We were remembering the unusual and imperfect hypes of businesses which showed high growth within a little time but were unsustainable in the long run, where most of the cases consumers and investors were defrauded. The hypes are led by greed and temptation of higher profit or job opportunity. Here is a short analysis of the age old businesses that were also undermined through unusual hypes by business people to the consumers/investors….
Co-operative societies have significant contribution to our economy. Cooperative societies were considered as a movement of empowering the identical group of people and making impact among its members. A number of co-operatives were also founded for providing seeds to the farmers, for irrigation facilitation and marketing facilitation to its members. Moreover, a significant number of cooperatives were also founded for providing financial supports to the homogenous people where farmers or business people could get credit from it and also could deposit savings and after its tenure they could draw profit. But, in practice some business groups took this opportunity as making profit and some extent this was a weapon of oppressing people charging high interest and sometimes escaped away grafting deposits of the members. It’s now passing a haphazard situation instead of having many legal authorities. Though government has some strong body for it, proper implication is absent. At present there are around thirty thousand govt. registered cooperative societies in Bangladesh and among them around 2000 are suspected to be doing unauthorized and illegal cooperative and Banking activities. In this situation this huge business model is going to get discolored image though it had great prospect in our economy.
Once, people showed great hype towards insurances. Insurance pledges to indemnify losses, which can rescue people from unwanted occurrences and depression. Over the globe it is a fundamental business model which sustains other businesses and indemnifies people’s personal losses. Insurance industry especially life insurance agencies could bring a major transformation in our economy through providing economic strength to the depressed family after their near one’s death and on the other hand the insurance company’s could initiate some ventures which could bring job opportunity and economic progress for the countrymen. After 80’s decade of last century there were hypes on insurance business and around 50 companies entered into this industry within that decade. But, their practice was questionable! Innumerous life insurance companies didn’t give back the premium of the policy holders and some cases the company’s employees grafted the policy holders premium. It is known that insurance is a type of financial business which does business depending on trust; if trusts break every contract is avoided. Now people have no trust on them and the life insurance business is passing its off peak period!
In this case we can remember another case regarding micro finance in Bangladesh. Micro finance is a revolutionary business/development idea which actually could change our economic fate. Till now its success and necessity can’t be overlooked but in recent decades thousands of greedy and canny people entered into this field and made the total system crushed. Now, the number of active micro finance organizations in Bangladesh is around 700. Most of the organizations entered here not to solve pecuniary problem rather shaking the poor peoples’ fate. With govt. permission (though govt. rarely monitors them) they provide microcredit to the village people and also collect money as deposits from the poor people pledging to give higher profit. But, most NGO’s charges high interest for credits and oppress the credit takers. Moreover a significant number of NGO’s also had escaped away taking peoples deposits. Jubok is one the NGOs which did so. A rough information exist that there are around 5 microcredit organizations which grafted at least 200 crore taka from the people. Its consequence is people now can’t trust any microfinance organization, which inclined to limit this sectors’ further expansion, but still it has long lasting necessity for the country’s economic development.
In Bangladesh different types of businesses deceived the consumers tempting mainly greed of money and employment opportunity. This phenomenon assumes people need money to live better life. Not a person by born becomes greedy; extreme necessity and environment make the persons to do so and the business taken this chance. But it is also sure that people are too stupid to evaluate economic proposals. Whatever, recent experience is poor people are becoming defrauded by the business people by exchange and time by time. But, should it let go on? Obviously not because such practices shrink other businesses opportunity and if such things happen again and again people won’t trust businesses anymore!
A business model has both buyer & seller and with this there should be some stakeholders who will monitor and influence the systems. Here, govt. should come forward first to operate it and monitor it and then indeed here needs to have strong voice from citizens and civil society. In every country a strong consumer protection community exists which vehemently opine its standing about any business venture or product for the sake of the mass people. But in Bangladesh this community isn’t active. Moreover, here mass people do not seem to be concerned and informed of any product/service while it firstly launches. So, both govt. and civil society can take some initiatives to educate the buyers and make conscious about the product or businesses activities. We urge the govt. authorities should be strengthened to implicate the businesses and also should initiate more panels of authorities to monitor all the business models and sectors. Legal system regarding punishing the outlawed organizations should also be upgraded and proactive. News media should be more focused in showing and proving the illegal business activities. All sorts of consciousness should come out to protect consumers and investors and to castigate the outlawed businesses. Otherwise, such unusual business hypes which make the consumers loser and the businesses gainer will threat to establish trust further on and will taper the businesses opportunities and prospects in Bangladesh.
[You can find the earlier write up on present market hypes in Bangladesh here]