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

1

Report on Factors Influencing Entrepreneurship Development In Barisal Metropolitan City: Problems and Prospect

PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY Factors Influencing Entrepreneurship Development in Barisal Metropolitan City: Problems and Prospect Factors Influencing the Entrepreneurship Development: problems and prospect

SUBMITTED TO

Muhammad Mizanoor Rahman Howlader Lecturer Department of Marketing Faculty of Business Administration and Management

SUBMITTED BY Group: 06 (Warrior) Level-3, Semester-II Faculty of Business Administration and Management

Name of the students

Reg. No.

Roll No.

Md. Kamruzzaman (L)

00660

001

Abu Zafour

00680

021

K.M. Asaduzzaman

00665

006

Entrepreneurship and Small Business Course Code: MST 326

SUBMISSION DATE: November 10, 2008

PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY

Table of Contents Factors Influencing the Entrepreneurship Development: problems and prospect

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

26

References

27

Factors Influencing the Entrepreneurship Development: problems and prospect

Letter of Transmittal Date: 10 November 2008 To Muhammad Mizanoor Rahman Howlader Lecturer Department of Marketing Faculty 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-II Faculty of Business Administration and Management Patuakhali Science and Technology University Factors Influencing Entrepreneurship Development in Barisal Metropolitan City: Problems and Prospect [A SURVEY STUDY IN BARISAL METROPOLITAN CITY AREA]

Factors Influencing the Entrepreneurship Development: problems and prospect

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 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 Factors Influencing the Entrepreneurship Development: problems and prospect

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 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 aboutFactors Influencing the Entrepreneurship Development: problems and prospect

1. Entrepreneurship Development Policy of Bangladesh 2. Entrepreneurship Development Process 3. Factors Influencing Entrepreneurship Development 4. Problems Associated With Entrepreneurship Development 5. Importance of Training to Develop Entrepreneur 6. 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 01.Mr. Golam Mowla 02. Md. Arifur Rahman

Owned Enterprises Star Navigation Company and Khaja Dock Yard Shipping Brothers Jafar Trading, Bismillah Traders, Rupali

03. Sazzad Ahmed

Mom, Rupatoli Filling Station 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 08. Kazi Mohiuddin

Hanif Enterprise Kazi Store, Rahman Cloth Store

Sampling plan 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 Factors Influencing the Entrepreneurship Development: problems and prospect

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. 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 Factors Influencing the Entrepreneurship Development: problems and prospect

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, selfdevelopment techniques, improving precision skill etc. Other objectives are concerned with building self-confidence, opportunity sense sensitivity and analytical skills.

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 Factors Influencing the Entrepreneurship Development: problems and prospect

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 areStimulatory 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.

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

Stimulatory

Supporting

Sustaining

1.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, power, water etc.

shed, Additional financing for full capacity utilization

4. Motivational training to new entrepreneurs

Guidance of selecting and Deferring repayment/ obtaining machinery interest

5. Help and guide in selecting products and preparing project reports

Supply of materials

6. Making available techno-economic information and product profits

Getting licenses

7. Evolving local agencies with trained personnel for entrepreneurial counseling and promotions

Providing common facilities Product reservation/ creating new avenues for marketing

scarce

raw Diagnostic industrial extension/ consultancy source

licenses/import Production units’ legislation/ policy change

Factors Influencing the Entrepreneurship Development: problems and prospect

8. Availability of local agencies with trained personnel for entrepreneurial counseling and promotions

Granting tax relief or other Quality testing and subsidy improving services

9. Organizing entrepreneurial forum

Offering consultancy

10.

Help marketing products

management Need-based common facilities centre

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 belowCapital 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 Factors Influencing the Entrepreneurship Development: problems and prospect

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 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 Factors Influencing the Entrepreneurship Development: problems and prospect

Many entrepreneurial theorists have propounded theories of entrepreneurship that concentrate specifically upon psychological factors. We consider these theories separately for that reasonNeed 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 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

Factors Influencing the Entrepreneurship Development: problems and prospect

15

Figure: Factors Influencing Entrepreneurship Development at Glance

Factors Influencing the Entrepreneurship Development: problems and prospect

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.

Map: Barisal District Factors Influencing the Entrepreneurship Development: problems and prospect

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. Factors Influencing the Entrepreneurship Development: problems and prospect

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, Factors Influencing the Entrepreneurship Development: problems and prospect

packet product, fish, poultry, flash, electronic goods etc. He hasanother two small cloth store in Bakergong Upazilla. 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-

Factors Influencing the Entrepreneurship Development: problems and prospect

Economic Factors [

Factors

Total

Factor affects

01. Capital

02. Labor

03. Raw-material

04. Market

High

medium

Average

low

4

3

1

0

8

50%

37.5%

12.5%

-

100%

2

3

2

1

8

25%

37.5%

25%

12.5%

100%

3

5

0

0

8

37.5%

62.5%

-

-

100%

3

2

2

1

8

37.5%

25%

25%

12.5%

100%

Table: affects of economic factor in entrepreneurship development

Graph: affects of economic factor in entrepreneurship development Non-Economic Factors Factors 01. Legitimacy of Entrepreneurship

Factor affects

Total

High

medium

Average

low

8

0

0

0

8

100%

-

-

-

100%

Factors Influencing the Entrepreneurship Development: problems and prospect

02. Social Mobility 03. Marginality

04. Physical Need 05. Achievement 06. Withdrawal of Status Respects

3

4

1

0

8

37.5%

50%

12.5%

-

100%

3

5

0

0

8

37.5%

62.5%

-

-

100%

5

1

1

1

8

37.5%

12.5%

12.5%

12.5%

100%

6

2

0

0

8

62.5%

25%

-

-

100%

4

3

1

0

8

50%

37.5%

12.5%

-

100%

Table: affects of non-economic factor in entrepreneurship development

Graph: affects of economic factor in entrepreneurship development

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. Factors Influencing the Entrepreneurship Development: problems and prospect

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 below1. The absence of clear cut policy decisions, particularly for the new entrepreneur. 2. Lack of adequate financial support to set up or proper maintenance of the

business, particularly the new one. 3. Lack of short term credit to maintain the business properly as well as fulfill the

needs of necessary.

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

customer. 5. In Barisal district communication problem is the greater problem. So it is riskier

to establish a business with such risk. 6. Identification of a suitable location is another problem to establishment of a new

business. 7. 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. 8. Political problem is another problem in making business smooth. 9. 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. Factors Influencing the Entrepreneurship Development: problems and prospect

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.

Problems Faced by the Entrepreneurs Problem affects problems 01. Poor Government policy 02. Financial support

03. Bank credit & loans

Total

High

medium

Average

low

2

4

1

1

8

25%

50%

12.5%

12.5%

100%

4

2

2

0

8

50%

25%

25%

-

100%

3

3

1

1

8

37.5%

37.5%

12.5%

12.5%

100%

Factors Influencing the Entrepreneurship Development: problems and prospect

24

04. Market instability 05.communication

06. location analysis 7. Sales on credit 08. Political Problem 09. Raw-material

10. Lack of training 11. Inflation Problem 12. Standard of living

4

4

0

0

8

50%

50%

-

-

100%

2

4

1

1

8

25%

50%

12.5%

12.5%

100%

1

4

2

1

8

12.5%

50%

25%

12.5%

100%

5

3

0

0

8

62.5%

37.5%

-

-

100%

2

2

3

1

8

25%

25%

37.5%

12.5%

100%

6

2

0

0

8

75%

25%

-

-

100%

3

3

1

1

8

37.5%

37.5%

12.5%

12.5%

100%

5

2

1

0

8

62.5%

25%

12.5%

-

100%

2

3

3

1

8

25%

37.5%

37.5%

12.5%

100%

Factors Influencing the Entrepreneurship Development: problems and prospect

25

Graph: Problems Faced by the Entrepreneurs

Factors Influencing the Entrepreneurship Development: problems and prospect

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”.

Factors Influencing the Entrepreneurship Development: problems and prospect

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. Why Entrepreneurship Develop is Important for Our Country Factors Influencing the Entrepreneurship Development: problems and prospect

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.

Factors Influencing the Entrepreneurship Development: problems and prospect

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

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 Factors Influencing the Entrepreneurship Development: problems and prospect

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 riseup 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

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