ENVIRONMENT OF ENTREPRENEURSHIP DEENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENTVELOPMENT
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 DEVELOPMENT
2
OBJECTIVESOBJECTIVES
► Identify business environment.Identify business environment.►Learn about the task of environment.Learn about the task of environment.►To highlight the impact of To highlight the impact of
environment on the promotion and environment on the promotion and development of entrepreneurship in development of entrepreneurship in Bangladesh.Bangladesh.
►Understand key demographic, Understand key demographic, economic, natural, technological, economic, natural, technological, political-legal, and socio-cultural political-legal, and socio-cultural developmentsdevelopments
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
3
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
4
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
5
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
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
6
Economic opportunity
Economic growth Entrepreneurship
Model 1
Economic ENVIRONMENT
Entrepreneurship Economic growth
Model 2
MODEL OF ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
7
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
8
Economic Opportunity Economic Opportunity Conditions Conditions
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
9
Economic Opportunity Economic Opportunity Conditions Conditions
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
10
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
11
Economic Opportunity Economic Opportunity Conditions Conditions
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
12
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
13
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
14
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.
THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
15
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
THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
16
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 Example- changing life style, western influence on style, western influence on local consumerlocal consumer
Socio-Cultural EnvironmentSocio-Cultural Environment
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
17
Economic EnvironmentEconomic Environment
Income Income DistributionDistribution
Savings, debt, Savings, debt, and credit availabilityand credit availability
THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
18
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
THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
19
Technological EnvironmentTechnological Environment
TechnologicalTechnologicalEnvironmentEnvironment
Accelerating pace of technological change
Increased regulation of technological change
Unlimited opportunities for
innovation
Varying R&D budgets
THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
20
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.
THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
21
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
22
Forces Impacting the external Forces Impacting the external EnvironmentEnvironment
Financial institutions Financial institutions
EmployeesEmployees
Share-holders Share-holders
Suppliers Suppliers
Competitors Competitors
Customer Customer
THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
23
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.
ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT
24
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.