela Boishakh, returning to rural roots and family reunions. The holiday concept is taken from the West and Valentine’s Day, Ekushey slowly picking up. Domestic tourism is progressing but the potential is barely being February and others to scratched. keep consistency in the Gifts industry is also another aspect that gets a boost during the festivals. In the west, toys are volumes. Some are a source of huge incomes, an idea that surprisingly has not picked up in Bangladesh. targeted to popular It is a vastly underdeveloped industry that segments, i.e – youngsters needs to be prioritised. Children’s segment is another untapped opportunity – chocolates, for Valentine’s Day cards, toys, etc. A lot is left to be explored from other countries regarding these. Books and publications have become a diminishing industry, it needs to be rejuvenated. Entertainment industry can also be put in the festival economics bracket, including cinema, To tap festival economics, we have to induce television and such. So we must come out of quality consumption among the consumers. the notion that clothing is the only economic In the global world today, consumers want opportunity made possible by festivals. choice, quality and affordability in Industries such as tourism, gifts, gadgets, consideration. Local production houses have entertainment also hold immense potential. to address these consumer concerns if they The backward linkage industries also get are to establish an economic base. You helped. The domestic entrepreneurs must come cannot simply expect people going for local forward in this respect, but one weakness products because it is local. Patriotism does witnessed is the lack of creativity and lack of not work that way. investment in innovations. There is opportunity here to go beyond At the end of the day, the principle of spiking sales volume – but also to establish consumers being kings has to be borne in mind. deeper success and standards. Companies This must not be in a cynical manner, but like Aarong strive for constant investment because their insistence of the three and innovations, which is why they have a requirements will drive entrepreneurs to solid niche market. If production houses do progress. It is an opportunity for small and not invest in innovation, then they will fail medium entrepreneurs, younger groups to try to go beyond an initial novelty value. The and gear the economy forward. most important demand from people is change. Originality is important. Along with the three aforementioned qualities, it should be kept in consideration. A group of boutique houses, pitched together to create Deshi Dosh, a group effort that was commendable and was an interesting branding idea. Such retail fashion houses are progressing, but the growing of bigger brands such as Aarong are very rare. Festival economy should come *Dr. Hossain Zillur Rahman out of the onetime income mentality and a former adviser to the should sustain throughout the economic caretaker government, is cycle. They can be tapped to strengthen currently Executive Chairman design and marketing groups. at Power and Participation Research Centre (PPRC). August 2014 ICE BusinessTimes 11 Cover Story PASSING THE TORCH The next generation taking over family businesses By Saiful Hasan Translated by Wafiur Rahman Many Bangladeshi business entities that thrived on individual initiatives have come a long way, and are now facing a transition. Are the successors ready to lead the businesses to the next stage or how would a transformation be possible? 12 ICE BusinessTimes August 2014 Family Businesses Photo: Ali Rehan Pushon Generation gap as a widely known concern of respondents intended to pass on the human society, is a bit more relevant to management of the business to the next business people, given the distinct nature of generation, a further 25% the ownership, and challenges of each age and the importance of not just the management. But more than a half credibility that an entrepreneur has to earn of them were unsure whether their children had himself/herself. A potential communication gap either the skills or the enthusiasm to do this between parents and their children poses risks successfully. G to the sustainability of the businesses, However, the survey report titled ‘Bridging the sometimes involving conflicts within the Gap’ said, ‘there’s no doubt in the ambition of family. So, handing over responsibility of the next generation who has decided to go into family firms to the next generation remains a the family firm.’ Of the respondents, 86% tricky issue as difficulty in succession can wanted to do something significant and special hardly be predicted. when they take over, and 80% have big ideas for Bangladesh is currently undergoing a change and growth. ‘Some want to launch new transition on its social, political and economic products or ventures, or make changes to fronts after four decades of its independence. where and how the business operates; others The businessmen and entrepreneurs, who had want to invest in new technology, and explore spear-headed the country’s private sector over new approaches to marketing using social the years, are getting old, or phasing media,’ it added.