7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

1/13

Small Firm:

Smart Approach To Be Self Employed

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

2/13

Overview

Statistical analysis of survey data Analysis of Initial & Current Capital Investment

Profit Analysis: Year 2011-2012

Frequency Distribution of Primary Motivations to Start a

Business Right Age to Start a New Business

Success Probability for New Comer

Interpretation of the Study outcomes

Conclusion

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

3/13

Capital Investment Scenario

65%

23%9%

5%

Initial Capital Investment

00-1010-2020-3030-4040-50

90%

5%2%3%

Current Capital Investment

00-50

50-100

100-150

150-200

200-250

250-300

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

4/13

Capital Investment Scenario (continues..)

Average Starting Capital: 11.25 lacs

Average Current Capital: 27.30 lacs

Average age of firms: 9.3 Years

Capital Growth Rate per Year :15.34%

80% of firm owners reinvested to increase their

capital after satisfying their own requirements

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

5/13

Profit Analysis: Year 2011-2012

0

5

10

15

20

25

30

35

40

00-30 30-60 60-90 90-120 120-150 150-180

Frequency Distribution of Profit for Y 2011-12

Frequency (f)

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

6/13

Profit Analysis: Year 2011-2012

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

7/13

Primary Motivations To Start A Business

Frequency Distribution of Primary Motivations for Starting aBusiness

Class Frequency (f) Relative Frequency (f)

To make money 18 33%

To create job security of own 12 22%

To be independent 23 42%

To be powerful 1 2%

To be famous 1 2%

Total 55 100%

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

8/13

Primary Motivations To Start A Business

32%

22%

42%

2%2%

Pie Chart

To make money

To create job security of

ownTo be independent

To be powerful

To be famous

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

9/13

Right Age to Start a New Business

30%

58%

8%

5%

Respondent Opinion

20s

30s

40s

Unsure

Start business at age 30s gives leverage:

To gain knowledge of existing market To develop own network To develop professional maturity

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

10/13

65% of our respondent draw profit more than 30%. If10 new investor comes in what is the probability of 7

or more investors to draw more than 30% profit.

= n = 10*.65 = 6.5; (here n=10, =.65)

S=1.51

Z=0.00; P (Z=0.0)=0.Which refers 50% chance to gain more than 30%

profit

Success Probability for New Comer

)1( ns

S

xZ

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

11/13

Interpretation of The Study Outcomes

Starting a Small Firm: Requires less amount of investment

Gives a steady growth potentiality

Ensures a good amount of profitability

Offers a smart way to work independently

With a good winning possibility

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

12/13

7/31/2019 Small Firm in Bangladesh_Smart Approach to Be Self Employed

13/13

Thank You