Overcoming entrepreneurship development constraints: the case of Bangladesh

Abstract

PurposeThis study aims to investigate the constraints that entrepreneurs face in small and medium enterprises (SMEs) in Bangladesh and suggests measures to remove the constraints to entrepreneurship development.Design/methodology/approachSurvey data were collected from 60 entrepreneurs to investigate problems and evaluate the effectiveness and relevance of the government policies and programs as perceived by the entrepreneurs. Secondary data were also used for this purpose.FindingsThe findings indicated that to the extent that the political stability and rule of laws were enforced, infrastructure facilities were improved, and corruptions were rooted out, education and training were imparted, and financial help was provided, new and energetic entrepreneurs, for the development of SMEs, would emerge in the country.Research limitations/implicationsThis study implies that a positive environment through encouragement and positive reinforcement of a stable socio‐political climate for a sound market economy and specialized schools of entrepreneurs will foster a positive climate for the development of SMEs in Bangladesh. The limitations of the study are that it does not concentrate on a particular company type and does not include a region comprising many cities.Originality/valueBuilt on theories and researches on entrepreneurship, this paper captures the essence of identification of the constraints facing entrepreneurs and facilitating the identification of implementable strategies and approaches necessary for the promotion and strengthening of entrepreneurship in Bangladesh, thus constituting an aid to the policy makers, researchers, and businesses for improving the various aspects of entrepreneurship in Bangladesh in particular and in developing countries in general. Further research can be undertaken in this direction.

The Interrelated Nexus of Indigenous Economic Growth and Small Business Development: Do Local Culture, Government Role, and Entrepreneurial Behavior Play the Role?

“…In concordance with the supportive entrepreneurial behavior on business performance, according to Chowdhury (2007), the political stability, law enforcement, improvement of infrastructure, corruption eradication, and economic assistance provided, will foster a positive climate for business development. The government assistance to small businesses through the improvement and development of infrastructure, education and training, and financial assistance is the basic condition to flourish on the conducive-entrepreneurship environment.…”

Success Factors of Entrepreneurs of Small and Medium Sized Enterprises: Evidence from Bangladesh

“…A host of factors such as lack of long-term capital (Chowdhury and Amin, 2011), limited personal and family savings (Mintoo, 2006), limited access to market (Keh, Nguyen and Ng, 2007;Mead and Liedholm, 1998;Swierczek and Ha, 2003), technology (Gundry, Ben-Yoseph and Posig, 2002;Gibbons and O'Connor, 2003) and information (Singh and Krishna, 1994;Duh, 2003;Kriestiansen, 2002) have been found to be impeding the success of entrepreneurs of small and medium enterprises of Bangladesh. Personal and political enmity between political rivals, frequent haratal (strikes), lack of respect for elementary principles of democratic governance have become the principal characteristics of political system of the country (Chowdhury, 2007). A series of prolonged haratal and labor unrest at garment factories affect the socio-economic and political condition of the country.…”

“…For example (Begum, 1993) reports lack of government efforts and incentives. Several studies (Camp and Anderson, 2000;Chowdhury, 2007;McDowell, 1997) report absence of adequate infrastructure facilities. Some study (Quddus and Rashid, 2000) reports myriad of bureaucratic obstacles that entrepreneurs face in their quest to start a business.…”

“…Moreover, though the promotion of SMEs development has been a stated objective of successive governments of Bangladesh since 1947, they have not been able to unleash entrepreneurial talents and enhance their success to increase productivity throughout the economy (Chowdhury, 2007).…”

“…Also, numerous studies (Chowdhury, 2007;Larsen and Lewis, 2007;McDowell, 1997;Prahlad, 2004;Mintoo, 2006) have revealed the relationship of entrepreneurial success to environmental factors such as political environment, government, infrastructure, technology etc. Cooper (1985) reported three factors responsible for entrepreneurial development and success at the grass root level.…”