Non-institutional Factors Affecting Microentrepreneurship Development in Bangladesh (original) (raw)
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Microentrepreneurship Development in Bangladesh: Achievements and Shortcomings
LAP Lambert Academic Publishing: Saarbrucken, Germany.
Micro-entrepreneurial activities play a pivotal role in rural economic development in the third world countries. As a result, in Bangladesh poverty alleviation through rural centric micro-entrepreneurship development has been focused for more than thirty five years. Over 600 registered and thousands unregistered microcredit organizations including globally prominent institutions like Grameen Bank, BRAC, ASA, BARD, ActionAid, CARE etc. are operating here with their own reputed models. However, the micro-entrepreneurship development and its achievements in the country are still lagging behind a satisfactory level due to a number of prevailing factors. This book examines its major achievements and shortcomings from the perspectives of the structured institutions, non-structured institutions, and non-institutional factors, and government’s policy guidelines influencing development of micro-entrepreneurship, and makes recommendations for overcoming the shortcomings. KEY WORDS: microentrepreneurship, microenterprise, petty traders, poverty alleviation, MFIs, NGOs, microcredit Link: http://www.amazon.com/Microentrepreneurship-Development-Bangladesh-Mahmudul-Alam/dp/3838330447/ref=sr\_1\_1?ie=UTF8&s=books&qid=1269706491&sr=1-1
Mandal, R.K. (ed.), Development of Entrepreneurship and Rural Development in North-East India, pp. 92-99. ISBN: 978-81-86307-31-1., 2011
The role of entrepreneurship development has received intense attention for a long time because of its multidimensional contribution to socioeconomic development. Micro-entrepreneurship, especially, is considered as a bridge for economic and social development both in micro and macro level for high poverty rate countries, such as Bangladesh. Structured institutions, who are working to develop micro-entrepreneurship, provide the financial, technical and conceptual supports. But due to lack of proper support of local non-structured institutions, development of micro-entrepreneurship in Bangladesh has not yet been able to reach its expected level. In this context, many crucial local socio-economic-cultural elements need to be considered in Bangladesh. Structured local institutions administered by local government and non-government bodies have received attention regarding their role in assisting micro-entrepreneurship, but there are numerous and varied non-structured institutions that influence the lives of local people- who are existing and potential entrepreneurs. An example of non-structured institutions is “Shalish” – a body of opinion leaders who act as guardians of the village community, and can dictate what is right and wrong, what should be done, resolve conflicts etc. Another example is “Local religious leaders” who are also significantly powerful in terms of social decisions and public sentiment. As a result, area-specific cultural, social and religious factors strongly influence local people, and these factors are promoted and manipulated by these non-structured institutions, and can act as barriers to entrepreneurial development. Therefore, to develop and ultimately foster sustainable micro-entrepreneurship in Bangladesh, focus should be made on both structured and non-structured institutional factors, and also on cooperation among these institutions. Key Words: Micro-entrepreneurship, Socio-Economic Development, Structured Institutions, Non-structured Institutions, Bangladesh
Non-Institutional Barriers of Micro-Entrepreneurship Development in Bangladesh
The magnitude of micro-entrepreneurial activities plays a decisive role in the economic development of the rural livelihoods, especially in third world countries. Micro-entrepreneurship has always been considered as a proven instrument to fight poverty in an effective manner. As a consequence, poverty alleviation through rural centric micro-entrepreneurship development has been focused for more than the last thirty five years in Bangladesh. However, despite such initiatives, the state of micro-entrepreneurship in Bangladesh has not yet reached to a satisfactory level. There are a number of prevailing factors that thwart the development of micro-entrepreneurship in Bangladesh. Among all the factors, non-institutions encompassing various political, economic, social, cultural, technological, environmental and personal factors are affecting the scopes of operating these economic activities to a significant extent. This paper attempts to identify the key non-institutional barriers that hinder the development of micro-entrepreneurship in Bangladesh, and suggests a composite policy measure to overcome such encumbrances. Field of Research: Development Economics; Micro-entrepreneurship
Poverty Reduction and Microenterprise in Bangladesh: Issues, Imperatives and Interventions
2013
Micro enterprise is extremely important for the development of entrepreneurs, help human development, poverty reduction and employment generation both in rural and urban areas. The specific objective underlies in the provision of resource allocation, infusion of vital potent promoting microenterprise and to peruse socioeconomic patronization for development of the microenterprise. Secondary data is used in this research. For the study, the researchers organized discussions with the NGO personnel to have a clear conception on the issue. NGOMFI’s regular microcredit program (rural credit, urban credit, ultra poor credit, seasonal credit and specialized projects for agriculture, livestock etc.) is providing collateral free loan to the individual and microenterprises. Non financial support also proliferates micro enterprises with high potential. The micro enterprises are innovating new ways of doing business or initiating changes in the production function, exploring market opportunitie...
2012
MEs are considered as the major sources of employment creation. Global experiences show that an efficient ME sector is conducive to industrial growth and a flexible industrial structure, which are the cornerstones of a vibrant entrepreneurial economy. The contributions of MEs to the national economy can be measured in terms of some interrelated issues: economic (income generation), social (poverty reduction) and political (wealth redistribution). Current studies show a strong link between entrepreneurship and economic development (ED). The impact of entrepreneurship on ED depends on the level of business performance, and economy is an affect for which entrepreneurship is the cause. ED theories generally emphasise on employment creation by industrialisation with the use of advanced technology. Thus economic histories of the developed countries show the notion that ED has benefited from widespread large scale entrepreneurial activity. However, developing countries (DC) have begun to realize the necessity of encouraging entrepreneurship to achieve their ED goals. But, they in reality can't achieve these goals like the developed countries, because they don't have sufficient capital and advanced technology. As a result they need to depend on small scale enterprise development by exploiting available resources, small capital, and indigenous technology. It indicates a strong link between micro enterprise development (MED) and entrepreneurship development. Therefore, national ED policies of DCs should focus on linking MED, entrepreneurship development and ED.
Microenterprise as a Livelihood Source and Factors Affecting Their Success: A Study from India
Journal of Entrepreneurship and Management , 2016
Among various self-employment options, microenter-prise has been recognised as an important tool for employment generation and poverty alleviation in developing countries by policy makers. This study is an attempt to look at some of the microenterprises as a livelihood source for the poor and constraints faced by them in establishing and running their microenterprise. The study involves a survey of 40 microentrepreneurs in the Maharashtra state of India. The study involves simple statistical analysis. This paper concludes that typically a microentrepreneur is a male, landless and young person between the ages of 21-40 years. These microenterprises are of diverse nature but largely these microenterprises are service oriented and been started with self-motivation with the objective of getting employment. Less than 50 percent of these microen-terprise got support for establishing microenterprise from other sources like friends and other organisation largely for finance and skill. These are own account enterprises started with very minimal investment, mostly less than Rs. 10000 and most of these microenterpris-es are able to generate a annual profit of less than Rs. 20000. Among constraints faced by these microentre-preneurs, finance was the most important constraint identified.
2018
This paper aims to examine the impacts of micro finance on the development of microentrepreneurs in rural area. With this intention in mind, data have collected from entrepreneurs operating in rural areas applying structured questionnaire developed to capture their opinions on economic, social and psychological development before and after taking small loan from NGOs or Banks. Entrepreneurs were selected adopting convenience sampling strategy who were interviewed using close ended questionnaire. Paired sample t test is applied to identify the impacts of microfinance on the development of entrepreneurs. This study identifies that microfinance has contributed for the personal, social and business changes of micro-entrepreneurs.
Unemployment is one of the most important challenges facing the poor people in our country. This has been made worse by the fact that over the last two decades, the formal economy has been shedding jobs and many workers were retrenched and it is accepted worldwide that the development and growth of small, microenterprises can play an important role in turning this situation around. The present article deals with microenterprises and their role in economic growth and employment generation in the Indian context. This article discusses about the programmes aiming not only development but also take care of livelihood sustainment. This paper analysis the work of promotional institutions for income generating activity and gives the most effective and desirable economic development strategy for many rural communities in small entrepreneurship development based on locally owned and owner operated small businesses, however, entrepreneurship stands as a vehicle to improve the quality of life for rural families and communities to promote healthy economy environment.