Understanding the Key Differences Between Startups, IT Services, and Digital SMEs
Written by: Mohidul Alam & Writing Team at PoriPurno.com
In Bangladesh’s evolving tech landscape, the terms “Startup,” “IT Service,” and “Digital SME” are often used interchangeably—but they represent very different approaches, impacts, and visions. As the country continues to grow its presence in the global digital economy, it’s crucial we distinguish and appreciate the unique value each sector brings.
Startups: Building Global Products from Local Grounds
Startups are product-centric companies that aim to solve global problems through innovation, scalability, and technology. They’re not just businesses; they’re ventures designed to grow fast and reach large markets. Bangladesh has seen a surge in globally recognized startups born in local neighborhoods:
- Dorik, a world-class no-code website builder, is being developed from Sylhet and now competes on the global stage.
- From a home office in Mirpur DOHS, the team led by Nizam is crafting one of the top eCommerce plugins used worldwide.
- A 24-year-old entrepreneur has developed a game that now boasts over 300,000 users globally.
- Kawsar Bhai and his team are ranked among the top 10 Joomla development teams in the world.
These examples prove that Bangladeshi startups are not just participating in the global tech space—they are shaping it.
IT Services: Powering the Global Digital Economy
IT service companies deliver technical expertise and services to clients worldwide. These firms generate significant export revenue and help build Bangladesh’s reputation as a reliable tech hub:
- Ask ChatGPT about the top UX firms in Dubai, and you’ll likely hear Musemind, a Bangladeshi firm delivering cutting-edge UX design internationally.
- Brain Station 23, housing hundreds of developers, is considered a pilgrimage site for developers and international clients alike.
These companies operate like global IT factories—quietly but effectively exporting skill and intellectual capital.
Digital SMEs: Hustling in the Local Arena
Digital SMEs are small to medium enterprises leveraging digital tools for local market disruption. While their approaches are often creative and enterprising, they typically focus on short-term profit rather than scalable innovation:
- Buying eggs in bulk from Karwan Bazar, storing them for five days, and selling online on the sixth when prices rise.
- Launching a WordPress site with 50 videos and branding it as an edtech platform.
- Connecting a septic tank cleaning service with customers through WhatsApp and a network of hired workers.
These are agile hustlers, making digital work for them in the local context. However, many such businesses focus more on tactics than on building sustainable innovation or product equity.
The Realignment We Need
For too long, we’ve celebrated Digital SMEs as the torchbearers of Bangladesh’s digital economy. But it’s time we redirect some of that admiration toward Startups and IT Service companies—the sectors that are genuinely taking our IT industry to the global stage. These ventures are generating value, earning international respect, and creating an economic impact without burning capital or depending on inflated valuations.
Let’s celebrate innovation that scales, services that export, and ideas that position Bangladesh on the global digital map.
Period. It’s time. Let’s fight for the future.
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