Entrepreneurship Development
http://www.reportbd.com/articles/184/1/Entrepreneurship-Development/Page1.html
ANUPAM BARUA
ANUPAM BARUA http://M.com, MBA,FCMA Present: DGM- Accounts & Finance SILIVIA Group Past: AGM-Accounts & Finance MEGHNA Group Head of Finance KDS Group By ANUPAM BARUA
Published on 31 August 2009
Entrepreneurship Development Is the Precondition of Economic Development. Abstract
Entrepreneurship and economic development are intimately related. So,
that entrepreneurial process is a major factor in economic development
and the entrepreneur is the key to economic growth.
Definitions of an Entrepreneur, Inception, Nature & Background of Entrepreneurship
ABSTRACT
1. INCEPTION PAGE-3
2. NATURE PAGE-3
3. DEFINITION PAGE-3
4. HISTORICAL BACKGROUND PAGE-3
5. THE ENTREPRENEUR, FEATURES AND CONTRIBITIONS PAGE-4
6. ECONOMIC DEVELOPMENT PAGE-5
7. ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT PAGE-5
8. ENTREPRENEURSHIP ASPECTS OF DEVELOPMENT PAGE-6
9. DEVELOPMENT FUNCTION OF AN ENTREPRENEUR PAGE-7
10. ENTREPRENEUR & ENTREPRENEURHIP-BANGLADESH PERSPECTIVE PAGE-7
11. ENTREPRENEUR vs. MANAGER RELATIONSHIP PAGE-8
12. NEW VENTURE CREATION: ENTREPRENEURS PAGE-8
13. IMPORTANCE & WEAKNESSES OF ENTREPRENEURSHIP DEVELOPMENT IN BANGLADESH PAGE-10
14. ENTREPRENEURSHIP DEVELOPMENT PROCESS PAGE-11
15. CONCLUSION PAGE-12
REFERENCES
Abstract
Entrepreneurship and economic development are intimately related. So, that entrepreneurial process is a major factor in economic development and the entrepreneur is the key to economic growth. Whatever be the form of economic and political set-up of the country, entrepreneurship is indispensable for economic development. Entrepreneurship is an approach to management that can be applied in start-up situations as well as within more established businesses.
1. INCEPTION
Entrepreneurship is the study of taking calculative risks in both creating new enterprise and managing as enterprise when already created requiring effective operation. Other, an entrepreneur is a person who starts an enterprise, searches for change and responds to it. Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities.
2. NATURE
1. It should be combination of current & potential changes with over the enterprise along with business environment.
2. It has a strategic decision.
3. It should facilitate & foster strategic thinking of change with financial impact.
3. DEFINITION
Entrepreneurship is an entity of people with the ability to see an opportunity where necessary capital, labor & other inputs operating together & successfully along with know-how skill and have willingness to take the personal risk of success or failure.
Definitions of an Entrepreneur
Richard Cantillon: An entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.
4. HISTORICAL BACKGROUND:
The word itself, derived from 17th century French ‘Entreprendre’, refers to individuals who were undertakes meaning those who ‘undertake’ the risk of new enterprise. Early references to the enterprendeur in the 14th century spoke about tax contractors-individuals who paid a fixed sum of money to a government for the license to collect taxes in their region. In this way, entrepreneurship was a common topic in economic essays for much of the 18th and 19th centuries.
1. INCEPTION PAGE-3
2. NATURE PAGE-3
3. DEFINITION PAGE-3
4. HISTORICAL BACKGROUND PAGE-3
5. THE ENTREPRENEUR, FEATURES AND CONTRIBITIONS PAGE-4
6. ECONOMIC DEVELOPMENT PAGE-5
7. ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT PAGE-5
8. ENTREPRENEURSHIP ASPECTS OF DEVELOPMENT PAGE-6
9. DEVELOPMENT FUNCTION OF AN ENTREPRENEUR PAGE-7
10. ENTREPRENEUR & ENTREPRENEURHIP-BANGLADESH PERSPECTIVE PAGE-7
11. ENTREPRENEUR vs. MANAGER RELATIONSHIP PAGE-8
12. NEW VENTURE CREATION: ENTREPRENEURS PAGE-8
13. IMPORTANCE & WEAKNESSES OF ENTREPRENEURSHIP DEVELOPMENT IN BANGLADESH PAGE-10
14. ENTREPRENEURSHIP DEVELOPMENT PROCESS PAGE-11
15. CONCLUSION PAGE-12
REFERENCES
Abstract
Entrepreneurship and economic development are intimately related. So, that entrepreneurial process is a major factor in economic development and the entrepreneur is the key to economic growth. Whatever be the form of economic and political set-up of the country, entrepreneurship is indispensable for economic development. Entrepreneurship is an approach to management that can be applied in start-up situations as well as within more established businesses.
1. INCEPTION
Entrepreneurship is the study of taking calculative risks in both creating new enterprise and managing as enterprise when already created requiring effective operation. Other, an entrepreneur is a person who starts an enterprise, searches for change and responds to it. Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities.
2. NATURE
1. It should be combination of current & potential changes with over the enterprise along with business environment.
2. It has a strategic decision.
3. It should facilitate & foster strategic thinking of change with financial impact.
3. DEFINITION
Entrepreneurship is an entity of people with the ability to see an opportunity where necessary capital, labor & other inputs operating together & successfully along with know-how skill and have willingness to take the personal risk of success or failure.
Definitions of an Entrepreneur
Richard Cantillon: An entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.
4. HISTORICAL BACKGROUND:
The word itself, derived from 17th century French ‘Entreprendre’, refers to individuals who were undertakes meaning those who ‘undertake’ the risk of new enterprise. Early references to the enterprendeur in the 14th century spoke about tax contractors-individuals who paid a fixed sum of money to a government for the license to collect taxes in their region. In this way, entrepreneurship was a common topic in economic essays for much of the 18th and 19th centuries.
Role of Entrepreneur in Economic development of Bangladesh
5. THE ENTREPRENEUR, FEATURES AND CONTRIBITIONS:
Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. So, they have many of the same character traits as leaders. Similarly to the early great man theories of leadership:
Features of entrepreneur/(ship):
• An entrepreneur is usually a positive thinker and a decision maker.
• The entrepreneur promotes the vision with enthusiastic passion.
• He can takes the initial responsibility to cause a vision to become a success.
• He can also take prudent risks.
Contributions of Entrepreneurs
1. Develop new markets.
Entrepreneurs are resourceful and creative. They can create customers or buyers which makes entrepreneurs different from ordinary businessmen to perform traditional functions of management.
2. Discover new sources of materials.
Due to their innovative nature, Entrepreneurs persist on discovering new sources of materials to improve their enterprises and enjoy a comparative advantage in terms of supply, cost and quality.
3. Mobilize capital resources.
Entrepreneurs are the organizers and coordinators of the major factors of production, such as land labor and capital. They properly mix these factors of production to create goods and service with initiative and self-confidence in accumulating and mobilizing capital resources.
4. Introduce new technologies, new industries and new products.
Entrepreneurs can introduce something new or something different through entrepreneurial spirit. Every year, there are new technologies and new products. All of these are intended to satisfy human needs in more convenient and pleasant way.
5. Create employment.
The biggest employer is the private business sector. Millions of jobs are provided by the factories, service industries, agricultural enterprises, and the numerous small-scale businesses. So, the entrepreneurs can increases demand for goods and services as well as more employment.
6. ECONOMIC DEVELOPMENT
Economic development is the development of economic wealth of countries or regions for the well-being of their inhabitants. The term economic development on the other hand, implies much more. It typically refers to improvements in a variety of indicators such as literacy rates, life expectancy, and poverty rates. The term "economic development" is often used in a regional sense as well. In this sense, economic development focuses on the recruitment of business operations to a region, assisting in the expansion or retention of business operations within a region or assisting in the start-up of new businesses within a region.
ENVIRONMENTAL SUSTAINABILITY
An important aspect of sustainability is related to the environment which is perhaps more immediately understandable. The setting up of new business enterprises or the support of economic growth must take the impact of production activity into account, both in terms of the pollution produced and resources consumed. So, Environmental sustainability may today make use of certain operating tools which are also spreading at local level to improve the environment of community life.
SOCIAL SUSTAINABILITY
Social sustainability is also obviously linked to economic sustainability. . It has already been indicated as one of the factors behind the development of social economy. The goal of equality and equal opportunities for access to resources and work for the various social groups, even those most socially disadvantaged or with skills which are have less market demand, is a goal of a "political" nature, and as such should be defined and carried out differently in each country. Some phenomena however seem, at least tendentiously, to be common to all countries.
7. ECONOMIC DEVELOPMENT OF BANGLADESH
The major objectives of planned development have been increased national income, rural development, self-sufficiency in food, and increased industrial production. However, progress in achieving development goals has been slow. Political turmoil and untamed natural hazards of cyclone and flooding have combined with external economic shocks to persistently derail economic plans. Bangladesh's first five-year plan (1973–78) aimed to increase economic growth by 5.5% annually, but actual growth averaged only 4% per year. A special two-year plan (1978–80), stressing rural development, also fell short of its projected growth target, as did the second five-year plan (1980–85), which targeted 7.2% annual growth. The third five-year plan (1985–90) had a5.4% annual growth target though only 3.8% was actually achieved. In 1991, with the reinstitution of elected government, a new economic program was initiated that included financial sector reform and liberalization measures to encourage investment, government revenue improvement efforts, and tight monetary policy.
• Political turmoil from 1994 to 1996 helped reduce the final average annual growth rate under the Fourth Five Year Plan (1990–1995) to 4.15% albeit the best performance so far under an economic plan. The 1996 elections brought renewed economic stability. Exports grew 14% 1996, and GDP growth for 1996/97 rose to 5.5% as the economy rebounded. Floods during 1998 and 1999 caused some economic slowdown but this was balanced by unprecedented growth in gas production and electricity production sectors. Average annual GDP growth under the Fourth Five-Year Plan rose to 5.3%.
• Fiscal year 2000 was marked by a sharp increase in monetary expansion due to unprecedented borrowing from the banking sector (though the sale of treasury bills) to cover budget shortfalls due. Domestic borrowing increased primarily due to the reduced availability of external concessional financing. Historically, Bangladesh has received foreign aid disbursements equivalent to about 6% of GDP, have lately declined to amount equaling 3–4% GDP.
8. ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT - Entrepreneurship Aspects of Development-
Entrepreneurship is combinations of innovative ideas by which the management skills resources meet identify needs in the market place. Entrepreneurs do thing that are not generally done in the ordinary course o business. The concept of entrepreneurship has been around for a very longtime, but its resurgent popularities imply a sudden discovery. Entrepreneurship constitutes the driving force of the economic dream. Entrepreneurship is one of the four mainstream economic factors; Land, labour, capital and entrepreneurship.
Entrepreneurship is basically concerned with creating wealth through production of goods and services. This results in a process of upward change whereby the real per capita income of a country rises overtime or in other words economic development takes place. Thus entrepreneurial development is the key to economic development. In fact it is one of the most critical inputs in the economic development of a region. It speeds up the process of activating factors of production leading to a higher rate of economic growth, dispersal of economic activities and development of backward regions.
Entrepreneurship also injects entrepreneurship by starting a chain reaction when the entrepreneur continuously tries to improve the quality of existing goods and services and add new ones. So, the identification and development of first generation entrepreneurs through Entrepreneurial Development Programmes is an important strategy. Consequently planners realized that absence of a strong entrepreneurial base acts as a serious handicap in the industrial development of a region. It is the entrepreneurial spirit of the people, which can transform the economy of that region. Both the quantity and quality of entrepreneurs are of utmost significance for achieving the goal of economic development.
Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. So, they have many of the same character traits as leaders. Similarly to the early great man theories of leadership:
Features of entrepreneur/(ship):
• An entrepreneur is usually a positive thinker and a decision maker.
• The entrepreneur promotes the vision with enthusiastic passion.
• He can takes the initial responsibility to cause a vision to become a success.
• He can also take prudent risks.
Contributions of Entrepreneurs
1. Develop new markets.
Entrepreneurs are resourceful and creative. They can create customers or buyers which makes entrepreneurs different from ordinary businessmen to perform traditional functions of management.
2. Discover new sources of materials.
Due to their innovative nature, Entrepreneurs persist on discovering new sources of materials to improve their enterprises and enjoy a comparative advantage in terms of supply, cost and quality.
3. Mobilize capital resources.
Entrepreneurs are the organizers and coordinators of the major factors of production, such as land labor and capital. They properly mix these factors of production to create goods and service with initiative and self-confidence in accumulating and mobilizing capital resources.
4. Introduce new technologies, new industries and new products.
Entrepreneurs can introduce something new or something different through entrepreneurial spirit. Every year, there are new technologies and new products. All of these are intended to satisfy human needs in more convenient and pleasant way.
5. Create employment.
The biggest employer is the private business sector. Millions of jobs are provided by the factories, service industries, agricultural enterprises, and the numerous small-scale businesses. So, the entrepreneurs can increases demand for goods and services as well as more employment.
6. ECONOMIC DEVELOPMENT
Economic development is the development of economic wealth of countries or regions for the well-being of their inhabitants. The term economic development on the other hand, implies much more. It typically refers to improvements in a variety of indicators such as literacy rates, life expectancy, and poverty rates. The term "economic development" is often used in a regional sense as well. In this sense, economic development focuses on the recruitment of business operations to a region, assisting in the expansion or retention of business operations within a region or assisting in the start-up of new businesses within a region.
ENVIRONMENTAL SUSTAINABILITY
An important aspect of sustainability is related to the environment which is perhaps more immediately understandable. The setting up of new business enterprises or the support of economic growth must take the impact of production activity into account, both in terms of the pollution produced and resources consumed. So, Environmental sustainability may today make use of certain operating tools which are also spreading at local level to improve the environment of community life.
SOCIAL SUSTAINABILITY
Social sustainability is also obviously linked to economic sustainability. . It has already been indicated as one of the factors behind the development of social economy. The goal of equality and equal opportunities for access to resources and work for the various social groups, even those most socially disadvantaged or with skills which are have less market demand, is a goal of a "political" nature, and as such should be defined and carried out differently in each country. Some phenomena however seem, at least tendentiously, to be common to all countries.
7. ECONOMIC DEVELOPMENT OF BANGLADESH
The major objectives of planned development have been increased national income, rural development, self-sufficiency in food, and increased industrial production. However, progress in achieving development goals has been slow. Political turmoil and untamed natural hazards of cyclone and flooding have combined with external economic shocks to persistently derail economic plans. Bangladesh's first five-year plan (1973–78) aimed to increase economic growth by 5.5% annually, but actual growth averaged only 4% per year. A special two-year plan (1978–80), stressing rural development, also fell short of its projected growth target, as did the second five-year plan (1980–85), which targeted 7.2% annual growth. The third five-year plan (1985–90) had a5.4% annual growth target though only 3.8% was actually achieved. In 1991, with the reinstitution of elected government, a new economic program was initiated that included financial sector reform and liberalization measures to encourage investment, government revenue improvement efforts, and tight monetary policy.
• Political turmoil from 1994 to 1996 helped reduce the final average annual growth rate under the Fourth Five Year Plan (1990–1995) to 4.15% albeit the best performance so far under an economic plan. The 1996 elections brought renewed economic stability. Exports grew 14% 1996, and GDP growth for 1996/97 rose to 5.5% as the economy rebounded. Floods during 1998 and 1999 caused some economic slowdown but this was balanced by unprecedented growth in gas production and electricity production sectors. Average annual GDP growth under the Fourth Five-Year Plan rose to 5.3%.
• Fiscal year 2000 was marked by a sharp increase in monetary expansion due to unprecedented borrowing from the banking sector (though the sale of treasury bills) to cover budget shortfalls due. Domestic borrowing increased primarily due to the reduced availability of external concessional financing. Historically, Bangladesh has received foreign aid disbursements equivalent to about 6% of GDP, have lately declined to amount equaling 3–4% GDP.
8. ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT - Entrepreneurship Aspects of Development-
Entrepreneurship is combinations of innovative ideas by which the management skills resources meet identify needs in the market place. Entrepreneurs do thing that are not generally done in the ordinary course o business. The concept of entrepreneurship has been around for a very longtime, but its resurgent popularities imply a sudden discovery. Entrepreneurship constitutes the driving force of the economic dream. Entrepreneurship is one of the four mainstream economic factors; Land, labour, capital and entrepreneurship.
Entrepreneurship is basically concerned with creating wealth through production of goods and services. This results in a process of upward change whereby the real per capita income of a country rises overtime or in other words economic development takes place. Thus entrepreneurial development is the key to economic development. In fact it is one of the most critical inputs in the economic development of a region. It speeds up the process of activating factors of production leading to a higher rate of economic growth, dispersal of economic activities and development of backward regions.
Entrepreneurship also injects entrepreneurship by starting a chain reaction when the entrepreneur continuously tries to improve the quality of existing goods and services and add new ones. So, the identification and development of first generation entrepreneurs through Entrepreneurial Development Programmes is an important strategy. Consequently planners realized that absence of a strong entrepreneurial base acts as a serious handicap in the industrial development of a region. It is the entrepreneurial spirit of the people, which can transform the economy of that region. Both the quantity and quality of entrepreneurs are of utmost significance for achieving the goal of economic development.
Entrepreneur & entrepreneurship. Differences between Entrepreneur and Manager
9. DEVELOPMENT FUNCTIONS OF AN ENTREPRENEUR
An entrepreneur frequently has to wear many hats. He has to perceive opportunity, plan, organize resources, and oversee production, marketing, and liaison with officials. Most importantly he has to innovate and bear risk. The main functions of an entrepreneur are as follows:
9.1. Innovation:
Through innovation, an entrepreneur converts a material into a resource or combines existing resources into new and more productive configurations.
9.2. Risk and uncertainty bearing:
An entrepreneur performs the function of risk and uncertainty bearing. Every decision pertaining to development of new products, adapting new technologies, opening up new markets involves risk. An entrepreneur develops the art of decision-making under conditions of uncertainty as a matter of survival.
9.3. Organization building:
An entrepreneur has to organize men, material and other resources. With his organizational skills an entrepreneur builds an enterprise from scratch, nurtures it and makes it grow.
10. ENTREPRENEUR & ENTREPRENEURSHIP-BANGLADESH PERSPECTIVE:
In recent decades in the context of Bangladesh the role of an entrepreneur has been considered of very great significance in accelerating the pace of growth and economic development in both the developed and developing countries. An entrepreneur is a person who perceives opportunities, organizes the resources needed to exploit the opportunity and sets up an enterprise. The process of setting up an enterprise is called entrepreneurship. An enterprise is a business venture. It is an undertaking that involves uncertainty and risk as well as innovation. An individual has the right to choose any income generating activity or self-employment or entrepreneurship as a career option. Functionally income generating and self-employment activities are the initial sages of entrepreneurship. The qualities of entrepreneurship and management are present in varying degrees in both managers as well as entrepreneurs. Yet entrepreneurs are different from managers. They create opportunities for innovation, experimentation and production. Once production begins managers take over. They are more concerned with organizing the routine day-to-day jobs. They do not prefer to take risks. Entrepreneurship is a discipline with a knowledge-based theory. A person can learn and acquire the competencies of becoming an entrepreneur and start a venture and make it grow. So the myth that entrepreneurs are born and not made can safely be dispelled. The most important functions of an entrepreneur are innovation, risk and uncertainty bearing and organization building. An entrepreneur usually has to perform all the functions of production, marketing, finance, human relations etc. especially at the time of start-up and establishing an enterprise. Most entrepreneurs usually start a small venture and then make it grow.
11. ENTREPRENEUR vs. MANAGER RELATIONSHIP
The terms entrepreneur and manager are many times used interchangeably yet they are different. The main differences between the two are summed up below: Figure 1.2 Differences between Entrepreneur and Manager
Figure 1.2: Differences between entrepreneur and manager.
An entrepreneur frequently has to wear many hats. He has to perceive opportunity, plan, organize resources, and oversee production, marketing, and liaison with officials. Most importantly he has to innovate and bear risk. The main functions of an entrepreneur are as follows:
9.1. Innovation:
Through innovation, an entrepreneur converts a material into a resource or combines existing resources into new and more productive configurations.
9.2. Risk and uncertainty bearing:
An entrepreneur performs the function of risk and uncertainty bearing. Every decision pertaining to development of new products, adapting new technologies, opening up new markets involves risk. An entrepreneur develops the art of decision-making under conditions of uncertainty as a matter of survival.
9.3. Organization building:
An entrepreneur has to organize men, material and other resources. With his organizational skills an entrepreneur builds an enterprise from scratch, nurtures it and makes it grow.
10. ENTREPRENEUR & ENTREPRENEURSHIP-BANGLADESH PERSPECTIVE:
In recent decades in the context of Bangladesh the role of an entrepreneur has been considered of very great significance in accelerating the pace of growth and economic development in both the developed and developing countries. An entrepreneur is a person who perceives opportunities, organizes the resources needed to exploit the opportunity and sets up an enterprise. The process of setting up an enterprise is called entrepreneurship. An enterprise is a business venture. It is an undertaking that involves uncertainty and risk as well as innovation. An individual has the right to choose any income generating activity or self-employment or entrepreneurship as a career option. Functionally income generating and self-employment activities are the initial sages of entrepreneurship. The qualities of entrepreneurship and management are present in varying degrees in both managers as well as entrepreneurs. Yet entrepreneurs are different from managers. They create opportunities for innovation, experimentation and production. Once production begins managers take over. They are more concerned with organizing the routine day-to-day jobs. They do not prefer to take risks. Entrepreneurship is a discipline with a knowledge-based theory. A person can learn and acquire the competencies of becoming an entrepreneur and start a venture and make it grow. So the myth that entrepreneurs are born and not made can safely be dispelled. The most important functions of an entrepreneur are innovation, risk and uncertainty bearing and organization building. An entrepreneur usually has to perform all the functions of production, marketing, finance, human relations etc. especially at the time of start-up and establishing an enterprise. Most entrepreneurs usually start a small venture and then make it grow.
11. ENTREPRENEUR vs. MANAGER RELATIONSHIP
The terms entrepreneur and manager are many times used interchangeably yet they are different. The main differences between the two are summed up below: Figure 1.2 Differences between Entrepreneur and Manager
|
Entrepreneur |
Manager |
|
An Entrepreneur is involved with the start-up process. |
A manager with running the business over a long period of time. |
|
An Entrepreneur is assumes financial, materials and psychological risks. |
A manager does not have to bear risks |
|
An Entrepreneur is driven by perception of opportunity |
A manager by the resources he currently possesses. |
|
An Entrepreneur initiates change |
A manager follows rules & procedures |
|
An Entrepreneur is his own boss |
A manager is a hired employee. |
|
An Entrepreneur gets uncertain rewards. |
A manager gets fixed rewards and salary. |
Importance & weaknesses of entrepreneurship development in Bangladesh
12. NEW VENTURE CREATION: ENTREPRENEURS
After the starting a new venture an entrepreneur requires knowledge, skill, motive and courage to run enterprise successfully. In every year many individuals start businesses but rate of their failure is very high. The forces that necessarily encourage business formation do not necessarily lead to successful growth and development. Research studies on entrepreneurs show various factors of entrepreneurial development. These factors are divided into two parts:
1. Entrepreneurial formation factors
2. Key business development skills.
Entrepreneurial Formation Factors
Three sets of factors are related to the formation of entrepreneurial organizations. Psychological factors, such as, an individual's need to achieve, contribute to the entrepreneurial urge. Sociological factors, such as social status, a child's position in the family, family experience can affect the child's likelihood of becoming an entrepreneur. Environmental factors also play a key role in business formation.
Psychological Factors:
1. Upbringing
2. Locus of control
3. Need for achievement
4. Self-actualization
Sociological Factors:
1. Social stutus
2. Reference group
3. Family experience
4. Place in family
Environmental Factors:
1. Money supply
2. Economic health
3. Critical mass
4. Education Traning System
5. Technology, Culture, etc.
In addition to above factors, various support services provided by government and non-governmental organizations are of great assistance for entrepreneurship development.
Key Business Development Skill
To start, survive and progress continuously and develop organization that outlive its creator an entrepreneur must develop basic management skill. These skills are more important than an entrepreneur's background or environment. This can be developed regardless of background or skill through education and training. As the organization grows and gets bigger its organizational structure, market area, management styles are also changed. Entrepreneurs have to cope with the changing conditions of the business.
ENTREPRENEURIAL QUALITIES
Entrepreneurship refers qualities of an entrepreneur. Knowledge, skill and motif together form entrepreneurial traits. Major Entrepreneurial Qualities are:
i. Self confidence :- Confidence, leadership, Independence, Commitment
ii. Originality :- Innovative, Creative, resourceful, Initiative, Versatile.
iii. People Oriented :- Easy going, Flexible, Response to suggestion.
iv. Task Oriented :- Persistence, determined, hard working, profit oriented.
v. Future Oriented :- Foresight, perceptive, concern for improvement.
vi. Risk Oriented :- Challenging, Ability to take risks.
13. IMPORTANCE & WEAKNESSES OF ENTREPRENEURSHIP DEVELOPMENT IN BANGLADESH:
Bangladesh needs a large number of entrepreneurs and in quality. It is important for creating incremental wealth by undertaking productive activities particularly industrialization. Rapid industrialization is an inescapable necessity to generate employment opportunities to meet crucial educated unemployment and underemployment problems. Every year thousands of educated unemployed is joining the labor force. The major sources of entrepreneurs are the college and university graduates and educated youths.
Bangladesh is predominantly an agricultural country in search of employment to a large number of individuals start business with great enthusiasm but retire soon facing innumerable problems. As a result our first generation entrepreneurs having no family or industry / business experience go ahead to operate their promotion. Excepting few vulnerable industries all sectors were open to local foreign investors. Despite generous support and encouragement the overall performance has remained unsatisfactory. The impact is reflected in the share of contribution in GDP and employment.
Weaknesses of Entrepreneurship Development Programs
In Bangladesh, there is no specialized Institution organizing entrepreneurship development program. The Institution mentioned above offers entrepreneurship development programs. They are designed to help individuals achieve income generating and self-employment or skill development. The following are some of the problems of these programs:
* The concept of entrepreneurship development through formal training programs is completely new to the participants. The entrepreneurship development course, has been introduced in some courses has not been introduced in other disciplines.
* Lack of awareness that business could be a good profession is another problem for the training.
* Most training programs were designed without formal assessment of the needs of the trainees.
* Neither the trainers are not well trained to give training nor are methodology used in the program appropriate. Training programs are not followed by appropriate provision of support assistance.
ENTREPRENEURSHIP In The Context Of Economic Development
Paper Presented by-Anupam Barua 108EMBA050 of 7th Batch The Millennium University. Page 11 of 13
Entrepreneurship development training programs are inadequate and suffer from many weaknesses to create major impact on entrepreneurship development in the country. The major weaknesses, as identified, are:
(i) Missing needed attention at policy level,
(ii) Shortage of qualified, leaders and trainers,
(iii) Lack of training program need analysis,
(iv) Absence of integrated education and training approach for youth
(v) Insufficient application of innovative training methods materials,
(vi) Lack of co-ordination between concerned institutions at National, Regional and International level.
14. 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.
15. CONCLUSION:
Entrepreneurship in new member states has been assessed as a driving force of decentralization, economic restructuring and movement in the direction of market economy. Moreover, Development of entrepreneurship has been a dynamic process. Entrepreneurship forces "creative destruction" across markets and industries, simultaneously creating new products and business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth.
REFERENCES:
i. www.visit-ceed.org
ii. www.gmu.edu/rae/featured/October12.ppt
iii. www.rural.org/publications/Christy00-10.pdf
iv. www.cato.org/pubs/journal/cj23n2/cj23n2-14
v. www.cato.org/pubs/journal/cj23n2/cj23n2-14.pdf
vi. http://ideas.repec.org/a/icf/icfjme/v03y2005i4p39-45.html
vii. www.dhakachamber.com/cipe/EPP-Educational%20Reform.htm
viii. www.wider.unu.edu/events/ project-meetings/en_GB/21-08-2008
ix. www.newsinkling.org/global-economics/ towards-a-theory-of-indigenous-entrepreneurship
x. Entrepreneurship & Small Business Management. Prentice Hall, New Jersey, Second Edition.
xi. paper of Conference on Entrepreneurship and Economic Development in Distressed Urban Areas, Rome, Italy, 7-8 October 2003
xii. Entrepreneurship and Economic Development. The Free Press, New York Prasain G.P. 2003. [Ed.] Entrepreneurship Development.
After the starting a new venture an entrepreneur requires knowledge, skill, motive and courage to run enterprise successfully. In every year many individuals start businesses but rate of their failure is very high. The forces that necessarily encourage business formation do not necessarily lead to successful growth and development. Research studies on entrepreneurs show various factors of entrepreneurial development. These factors are divided into two parts:
1. Entrepreneurial formation factors
2. Key business development skills.
Entrepreneurial Formation Factors
Three sets of factors are related to the formation of entrepreneurial organizations. Psychological factors, such as, an individual's need to achieve, contribute to the entrepreneurial urge. Sociological factors, such as social status, a child's position in the family, family experience can affect the child's likelihood of becoming an entrepreneur. Environmental factors also play a key role in business formation.
Psychological Factors:
1. Upbringing
2. Locus of control
3. Need for achievement
4. Self-actualization
Sociological Factors:
1. Social stutus
2. Reference group
3. Family experience
4. Place in family
Environmental Factors:
1. Money supply
2. Economic health
3. Critical mass
4. Education Traning System
5. Technology, Culture, etc.
In addition to above factors, various support services provided by government and non-governmental organizations are of great assistance for entrepreneurship development.
Key Business Development Skill
To start, survive and progress continuously and develop organization that outlive its creator an entrepreneur must develop basic management skill. These skills are more important than an entrepreneur's background or environment. This can be developed regardless of background or skill through education and training. As the organization grows and gets bigger its organizational structure, market area, management styles are also changed. Entrepreneurs have to cope with the changing conditions of the business.
ENTREPRENEURIAL QUALITIES
Entrepreneurship refers qualities of an entrepreneur. Knowledge, skill and motif together form entrepreneurial traits. Major Entrepreneurial Qualities are:
i. Self confidence :- Confidence, leadership, Independence, Commitment
ii. Originality :- Innovative, Creative, resourceful, Initiative, Versatile.
iii. People Oriented :- Easy going, Flexible, Response to suggestion.
iv. Task Oriented :- Persistence, determined, hard working, profit oriented.
v. Future Oriented :- Foresight, perceptive, concern for improvement.
vi. Risk Oriented :- Challenging, Ability to take risks.
13. IMPORTANCE & WEAKNESSES OF ENTREPRENEURSHIP DEVELOPMENT IN BANGLADESH:
Bangladesh needs a large number of entrepreneurs and in quality. It is important for creating incremental wealth by undertaking productive activities particularly industrialization. Rapid industrialization is an inescapable necessity to generate employment opportunities to meet crucial educated unemployment and underemployment problems. Every year thousands of educated unemployed is joining the labor force. The major sources of entrepreneurs are the college and university graduates and educated youths.
Bangladesh is predominantly an agricultural country in search of employment to a large number of individuals start business with great enthusiasm but retire soon facing innumerable problems. As a result our first generation entrepreneurs having no family or industry / business experience go ahead to operate their promotion. Excepting few vulnerable industries all sectors were open to local foreign investors. Despite generous support and encouragement the overall performance has remained unsatisfactory. The impact is reflected in the share of contribution in GDP and employment.
Weaknesses of Entrepreneurship Development Programs
In Bangladesh, there is no specialized Institution organizing entrepreneurship development program. The Institution mentioned above offers entrepreneurship development programs. They are designed to help individuals achieve income generating and self-employment or skill development. The following are some of the problems of these programs:
* The concept of entrepreneurship development through formal training programs is completely new to the participants. The entrepreneurship development course, has been introduced in some courses has not been introduced in other disciplines.
* Lack of awareness that business could be a good profession is another problem for the training.
* Most training programs were designed without formal assessment of the needs of the trainees.
* Neither the trainers are not well trained to give training nor are methodology used in the program appropriate. Training programs are not followed by appropriate provision of support assistance.
ENTREPRENEURSHIP In The Context Of Economic Development
Paper Presented by-Anupam Barua 108EMBA050 of 7th Batch The Millennium University. Page 11 of 13
Entrepreneurship development training programs are inadequate and suffer from many weaknesses to create major impact on entrepreneurship development in the country. The major weaknesses, as identified, are:
(i) Missing needed attention at policy level,
(ii) Shortage of qualified, leaders and trainers,
(iii) Lack of training program need analysis,
(iv) Absence of integrated education and training approach for youth
(v) Insufficient application of innovative training methods materials,
(vi) Lack of co-ordination between concerned institutions at National, Regional and International level.
14. 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.
15. CONCLUSION:
Entrepreneurship in new member states has been assessed as a driving force of decentralization, economic restructuring and movement in the direction of market economy. Moreover, Development of entrepreneurship has been a dynamic process. Entrepreneurship forces "creative destruction" across markets and industries, simultaneously creating new products and business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth.
REFERENCES:
i. www.visit-ceed.org
ii. www.gmu.edu/rae/featured/October12.ppt
iii. www.rural.org/publications/Christy00-10.pdf
iv. www.cato.org/pubs/journal/cj23n2/cj23n2-14
v. www.cato.org/pubs/journal/cj23n2/cj23n2-14.pdf
vi. http://ideas.repec.org/a/icf/icfjme/v03y2005i4p39-45.html
vii. www.dhakachamber.com/cipe/EPP-Educational%20Reform.htm
viii. www.wider.unu.edu/events/ project-meetings/en_GB/21-08-2008
ix. www.newsinkling.org/global-economics/ towards-a-theory-of-indigenous-entrepreneurship
x. Entrepreneurship & Small Business Management. Prentice Hall, New Jersey, Second Edition.
xi. paper of Conference on Entrepreneurship and Economic Development in Distressed Urban Areas, Rome, Italy, 7-8 October 2003
xii. Entrepreneurship and Economic Development. The Free Press, New York Prasain G.P. 2003. [Ed.] Entrepreneurship Development.