LEADING UNIVERSITY

Assignment
On
Importance of entrepreneurship development of Bangladesh
Course Code:BUS-330/324
Course Title: Entrepreneurship
Submitted to: Tahmina Khanom
Assistant Professor
(Finance & Accounting)
Department of Business Administration(BBA)
Leading University,Sylhet
Submitted by :

Group name ID

Arafat Hussain Adil 1303010034

Millatun Nessa Tanny 1431010099

8
Arpita Rani Dey 1631010013 th

Semester

Department of Bususiness Administration

Leading University,Sylhet
Introduction
An entrepreneur is the person with the initiative to form a business with his dexterity of creative
thinking. S/he is consistent to develop an enterprise being independent, self motivated and
industrious. he retains all the factors of production and reassembles the thinking to produce
something new in the society. Being a risk taker, entrepreneur develops a business entity for the
betterment of the country as a whole. According to entrepreneur being the front line actor with
his vigor, ability and ingenuity makes for a modification in the socioeconomic order by the
cognitive operation of industrial growth . Moreover, International Labour Organization identifies
the entrepreneur with a set of characteristics, including risk taking, leadership, originality, self
confident, result oriented and future oriented. On the other hand, entrepreneurship blends the
capacity of innovation, investment and expansion in productivity. Qualities of entrepreneur
results in terms of entrepreneurship. Schumpeter defines that entrepreneurship consists of
purposeful and systematic inventiveness. Again he (1955) added entrepreneurship as a creative
activity lead an entrepreneur being innovated to introduce something new in the society.

Entrepreneurship in Bangladesh

Entrepreneurship is often considered one of the most effective and flexible strategies for
economic development of a country. So lack of entrepreneurship development is one of the
reasons for not developing the economy. In Bangladesh at the time of initiating enterprise, an
entrepreneur faces many problems such as shortage of skilled workers and infrastructural
facilities.In Bangladesh lack of political commitments and absence of creation of healthy
environment required for entrepreneurial growth are the limiting factors in the process of
adequate supply of reasonable number of entrepreneurs. Today, some Govt. and some non-govt.
organizations have come forward with great facilities for entrepreneurs.

Opportunities of entrepreneurship development in Bangladesh

As a potential developing country, Bangladesh has immense opportunities to develop
entrepreneurship. Through
the integrated package programs this study explores the relationship among opportunities in
following categories are:
(i) Stimulatory opportunity, (ii) Supportive opportunity and (iii) Sustaining opportunity available
from government and private sectors. Figure 1 shows the stimulatory aspects are connected with
the supportive issues directly leading to provide sustaining scopes for new startups to adoption
with economic growth level of real world of business dealings. Moreover the supportive
opportunity moves toward sustaining opportunity by providing related practical help for potential
entrepreneurs from lagging behind with any specific cushion gap. This overall integrated
package program plays the role of buffer system for sustainable growth orientation of skillful
entrepreneurs with their innovative ideas.

Stimulatory Opportunity
The opportunity to self-stimulate toward the entrepreneurship development plays a important
part in the guild. The stimulatory activities comprise the scope for entrepreneurs, role play,
entrepreneurial education and natural resources required to uphold emergence of
entrepreneurship in Bangladesh. These programs ensure the increasing number of supply of
entrepreneurs to initiate a new business entity and develop potentiality to lead the venture. The
opportunities from diverse origins are discussed below

Publicity for Immense Entrepreneurial Scope and Identifying Areas of Functioning

Our rural area needs lots of entrepreneur to flourish the GDP growth using potential operational
areas. At that place are immense entrepreneurial scopes for newbies to startup their enterprise.
Business revolution can be accomplished by a workout in following fields. Information
Technology (IT) based business like e-commerce, f-commerce, software development company;
agriculture based business like honey bee, food preservation, mushroom cultivation, juice;
farming business like poultry farming, cattle rearing, fishing, alligator farm; firming like nursery,
horticulture, tree plantation, bamboo cultivation; beautification based business like interior,
exterior design, furniture, painting, cane work; boutique business like parlor, embroidery,
tailoring, fashion house; small scale engineering like glass blowing business, ceramic tiles
business, light engineering, ship building and breaking; housing business like real estate, land
brokerage; tourism and recreational sector; consultancy and advisory firm; training institution
like human skill development institution, educational institution, technical and handicraft
training.

Role Play and Traditions Lead to Entrepreneurship

Bangladesh is abundant with successful entrepreneurs, charismatic, intelligent leaders and
industrious workforce, named as Ranoda Prasad Saha, Jaharul Islam, Chaitta Ranjan Saha,
Samson H Chowdhury, Fazle Hasan Abed, Dr. Mohammad Younus, Salman F Rahman, Abul
Kashem Khan, Sheikh Akijiddin, Sabur Khan, Saleh Ahmed Chowdhury, Anowara Begum, and
so no. In our country business moves in next generation from their forefather. Thus, there are
some traditional business practices like family traditions, regional tradition, historical tradition,
following transistors. These customs may lead to revolution in entrepreneurship in Bangladesh.
Availability of Natural Assets
Bangladesh is enriched with the deposit of natural resources. We can classify the available
natural capital in following categories: factors of production list fertile land, cheap & hard
working human resource, provisions for financing facility, fully recharged entrepreneurs by
tradition; mine ore compresses natural gas, mine coal, glass, silicon, stone etc.; Communication
ways are sea port, river ways, airways, railways and by road facilities.

Positive and Independent Attitude by Nature

By nature the people of Bangladesh are independent, self motivated, innovative. Moreover the
lead taking personality, industrious nature, risk taking attitude, creative thinking, cooperative,
finally competitive aspiration boost up the entrepreneurial quality. All these attributes comprise
the entrepreneurs of Bangladesh as a whole.

Educational Inspiration
In Bangladesh both general education and technical education contribute to the entrepreneurship
development. In general education, students get introduced to entrepreneurship in the secondary
level and remain thereon to develop the preliminary background for start-up initiate in the
business field. The academic curriculum introduces the student with the prominent business
entrepreneurs of Bangladesh. Recently The University Grants Commission (UGC) of
Bangladesh has approved the bachelor degree in this specified area and the Daffodil International
University (DIU) has commenced a Bachelor of Entrepreneurship Development (BED) Program
focusing on the opportunity to gather knowledge and skills which will help them flex their minds
into becoming a successful entrepreneur. BED program is mainly focused to guide students as a
mentor so that they can move through the process of starting up a venture in order to become an
entrepreneur.

Motivational Training for Young Entrepreneurs

At that tip is some motivational training, providing institutions available for newbies in
entrepreneurs of Bangladesh. They mainly focus on the startup techniques, savings and
motivational aspects of business entity. Moreover, they verbalize the way to acquire resources,
logistics support, financial support needed for an enterprise setup from various supportive
organizations.

Availability of Entrepreneurial Firm

At that place are some entrepreneurial forums to stand beside the new entrepreneurs. Moreover,
some universities are working for entrepreneurial integration for their student like social business
center with a Daffodil International University, UIU entrepreneurship forum, NSU Business
Club, AIUB business club. The Bangladesh Youth Leadership Center (BYLC), United Nations
Youth and Students Association of Bangladesh (UNYSAB) and Forum of entrepreneurship and
business (FEB) are also working for strengthening student in the business field. These forums
induce mainly the inspiration among the entrepreneurs

Supportive Opportunity
The support programs usually empower the entrepreneurs in starting up and ruling the
enterprises successfully. They help in reassemble resources and supportive provision of
entrepreneurial scope and mentoring in selecting industries. The supporting aspects are specified
at a lower place:

Financial Support
Entrepreneurs of Bangladesh get direct and indirect favorable support from the financial sector
by the way of entrepreneurship development policy. Bangladesh Bank is the most leading
contributor of the financial sector through financial assistance, interest free loan, micro credit
facilities, collecting foreign aid, subsidy and various ways for young entrepreneurs.

Logistic Support
Logistic support plays an important function in the industrial sector for entrepreneurs by getting
special consideration for investment in the BSCIC industrial area, EPZ, BEPZA. These actions
contribute to, encourage investors by infrastructural support, cheap transportation facilities, land
port access, communication facilities etc.
Technological Support
Bangladesh being a digital country focuses implementation of IT in every sphere of business. So
entrepreneurs are no longer free from IT support. Technical Support includes IT facility,
scientific study and engineering universities, R&D organizations, breeding and development
program by IT specialist institutions, and hence along.

Available Supportive Organization

There are a number of organizations specialized in entrepreneurial assistance both in the
government sector and government supported private organizations. Government organizations
include Board of Investment, Bangladesh Development Bank (BDB), Bank of Small Industries
and Commerce (BASIC), Investment Corporation of Bangladesh (ICB), Government,
Commercial Banks, Rajshahi Krishi Unnoyon Bank, Bangladesh Krishi Unnoyon Bank,
Controller of Export and Import, Bangladesh Standard and Testing Institute (BSTI), Bangladesh
Council of Scientific and Industrial Research (BICSIR), Industrial promotion and Development
Company of Bangladesh.

Training Program
Bangladesh Government is also controlling and supporting many organizations to conduct the
entrepreneurship training program. The training organizations are Bangladesh Small and Cottage
Industries Corporation (BSCIC), Bangladesh Rural Development Board (BRDB), Directorate of
Women, Bangladesh Institutions of Management (BIM), Micro Industries Development
(MIDAS), Youth Development Training Centre, Bangladesh Industrial technical Assistance
Centre (BITAC), Bangladesh Rural Advance Committee (BRAC) and so on. Other Supports
Furthermore, entrepreneurs get other support like granting tax relief, help in marketing products,
offering management consultancy and etc. from assistance organizations.
Sustaining Opportunity
The sustaining programs include motivations which uphold the entrepreneurs to sustain
themselves toward the barrier of actual performance. Want of self inspiration may lead the
enterprises meet immature death. As a consequence a number of business entities slop downward
with GDP falling. Thus modified policy, motivational assistance, promotional factors can regain
the lost inspiration in entrepreneurs. Some of these options are discussed below:

Favorable Policy
Entrepreneurship development policy formulates some policy for support to favor the young
entrepreneur not to pitch down in their inspiration toward business. Tax holidays, balance
development policy, rural development policy are directed to encourage entrepreneurial in
finding new scope for commercial enterprise. International Promotional Factors In the epoch of
globalization, Global village strategy opens the door to admission in foreign grocery store.
Flexible international trade factors may emerge the growth of entrepreneurship development in
Bangladesh.

Entrepreneurship Development Potentiality in Bangladesh

Bangladesh is a relatively young nation although its people inherit a country which looks back
upon a rich cultural heritage. Innovative industrial activities date back to ancient period, when
the manufacture “Muslin” fabric earned fame throughout the known world. Due to the country’s
central position in the Bay of Bengal and its many waterways, trade and commerce have a long
tradition. Needless to say that, the colonial period and the subsequent partition of Bengal
between India and Pakistan did not support a healthy and self-reliant economic development. I
the wake of the independence war, that led to the
establishment of the people’s Republic of Bangladesh, the newly-born nation did not only suffer
from physical destruction, but also from managerial brain-drain.

Bangladesh’s industrial development efforts initially focused on public enterprises, to the extent
that even a number of small enterprises were taken over and managed by the Government
following independence. Results were discouraging, and starting from the late seventies
increasing emphasis was placed on enhancing the role of the private sector in economic
development. However, many observers feel that Bangladeshis are still averse to long-term
investments and risk-taking.

Yet, one could say that Bangladeshis are among the greatest risk takers in the world, and the way
they live and survive on a land exposed to natural calamities shows some truly entrepreneurial
trait. Ethnic or religious variations have not been occupational barriers, although power
structures at the village level still tend to impede the upward social mobility of the poor. The
county is rich in agricultural and human resources and offers a potentially vast domestic market.
Bangladesh’s relative proximity to the booming East and South explored. However, whereas
earlier studies found that entrepreneurial sprit ad initiative exist among the people of Bangladesh,
it was also observed that in many cases entrepreneurs who showed great enthusiasm in setting up
an industrial venture later retreated from the field on account of a multitude of problems faced in
carrying through the paper.

The major contribution of entrepreneurs towards socio-economic development can be seen in the
maximization of opportunities, which includes observing the environment for venture with
growth potential, securing capital, adapting technologies and combining production factors in an
efficient manner. The useful role entrepreneurs can play as change-agents in socio-economic
development and employment generation is generally accepted. It needs to be clearly stated at
this point, that the majority of Bangladesh entrepreneurs are first generation entrepreneurs. The
development of the entrepreneurial class however does take time and is subject to skill and
capital constraints.

Importance of Entrepreneurship Development

Let’s discuss the importance of entrepreneurship development in Bangladesh. Bangladesh is

confronted with severe unemployment and underemployment problems. The problems are
becoming worse day by day with the increasing growth of the unemployed population in the
country. The worst sufferers are the educated and half-educated youths.

It is the responsibility of the government and the society to provide gainful employment
opportunities for the youths and use their energy for predictive purposes.
However, the promotion and development of microenterprises and labor-intensive small and
medium industries could be an important strategy to overcome these problems.

Bangladesh has an immense potentiality in terms of resource endowments, both material and
human for the development of industries.

Decrease unemployment: Development of entrepreneurship can reduce unemployment

dramatically. Because if entrepreneurship develops in any country it should need large number of
worker for every stage. So, it can reduce unemployment.

Reduce capitalization: This is an era of capitalization. And capitalization rise because of some
massive entrepreneur. But if we can develop entrepreneurship in large volume it can create
competition in the market and reduce capitalization.
Economic balance of the country: It can bring the economic balance of a country because
when a business entrepreneur starts its operation it involves many people in economic conditio

Rise per-capita income: An entrepreneur may arrange employment for many unemployed it
reduce unemployment problem as well as rise per capita income.

Improve the living standard: As I said in the previous paragraph a successful entrepreneur can
manage some employment so, it improves the living standard.

Economic Independence: Entrepreneurship gives a man economic independence which is really

very important.

Overall Development: Economic development is overall development and entrepreneurship

development brings us financial development.

Constraint to develop entrepreneurship in Bangladesh

Frequent changes of government and its policy: The frequent change of governments with
different ideological viewpoints adversely affect the business and investment climate and
development of entrepreneurship. Since independence of Bangladesh, the governments and its
economic policy were changed several times.
The first government of Bangladesh introduced socialism in the economic policy followed by
subsequent governments with the concept of mixed economy first and then free market economy.

Frequent changes of governments and consequently change of economic policy influenced the
development of private entrepreneurship of the country.

Moreover, political instability, law and order situation, corruption and deterioration or values
during the period under study created major impediments towards the economic growth and
development of the country.

The frequent changes in industrial policy and strategy, wide gap between policy and
implementation measures, showed down the promotion and development of entrepreneurship in
the country.
Lack of priority of entrepreneurship development in industrial policy: Entrepreneurship
development has not yet been given top priority in all industrial policies.

It appears that while the country has set out a strategy to encourage the process of enterprise
devilment the entrepreneur who acts as the catalytic change agent in that process is still
neglected.

Lack of co-ordination among institutions:  The field of entrepreneurship development is both

over-researched and under-researched at the same time.

It is over researched in the sense that too many people look at the same problem oriented and
sponsored research that could lead to program development catering the needs of specific region
and target groups.

Lack of awareness about facilities and support services: Entrepreneurs are not generally
aware of the source of various types of assistance and the procedures of getting this assistance
from the concerned institute.mechanism for dissemination information on investment
opportunities, types and sources of assistance available, are not appropriate and adequate.

How entrepreneurship development impact on our society?

Economic growth

The bottom line of vibrant entrepreneurialism is that it creates wealth: for the entrepreneur, for
the people that are employed as a result and for the local economy. It creates wealth on a national
scale for the government in the form of taxation, which is then redistributed accordingly to the
services and communities that need it the most.

The success of an entrepreneur is ultimately in creating a product or service that adds value to
the lives of its users; whether that is an inherent need for the item or a simple desire to have it.
Either way, an innovation on this scale can help to push a market forwards on a domestic level,
and – where relevant – drive exports to new overseas markets. This again is a wealth-creating
exercise, which is a key driver of economic growth.
Job creation

Successful entrepreneurialism often requires the skills and labour of many hands; and that
necessitates job creation. As a thriving business grows so do the opportunities for others and the
cumulative impact of new start-ups in a particular geographical area will go a long way towards
cutting queues at the job centre.

This facilitates economic benefits – employees with money in their pockets will naturally spend
them on local goods and services. It also helps to push societies forward too: it is well
documented that unemployment causes crime, poverty and a gamut of physical and mental
illnesses; adding further strain to already stretched health services.

Philanthropy

Often the statistics are hard to measure – not all entrepreneurs wish to boast of their charitable
activities – but it is fair to say that many successful business owners, some of whom will have
come from financially insecure upbringings, are keen to redistribute their new-found wealth to
charities and local community ventures.

Increased competition

Success breeds success, and once one entrepreneur has flourished in a given market more often
than not another businessman or woman looks to enjoy their own slice of the pie.

As we know, competition is a good thing for the consumer, as it requires companies to delivery a
better quality product in order to survive. This can also create price wars (take a look at the
ongoing battle between the Xbox One and Playstation 4 as a good example), and it is true that
often only the strongest will prosper. But the benefits to the general public are obvious.

Use of natural resources

While there is a sub-set of business owners whom we can class as social entrepreneurs,
unfortunately not all are blessed with an environmental conscience.

Pretty much every company that operates today uses natural resources in some way – electricity,
water, gas, paper etc – and this is simply unavoidable. Some entrepreneurs will offset their use of
resources by donating to relevant charities and organisations; a form of self-taxation, if you will.
Alas, not all do.

Conclusion
This subject has tried an attempt to explore the problems and opportunities of entrepreneurship in
Bangladesh. As a producing nation, Bangladesh has extreme range for the evolution of
entrepreneurship. With the help of integrated package programs, including (i) Stimulatory
programs, (ii) Supportive programs and (iii) Sustaining programs, the study has identified legal
facilities, financial facilities, logistic supports, technical and technological assistance, availability
of natural capitals, training and educational assistance, providing by both government and non
government organizations, facilities from socio-cultural prospect, traditional role play personals,
international factors, favorable policy and boundless scope for selecting operational area for
business. This study also pinpointed constraints and problems in the growth, development of
entrepreneurs which are categorized in personal, environmentally-situational, legal- political and
economic causes.
References: http://bankofinfo.com/importance-of-entrepreneurship-development/

http://bankofinfo.com/constraints-and-problems-of-entrepreneurship-development/

https://www.researchgate.net/publication/317610393_A_Study_of_Entrepreneurship_Developm
ent_in_Bangladesh_Pros_and_Cons