Environmentofentrepreneurshipdevelopment 091125204120-phpapp02

ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENTENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT 11
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 DEVELOPME2
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 onTo highlight the impact of environment on
the promotion and development ofthe promotion and development of
entrepreneurship in Bangladesh.entrepreneurship in Bangladesh.
►Understand key demographic, economic,Understand key demographic, economic,
natural, technological, political-legal, andnatural, technological, political-legal, and
socio-cultural developmentssocio-cultural developments

OBJECTIVESOBJECTIVES
►Impact of the change of environment andImpact of the change of environment and
Future focus.Future focus.
►Learn how environment and entrepreneurLearn how environment and entrepreneur
cooperates and are responding to newcooperates and are responding to new
challenges.challenges.

Business EnvironmentBusiness Environment
Business Environment is defined as-Business Environment is defined as-
““Business environment is the sum total of environmentalBusiness environment is the sum total of environmental
factor which provide some atmosphere for business.”factor which provide some atmosphere for business.”
And the environment primarily determines the success orAnd the environment primarily determines the success or
failure of the organization.failure of the organization.

Figure: The firm in its environmentFigure: The firm in its environment
Environmental influence
Political, Social, Legal,
Cultural, etc.
Input Business
organization
Outputs Consumption
Business EnvironmentBusiness Environment

Economic opportunity
Economic growthEntrepreneurship
Model 1
Economic ENVIRONMENT
Entrepreneurship Economic growth
Model 2
MODEL OF ENVIRONMENT OF
ENTREPRENEURSHIP DEVELOPMENT

Economic Opportunity ConditionsEconomic Opportunity Conditions
CapitalCapital 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.

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.

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.

Economic opportunity conditionsEconomic opportunity conditions
TechnologyTechnology 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.

Market size andMarket size 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.

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.

THE ENVIRONMENTAL ASPECT FOR
ENTREPRENEURSHIP
Political Environment
LegislationLegislation
regulating businessregulating business
Growth ofGrowth 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.

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

Socio-Cultural EnvironmentSocio-Cultural Environment
World views heldWorld views held
by consumersby consumers
High persistence ofHigh persistence of
core valuescore values
Existence of subculturesExistence of subcultures
ENTREPRENEURSHIP

 World views that consumersWorld views that consumers
hold of themselves, others,hold of themselves, others,
society, organizations, nature,society, organizations, nature,
and the universeand the universe
 High persistence of core valuesHigh persistence of core values
 Existence of subculturesExistence of subcultures
Example- changing life style,Example- changing life style,
western influence on localwestern influence on local
consumerconsumer
Socio-Cultural EnvironmentSocio-Cultural Environment

Economic EnvironmentEconomic Environment
IncomeIncome
DistributionDistribution
Savings, debt,Savings, debt,
and credit availabilityand credit availability
ENTREPRENEURSHIP

Natural EnvironmentNatural Environment
 Shortage of raw materialsShortage of raw materials
 Increased energy costsIncreased energy costs
 Anti-pollution pressuresAnti-pollution pressures
 Changing role ofChanging role of
governmentsgovernments
ENTREPRENEURSHIP

Technological EnvironmentTechnological Environment
TechnologicalTechnological
EnvironmentEnvironment
Accelerating pace of
technological change
Increased regulation of
technological change
Unlimited
opportunities for
innovation
Varying R&D
budgets
ENTREPRENEURSHIP

Technological EnvironmentTechnological Environment
 Accelerating pace of technologicalAccelerating pace of technological
changechange
 Unlimited opportunities for innovationUnlimited opportunities for innovation
 Varying R&D budgetsVarying R&D budgets
 Increased regulation of technologicalIncreased regulation of technological
changechange
 Example- E-commerce, E-business.Example- E-commerce, E-business.
ENTREPRENEURSHIP

EXISTING ECONOMIC OPPORTUNITYEXISTING 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.

Forces Impacting the externalForces Impacting the external
EnvironmentEnvironment
Financial institutionsFinancial institutions
EmployeesEmployees
Share-holdersShare-holders
SuppliersSuppliers
CompetitorsCompetitors
CustomerCustomer
ENTREPRENEURSHIP

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

CONCLUSIONCONCLUSION
It is important for a company toIt is important for a company to
► Be aware of the factors in theBe aware of the factors in the
environment.environment.
► Keep track of changes of theKeep track of changes of the
environment.environment.
► Modify its products, services and way ofModify its products, services and way of
doing business.doing business.

Many thanks for your attention

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