The role of Entrepreneurship in the economic development of Bangladesh Entrepreneurship Entrepreneurship is the dynamic process of creating incremental wealth by individuals/groups through the use of resources. Entrepreneurship is combinations of innovative ideas by which the management skills resources meet identify needs in the market place. It is an act of initiative, drive, commitment, perseverance, organized effort, and achievement outlook, to undertake some specific functions of performing productive activities and the capacity to bear and associated with the investment.
The individual or groups who perform these activities are called entrepreneurs. An entrepreneur is one who always searches for change, responds to it, and exploits it as an opportunity. Assessment of Market Opportunity, responding to competition, gaining command over scarce resources, identifying sources of inputs, and marketing of products, dealing with public, bureaucracy, management of human resources, technological innovation and improvements in production techniques are prime functions of an entrepreneur.
According to Schumpeter, “the function of entrepreneur is to reform or revolutionize the pattern of production by exploiting an innovation or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry”. Entrepreneurs act as the locomotives for the economic development of the country. There are various roles which entrepreneurs play in the economy.
Role of entrepreneurship in economic development Entrepreneurship nowadays is universally recognized as critical resource in the economic development process of a country. The entrepreneurs played significant role in the economic development process during 19th & 20th centuries in developing business successfully with continuity. It will continue to play dominant role in economic growth particularly industrial during 21st century. 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.
No developing country can achieve sustained economic or social development without engaging effectively in the broader trade dependent economic environment. The role of such innovative entrepreneurial efforts greatly influences country’s overall GDP, productivity, economic reform and social growth in the context of global economy. The economic history of presently developed countries has made the people of the underdeveloped countries too much conscious of the significance of entrepreneurship for the economic development.
Now, people have realized that for achieving the goal of economic development, it is necessary to increase entrepreneurship both quantitatively and qualitatively in the country. The long-term goal of entrepreneurial efforts aims to ensure that poor can contribute and share the benefits of growth through enhancing their purchasing power. It will in turn encourage economies to specialize in, and concentrate on, areas where these will add relative cost advantage over other economies. Eventually, this will become a strong tool for poverty alleviation.
Entrepreneurship has become a very significant factor for ensuring development in the least developed countries. Entrepreneurship leads towards a broad range of aspects including financial and decision-making capacities of individual persons which ultimately results in “Empowerment”. “An Empowered Nation” is absolutely necessary for the overall development of a country which can efficiently rid of the curse of poverty. The role of entrepreneurship in economic development varies from economy to economy depending upon its material resources, industrial climate and the responsiveness of the political system to the entrepreneurial function.
The entrepreneurs contribute to the more in favorable opportunity conditions than in the economies with relatively less favorable. In the book “ENTREPRENEURIAL DEVELOPMENT”, Mr. S. S. KHANKA has identified and ordered some specific roles of entrepreneurship for economic development of an economy: * Entrepreneurship promotes capital formation by mobilizing the idle saving of the public. * It provides immediate large-scale employment, which reduces the unemployment problem for any country. * It promotes balanced regional development. It helps reduce the concentration of economic power. * It stimulates the equitable redistribution of wealth, income and even the political power in the interest of the country. * Entrepreneurship encourages effective resource mobilization of capital and skill which might otherwise remain unutilized and idle. * It also induces backward and forward linkages which stimulate the process of economic development in the country. * Entrepreneurship also promotes country’s export trade which is an important ingredient to economic development.
Economic Development in Bangladesh through Entrepreneurship For economic Development the increase of entrepreneurship has been a dynamic process in Bangladesh influenced considerably by changes in domestic business environment as well as the external influences, which are typical for a small country with open economy. Development of entrepreneurship through SME development and regional firm formation has supported economic development in Bangladesh, the growth in employment and decrease in unemployment.
Differences in economic structures and firm formation as a percentage of the stock of enterprises by sectors in counties have been looked upon as a significant factor for firm formation activity. The low firm formation rate in a number of counties and groups of enterprises (e. g. manufacturing, construction) allows assuming that the regulation influencing the establishment and activity of enterprises. Entrepreneurship has a crucial role to play in low income economies like Bangladesh. It has the power to foster growth and generate rapid and lasting reductions in poverty.
For a Least Developed Country like Bangladesh, effective entrepreneurial efforts and initiatives can play an enormous, significant role in influencing social and economic policy reform and development outcomes. Bangladesh, with its high population density, widespread poverty, and susceptibility to natural disasters, is a challenging environment for development initiatives. Entrepreneurship is often considered one of the most effective and flexible strategies in the fight against global poverty. Bangladesh has a population of more than 140 million with almost half of the population living below the poverty line.
Sustainable entrepreneurial development programs can be implemented on a massive scale that is necessary to respond to the urgent needs of those living on less than $1. 0 a day, the World’s poorest. Around eighty per cent (80%) of our population lives in regional areas and most of them are poor. If this population can effectively be promoted with entrepreneurial skill, they can actively involve themselves in, and contribute towards, the economic development process. It is a must that this collective effort will lead the country to move forward.
Necessarily it indicates that to alleviate poverty, exploring the entrepreneurial opportunities is a must. To summarize, economic situation of Bangladesh can not really improve without entrepreneurship efforts. 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. In addition there are thousands of dropouts from different levels of our education system. Although government and other non-government organizations (NGOs) have initiated several developmental schemes but the progress is not that noteworthy. But this huge human resource can be turned towards a revolutionary device for effective economic growth through exploring entrepreneurial opportunities