Environment Of Entrepreneurship Development
- 1. ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT Roll No. 023; Reg. No. 00682 Faculty of Business Administration And Management Patuakhali Science And Technology University Shofiq Uddin Khan
- 2. OBJECTIVES Identify business environment. Learn about the task of environment. To highlight the impact of environment on the promotion and development of entrepreneurship in Bangladesh. Understand key demographic, economic, natural, technological, political-legal, and socio-cultural developments
- 3. OBJECTIVES Impact of the change of environment and Future focus. Learn how environment and entrepreneur cooperates and are responding to new challenges.
- 4. Business Environment Business Environment is defined as- “ 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.
- 5. Figure: The firm in its environment Business Environment Environmental influence Political, Social, Legal, Cultural, etc. Input Business organization Outputs Consumption
- 6. MODEL OF ENVIRONMENT OF ENTREPRENEURSHIP DEVELOPMENT Economic opportunity Economic growth Entrepreneurship Model 1 Economic ENVIRONMENT Entrepreneurship Economic growth Model 2
- 7. Economic Opportunity Conditions 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.
- 8. Economic Opportunity Conditions Raw 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.
- 9. Economic Opportunity Conditions Labor 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.
- 10. Economic opportunity conditions 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.
- 11. Economic Opportunity Conditions Market size and composition 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 .
- 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.
- 13. Political Environment THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP Legislation regulating business Growth of special 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.
- 14. LEGAL ENVIRONMENT Many laws in our country are so weak that those are almost impossible to implement. Moreover, the judicial administration and legal procedures remained inefficient. Giving the existing legal system, it is inconceivable that entrepreneurship will take place with such a legal backing what so ever. THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
- 15. Socio-Cultural Environment World views held by consumers High persistence of core values Existence of subcultures THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
- 16. World views that consumers hold of themselves, others, society, organizations, nature, and the universe High persistence of core values Existence of subcultures Example- changing life style, western influence on local consumer Socio-Cultural Environment
- 17. Economic Environment Income Distribution Savings, debt, and credit availability THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
- 18. Natural Environment Shortage of raw materials Increased energy costs Anti-pollution pressures Changing role of governments THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
- 19. Technological Environment Technological Environment Accelerating pace of technological change Increased regulation of technological change Unlimited opportunities for innovation Varying R&D budgets THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
- 20. Technological Environment Accelerating pace of technological change Unlimited opportunities for innovation Varying R&D budgets Increased regulation of technological change Example- E-commerce, E-business. THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
- 21. EXISTING ECONOMIC OPPORTUNITY CONDITIONS Capital Labor Technology Raw materials Non 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.
- 22. Forces Impacting the external Environment Financial institutions Employees Share-holders Suppliers Competitors Customer THE ENVIRONMENTAL ASPECT FOR ENTREPRENEURSHIP
- 23. PROSPECTS AND SUGGESTIONS Contribution by entrepreneur can certainly made by the environment that is conducive to 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.
- 24. CONCLUSION It is important for a company to Be aware of the factors in the environment. Keep track of changes of the environment. Modify its products, services and way of doing business.
- 25. Many thanks for your attention