80 EuroMed J. Management, Vol. 3, No.

2, 2019

Samson H. Chowdhury: a true entrepreneurial leader

for Square Group

Md. Rahat Khan

City University,
Khagan, Birulia, Savar, Dhaka, 1216,
Dhaka, Bangladesh
Email: rahatkhan.mrk14@gmail.com

Abstract: Samson H. Chowdhury along with his three friends was the founder
of Square Group in 1958. Mr. Samson was a true entrepreneurial leader and an
idol for the South Asian entrepreneur. The current study was based on
Samson’s leadership in Square Group. The study critically analysed Samson’s
leadership styles for Square. The study also examined the performance trends
of few ventures under Square Group along with few comments regarding
leadership of Samson Chowdhury. Finally, the study unearthed the
entrepreneurial process and strategic steps of Samson. The study believes the
findings will be a guideline for the entrepreneur of the century.

Keywords: entrepreneurial leadership; strategic steps; Square Group;

Bangladesh.

Reference to this paper should be made as follows: Khan, M.R. (2019)

‘Samson H. Chowdhury: a true entrepreneurial leader for Square Group’,
EuroMed J. Management, Vol. 3, No. 2, pp.80–88.

Biographical notes: Md. Rahat Khan is working as an Assistant Professor in

Management and HRM in the Department of Business Administration, City
University, Bangladesh. He has three books, 13 journal articles and one
conference paper (having best paper award). His major research interests are on
psychological and behavioural issues in HRM, management, and marketing. He
is also professionally serving as an ad hoc reviewer of Business: Theory and
Practice (SCOPUS indexed journal), three international journals of SAGE
publishing (amongst those, South Asian Journal of Human Resource
Management is also indexed in SCOPUS), and The International Journal of
Social Sciences and Humanities Invention. He has an editorial member position
in SCIREA Journal of Sociology, two international journals of David
publishing, and editorial referee of Journal of Business Management and
Economic Research (JOBMER).

1 Introduction

The meaning of leadership in organisations is the capability of influencing others to

appreciate and concur about what requirements to be done and assisting individual and
joint labours to achieve collective objectives (Yukl, 2013). In early 20th century, people
believed that ‘leaders are born not made’. Nevertheless, by the middle of that century,
new theories have been emerged such as transformational, participative, entrepreneurial

Copyright © 2019 Inderscience Enterprises Ltd.

 Samson H. Chowdhury: a true entrepreneurial leader for Square Group 81

leadership which directed to the trust that an effective leader need to full concern for both
the people and production and which can furnished through training and experience
(e.g., Blake and Mouton, 1964). Cunningham and Lischeron (1991) stated that the
entrepreneurial leadership engages in setup obvious goals, generating new opportunities,
empowering workers, conserving organisational familiarity, and mounting a (HR) human
resource structure. Entrepreneurial leader is the person who has the ability to identify
opportunities and assess them by mounting the stream of information (Hansson and
Mønsted, 2008).
Samson H. Chowdhury the name should be count as a business leader in the century.
After finishing his education from India; Mr. Samson came back to Bangladesh (Former
East Pakistan) and stayed at village named Ataikula, Pabna where his father was doing
job in an outside dispensary as a Medical Officer. He took the idea from his father’s job
and started a small pharmacy. That little pharmacy was ventured with his three friends
and started a partnership-based pharmaceutical company in 1958 (Sumon, 2012) which in
now well known across the globe as Square Pharmaceuticals Ltd. and the dream finally
shaped as a public listed company in Bangladesh named as Square Group (Square Group,
2018). Samson H. Chowdhury is such an entrepreneurial leader who created a new era in
business industry with having a merge of some contemporary leadership traits. The basic
aim of the study was to analyse the leadership traits of Samson H. Chowdhury. Then, to
understand the comments to Samson, after that to unearth an entrepreneurial model and
strategic steps which was taken by him.

2 The origin of Square Group

Square Group is a very well known, reputed and the largest conglomerate in Bangladesh.
Over the years, the Square has been built a very potential brand image in the country
along with strong growth at a constant rate. The journey started as SQUARE Pharma in
1958; a partnership-based firm when four people with having similar mindset with only
TK 80,000 capital (The Daily Star, 2012). In an interview Mr. Chowdhury was asked
about the name, why it is Square?
“We named it SQUARE because it was started by four friends and also because
it signifies accuracy and perfection meaning quality.” Samson H. Chowdhury
At present, the journey is continuing with having 14 (pharmaceuticals, toiletries,
garments, textile, information technology, health products, food products, hospital, etc.)
different independent companies (Tashnim, 2017). Since 1985, the Square
Pharmaceuticals is consistently performing as a market leader in the respective industry.
The company’s average annual yielding is more that US$200 million including a labour
force of almost 3,500 (Square Informatrix Ltd., 2019).

2.1 Corporate history

In 1958, the Square was started their business through pharmaceuticals and before the
liberation war in Bangladesh in 1964, the Square was incorporated as a private limited
company. After the liberation war of 1971 the company collaborated with Janssen
Pharmaceutical of Belgium as a subsidiary of Johnson & Johnson ltd, USA in 1974. The
Square was marked as a market leader in pharmaceutical in Bangladesh among all the
82 M.R. Khan

national pharmaceuticals company in 1985. In 1987, the company started as the pioneer
in export for local pharmaceuticals company in Bangladesh. The company took its new
shape as a public limited company in 1991 (Square Pharmaceuticals Annual Report,
2017).
A plenty of ventures have been generated under the shadow of square. The company
started with pharmaceuticals business. After that in 1994, Square launched a new
business named Square Toiletries Ltd. in 1997 the company stepped in textiles business
by producing yarns manufacturing unit named as Square Textiles Ltd. On March 1, 1999
the company set another feather of its back with security service business namely Aegis
Services Limited. In 2000, the division of Square Pharmaceuticals’ IT appeared as an
independent entity by the name of ‘Square InformatiX Ltd’ (Square Group, 2019).

Figure 1 Businesses of Square Group (see online version for colours)

Source: Square Group website

In 2002, the Square enlisted as UNISEF’s global suppliers. On the nation’s birthday in
2006, a hospital services was lunched namely as Square Hospitals Limited. Apart from
the above businesses the company has more businesses as separate entity those are
Square College of Nursing, Square Air Limited, and Maasranga TV & Communication
Ltd. In 2017, the company achieved ‘National Environment Award’ for their
environment friendly business operations (Square Pharmaceuticals Annual Report, 2017).
All of these were achievable because of Mr. Samson’s innovative ideas, diligent
efforts, insistence and devotion with self-belief which added to his successful triumphs.
Now, Square is not only a brand but also the name of consumer trust in both home and
abroad. Under his energetic leadership, the Square is placed to prolong its advancement
globally.

2.2 Growth in Square Group

A small pharmaceuticals Square company in 1958 is now well-known as a public listed
multi diversified company with having 28,000 (or above) employees along with the
yearly group turnover of 616 million USD (Square Group, 2019). The entity wise
growths of Square group are given in Table 1.
 Samson H. Chowdhury: a true entrepreneurial leader for Square Group 83

Table 1 Square Group financial growth related data (venture wise)

Square Pharmaceuticals Ltd.

Particulars 2013–2014 2014–2015 2015–2016 2016–2017 2017–2018
Net revenues in BDT (000) 9,182,781 13,827,274 14,056,482 14,061,586 14,406,366
Earnings per share (EPS) 6.71 8.11 12.48 14.43 15.72
Employees 6,313 6,710 7,174 7,390 8,132
Square Toiletries Ltd.
Particulars 2010 2011 2012 2013 2014
Net profit margin (net profit 1.35% 1.7% 1.74% 4.27% 6.33%
after taxes / net sales * 100%)
Square Textiles Ltd.
Particulars 2010 2011 2012 2013–2014 2015–2016
Turnover (net) in BDT (000) 4,445,402 5,247,749 5,431,438 7,701,032 7,581,716
Earnings per share (EPS) 3.47 3.81 3.62 5.03 4.57
Employees 1,782 1,908 1,907 2,092 2,098
Source: Annual Report 2017–2018, Momin (2015) and Annual Report
2015–2016

3 Samson H. Chowdhury and his leadership in Square

An entrepreneur is a person who has the ability to take calculated risk from the social
opportunities and utilise those opportunities for personal interests, befits along with social
development. Mr. Samson H. Chowdhury is such a person who had those abilities. To
make plan successful, an opportunity is must. From the story of Mr. Samson, it is
observed that, a single opportunity has created the history in pharmaceuticals business for
Bangladesh. While Mr. Samson completed his studies he went to Mumbai (India) and
started his career as an employee of the Naval Recruiting Agency. In Second World War,
he served British navy. But his dream was different from becoming a good employee
under uniform rather to become a real life solider for the nation and society though
entrepreneur. So, finally he left his job in 1946 and returned to Bangladesh (Former East
Pakistan) and started studying management training course which was jointly supported
by Harvard and Dhaka University. After completion of his course, he back to Pabna and
started a small pharmacy in 1952.
The core idea became humongous, while he observed people were suffering from
malaria and the medicine was imported from India. He also observed that, the poor
people could not afford the price of medicine named Quinine. He first attempted to
produce the medicine locally and indentified that the raw material of Quinine was
available in Pabna at Keru Sugar Mills of Darshona under Iswardi district. The
opportunity was taken and carried on. Few days later the demand of that local medicine
84 M.R. Khan

was increased and he was inspired to start a small medicine factory in 1958 along with
his three friends. The little factory is now well known globally as Square (Acedemia.edu,
2019). The characteristics supported fully the entrepreneurship leadership approach
(Hodgetts and Kuratko, 2001; Luddy, 2018).
Some interviews and opinions regarding Samson H. Chowdhury are also been helpful
to sort out the real leadership trait of him. He was a patriot and a man of ethics in social,
personal and business life.
In an interview of Dennis Dilip Datta, who closely knew Mr. Samson told,
“after the liberation war of 1971 in Bangladesh, when Bangabandhu Sheikh
Mujibur Rahman urged the rich to surrender their ration cards, Samson was the
first businessman to do so” and Former Commerce Minister Mr. Ghulam
Mohammad Quader said, “Mr. Samson H. Chowdhury has worked silently for
humanity and his works were spread over a vast area. People will remember
him for his works.”
“He thought more about the welfare of his countrymen”, said Samson’s son
Tapan Chowdhury. His granddaughter added “The way he worked, it was not
for business but for the people of this country. He was a forward thinking man”
Samson’s younger son said his father was a family man above all and they live
as a joint family.
The sense of Mr. Samson H. Chowdhury’s business ethics has been observed from his
self-statement.
Samson believes, “Ethics are internally self-imposed limitations for
entrepreneurial success. Ethics do not guarantee material success, but they
carve a straight path. No one can force a person to be honest and upright in
dealing with others. These internal traits comprise a person’s character.” He
also said, “Doing the right thing works from an internal core and forms an
upright character. External codes and laws can force people to do right but fail
to change the internal core of one’s character. However, exactly what is the
right thing? All of us know about integrity, promise keeping, commitment, and
truthfulness. We learned these traits from childhood. An important question
arises for us personally and in the business world do we practice integrity or do
we have it imposed on us from an external source? The capital we use to build
our business becomes consumed through production, but the capital of our
character outlasts all material resources.”
The above statements were enough to judge the ethics of Samson as a family, business as
well as social human being. The study has found a bridging leadership style from
Mr. Samson’s life case which focuses on creating and maintaining successful working
associations among stakeholders and key partners (Synergos, 2017).
Some paternalistic leadership trait has also been found from Samson H. Chowdhury.
He was a man of big heart. He not only a business mastermind but also a thinker for the
employees and social wellbeing. Few more quotes have also been observed to justify the
leadership trait.
Mr. Manzur Elahi one of the former advisors to caretaker government named
Manzur Elahi said: “Samson told to him that a happy worker is good worker.
Don’t exploit them.”
“Samson achieved his goals through honesty, sincerity and hard work. He
earned money through business but his vision was to serve humanity. That’s
why he had established a quality pharmaceutical company, the best hospital in
the country to provide quality healthcare to the people at affordable cost, and
quality food items.” Told by Dr. Khairuddin Barkat
 Samson H. Chowdhury: a true entrepreneurial leader for Square Group 85

In a press release of Ain o Salish Kendra, stated that, “Samson H. Chowdhury

had been involved with various social activities. At the same time he was a
pioneer in serving the distressed people. He received many awards in

recognition of his lifelong contribution. He had a remarkable contribution in

economic growth and modernization of pharmaceuticals industry of
Bangladesh.” (Chowdhury, 2010)
Leader is fundamentally a transmuted model of one’s real authority figure such as the
parent (Bing, 2004). The above statements to Mr. Samson actually support the
paternalistic leadership trait of him.

4 Discussion on Samson’s leadership and strategies

The discussion of the study observed that, Samson was a very good employer. He paid
his workers’ salary regularly and in time. His workers take good launch every day. No
labour strike has been taken is his factories yet. His factories maintain good quality in his
production. Samson H. Chowdhury was also the highest tax payer in the country. He was
an honest man and also patriot. He loved his country very much and he had some
dedications to his country and the people. Samson was a simple man. He did not have any
egotism and was a friendly man. Few employees said that Samson had the same lunch at
the same venue with the employees. He never made any differentiation (Rahman, 2012).

Figure 2 Entrepreneurial trait of Mr. Samson

INPUTS

 Environmental opportunities
 Unique business concept
 Local resources

PROCESS

 Searching targeting opportunities

FEEDBACK
 New ideas and opportunities
 Honor and fame from society
 Social awards
 Identify and selecting opportunities
 Match with strengths
 Final selection
 Implementation (innovation, risk,
movement towards goal)

OUTPUTS

 Venture with three friends

 Value creation
 New products and services
 Skillful employees and positive
working environment
 Profit, asset and revenue growth
 Goodwill and social welfare

Source: Author’s own observation

86 M.R. Khan

Figure 3 Business and leadership strategies of Mr. Samson

Strategy - 1
Take the environmental opportunity
(Malaria medicine)

Strategy - 2
Find out the way to meet the goal
(Local raw materials are available)

Strategy - 3
Searching and making collaboration
(Partnership with three friends)

Strategy - 4
Expand the business
(More business, besides pharmaceuticals)

Strategy - 5
Keep it up comprehensively
(Smooth growth of businesses)

Strategy - 6
New Idea Generation
(Still going on by Square group)

Strategy - 7
Apply managerial activities
(Right things in right place and right man in right position)

Strategy - 8
Specific business mission and vision
(Built organizational & social responsibility through business)

Strategy - 9
Long-term forecasting
(Keep going from 1958 till now)

Source: Author’s own observation

After critically analyse the leadership and entrepreneurial traits of Samson H. Chowdhury
the study tries to draw an entrepreneurial trait on Mr. Samson as follows.
Figure 2 provides some fare ideas related to business and leadership strategies of
Mr. Samson. The strategies are as follows.
Samson H. Chowdhury was died in Singapore on 5 January 2012 at the age of 86.
Before his death he received plenty of awards from both nationally and internationally.
The lists of his award are given below.
Samson H. Chowdhury was not only a businessman. He used to help the poor. He
was a philanthropist and throughout his illustrious life, he spent billions of taka for the
poor. He started from the base and never ended working and became the best known
businessman across the country. He went to Narsingdi and assisted weavers with
 Samson H. Chowdhury: a true entrepreneurial leader for Square Group 87

machines and money to revitalise them. It was a huge program. He had fishing project in
Moheshkhali located in Cox’s Bazar to mend fishermen. He spent around $12 million in
Rajshahi for a farming project. His contribution turned Ataikula (his native village) into a
well-organised village (Rahman, 2012).

Figure 4 Samson H. Chowdhury’s awards

Source: https://www.samsonchowdhury.com/en/accolades.php

5 Conclusions

Samson H. Chowdhury is not alive but his achievements, activities, works, ethics, and
plans will not die. If new entrepreneurs work on their dream they will get a dream society
and a dream country as well. Samson H. Chowdhury started his business venture on a
small scale from a village in Pabna from 60 years back, but his business covers
40 countries around the world. Samson H. Chowdhury was a role model for young
entrepreneurs who could see in him innovation, leadership and perseverance in creating a
market and make a success of it. He was one of those very rare individuals who touched
many hearts and souls he came across for his fatherly and friendly loving care. In a
personal interview with an employee of Square pharmaceuticals, she explained regarding
Samson’s leadership:
“Samson was a true leader for Square group. He always thought for his
employees’ & country’s wellbeing. So many things have been changed after his
departure. I can clearly differentiate the post and pre presence of Samson’s
existence in Square.”
With his death, Bangladesh lost a visionary and committed business leader, which is hard
to get. His 60 years of hard work and entrepreneurship might have come to an end. But
for his long life of dedication and search for excellence in entrepreneurship, he will
always be remembered, as long as Bangladesh is alive and entrepreneurs here will move
forward despite of all adversities in life, politics and society and search for a better
tomorrow. Square lost its guardian but Nation lost a successful entrepreneur, a patriot, a
great planner.
88 M.R. Khan

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