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 06
Bangladesh
► 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 18
Fact
► Problems Associated With Entrepreneurship 18
Development
► Analysis Regarding Problems Faced by the 22
Entrepreneur
► Importance of Training to Develop Entrepreneur 23
► Why Entrepreneurship Develop is Important for 24
Our Country
► Prospects of Entrepreneur in Barisal Metropolitan 25
Area

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
about-

Factors 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 Owned Enterprises

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

Yard Shipping Brothers
02. Md. Arifur Rahman Jafar Trading, Bismillah Traders, Rupali
Mom, Rupatoli Filling Station
03. Sazzad Ahmed Sazzad Brickfield

04. Aminul Haque Juthi Store, Ideal Book Store

05. Amir Hossain Arafat Paints, Alim Grocery shop

06.Litu Rahman Famous Bakery, Rahman Shoes

07. Md. Hanif Hanif Enterprise

08. Kazi Mohiuddin Kazi Store, Rahman Cloth Store

Sampling plan
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, self-
development 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 are-

Stimulatory

The stimulatory activities comprise entrepreneurial education, provision of

entrepreneurial opportunities and guidance in selecting industries are needed to help
emergence of entrepreneurship in the Society. This support ensures a good supply of
entrepreneurs to start a new venture and develop potentiality to succeed in a venture.

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 Registration of unit Help modernization
education
2. Planned publicity for Arranging finance Help diversification/
entrepreneurial expansion/ substitute
opportunities production

3. Identification of Providing land, shed, Additional financing for

potential power, water etc. full capacity utilization
entrepreneurs through
scientific methods
4. Motivational training Guidance of selecting and Deferring repayment/
to new entrepreneurs obtaining machinery interest

5. Help and guide in Supply of scarce raw Diagnostic industrial

selecting products and materials extension/ consultancy
preparing project source
reports
6. Making available Getting licenses/import Production units’
techno-economic licenses legislation/ policy change
information and
product profits
7. Evolving local Providing common facilities Product reservation/
agencies with trained creating new avenues for
personnel for marketing
entrepreneurial
counseling and
promotions

Factors Influencing the Entrepreneurship Development: problems and prospect

 8. Availability of local Granting tax relief or other Quality testing and
agencies with trained subsidy improving services
personnel for
entrepreneurial
counseling and
promotions
9. Organizing Offering management Need-based common
entrepreneurial forum consultancy facilities centre
10. Help marketing products

Table: component of Entrepreneurship Development Process

Factors Influencing Entrepreneurship Development

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

dependent phenomenon of economic, social, political, psychological factors often
nomenclature as supporting conditions to entrepreneurship development. For analytical
proposes, these conditions are grouped and discussed under tow categories, this are-

● Economic Factors

Form a strictly economic viewpoint, it can be said that there are some factors which
promote economic development through emergence of entrepreneurship. Some of these
factors are discussed in below-

Capital

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

of capital facilities the entrepreneur to bring together the land of one, machine of another
and raw material of yet another to combine them to produce goods. Capital is, therefore,
regarded as lubricant to the process of production.

Labor

The quality rather quality of labor is another factor which influences the emergence of
entrepreneurship. It appears that labor problems can be solved more easily than capital
can be created.

Raw-material

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 reason-

Need Achievement
To the best of our knowledge, the best known of primarily psychological theories is David
McClelland’s theory of need achievement.

Withdrawal of Status Respects

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
High medium Average low

4 3 1 0 8
01. Capital
50% 37.5% 12.5% - 100%

02. Labor 2 3 2 1 8

25% 37.5% 25% 12.5% 100%

3 5 0 0 8
03. Raw-material
37.5% 62.5% - - 100%

3 2 2 1 8
04. Market
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

Factor affects
Factors Total
High medium Average low
01. Legitimacy of 8 0 0 0 8
Entrepreneurship
100% - - - 100%

Factors Influencing the Entrepreneurship Development: problems and prospect

 3 4 1 0 8
02. Social Mobility
37.5% 50% 12.5% - 100%

03. Marginality 3 5 0 0 8
37.5% 62.5% - - 100%

5 1 1 1 8
04. Physical Need
37.5% 12.5% 12.5% 12.5% 100%

6 2 0 0 8
05. Achievement
62.5% 25% - - 100%

06. Withdrawal of 4 3 1 0 8
Status Respects 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 below-

1. 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
Total
problems
High medium Average low

01. Poor 2 4 1 1 8
Government
policy 25% 50% 12.5% 12.5% 100%

02. Financial 4 2 2 0 8
support
50% 25% 25% - 100%

03. Bank credit & 3 3 1 1 8

loans
37.5% 37.5% 12.5% 12.5% 100%

Factors Influencing the Entrepreneurship Development: problems and prospect

 24

4 4 0 0 8
04. Market
instability 50% 50% - - 100%

2 4 1 1 8
05.communication
25% 50% 12.5% 12.5% 100%

06. location 1 4 2 1 8
analysis 12.5% 50% 25% 12.5% 100%

5 3 0 0 8
7. Sales on
credit 62.5% 37.5% - - 100%

2 2 3 1 8
08. Political
Problem 25% 25% 37.5% 12.5% 100%

6 2 0 0 8
09. Raw-material
75% 25% - - 100%

3 3 1 1 8
10. Lack of
training 37.5% 37.5% 12.5% 12.5% 100%

5 2 1 0 8
11. Inflation
Problem 62.5% 25% 12.5% - 100%

2 3 3 1 8
12. Standard of
living 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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Factors Influencing the Entrepreneurship Development: problems and prospect