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Page 1: Factors Influencing Entrepreneurship Development  In Barisal Metropolitan City: Problems and Prospect

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Report on

Factors Influencing Entrepreneurship Development

In Barisal Metropolitan City: Problems and Prospect

PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY

Factors Influencing the Entrepreneurship Development: problems and prospect

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Factors Influencing Entrepreneurship Development in Barisal Metropolitan City:

Problems and Prospect

SUBMITTED TO

Muhammad Mizanoor Rahman HowladerLecturer

Department of MarketingFaculty of Business Administration and Management

SUBMITTED BYGroup: 06 (Warrior)Level-3, Semester-II

Faculty of Business Administration and Management

Entrepreneurship and Small BusinessCourse Code: MST 326

SUBMISSION DATE: November 10, 2008

PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY

Factors Influencing the Entrepreneurship Development: problems and prospect

Name of the students Reg. No. Roll No.

Md. Kamruzzaman (L) 00660 001

Abu Zafour 00680 021

K.M. Asaduzzaman 00665 006

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Table of Contents

Introduction

► Abstract 01 ► Introduction 01

Literature Review► 02 The Research Gap► 02

Rationale of the Study► 02

Objective of the Study► 03 Methodology of the Report► 03

► Limitations of the reports 04 ► Analysis Technique & Report Writing 05

Description

► Entrepreneurship Development 06 ► Entrepreneurship Development Policy of Bangladesh 06

► Entrepreneurship Development Process 06 ► Factors Influencing Entrepreneurship Development 09

► About Barisal Division 12

► Entrepreneur profile 13 ► Analysis of their information 15

► Analysis Regarding Economic and Non-Economic Fact 18► Problems Associated With Entrepreneurship Development 18► Analysis Regarding Problems Faced by the Entrepreneur 22

► Importance of Training to Develop Entrepreneur 23► Why Entrepreneurship Develop is Important for Our Country 24► Prospects of Entrepreneur in Barisal Metropolitan Area 25

Conclusion 26References 27

Letter of Transmittal

Factors Influencing the Entrepreneurship Development: problems and prospect

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Date: 10 November 2008

ToMuhammad Mizanoor Rahman HowladerLecturer Department of MarketingFaculty of Business Administration and Management

Subject: Submission of Report on Factors Influencing Entrepreneurship

Development in Barisal Metropolitan City: Problems and Prospect

Dear Sir,

Here we are submitting our report on “Factors Influencing Entrepreneurship

Development in Barisal Metropolitan City: Problems and Prospect” prescribed by

you in your course Entrepreneurship and Small Business. For this Purpose, we have

gone through internet, different books, articles, journals, interview of authorities

and employees of the respective organizations and class lecture sheets for the

relevant information of the assigned topic.

Please call me for any further information at your convenient time and place.

Yours truly,

Group: 06(Warrior)Level-3, Semester-IIFaculty of Business Administration and ManagementPatuakhali Science and Technology University

Factors Influencing Entrepreneurship Development in Barisal Metropolitan City:

Problems and Prospect

Factors Influencing the Entrepreneurship Development: problems and prospect

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[A SURVEY STUDY IN BARISAL METROPOLITAN CITY AREA]

Abstract

A worldwide consensus on the critical role of competitive markets and entrepreneurs in economic

development has emerged in the last decade. In developing countries, the primary barrier to economic

growth is often not so much a scarcity of capital, labor or land as it is a scarcity of both the dynamic

entrepreneurs that can bring these together and the markets and mechanisms that can facilitate them

in this task. Entrepreneurship development (ED) refers to the process of enhancing entrepreneurial skills

and knowledge through structured training and institution-building programmes. ED aims to enlarge the

base of entrepreneurs in order to hasten the pace at which new ventures are created. This accelerates

employment generation and economic development. Entrepreneurship development focuses on the

individual who wishes to start or expand a business. Small and medium enterprise (SME) development,

on the other hand, focuses on developing the enterprise, whether or not it employs or is led by

individuals who can be considered entrepreneurial. Furthermore, entrepreneurship development

concentrates more on growth potential and innovation than SME development does. However, many of

the lessons learned from experiences in both types of development are similar.

Introduction

Good entrepreneur can create a healthy economy of a country. Entrepreneurship development is a very important catalyst in context of the rapid growth of small and medium industries in a country. The efficient performance of this sub-sector is dependent on effective utilization of man, machine and materials and human factor plays more important role as compared to machine and tools. Hence continues effort for entrepreneurship development in the Small and Medium Enterprise (SME) sector is essential for effective utilization of the human resources. For creation of new SME and for operating these enterprises successfully, development of entrepreneurship is a recognized pre requisite and this target can be achieved only through systematic training program.

Literature Review

Factors Influencing the Entrepreneurship Development: problems and prospect

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Entrepreneurship can be defined as the process of using private initiative to transform a business concept into a new venture or to grow and diversify an existing venture or enterprise with high growth potential. Entrepreneurs identify an innovation to seize an opportunity, mobilize money and management skills, and take calculated risks to open markets for new products, processes and services. For the development of our country in economic sector, the importance and necessary of the entrepreneurship development is a must. But the sorrowful matter is that a very few research work is done on over it. So the growth the process of the development in the sector is very sluggish. Researcher both in the sector of Government and the Public both need to provide more attention in this important sector. The profession of Chittagong University, Harun ur Rashid in 2003 June publish a report on “Basic economic development & the role of entrepreneur”. Another important report is published by the- G. H. M. Obaidul Hoque, Ph.D. Chairman, Small and Medium Industries Development Organization, depend on the topics of ENTREPRENEURSHIP DEVELOPMENT TRAINING. There are very few market survey reports to take information from them and use them. So for updated survey report the market survey is very much necessary.

The Research Gap

The literatures review has clearly indicated to the relatively little attention that has given by the professionals and researchers to the study of entrepreneurship development. Thus, the issue of consumer’s attitude has been largely unexplored. There is no available comprehensive and worthy paper, research monograph, or research report on this issue of consumer’s attitude in Bangladesh have neither come out nor been available to the researcher. The very few literatures available in Bangladesh offer little help in developing a framework and drawing hypothesis for further studies by the researcher.

Rationale of the Study

Entrepreneurship development (ED) refers to the process of enhancing entrepreneurial

skills and knowledge through structured training and institution-building programmes.

This report will help us to identify the present condition of the entrepreneur in Barisal

division and regarding problems and prospect. This accelerates employment generation

and economic development. Entrepreneurship development focuses on the individual

who wishes to start or expand a business. Small and medium enterprise (SME)

development, on the other hand, focuses on developing the enterprise, whether or not it

employs or is led by individuals who can be considered entrepreneurial. We hope for

further research on this topic will be helped by our report.

Objective of the Study

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Every successful study should have specified and well-defined objectives. A careful statement of the objective helps in preparing a well-decorated report facilitating others to take decision on it. This study has been undertaken to know about entrepreneur condition of Barisal metropolitan city. The specific objectives of the study are to have knowledge about-

01. Entrepreneurship Development Policy of Bangladesh

02. Entrepreneurship Development Process

03. Factors Influencing Entrepreneurship Development

04. Problems Associated With Entrepreneurship Development

05. Importance of Training to Develop Entrepreneur

06. Prospects of Entrepreneur in Barisal Metropolitan Area

Methodology of the Report

Data Collection

For the assessment, both primary and secondary data was collected. For this we went to the Barisal metropolitan city and interviewed 8 entrepreneurs through using a structured questionnaire. Sample respondent were chosen purposively from 10 different areas of Barisal city. Personal interview technique was applied while administering the questionnaire on respondents. The entrepreneurs who are taken as the sample are named below:

Entrepreneurs’ Name Owned Enterprises

01.Mr. Golam Mowla Star Navigation Company and Khaja Dock

Yard Shipping Brothers

02. Md. Arifur Rahman Jafar Trading, Bismillah Traders, Rupali

Mom, Rupatoli Filling Station

03. Sazzad Ahmed Sazzad Brickfield

04. Aminul Haque Juthi Store, Ideal Book Store

05. Amir Hossain Arafat Paints, Alim Grocery shop

06.Litu Rahman Famous Bakery, Rahman Shoes

07. Md. Hanif Hanif Enterprise

08. Kazi Mohiuddin Kazi Store, Rahman Cloth Store

Sampling plan

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The Barisal metropolitan city area constitutes the study area, because of convenience of the field work and conducting them in necessary. We try to take the leading entrepreneur as sample from the all side of the Barisal Metropolitan Area. We tried to get rid of any kind of personal biasness and taking true information regarding their problems and factors which affect their business.

Data analysis

Scale of attitude measurement was used for measuring the Entrepreneur and find out their problems and prospect regarding the business. Most of the analysis and discussions of this study have been made on the basis of the information obtained from the interview with the questionnaires. Besides, observation of the interviewers has also been an important component of analysis and discussion.

Scope of the Study

This study has focused upon factor influencing entrepreneurship development in Barisal

Metropolitan city. As well as we try to find out through report the problem and prospect

of entrepreneurship development in this area. We hope this study will help us to know

more clearly about our position in the sector of entrepreneurship development.

Limitations of the reports

Since our study is based on both primary and secondary data, there is a possibility of getting fake information. If the surveyed personnel provide us with any fabricated information about their own opinion, then the report findings may be erroneous. Above all, this study is weak in some points. The notable ones are as under:

The survey was conducted in a very short time so we were not able to collect

more information.

Information’s are their own opinion, so there stay the chance of biasness.

All entrepreneur of BMC is not considered in this report.

The questionnaire contains some questions that, if answered properly, might

damage the company’s image. In this type of questions, the respondents might

provide socially acceptable answers. This risk was unavoidable.

Another limitation of this study is the person’s private information were not

disclosing some, data and information for obvious reasons, which could be very

much useful.

Lack of experience in this field.

Lack of proper authority to conduct the interview program.

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Analysis Technique & Report Writing

At first, we went to Barisal metropolitan city and collect information from the personnel

who are engaged with different leading enterprise. In preparing this report, we

approached according to the following procedure:

First we select the topic and sample to collect the information from them. According to

the convenience time of the interviewee we conduct survey with them and collect data.

We try our level best to analysis and measuring the data as much as possible smoothly.

After final analysis and re-editing we try to prepare this report by avoiding biasness.

Findings

From the survey I have found some tremendous information that help to build our

practical knowledge about the entrepreneurship development. The findings of the survey

I have found in the report are divided in three parts, first parts contains the factors which

affecting the entrepreneurship development and the other two parts contains the

problems and the prospects sequentially.

Entrepreneurship Development

Entrepreneurship can be defined as the process of using private initiative to transform a

business concept into a new venture or to grow and diversify an existing venture or

enterprise with high growth potential. Entrepreneurs identify an innovation to seize an

opportunity, mobilize money and management skills, and take calculated risks to open

markets for new products, processes and services. .Entrepreneurship development is not

impulsive one, it depend on various factors like— economic, social, political,

psychological factors. These factors are mainly classified into two ways which are

discussed below—

Entrepreneurship Education, Training and Self Employment

The importance of entrepreneurial education and Training for motivating educated youth

to self-employment is recognized by development economists, planners and policy

makers, as well as governments of most countries of the world. The entrepreneurship

education course includes the contents that help the students to be aware of economic

opportunities, business environment, identification of project, preparation of business

plan, improving motivation for achievement, techniques of enterprise management, self-

development techniques, improving precision skill etc. Other objectives are concerned

with building self-confidence, opportunity sense sensitivity and analytical skills.

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Entrepreneurship Development Policy of Bangladesh

More than three decades have passed since Bangladesh achieved independence after

bloody liberation war. The liberation generated great hope for accelerated economic

growth through rapid industrialization. The successive governments in power in order to

guide the emerging entrepreneurs announced Industrial Policies from time to time

keeping in view the changing needs of the country; the first Industrial Policy was

announced in 1972 heavily emphasized the role of public sector dealing as well the role

of private sector. The private sector investment was restricted to the investment of only

Taka 25 lakh ceiling since the announcement of first Industrial Policy. The policy was

revised and changed several times. The last Industrial Policy was announced in 1999. In

this policy the Government reiterated its firm commitment to rapid industrialization and

extended more liberal support services to entrepreneurs and clearly stated in the policy

the role of government which will be facilitator than regulator. The small and cottage

industries were provided with some special incentives. It has been stated that in the next

two decades there will be a 25% contribution to the GDP and also a 20% increase in

employment by the industry sector.

Entrepreneurship Development Process

Major assistance requirements of the new entrepreneurs are worth mentioning while

discussing the entrepreneurial development as a tool of economic growth of a nation.

They need multiple assistance which may be offered in a package form. To set up an

enterprise and run it successfully an entrepreneur need these types of assistance. These

three groups of assistance form an Entrepreneurship Development Cycle. The groups of

assistance are-

Stimulatory

The stimulatory activities comprise entrepreneurial education, provision of

entrepreneurial opportunities and guidance in selecting industries are needed to help

emergence of entrepreneurship in the Society. This support ensures a good supply of

entrepreneurs to start a new venture and develop potentiality to succeed in a venture.

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Supportive

The support activities refer to those which enable the entrepreneurs in setting up and

running the enterprises successfully. They help in mobilizing resources and assistance.

Sustaining

The sustaining activities include efforts which help the entrepreneurs sustain themselves

against the challenges of actual operation.. The entrepreneurship development process is

shown in the following—

Figure: Entrepreneurship Development Process

Factors Influencing the Entrepreneurship Development: problems and prospect

Stimulatoy

Supportive

Sustaining

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Stimulatory Supporting Sustaining1.Entrepreneurial

education

Registration of unit Help modernization

2. Planned publicity for

entrepreneurial

opportunities

Arranging finance Help diversification/

expansion/ substitute

production

3. Identification of

potential

entrepreneurs through

scientific methods

Providing land, shed,

power, water etc.

Additional financing for

full capacity utilization

4. Motivational training

to new entrepreneurs

Guidance of selecting and

obtaining machinery

Deferring repayment/

interest

5. Help and guide in

selecting products and

preparing project

reports

Supply of scarce raw

materials

Diagnostic industrial

extension/ consultancy

source

6. Making available

techno-economic

information and

product profits

Getting licenses/import

licenses

Production units’

legislation/ policy change

7. Evolving local

agencies with trained

personnel for

entrepreneurial

counseling and

promotions

Providing common facilities Product reservation/

creating new avenues for

marketing

8. Availability of local

agencies with trained

personnel for

entrepreneurial

counseling and

promotions

Granting tax relief or other

subsidy

Quality testing and

improving services

9. Organizing

entrepreneurial forum

Offering management

consultancy

Need-based common

facilities centre

10. Help marketing products

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Table: component of Entrepreneurship Development Process

Factors Influencing Entrepreneurship Development

The emergence and development of entrepreneurship is not a spontaneous one but a

dependent phenomenon of economic, social, political, psychological factors often

nomenclature as supporting conditions to entrepreneurship development. For analytical

proposes, these conditions are grouped and discussed under tow categories, this are-

● Economic Factors

Form a strictly economic viewpoint, it can be said that there are some factors which

promote economic development through emergence of entrepreneurship. Some of these

factors are discussed in below-

Capital

Capital is one of the most important prerequisites to establish an enterprise. Availability

of capital facilities the entrepreneur to bring together the land of one, machine of another

and raw material of yet another to combine them to produce goods. Capital is, therefore,

regarded as lubricant to the process of production.

Labor

The quality rather quality of labor is another factor which influences the emergence of

entrepreneurship. It appears that labor problems can be solved more easily than capital

can be created.

Raw-material

The necessary of raw materials hardly needs any emphasis for establishing any industrial

activity and, therefore, its influence in the emergence of entrepreneurship. In absence of

raw materials, neither any enterprise cab be established nor an entrepreneur can be

emerged.

Market

The fact remains that the potential of the market constitutes the major determination of

probable rewards form entrepreneurial function. Thus, it appears that weather or not the

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market is expending and the rate at which it is expanding is the most significant

characteristics of the market for entrepreneurial emergence.

● Non-Economic Factors

Sociologists and psychologists advocate that economic factors may be necessary

conditions, but they are not sufficient condition for the appearance of entrepreneurship.

Some major non-economic factors alleged to influence the emergence of

entrepreneurship can be described below:

Legitimacy of Entrepreneurship

The proponents of non-economic factors give emphasis to the relevance of a system of

norms and values within a socio-cultural setting for the emergence of entrepreneurship.

Social Mobility

Social mobility involves the degree of mobility, both social and geographical, and the

nature of mobility channels within a system. The opinion that the social mobility is

crucial for entrepreneurial emergence is not unanimous.

Marginality

A group of scholars hold a strong view that social marginality also promotes

entrepreneurship. The two preceding factors - the legitimacy of entrepreneurship and

social mobility-largely determine the influence of marginality on entrepreneurship.

Marginality

We also regard security to be a significant factor for entrepreneurship development. This

is reasonable too because if individuals are fearful of losing their economic assets or of

being subjected to various negative sanctions, they will not be inclined to increase their

insecurity by behaving entrepreneurially.

Physical Need

Many entrepreneurial theorists have propounded theories of entrepreneurship that

concentrate specifically upon psychological factors. We consider these theories

separately for that reason-

Need Achievement

To the best of our knowledge, the best known of primarily psychological theories is

David McClelland’s theory of need achievement.

Withdrawal of Status Respects

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Entrepreneurship Development

Economic Factors

Capital

Labor

Raw-material

Market

Legitimacy of Entrepreneurship

Social Mobility

Marginality

Physical Need

Need Achievement

Withdrawal of Status Respects

Non-Economic Factors

Hagen attributed the withdrawal of status respect of a group to the genesis of

entrepreneurship. This very fact led them to the technological progress entrepreneurial

roles.

Factors Influencing Entrepreneurship Development at Glance

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Figure: Factors Influencing Entrepreneurship Development at Glance

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About Barisal Division

Barisal is one of the oldest divisions of Banglasesh. This division is almost

surrounded by the rivers. Megna, Kirtonkhola, Arialkha, Tatulia, Bishkhali,

Kalabodor all are the rivers which are flowing over the Barisal Division. Because

of the surroundings of river, here communication conditions very poor than the

other division of our country. Its total area is 13,297 square kilometer with 125,

12,435 people. It has six districts with 38 Thana and 335 Union. Its geographical

condition is suitable for cultivating most all kind of croups. But for poor

communication and backwardness of mentality of the people, this division is not

seeing the light of high progress. Greater numbers of people in this area are living

behind the poverty line. The hope ward is that the new economic activities are

increased here as well a good number of entrepreneurs are raise up with is a very

short period of time.

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Map: Barisal District

Entrepreneurs’ profile

Mr. Golam Mowla

Mr. Golam Mowla started his business life in1958. After facing various difficulties

he able to made himself as a successful businessman in 1973. Now he is the owner

of the Star Navigation Company and Khaja Dock Yoard Shipping Brothers. He has

also the business of –Flour mill, Share Business with Magnha Petroleum Ltd., South

King Chinese Restaurant. According to the neighbor of Mr. Golam Mowla, he is the

most successful business man in Barisal Metropolitan.

Amir Hossain

Amir Hossain is another successful businessman in Barisal Metropolitan City. He

start his business life form his boyhood. At the beginning he works in different shop

and small organization. In 1988 he basically represents himself as a successful

businessman. Now he is the owner of the Arafat Paints, the leading Hardware Shop

in Barisal Metropolitan City. His paint factory situated at Kali Bari Road. He also

has tow grocery shop in Barisal division. His main product for business is painting

products.

Sazzad Ahmed

In the service life Sazzad Ahmed was a contractor. After come out from his

profession he started the business of Brickfield by taking loan from the Sonali Bank.

He takes risk and be successful in his business. Now he also established a

construction company to build house, school, college, market etc. on contract. His

company is the biggest and the top leading constructing company forms all the other

of the Barisal Division. His office is situated in Cownia, Saban Portti.

Aminul Haque

Aminul Haque was born in 1963 in a very poor family. In his early life his father

was died and from that time he maintaining his whole family. He starts his business

by taking loans from his relative. With his hard work and good judging power he got

success in his grocery business with in a very short time. He established “Juthi

Store” a leading grocery shop in Barisal metropolitan area. After that he established

“Ideal Book Store” at Natun Bazar. Now he is familiar as a successful business man.

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Md. Arifur Rahman

Md. Arifur Rahman was born in 6th March 1980 in his parents’ house which is

located in Rupatoli Housing, Sagardi, Barisal Metropolitan City. He is the owner of

the leading hardware shop named “Jafar Trading” which is located in Chokerpol,

Barisal. He also establishes a construction firm named “Bismillah Traders”. Another

innovative attempt of Md. Arifur Rahman is “Rupali Mom”- a candle factory which

supplied to the whole Barisal Division. He purchase 50% share of “Rupatoli Filling

Station” which is the most popular filling station for the buses of Rupatoli Bus

Station. He is successful both in his business and congenial life.

Litu Rahman

Litu Rahman was born in Kaunia Branch Road, Barisal Sadar in 7th January 1961. he

interested in doing business during student life. His capital in the first business was

almost Tk. 25,000 in his first business. The “Famous Bakery” is a name of bakery

industry of Barisal which represents itself with its own name. “Famous Bakery” is

unique with its quality and purified. Litu Rahman also established a shoe producing

firm named “Rahman Shoes”. In future he wants to establish a plant in order to

produce other consumer products like semai, nudles, beverages, chocolates,

international standard biscuits, ice-cream etc.

Md. Hanif

Md. Hanif is renowned as a successful businessman because of his “Hanif

Enterprise”. He born in a rich family and proper utilization of his money and bank

loan he starts his business. At the beginning he founds a lots of problems and

difficulties running his business. His hard working mentality, creativity, positive

thinking power all helps him to be the most successful business man in National

stage.

Kazi Mohiuddin

Another successful businessman of Barisal Metropolitan City is Kazi Mohiuddin.

He is the owner of the superstore, which is situated at Chockbazar. His superstore’

name is Kazi Store. In his store all kind of necessary goods like- food, vegetable,

packet product, fish, poultry, flash, electronic goods etc. He has another two small

cloth store in Bakergong Upazilla.

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Analysis of their information

Every entrepreneur who is survey has the same opinion that every business is

affected by various factors. Not only the new venture but also the existing business

is highly affected by various factors. Some time the affect is favorable and some

time it would be worse. But according to them in business the most important term

is opportunity. If a businessmen can utilize the opportunity factors then the success

must be stay on his hand.

There are mainly two types of factors in business and the entire factors have the

direct or the indirect impact on the raise of new entrepreneur as well as on the

existing. Economic factors have the direct impact on the business and its analysis is

very mush necessary before start of a new venture. On the other hand, non-economic

are have mainly the indirect impact on the business. But some time according to the

location some indirect factors behave as the direct factors. The impact on both direct

and the indirect factors are analyzed on our surveyed entrepreneur.

The affect of both economic and the non-economic factors on their business is

analyzed below-

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Economic Factors

Factors

[

Factor affects Total High medium Average low

01. Capital4 3 1 0 8

50% 37.5% 12.5% - 100%

02. Labor2 3 2 1 8

25% 37.5% 25% 12.5% 100%

03. Raw-material3 5 0 0 8

37.5% 62.5% - - 100%

04. Market3 2 2 1 8

37.5% 25% 25% 12.5% 100%

Table: affects of economic factor in entrepreneurship development

Hifh Medium Avarage Low0

10

20

30

40

50

60

70

Affects of Economic Factor

1234

Factors

Perc

enta

ge (%

)

Graph: affects of economic factor in entrepreneurship development

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22

Non-Economic Factors

Factors Factor affects

Total High medium Average low

01. Legitimacy of Entrepreneurship

8 0 0 0 8

100% - - - 100%

02. Social Mobility

3 4 1 0 8

37.5% 50% 12.5% - 100%

03. Marginality3 5 0 0 8

37.5% 62.5% - - 100%

04. Physical Need

5 1 1 1 8

37.5% 12.5% 12.5% 12.5% 100%

05. Achievement6 2 0 0 8

62.5% 25% - - 100%

06. Withdrawal of

Status Respects

4 3 1 0 8

50% 37.5% 12.5% - 100%

Table: affects of non-economic factor in entrepreneurship development

High Medium Average Low

1 100 0 0 0

2 37.5 50 12.5 0

3 37.5 62.5 0 0

4 37.5 62.5 0 0

5 62.5 25 0 0

6 50 37.5 12.5 0

1030507090

110

Affect of Non -Economic Factor

1 2 3 4 5 6

Factors

Perc

enta

ge (%

)

Graph: affects of economic factor in entrepreneurship development

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Analysis Regarding Economic and Non-Economic Factors

According to our survey over the eight entrepreneurs we found that, most of them

are highly concern about the economic factor and it effect on business. Even though,

they have the poor knowledge about the non-economic factors. According to them

the impact of capital, raw-material, market, credit etc. are unlimited in their business

but they are not highly concern about the impact of the non-economic factors such

as- Withdrawal of Status Respects, achievement, marginality, social mobility,

legitimacy of entrepreneurship etc.

We find out through our survey that- capital is the main and the prime factor which

affect the business. In the initial or the beginning of a new business the importance

of capital is first and prime. Capital is the life blood of the all kind of business.

Raw-material is the important factor which affects the business directly. Shortage of

the row-material can destroy a established business within a very short time. Some

the favorability of raw-material can expand the business.

Identify the market where business is running is another important issue for an

entrepreneur. Proper analysis of surrounding market is another important issue

before starting a business. So this fact is considered as another vital factor.

Problems Associated With Entrepreneurship Development

As against the favorable factors, entrepreneurship development is faced with many

problems. By discussing with the entrepreneur of Barisal Metropolitan we find some

problems which are need to reduce. The problems are discussed below-

01. The absence of clear cut policy decisions, particularly for the new entrepreneur.

02. Lack of adequate financial support to set up or proper maintenance of the

business, particularly the new one.

03. Lack of short term credit to maintain the business properly as well as fulfill the

needs of necessary.

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24

04. Poor judgment about the market condition as well as the demand of the

customer.

05. In Barisal district communication problem is the greater problem. So it is riskier

to establish a business with such risk.

06. Identification of a suitable location is another problem to establishment of a new

business.

07. For business necessary many time product are sale on credit and in the mean

time the entrepreneur are unable to receive their money. As a result a lot of

established businesses in Barisal Division are being closed.

08. Political problem is another problem in making business smooth.

09. Because of poor communication most of the time the raw materials are not reach

to the production house at the proper time, so production or selling of the

necessary product are hampered.

10. The life leading standard of the general people is very poor in this division. As a

result the new entrepreneurs are not willing to setup their business in this

division.

11. Lack of training facilities through institutional measures, absence of

entrepreneurial educational various professional and business courses.

12. Lack of awareness of the facilities and incentives offered by the government

among small entrepreneur.

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25

Problems Faced by the Entrepreneurs

Factors Influencing the Entrepreneurship Development: problems and prospect

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26

problems

Problem affectsTotal

High medium Average low

01. Poor Government policy

2 4 1 1 8

25% 50% 12.5% 12.5% 100%

02. Financial support

4 2 2 0 8

50% 25% 25% - 100%

03. Bank credit & loans

3 3 1 1 8

37.5% 37.5% 12.5% 12.5% 100%

04. Market

instability

4 4 0 0 8

50% 50% - - 100%

05.communication 2 4 1 1 8

25% 50% 12.5% 12.5% 100%

06. location

analysis

1 4 2 1 8

12.5% 50% 25% 12.5% 100%

07. Sales on

credit

5 3 0 0 8

62.5% 37.5% - - 100%

08. Political

Problem

2 2 3 1 8

25% 25% 37.5% 12.5% 100%

09. Raw-material6 2 0 0 8

75% 25% - - 100%

10. Lack of

training

3 3 1 1 8

37.5% 37.5% 12.5% 12.5% 100%

11. Inflation

Problem

5 2 1 0 8

62.5% 25% 12.5% - 100%

12. Standard of

living

2 3 3 1 8

25% 37.5% 37.5% 12.5% 100%

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Government policy

Financial support

Bank loans Market in-stability

Communica-tion

location analysis

Sales on credit

Political Problem

Raw-material Lack of train-ing

Inflation Standard of living

High 25 50 37.5 50 25 12.5 62.5 25 75 37.5 62.5 25

Medium 50 25 37.5 50 50 37.5 37.5 25 25 37.5 25 37.5

Average 12.5 25 12.5 0 12.5 12.5 0 12.5 0 12.5 12.5 37.5

Low 12.5 0 12.5 0 12.5 12.5 0 12.5 0 12.5 0 12.5

5

15

25

35

45

55

65

75 Problems Faced by the EntrepreneurHigh

Medium

Average

Low

Perc

enta

ge (%

)

Graph: Problems Faced by the Entrepreneurs

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28

Analysis Regarding Problems Faced by the Entrepreneurs

According to our survey we found that a lot of problems are associated in the way of

entrepreneurship development in our country. We find out that the most major and the

prime problems are - Poor Government policy, financial support, bank credit & loans,

market instability, communication, location analysis, sales on credit, political problem,

raw-material, lack of training, inflation problem, Standard of living etc.

Most of the entrepreneurs of Barisal Metropolitan Area are believe that, initial capital is

the main problem to start a business. If proper loan and adequate financial support is easy

to receive from both Government and Private sector, then the number of entrepreneur

would be increased in here. It also provides enough support for a established business to

continue their business properly.

Instability in market is another vital problem and the entrepreneurs are some time fail to

adjust between the selling prices with the purchasing price. According to them, poor

communication is one of the prime problems in this area and a good number of

entrepreneurs are setup their business outside this division because of the poor

communication.

Raw-material shortage or price increase are the common problem in the market because

out market is not stable and such reason smooth business operation is hampered. Credit a

sale is must for the business. But limitless credit sales some time bound the entrepreneur

to close their business.

A good number of new entrepreneur are fail to continue their business because of this

problem. Political problem, corruption, inflation all the common phenomenon is the way

of development of the development.

More than 56% people in Barisal Division are live in under the poverty line and their

general living standard is also poor. So in overall, the new entrepreneurs are intended to

invest in there because of this problem. Our surveyed entrepreneur comments that, “In

Barisal Division big investment is highly riskier and for this reason the growth of

entrepreneur is very low”.

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Importance of Training to Develop Entrepreneurs

Entrepreneurship development programmes require a selection process that attempts to

identify those target groups that have some of the key prerequisites for entrepreneurial

success. Training is basically a new concept for the entrepreneur to be success in their

business. Some important issue are discussed below which represents the importance of

training to develop the skill of the entrepreneur.

● Training is a must to run the existing enterprises to enhance its profitability.

● Training is needed for the profitability development of an enterprise.

● Without proper training an enterprise cannot be a successful firm.

● No financial institution should finance in any enterprise without the prior training to the

entrepreneurs for the start of an enterprise.

● Training makes a matching to the entrepreneurs to manufacture the quality products and

also makes the entrepreneurs successful in the global market in comparison with the

hard competition of marketing of their products.

● Training is a must for a new entrepreneur existing entrepreneur and also for the

entrepreneurs when they will try to Balancing Modernization and extension (BMRE) of

their enterprises.

● So, We all take it in our mind that for the successful achievement of an enterprise we

are to arrange the training facilities to the beneficiaries through which entrepreneurs

will become a successful entrepreneur. Training makes an entrepreneur perfect for his

enterprise development.

In Bangladesh we have given much more importance on the training in the public and

private sector for the SME development. We SMIDO have developed a training module

name and title “appropriate approach and technique to sellout the SME products” to raise

SME’s capital in the home for their better achievement. We have made it a model training

program for the entrepreneurs for marketing of their products and also for the

mobilization of the enterprises capital with successful manure.

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Why Entrepreneurship Develop is Important for Our Country

Bangladesh, the poorest among the developing countries, needs entrepreneurs in number,

and also in the quality and in time. There are two aspects of entrepreneurship

development in Bangladesh.

First, whether resource endowments, material and human, are available in Bangladesh for

the development of Entrepreneurship. So for the proper utilization of those resources we

need entrepreneur.

Second, In our domestic market there is a great need for the quality necessary product

but, so new entrepreneur have the opportunity to make business quickly in this necessary

sector and provide people quality product.

Third, a good number of graduates of our country are totally unemployed and they found

no source of income. They have the great opportunity to make a business with their own

effort and reduce the pressure of unemployment over the country.

Fourth, if entrepreneur will come in with a great force then competition will be arise

among the businessmen and as a result monopoly in different sector will be reduce and

the product quality would be better.

Fifth, our countries GDP growth is very low because of low economic activity. If the

number of new entrepreneur is increased then the economic condition also be improved

which help the wheel of economy to run smooth.

Sixth, new market would be build up if economic activity increases day by day. For the

fulfillment of the recent demand of the customer most of the time market expand its

product and as a whole market area and operation increased.

Seventh, if the number of entrepreneur increased side by side the economic operation is

also increased. So a great number of people get opportunity to involve with the work and

the number of unemployment is decreased. As a the poverty line would chance to

decreased.

Finally, the main goal of the developing country to develop the standard of living.

Through the increase of the number of entrepreneur in overall the standard of living

would be improved.

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31

Prospects of Entrepreneur in Barisal Metropolitan Area

Barisal is one of the oldest metropolitan cities of Bangladesh which is associated with

river. Because of surrounding by river its communication condition is very poor. On the

other hand this river also provides a magnificent water route for both transportation and

business. Business man can easily transfer or receive their product by using the water

route. Now this division need new entrepreneur because of fulfilling the demand of the

general people, need for the new market, improving the standard of living, improving the

overall economic condition of the city.

Map: Barisal Metropolitan City

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32

But the expected numbers of entrepreneur are not coming out form this division. The discussed economic and the non economic problem are the main cause of the lack of entrepreneur. After having ability some time the general people are not want to be an entrepreneur because of backward mentality and unwillingness to take risk. Some people are not willing to make a new venture because of the fair of future unfavorable situation. According to our survey, we see that there stay high prospect for the new entrepreneur who want to start business.

As a metropolitan city, Barisal does able to provide all sort of necessary and luxurious

facility for its people. This division has not too many standard restaurants, shopping

mall, super market, industries, or other necessary business firm. So for the new

entrepreneur it is a great opportunity to start a totally new business on this sector. All of

these sectors are associated with high gain and risk.

Proper analysis on every facts and factors, risk analysis, market analysis, profitability

analysis all are highly necessary. Choice of the appropriate location is another vital fact

for starting a new venture. In overall analysis if it is found that all facts found are

favorable then the new entrepreneur can start the venture. Barisal is associated with the

river so there stay a great opportunity to start the business in Launch. Good number of

entrepreneur being successful by doing the business of lunch. So the new can take the

opportunity.

From the all metropolitan city Barisal Divisions most (56%) of the people live below the

poverty line. Good number of people are unemployed who are gradates. So this educated

gradates have great opportunity to start business. Own small effort one day bring out

success. There stay a lot of example in this regard. So for the development of the Barisal

Metropolitan it is the time to rise up the number of the entrepreneur.

Conclusion

A worldwide consensus on the critical role of competitive markets and entrepreneurs in economic development has emerged in the last decade. In developing countries, the primary barrier to economic growth is often not so much a scarcity of capital, labor or land as it is a scarcity of both the dynamic entrepreneurs that can bring these together and the markets and mechanisms that can facilitate them in this task. Entrepreneurship development programmes have often been too ambitious in terms of geographical areas covered and number of entrepreneurs targeted. If the new entrepreneur consider all the facts and problems with foresight then they will reduce or remove all the problems in their way of development.

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Factors Influencing the Entrepreneurship Development: problems and prospect