Environment Of Entrepreneurship Development

ENVIRONMENT OF ENTREPRENEURSHIP DEENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENTVELOPMENT

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ENVIRONMENT OF ENTREPRENEURSHIP

DEVELOPMENT

Roll No. 023; Reg. No. 00682

Faculty of Business Administration And Management

Patuakhali Science And Technology University

Shofiq Uddin Khan

ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT

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OBJECTIVESOBJECTIVES► Identify business environment.Identify business environment.►Learn about the task of environment.Learn about the task of environment.►To highlight the impact of environment To highlight the impact of environment

on the promotion and development of on the promotion and development of entrepreneurship in Bangladesh.entrepreneurship in Bangladesh.

►Understand key demographic, Understand key demographic, economic, natural, technological, economic, natural, technological, political-legal, and socio-cultural political-legal, and socio-cultural developmentsdevelopments


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OBJECTIVESOBJECTIVES► Impact of the change of environment Impact of the change of environment

and Future focus.and Future focus.►Learn how environment and Learn how environment and

entrepreneur cooperates and are entrepreneur cooperates and are responding to new challenges.responding to new challenges.


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Business EnvironmentBusiness EnvironmentBusiness Environment is defined as-Business Environment is defined as- “ “Business environment is the sum total of environmental factor which provide some atmosphere for business.”Business environment is the sum total of environmental factor which provide some atmosphere for business.”

And the environment primarily determines the success or failure of the organization.And the environment primarily determines the success or failure of the organization.


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Figure: The firm in its environmentFigure: The firm in its environmentEnvironmental influence

Political, Social, Legal, Cultural, etc.

Input Business organization

Outputs Consumption

Business EnvironmentBusiness Environment


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Economic opportunity

Economic growth Entrepreneurship

Model 1

Economic ENVIRONMENT

Entrepreneurship Economic growth

Model 2

MODEL OF ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT


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Economic Opportunity Economic Opportunity Conditions Conditions

Capital Capital Capital availability is not much in Bangladesh because of per capita income is as low as US $520. Also interest is so high that people find it unattractive to borrow. But some specialized institution both publicly and privately working for industrial entrepreneurs and they lend money to entrepreneurs.


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Raw materialsRaw materials Government can play an important role for domestic entrepreneurs. Tariff policy pursued by the Government is important for import substitute industries. However, a projectionist tariff policy will protect local entrepreneurs from competitions.Thus, the profit potential scenario will improve in Bangladesh.


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LaborLabor Bangladesh has a large labor force which is incurring at a fast pace without having any major deterrent in the way of labor mobility thus cost of labor is certainly low and cheep.


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Economic opportunity Economic opportunity conditions conditions

Technology Technology Technology for Bangladesh is no problem. It is available from different sources in the different sectors that can be acquired or technology transfer easily. More productive capital intensive technology may not be suitable for Bangladesh. Adoption of labor intensive technology is cheap.


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Market size Market size and and compositioncomposition

Market size and composition will be the major determinants of the amount for reward of an entrepreneur. Already we have a large market. And the market is expanding. So Bangladesh has a huge market having a large unmet demand.


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ENTREPRENEURIAL ENVIRONMENT OF BANGLADESH

Instead of a mixed economic system, market economy was decided to the best for the country, wide ranging liberalization in trade policy. Entrepreneurs in the country face the competition from outside world in a fashion that was quite unknown higher to. Export led growth become the prime vehicle for development.

Actual scenario of political environment during the last 19 years-

To understand the role of state on economic opportunity condition of Bangladesh a historical perspective with regard to political economy is imperative or else an incomplete view might emerge.


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THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP

Political Environment

Legislation Legislation regulating businessregulating business

Growth of Growth of special interest groupsspecial interest groups

The entrepreneurship in the political arena of Bangladesh is not adequately supported. Even their due claims may remain unheeded if those compete with the claims of other stronger groups.


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LEGAL ENVIRONMENTLEGAL ENVIRONMENTMany laws in our country are so weak that Many laws in our country are so weak that those are almost impossible to implement. those are almost impossible to implement. Moreover, the judicial administration and Moreover, the judicial administration and legal procedures remained inefficient. Giving legal procedures remained inefficient. Giving the existing legal system, it is inconceivable the existing legal system, it is inconceivable that entrepreneurship will take place with that entrepreneurship will take place with such a legal backing what so ever.such a legal backing what so ever.



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Socio-Cultural EnvironmentSocio-Cultural Environment

World views held World views held by consumersby consumers

High persistence of High persistence of core valuescore values

Existence of subculturesExistence of subcultures



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World views that consumers World views that consumers hold of themselves, others, hold of themselves, others, society, organizations, society, organizations, nature, and the universenature, and the universe

High persistence of core High persistence of core valuesvalues

Existence of subculturesExistence of subcultures

Example- changing life style, Example- changing life style, western influence on local western influence on local consumerconsumer

Socio-Cultural EnvironmentSocio-Cultural Environment


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Economic EnvironmentEconomic Environment

Income Income DistributionDistribution

Savings, debt, Savings, debt, and credit availabilityand credit availability



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Natural EnvironmentNatural Environment Shortage of raw Shortage of raw

materialsmaterials Increased energy costsIncreased energy costs Anti-pollution pressuresAnti-pollution pressures Changing role of Changing role of

governmentsgovernments



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Technological EnvironmentTechnological Environment

TechnologicalTechnologicalEnvironmentEnvironment

Accelerating pace of technological change

Increased regulation of technological change

Unlimited opportunities for

innovation

Varying R&D budgets



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Technological EnvironmentTechnological Environment Accelerating pace of technological Accelerating pace of technological

changechange Unlimited opportunities for Unlimited opportunities for

innovationinnovation Varying R&D budgetsVarying R&D budgets Increased regulation of Increased regulation of

technological changetechnological change

Example- E-commerce, E-business. Example- E-commerce, E-business.



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EXISTING ECONOMIC OPPORTUNITY EXISTING ECONOMIC OPPORTUNITY CONDITIONSCONDITIONS

► CapitalCapital► LaborLabor

► TechnologyTechnology► Raw materialsRaw materials

► Non economic factorsNon economic factors

Not that the presence or absence of all the factors we just mentioned are impending entrepreneurship growth in the context of Bangladesh, rather some of them are more dominant than others.


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Forces Impacting the external Forces Impacting the external EnvironmentEnvironment

Financial institutions Financial institutions EmployeesEmployees

Share-holders Share-holders Suppliers Suppliers

Competitors Competitors Customer Customer



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PROSPECTS AND SUGGESTIONSPROSPECTS AND SUGGESTIONSContribution by entrepreneur can certainly Contribution by entrepreneur can certainly made by the environment that is conducive to made by the environment that is conducive to this taking and innovation.this taking and innovation.

Proper planning and government intervention is need to come out from political environment.Bangladesh still needs good export oriented strategies.Sound fiscal and monetary policies are vital to the sustained growth of the private sector.For rural entrepreneurship development government should take the new decision for agriculture and marketing program and should be operated strongly.An efficient transport and communication network aids production and market expansion.


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CONCLUSIONCONCLUSION

It is important for a company to It is important for a company to ► Be aware of the factors in the Be aware of the factors in the

environment.environment.► Keep track of changes of the Keep track of changes of the

environment.environment.► Modify its products, services and way Modify its products, services and way

of of doing business.doing business.


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Many thanks for your attention

Environment Of Entrepreneurship Development

Technology

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