Turning a demographic crisis into a dividend: The case for entrepreneurial reform

Imagine a country where 78.9% of the unemployed are educated young people aged between 15 and 29—brimming with potential, yet trapped in a system that teaches them to look for jobs instead of creating their own. This isn't a dystopian tale; it is the reality in Bangladesh.

The Labour Force Survey of 2023 reveals a brutal truth: 31.5% of unemployed youth hold university degrees, while another 36.2% have completed secondary or higher secondary education. These numbers tell a clear story: our education system is failing the next generation. We are producing job-seekers, not job-creators.

While these staggering statistics paint a bleak picture, they also point to a tremendous opportunity. The very system that has failed to prepare our youth for today's economy could become their launchpad—if we have the courage to transform it.

Bangladesh's education system remains stuck in an outdated model that prioritises rote memorisation over creative problem-solving. While students focus on mastering exam techniques, the global economy surges ahead with AI-driven startups, digital marketplaces, and flexible gig economies. 

Our classrooms continue to teach students how to write job applications rather than business proposals, how to follow instructions rather than chart their own course. This disconnect is not merely unsustainable—it is dangerous. Without urgent reform, we risk losing an entire generation to disillusionment, brain drain, or economic stagnation.

The solution lies in shifting from rote learning to nurturing an entrepreneurial mindset—from creating job-seekers to empowering innovators. By reimagining classrooms as incubators of creativity and critical thinking, we can turn Bangladesh's "demographic dividend" into an economic revolution. The tools, the talent, and the urgency are all here; what's missing is the will to rethink and act.

We can begin by taking the following steps:

Embrace innovation in pedagogy

Rather than clinging to outdated methods, we should draw inspiration from global advancements. Research shows that experiential activities—such as simulations and project-based learning—can ignite entrepreneurial passion. Leading universities worldwide are already using virtual reality (VR) to run simulated businesses and augmented reality (AR) for market analysis. It is time for our own institutions to adopt such innovative teaching techniques (ITTs).

Rahman et al. (2023) highlight that simulations, business planning, and project-based learning build both critical thinking and practical skills. With AR and VR, students can manage virtual startups and analyse real-time market trends. By embracing an "extreme pedagogy" model and forging stronger links between academia and industry, we can better equip graduates with the entrepreneurial skills they need.

Build an entrepreneurial mindset across all levels 

Entrepreneurship should not be confined to a single subject—it must be a mindset embedded across disciplines. Universities must adopt "extreme pedagogy" approaches, encouraging collaboration among students, educators, industry leaders, and policymakers to create real ventures. Hackathons, incubators, and live case studies should complement traditional lectures.

Beyond tertiary education, entrepreneurship must be integrated into vocational curricula under the Bangladesh Technical Education Board. Skill development programmes can empower both men and women outside formal education systems, enabling them to build sustainable businesses. Vocational institutions should serve not just as training centres but as incubators, linking graduates to national and international markets.

Use vocational training as an entrepreneurial launchpads

Vocational institutions must evolve into launchpads for entrepreneurs. Mechanics should not just repair vehicles—they should learn to run their own garages. Tailors should not merely sew clothes—they should master branding, e-commerce, and export strategies. Bangladesh needs an entrepreneurial ecosystem that marries theory with hands-on practice.

We can draw from India's National Skill Development Mission (NSDM), which has trained over 13 million individuals and catalysed the creation of 90,000 startups (Ministry of Skill Development and Entrepreneurship, 2023). By following a similar model, Bangladesh can foster a dynamic entrepreneurial landscape that sustains long-term growth.

Integrate technology and media for wider reach

Technology can play a pivotal role in transforming entrepreneurship education. Programmes like Shark Tank India have popularised entrepreneurship through televised mentorship, a model Bangladesh could replicate to inspire and educate on a mass scale. Local e-learning platforms like Shikho and 10 Minute School should be expanded to include advanced content on business simulations, data analytics, and investment strategies.

Global platforms like LinkedIn Learning offer scalable, cost-effective learning opportunities, ideal for reaching rural areas with limited access to traditional resources. These could serve as bridges between talent and opportunity.

Establish a national task force for reform

To catalyse systemic change, Bangladesh needs a national task force involving the Ministries of Education, Finance, and Industry, the Education Board, and leading academics. This body should be mandated to reimagine entrepreneurship education from the ground up. Its goals must include embedding practical, demand-driven learning across the national curriculum—from secondary schools to universities—ensuring every student is prepared to innovate and solve real-world problems.

We must reject the outdated notion that entrepreneurship is only for business students. Innovation does not belong to any one discipline; it belongs to all of us. Whether in science, the humanities, or the arts, every field needs problem-solvers and creators.

The stakes are high. If we fail to reform our education system now, we risk condemning millions of young people to a future of unemployment, underemployment, or forced migration. Bangladesh's future depends on this transformation. Let us not wait until it is too late to act.

Md Mizanur Rahman PhD, is a Associate Professor at BRAC Business School.

Dauwood Ibrahim Hassan is a marketing and CIM graduate

Dr Nusrat Hafiz is an Assistant Professor and Director of Women Empowerment Cell, BRAC Business School

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.