Economic Factors behind Social Entrepreneurship in Bangladesh

Abstract

Bangladesh has pool of entrepreneurs whereas there are also new establishments; new employment opportunities and so are the income sources. For the better measurement of entrepreneurship characteristics, the growth and different indicators impact on entrepreneurship needs to be identified. Thus this paper tries to find out the key economic indicators of entrepreneurship in the context of Bangladesh. The research is based on secondary research; has used entrepreneurship as a dependent variable proxied by self-employment and seven independent variables—per capita income, unemployment rate, labor force, industrial structure change, capital, human capital and literacy rate. Two regression models have been used encompassing the stated variable data from year 2008 to 2018. In the first regression analysis it has been tried to identify whether the model can be constructed with the overall economic variables with the self employment. At second regression model it has been tried to find out whether there is the explain ability of the variables result in the regression analysis and what is the degree and pattern of the relationship. The research shows that literacy rate and human capital have aligned with the self employment. But all the other variables are not matched with the self employment and could not provide the support for self employment to thrive. And the linear regression analysis shows that per capita income, labor force and literacy rate play the most important role in case of nourishing self employment. Unemployment rate is found as contradictory with the findings in the context of Bangladesh.