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What went wrongThe owner of a small garment unit in Saidpur, Pabna, in a Daily Star report

Land sold to clear the loan, then Covid closed a 21-year-old unit

A unit of 18 workers sending jackets and t-shirts to India, Nepal and Bhutan. A 5-lakh-taka bank loan had been cleared by selling land; after two months shut from March 2020, the 21-year-old business closed for good.

This entrepreneur in Saidpur, Pabna, ran a small unit making jackets, t-shirts and cargo pants for buyers in India, Nepal and Bhutan, employing 18 people. He had borrowed 5 lakh taka from a bank and cleared it by selling land shortly before Covid arrived. When the first wave came in March 2020 the factory closed for two months, and a 21-year-old operation was wound up. He told the paper he no longer has the capacity to restart by taking another bank loan. The report notes that only 10 businesses in Saidpur under Pabna district managed to get credit from the government stimulus package. Neither his capital nor the year he began is stated.

Lessons

  1. 1.When every order comes from a handful of foreign buyers, the factory stops the day the border does
  2. 2.Clearing a loan by selling the land you could have borrowed against again leaves nothing to restart with

Published with the person's permission, without revealing who they are.

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