Description
In this particular detailed explanation pertaining to entrepreneurship development through educational reform.
1
Economic Policy Paper
on
Entrepreneurship Development through Educational
Reform
1. Introduction: Background, Concept of Entrepreneurship
1.1 Background
The Terms of Reference (TOR) as at Annex - I for the preparation of an Economic Policy Paper
on Entrepreneurship Development through Educational Reform seeks to appropriate changes in
the education system for providing opportunities to many for their contribution to the economy.
The TOR is specific in that property designed entrepreneurship development program could and
should fulfil the aspiration of the people for food, shelter, clothing, medicare and education. With
this interest and guidance the Economic Policy Paper on the subject has been initiated for
economic development through the entrepreneurship development program.
1.2 Concept of Entrepreneurship
Entrepreneurship is an act of initiative, drive, commitment, diligence, perseverance, organized
effort, and achievement outlook, to undertake some specific functions of performing productive
activities and the capacity to bear and associated with the investment. Assessment of Market
Opportunity, responding to competition, gaining command over scarce resources, identifying
sources of inputs, and marketing of products, dealing with public, bureaucracy, management of
human resources, technological innovation and improvements in production techniques are prime
functions of an entrepreneur. In other words, Entrepreneurship is the dynamic process of creating
incremental wealth by individuals/groups through the use of resources. The individual or groups
who perform these activities are called entrepreneurs. The entrepreneurial activities create
incremental wealth which is a precondition to economic growth. The existence of entrepreneurs
and its accelerated growth is a precondition to continuous and sustainable economic growth.
Entrepreneurship nowadays is universally recognized as critical resource in the economic
development process of a country. In view of this fact development of entrepreneurship received
serious attention among the policy makers, planners and development economists as a strategy of
economic growth. The entrepreneurs played significant role in the economic development process
during 19
th
& 20
th
centuries in developing business successfully with continuity. It will continue
to play dominant role in economic growth partic ularly industrial during 21
st
century.
Various studies reveal that Bangladesh has adequate potential for entrepreneurship development
as essential qualities (Innovativeness, risk-taking, perceiving economic opportunities, strong
commitment to purpose, vis ion etc.) of an entrepreneur which is available among a good number
of people. Given the opportunities and with needed support assistance many can be developed as
successful entrepreneurs. The potentials are great; appropriate opportunities provided in
congenial environment can help develop entrepreneurship development.
2. New Venture Creation: Entrepreneurs
After the starting a new venture an entrepreneur requires knowledge, skill, motive and courage to
run enterprise successfully. In every year many individuals start businesses but rate of their
failure is very high. The forces that necessarily encourage business formation do not necessarily
2
lead to successful growth and development. Research studies on entrepreneurs show various
factors of entrepreneur ial development. These factors are divided into two parts : entrepreneurial
formation factors and key business development skills.
2.1 Entrepreneurial Formation Factors
Three sets of factors are related to the formation of entrepreneurial organizations . Psychological
factors , such as, an individual's need to achieve, contribute to the entrepreneurial urge.
Sociological factors, such as social status, a child's position in the family, family experience can
affect the child's likelihood of becoming an entrepreneur. Environmental factors also play a key
role in business formation. For example, as the interest rate increases, fewer potential projects can
be funded because fewer projects can generate sufficient cash flow to service the debt. Exhibit-I
shows the factors for new business creation.
In addition to above factors, various support services provided by government and non-
governmental organizations are of great assistance for entrepreneurship development.
2.2 Key Business Development Skill
To start, survive and progress continuously and develop organization that outlive its creator an
entrepreneur must develop basic management skill. These skills are more important than an
entrepreneur's background or environment. This can be developed regardless of background or
skill through education and training. As the organization grows and gets bigger its organizational
structure, market area, management style are also changed. Entrepreneurs have to cope with the
changing conditions of the business.
Psychological factors
? Upbringing
? Locus of control
? Need for achievement
? Self-actualization
Sociological Factors
? Social status
? Reference group
? Family experience
? Place in family
Environmental factors
? Money supply
? Economic health
? Critical mass
? Education Training System,
? Technology, Culture, etc
New
venture
formation
Exhibit-I
3
There are three stages of organizational growth, namely, (1) early stage, (2) developing stage, and
(3) developed stage.
Potential entrepreneurs in order to become successful should be acquainted with basic
management skill, such as, planning and managing small firm, managing growth and
development, and planning for competitive advantage. Moreover, they should be aware of
hazards to be faced in running the enterprises.
3. Entrepreneurial Qualities and Traits
Entrepreneurship refers qualities of an entrepreneur. Knowledge, skill and motif together form
entrepreneurial traits.
Major Entrepreneurial Qualities are:
i. Self confidence :- Confidence, leadership, Independence, Commitment.
ii. Originality :- Innovative, Creative, resourceful, Initiative, Versatile.
iii. People Oriented :- Easy going, Flexible, Response to suggestion.
iv. Task Oriented :- Persistence, Perseverance, determined, hard working profit oriented.
v. Future Oriented :- Foresight, perceptive, concern for improvement.
vi. Risk Oriented :- Challenging, Ability to take risks.
To be an entrepreneur the above qualities are required. However, all these qualities may not be
present in one individual. But a good mix of the qualities can be found in a man, who may be
developed as an Entrepreneur through concerted efforts. Some of the qualities are inborn or
inherited by birth, some can be acquired through training and education.
There exists a belief in the mind of some that "entrepreneurs are born and not made". They mean
that entrepreneurial qualities are born and cannot be developed by education, training or any other
means. This myth is no longer true. It is now evidently proved that some qualities can be
developed and improved by education, training and support assistance. It is of course true, to
become an entrepreneur one must have some qualities (e.g. high need for achievement
motivation, common sense) but there are many qualities, say, management technique could be
learned. In fact many entrepreneurial qualities are acquired from knowledge.
4. Entrepreneurship Education, Training and Self Employment
The importance of entrepreneurial education and Training for motivating educated youth to self-
employment is recognised by development economists, planners and policy makers, as well as
governments of most countries of the world. The entrepreneurial education traces its origin from
the growing ideas that entrepreneurial qualities of man can be improved or new skill can be
developed through special type of training and education among the potential persons in a
society. The entrepreneurship education course includes the contents that help the students to be
aware of economic opportunities, business environment, identification of project, preparation of
business plan, improving motivation for achievement, techniques of enterprise management, self-
development techniques, improving precision skill etc. Other objectives are concerned with
building self-confidence, opportunity sense sensitivity and analytical skills. The purpose of the
courses is to develop or improve skills that are vitally needed for self -employment as a career.
Today, entrepreneurship education is a popular course in business education and technical
curriculum in many American and European countries. The courses are being offered not only in
business school but also at community colleges, colleges of engineering education. It is taught
4
either as a course of under graduate and post graduate program or through the establishment of
separate centre/institute. Separate institutes have been established in India, the Philippines to
impart entrepreneurship education and training. In Bangladesh programs have been launched for
educated youths, women and same targeted groups. Entrepreneurship courses have been included
in the under graduate and graduate programs on selective basis in order to motivate some students
to initiate small venture and take self employment as an alternative source of employment.
5. Education System of Bangladesh
Education system in Bangladesh may broadly be classified int o two divisions, namely, General
Education and Technical Education.
5.1 General Education
Again the general education system in Bangladesh is divided into three phases: PRIMARY,
SECONDARY AND HIGHER EDUCAITON. From class I to class VII is imparted in primary
school; from class IX to class XII is imparted in secondary and intermediary colleges; and,
higher education in degree colleges and universities. Madrasha education in the country offers
traditionally to Muslim boys and girls. This system is integrated to a certain extent with general
education system of the country.
5.2 Technical Education
Technical education in Bangladesh is organized in three phases : Via Certificate, Diploma and
Degrees. The Certificate Course which prepare skilled workers in 11 trades of two years duration
after 8
th
grade of schooling imparted in 64 Vocational Training Institutes (VTI) and 15 technical
training centers (TTC).
Polytechnic Institutes and Monotechnique Institutes offer Diploma courses in Engineering,
Commerce and Industry subjects. The duration of polytechnic courses is four years. The duration
of Commercial courses is two years after secondary school certificates examination.
The Engineering University, Institute of Technologies offer degree courses of technical education
system. The Engineering University and the BIT council awards degrees respectively.
Bangladesh Technical Education Board awards diploma certificates to the students who passes
the public examination held at the end of terminal year of the cours e. The Board has full
academic control over vocational and institutes which require its affiliation for all academic
purposes.
5.3 Curriculum of the Education System
In order to create general awareness about Entrepreneurship as career plan, an alternative to
salaried employment the role of entrepreneurship education is most crucial. In Bangladesh,
entrepreneurship courses have been included in the curriculum of business education and
technical education system very recently. This course has been included in the curriculum of
business education program of the University for the last few years. It has been introduced as an
optional course in the business education curriculum of SSC & HSC programs. Similarly this
course has been included in the curriculum of Polytechnic & technical education system of the
country.
5
The contents of the Entrepreneurship development course include, among others concept,
entrepreneurship as career plan, entrepreneurship theory, entrepreneurial motivation, business
environment, the role of entrepreneurs in economic development, project ideas generation,
selection of project, preparation of business plan, Project management, social responsibility of the
Entrepreneurs in developed & newly industrialised countries, Entrepreneurship, development
programs. The courses for different levels of education have been designed keeping in view the
requirements and absorbing capacity of the students. However, inconsistency exists in the course
contents of the curriculum. Text books and reading materials for the courses are very scarce.
Entrepreneurship course is a special type of education. To teach this course trained and
experienced teachers are needed. There is an absolute shortage of trained teachers for this course.
Moreover, there is no provision for assistance for those students who are willing to
entrepreneurship as a career.
In the Present curriculum teaching is mainly theory-based rather than practical. As a result this
education is not so effective for taking entrepreneurship as a Career.
Except for the M. Com. degree program, this course has been introduced very recently. As a
result, it is difficult to comment on the impact of the program. However, it is observed that some
students who have this course at graduate program have been motivated to start business as an
alternative to salaried employment. Some of them are doing quite well. It is also understood that
given the financial support without collateral, more graduates taking this course will be attracted
to entrepreneurship as a career.
6. Entrepreneurship Development Policy
More than three decades have passed since Bangladesh achieved independence after bloody
liberation war. The liberation generated great hope for accelerated economic growth through
rapid industrialization. The successive governments in power in order to guide the emerging
entrepreneurs announced Industrial Policies from time to time keeping in view the changing
needs of the country; the first Industrial Policy was announced in 1972 heavily emphasised the
role of public sector dealing as well the role of private sector. The private sector investment was
restricted to the investment of only Taka 25 lacs ceiling since the announcement of first Industrial
Policy. The policy was revised and changed several times. The last Industrial Policy was
announced in 1999. In this policy the Government reiterated its firm commitment to rapid
industrialization and extended more liberal support services to entrepreneurs and clearly stated in
the policy the role of government which will be facilitator than regulator. The small and cottage
industries were provided with some special incentives. It has been stated that in the next two
decades there will be a 25% contribution to the GDP and also a 20% increase in employment by
the industry sector.
7. Organizations involved in Entrepreneurship Development Program (EDP) in Bangladesh
As has been seen that EDP has since been implemented by the government organisation and the
non-government organisation, the Industrial Policy remains the major guide for the purpose.
7.1 Government Organizations include
* Bangladesh Small and Cottage Industries Corporation (BSCIC)
* Bangladesh Rural Development Board (BRDB)
* Bangladesh Management Development Institute (BMDI)
* Directorate of Women Affairs (DWA)
6
* Development of Youth Development (DYD)
* Bangladesh Manpower Training Bureau (BMTB)
7.2 Non-government Organizations
* Micro-Industries Development and Assistance Services (MIDAS)
* Bangladesh Rural Advancement Committee (BRAC)
* Gono Shasthya Kendra (GK) etc.
Professional Association: Dhaka Chamber of Commerce and Industry (DCCI), Chittagong
Chamber of Commerce & Industry (CCCI), Sylhet Chamber of Commerce & Industry (SCCI)
and the National Association of Small and Cottage Industries of Bangladesh (NASCIB) in a
limited scale. All these organizations, among others, have been organizing training program for
both men and women. However, these programs in true sense of the term provide training
assistance which is a part of the total Entrepreneurship Development Program.
7.3 Impact of the Programs
The Government of Bangladesh in its policies has awarded priority to privatisation especially to
small, medium and micro industries development. Human resources development efforts to
existing and potential entrepreneurs have to be supported by required appropriate implementation
measures. The country features a number of innovative grassroots schemes for income-generating
activities; however, entrepreneurship development programs at more advanced level of business
operations were found inadequate. Demand for education and training far exceeds supply and,
notwithstanding the fact the first-generation entrepreneurs predominate. There seems to be ample
potential and talent for entrepreneurial growth. A country like Bangladesh rich in human rather
than natural resources, can not afford to this potential, particularly in view of serious
unemployment and underemployment.
Overall performance of the training on entrepreneurship development programs differs according
to target groups. At all levels of income-generating programs organised both by governmental
and non-governmental agencies are mostly related to orientation and motivation sessions and in
some cases skill development training efforts and impact achieved through distribution of micro
loans to needy beneficiaries. A crude estimate suggests that over 65% of rural under-
unemployment are not reached by these schemes. Nevertheless, outreach has been quite
substantial. BSCIC has undertaken some training schemes to assist small entrepreneurs in the
form of starting small business, small business management training, etc, but those were
inadequate in relation to demand. MIDAS has done some commendable work with regard to
entrepreneurship development but those were too inadequate.
7.4 Weaknesses of Entrepreneurship Development Programs
In Bangladesh, there is no specialized Institution organizing entrepreneurship development
program. The Institution mentioned above offers entrepreneurship development progr ams. They
are designed to help individuals achieve income generating and self-employment or skill
development. The following are some of the problems of these programs:
• The concept of entrepreneurship development through formal training programs is completely
new to the participants. The entrepreneurship development course, has been introduced in
some courses, say, business education, technical education system. However, this course has
not been introduced in other disciplines.
7
• Lack of awareness that business could be a good profession is another problem for the
training.
• Most training programs were designed without formal assessment of the needs of the trainees.
• Neither the trainers are well trained to give training nor methodology used in the program is
appropriate. Training programs are not followed by appropriate provision of support
assistance.
7.5 Importance of Entrepreneurship Development in Bangladesh
Bangladesh need a large number of entrepreneurs and in quality. It is important for creating
incremental wealth by undertaking productive activities particularly industrialization. Rapid
industrialization is an inescapable necessity to generate employment opportunities to meet crucial
educated unemployment and underemployment problems. Every year thous ands of educated
unemployed is joining the labor force. In addition there are thousands of dropouts from different
levels of our education system. Who are the wealth as well as job creators? Definitely the existing
as well as emerging entrepreneurs. Among three important sources (the individuals, the spin off
and Entrepreneurs) the most important source is individual entrepreneurs. The major source of
entrepreneurs are the college and university graduates and educated youths.
Bangladesh is predominantly an agricultural country in search of employment to a large number
of individuals start business with great enthusiasm but retire soon facing innumerable problems.
As a result our first generation entrepreneurs having no family or industry / business experience
go ahead to operate their promotion. Excepting few vulnerable industries all sectors were open to
local foreign investors. Despite generous support and encouragement the overall performance has
remained unsatisfactory. The impact is reflected in the share of contribution in GDP and
employment.
8. Experiences of Selected Countries on EDP
Technonet Asia, Singapore, a regional organisation with 12 countries in the South East Asia,
since 1974 has been providing various assistance to the Small and Medium-Scale enterprises.
One of the activities of this organization was to support entrepreneurship development training.
The organisations in the respective counties - say in Bangladesh the BSCIC organized several
workshop / training on EDP but it was a part of the total EDT.
The German Confederation of Small Business and Skilled Crafts (ZDH), Germany in its 400
vocational institutes has been regularly conducting a 3-year diploma course on Comprehensive
EDP. The passed out trainees with a 3-year diploma on specific subject is entitled to establish an
enterprise with all the needed assistance including bank financing. The government for each
trainee is to bear 70% of the cost of training, 20% is the contribution of the trainee or his sponsor
and the remaining 10% is from the ZDH.
9. Entrepreneurship Development Process
Major assistance requirements of the new entrepreneurs are worth mentioning while discussing
the entrepreneurial development as a tool of economic growth of a nation. They need multiple
assistance which may be offered in a package form. To set up an enterprise and run it
successfully an entrepreneur need these types of assistance. These three groups of assistance form
an Entrepreneurship Development Cycle. The groups of assistance are:
a. Stimulat ory;
b. Support; and
8
c. Sustaining.
a. The stimulatory activities comprise entrepreneurial education, provision of entrepreneurial
opportunities and guidance in selecting industries are needed to help emergence of
entrepreneurship in the Society. This support ensures a good supply of entrepreneurs to start a
new venture and develop potentiality to succeed in a venture.
b. The support activities refer to those which enable the entrepreneurs in setting up and running
the enterprises successfully. They help in mobilising resources and assistance.
c. The sustaining activities include efforts which help the entrepreneurs sustain themselves
against the challenges of actual operation. Many enterprises starting well, meet immature
death subsequently because of some problems. Such cases are many and they are particularly
more significant in the field of small enterprises.
The above groups of activities play complementary roles to each other. In the absence or
negligence of one, others may be rendered infructuous. If the stimulatory activities are over-
emphasised, there may be better supply in failure and frustration. This causes national wastage of
resources in terms of men and materials. Similarly, if support activities are over emphasised and
the other two are neglected, then there may be facilities available with no or few entrepreneurs to
avail such facilities. When sustaining activities are over -emphasised the growth in the number of
enterprises is bound to be stagnant. It is thus imperative that the needs of enterprises are required
to be identified in the total perspective before devising package of assistance. Entrepreneurship
Development Cycle is shown in Exhibit -II.
9.1 Entrepreneurial Development Cycle
1. Registration of unit
2. Arranging finance
3. Providing land, shed, power, water etc.
4. Guidance for selecting and obtaining
machinery
5. Supply of scarce raw materials.
6. Getting licences / import licences
7. Providing common facilities
8. Granting tax relief or other subsidy
9. Offering management consultancy
10. Help marketing product
1. Entrepreneurial education.
2. Planned publicity for entrepreneurial opportun ities.
3. Identification of potential entrepreneurs through scientific methods.
4. Motivational training to new entrepreneurs.
5. Help and guide in selecting products and preparing project reports.
6. Making available techno-economic information and product profits.
7. Evolving locally suitable new products and processes.
8. Availability of local agencies with trained personnel for entrepreneurial counselling and
promotions.
9. Organising entrepreneurial forum.
1. Help modernization
2. Help diversification/expansion / substitute production.
3. Additional financing for full capacity utilization
4. Deferring repayment/interest.
5. Diagnostic industrial extension/consultancy source.
6. Production units/ legislation/policy change
7. Product reservation / creating new avenues for marketing
8. Quality testing and improving services
9. Need - based common facilities centre.
9
Exhibit-II
10
10. Conclusion and Recommendations
10.1 Conclusion
To sum up experiences of the programs of entrepreneurship education and training, it may be
stated that it has not yet received due attention at the policy level as a strategy of human resource
development. This is also reflected in the educational curriculum and inadequate training
provisions in the country. General awareness of entrepreneurial attitude and motivation are
required to be developed during the learning periods of the students. Entrepreneurship course has
not yet been included in the curriculum at all levels of education system in our country. This
shortfall can be dealt by bringing reforms in the Education system of our country. Lack of trained
and experienced teachers, absence of text books and reading materials exposing Bangladesh
situation, inconsistencies and over-lapping of course contents and absence of positive attitude of
concerned authorities appear to be major problems for effective delivery of entrepreneurship
education. However, it is observed from the experience of few seminars organized by Technical
Education Board for teachers and institutional heads that the attitude towards entrepreneurship
education is changing in a positive direction.
Regarding entrepreneurship training, it appears that the country featured a number of innovative
income generating programs for the poor organized by NGOs. Their programs include training
for creating awareness on group activity and skill development. NGOs like BRAC have achieved
remarkable success in bringing landless people under the umbrella of productive activities and
thereby generating income earning opportunities for disadvantaged people of society. It is,
however, doubtful that there exists hardly any entrepreneurship development programs in the
truest sense of the term. Entrepreneurship development training programs are inadequate and
suffer from many weaknesses to create major impact on entrepreneurship development in the
country. The major weaknesses, as identified, are: (i) missing needed attention at policy level, (ii)
shortage of qualified, leaders and trainers, (iii) lack of training program need analysis, (iv)
insufficient number of programs geared at entrepreneurship for those who would like to step in
starting Small Enterprise after being successful in income generating activities, (v) absence of
integrated education and training approach for youth and provisions for followed-up assistance,
(vi) insufficient application of innovative training methods materials, (vii) lack of co-ordination
between concerned institutions at National, Regional and International level.
10.2 Recommendations
10.2.1 General
Despite these limitations, the study of the programs for entrepreneurship education and training
indicates the proposition that given the motivational training and key inputs, the educated youth
particularly having entrepreneurial qualities could be attracted to entrepreneurial activities and
lured to undertake small ventures. Bangladesh has immense potentiality in terns of resource
endowments both material and human for entrepreneurship development. What is needed is to
devise appropriate policy and implementation measures for the improvement of entrepreneurship
education and training in the country. For developing sound entrepreneurship education and
training, the following measures are recommended:
a) Entrepreneurship education and training should be recognized as an important component of
human resource development in the country. This should be reflected in the education and
development policy of the country.
b) In order to create general awareness on the subject entrepreneurship course should be
introduced in the curriculum at different levels of educational system in all disciplines. The
11
courses should be designed by experts and offered by trained teachers. The graduates
intending to take self-employment by starting small ventures should be provided by required
support & sustaining assistance.
c) Short term training course should be designed and organized for different target groups and
offered by trained motivated and trained/trainers. While designing the training programs,
specific needs of the target group are required to be identified by appropriate means. Needless
to say that the training program should be supported by appropriate assistance.
d) Training of trainers and motivators is essential for organizing successful operation of
entrepreneurship Education and training
e) Provision should be made for improving the capability of existing training institutions by
providing needed assistance.
f) A separate training institute for entrepreneurship development should be established.
Establishment of new training institutions particularly in the private sector should be
encouraged by taking policy initiative and promotional assistance.
g) Special program should be designed for those beneficiaries who want to graduate themselves
out of income generating activities in the country.
h) Appropriate mechanism should be developed to establish effective linkage with institutions
(including universities, donor agencies) engaged in entrepreneurship education and training at
national, regional, and international level for strengthening existing and new approaches in
bringing qualitative improvement in force.
10.2.2 Specific Recommendations for Technical Graduates
(i) Introduction of general awareness and basic courses on entrepreneurship and self-
employment into the vocational training curriculum. The objective of adding the new
dimension to the Technical Education curriculum should be to create awareness of business
opportunities available for the graduates as well as to motivate them toward self -employment
and entrepreneurship.
The following key points should be considered in implementing this recommendation.
a. A compulsory module or course on entrepreneurship should be introduced for all disciplines
in the technical education system.
b. The curriculum on entrepreneurship should be developed by an expert committee
c. Reading, instructional materials, and teaching aids for the course should also be developed by
specialists in the area of entrepreneurship, small business management, behavioural science.
d. Instructors offering entrepreneurship courses should be professionally trained and motivated
to teach the subject successfully. A cadre of dynamic young instructors should be recruited
from accredited business schools and by carefully screening and selecting applicants from
among those existing instructors who have the aptitude and ability to serve in this capacity.
(ii) An intensive short term entrepreneurship training program should be offered for Technical
graduates and others living in the immediate vicinity of the technical centres who are
unemployed and interested in starting micro-enterprises and small business ventures.
An integrated package of assistance in terms of capital, kits, etc. may be designed and made
available to the graduates motivated to take up self-employment or start a small business
venture.
(iii) For effective administration and proper implementation of the entrepreneurship education in
technical education system as separate division named entrepreneurship development should
be established under the Bangladesh Technical Education Board.
doc_807899550.pdf
In this particular detailed explanation pertaining to entrepreneurship development through educational reform.
1
Economic Policy Paper
on
Entrepreneurship Development through Educational
Reform
1. Introduction: Background, Concept of Entrepreneurship
1.1 Background
The Terms of Reference (TOR) as at Annex - I for the preparation of an Economic Policy Paper
on Entrepreneurship Development through Educational Reform seeks to appropriate changes in
the education system for providing opportunities to many for their contribution to the economy.
The TOR is specific in that property designed entrepreneurship development program could and
should fulfil the aspiration of the people for food, shelter, clothing, medicare and education. With
this interest and guidance the Economic Policy Paper on the subject has been initiated for
economic development through the entrepreneurship development program.
1.2 Concept of Entrepreneurship
Entrepreneurship is an act of initiative, drive, commitment, diligence, perseverance, organized
effort, and achievement outlook, to undertake some specific functions of performing productive
activities and the capacity to bear and associated with the investment. Assessment of Market
Opportunity, responding to competition, gaining command over scarce resources, identifying
sources of inputs, and marketing of products, dealing with public, bureaucracy, management of
human resources, technological innovation and improvements in production techniques are prime
functions of an entrepreneur. In other words, Entrepreneurship is the dynamic process of creating
incremental wealth by individuals/groups through the use of resources. The individual or groups
who perform these activities are called entrepreneurs. The entrepreneurial activities create
incremental wealth which is a precondition to economic growth. The existence of entrepreneurs
and its accelerated growth is a precondition to continuous and sustainable economic growth.
Entrepreneurship nowadays is universally recognized as critical resource in the economic
development process of a country. In view of this fact development of entrepreneurship received
serious attention among the policy makers, planners and development economists as a strategy of
economic growth. The entrepreneurs played significant role in the economic development process
during 19
th
& 20
th
centuries in developing business successfully with continuity. It will continue
to play dominant role in economic growth partic ularly industrial during 21
st
century.
Various studies reveal that Bangladesh has adequate potential for entrepreneurship development
as essential qualities (Innovativeness, risk-taking, perceiving economic opportunities, strong
commitment to purpose, vis ion etc.) of an entrepreneur which is available among a good number
of people. Given the opportunities and with needed support assistance many can be developed as
successful entrepreneurs. The potentials are great; appropriate opportunities provided in
congenial environment can help develop entrepreneurship development.
2. New Venture Creation: Entrepreneurs
After the starting a new venture an entrepreneur requires knowledge, skill, motive and courage to
run enterprise successfully. In every year many individuals start businesses but rate of their
failure is very high. The forces that necessarily encourage business formation do not necessarily
2
lead to successful growth and development. Research studies on entrepreneurs show various
factors of entrepreneur ial development. These factors are divided into two parts : entrepreneurial
formation factors and key business development skills.
2.1 Entrepreneurial Formation Factors
Three sets of factors are related to the formation of entrepreneurial organizations . Psychological
factors , such as, an individual's need to achieve, contribute to the entrepreneurial urge.
Sociological factors, such as social status, a child's position in the family, family experience can
affect the child's likelihood of becoming an entrepreneur. Environmental factors also play a key
role in business formation. For example, as the interest rate increases, fewer potential projects can
be funded because fewer projects can generate sufficient cash flow to service the debt. Exhibit-I
shows the factors for new business creation.
In addition to above factors, various support services provided by government and non-
governmental organizations are of great assistance for entrepreneurship development.
2.2 Key Business Development Skill
To start, survive and progress continuously and develop organization that outlive its creator an
entrepreneur must develop basic management skill. These skills are more important than an
entrepreneur's background or environment. This can be developed regardless of background or
skill through education and training. As the organization grows and gets bigger its organizational
structure, market area, management style are also changed. Entrepreneurs have to cope with the
changing conditions of the business.
Psychological factors
? Upbringing
? Locus of control
? Need for achievement
? Self-actualization
Sociological Factors
? Social status
? Reference group
? Family experience
? Place in family
Environmental factors
? Money supply
? Economic health
? Critical mass
? Education Training System,
? Technology, Culture, etc
New
venture
formation
Exhibit-I
3
There are three stages of organizational growth, namely, (1) early stage, (2) developing stage, and
(3) developed stage.
Potential entrepreneurs in order to become successful should be acquainted with basic
management skill, such as, planning and managing small firm, managing growth and
development, and planning for competitive advantage. Moreover, they should be aware of
hazards to be faced in running the enterprises.
3. Entrepreneurial Qualities and Traits
Entrepreneurship refers qualities of an entrepreneur. Knowledge, skill and motif together form
entrepreneurial traits.
Major Entrepreneurial Qualities are:
i. Self confidence :- Confidence, leadership, Independence, Commitment.
ii. Originality :- Innovative, Creative, resourceful, Initiative, Versatile.
iii. People Oriented :- Easy going, Flexible, Response to suggestion.
iv. Task Oriented :- Persistence, Perseverance, determined, hard working profit oriented.
v. Future Oriented :- Foresight, perceptive, concern for improvement.
vi. Risk Oriented :- Challenging, Ability to take risks.
To be an entrepreneur the above qualities are required. However, all these qualities may not be
present in one individual. But a good mix of the qualities can be found in a man, who may be
developed as an Entrepreneur through concerted efforts. Some of the qualities are inborn or
inherited by birth, some can be acquired through training and education.
There exists a belief in the mind of some that "entrepreneurs are born and not made". They mean
that entrepreneurial qualities are born and cannot be developed by education, training or any other
means. This myth is no longer true. It is now evidently proved that some qualities can be
developed and improved by education, training and support assistance. It is of course true, to
become an entrepreneur one must have some qualities (e.g. high need for achievement
motivation, common sense) but there are many qualities, say, management technique could be
learned. In fact many entrepreneurial qualities are acquired from knowledge.
4. Entrepreneurship Education, Training and Self Employment
The importance of entrepreneurial education and Training for motivating educated youth to self-
employment is recognised by development economists, planners and policy makers, as well as
governments of most countries of the world. The entrepreneurial education traces its origin from
the growing ideas that entrepreneurial qualities of man can be improved or new skill can be
developed through special type of training and education among the potential persons in a
society. The entrepreneurship education course includes the contents that help the students to be
aware of economic opportunities, business environment, identification of project, preparation of
business plan, improving motivation for achievement, techniques of enterprise management, self-
development techniques, improving precision skill etc. Other objectives are concerned with
building self-confidence, opportunity sense sensitivity and analytical skills. The purpose of the
courses is to develop or improve skills that are vitally needed for self -employment as a career.
Today, entrepreneurship education is a popular course in business education and technical
curriculum in many American and European countries. The courses are being offered not only in
business school but also at community colleges, colleges of engineering education. It is taught
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either as a course of under graduate and post graduate program or through the establishment of
separate centre/institute. Separate institutes have been established in India, the Philippines to
impart entrepreneurship education and training. In Bangladesh programs have been launched for
educated youths, women and same targeted groups. Entrepreneurship courses have been included
in the under graduate and graduate programs on selective basis in order to motivate some students
to initiate small venture and take self employment as an alternative source of employment.
5. Education System of Bangladesh
Education system in Bangladesh may broadly be classified int o two divisions, namely, General
Education and Technical Education.
5.1 General Education
Again the general education system in Bangladesh is divided into three phases: PRIMARY,
SECONDARY AND HIGHER EDUCAITON. From class I to class VII is imparted in primary
school; from class IX to class XII is imparted in secondary and intermediary colleges; and,
higher education in degree colleges and universities. Madrasha education in the country offers
traditionally to Muslim boys and girls. This system is integrated to a certain extent with general
education system of the country.
5.2 Technical Education
Technical education in Bangladesh is organized in three phases : Via Certificate, Diploma and
Degrees. The Certificate Course which prepare skilled workers in 11 trades of two years duration
after 8
th
grade of schooling imparted in 64 Vocational Training Institutes (VTI) and 15 technical
training centers (TTC).
Polytechnic Institutes and Monotechnique Institutes offer Diploma courses in Engineering,
Commerce and Industry subjects. The duration of polytechnic courses is four years. The duration
of Commercial courses is two years after secondary school certificates examination.
The Engineering University, Institute of Technologies offer degree courses of technical education
system. The Engineering University and the BIT council awards degrees respectively.
Bangladesh Technical Education Board awards diploma certificates to the students who passes
the public examination held at the end of terminal year of the cours e. The Board has full
academic control over vocational and institutes which require its affiliation for all academic
purposes.
5.3 Curriculum of the Education System
In order to create general awareness about Entrepreneurship as career plan, an alternative to
salaried employment the role of entrepreneurship education is most crucial. In Bangladesh,
entrepreneurship courses have been included in the curriculum of business education and
technical education system very recently. This course has been included in the curriculum of
business education program of the University for the last few years. It has been introduced as an
optional course in the business education curriculum of SSC & HSC programs. Similarly this
course has been included in the curriculum of Polytechnic & technical education system of the
country.
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The contents of the Entrepreneurship development course include, among others concept,
entrepreneurship as career plan, entrepreneurship theory, entrepreneurial motivation, business
environment, the role of entrepreneurs in economic development, project ideas generation,
selection of project, preparation of business plan, Project management, social responsibility of the
Entrepreneurs in developed & newly industrialised countries, Entrepreneurship, development
programs. The courses for different levels of education have been designed keeping in view the
requirements and absorbing capacity of the students. However, inconsistency exists in the course
contents of the curriculum. Text books and reading materials for the courses are very scarce.
Entrepreneurship course is a special type of education. To teach this course trained and
experienced teachers are needed. There is an absolute shortage of trained teachers for this course.
Moreover, there is no provision for assistance for those students who are willing to
entrepreneurship as a career.
In the Present curriculum teaching is mainly theory-based rather than practical. As a result this
education is not so effective for taking entrepreneurship as a Career.
Except for the M. Com. degree program, this course has been introduced very recently. As a
result, it is difficult to comment on the impact of the program. However, it is observed that some
students who have this course at graduate program have been motivated to start business as an
alternative to salaried employment. Some of them are doing quite well. It is also understood that
given the financial support without collateral, more graduates taking this course will be attracted
to entrepreneurship as a career.
6. Entrepreneurship Development Policy
More than three decades have passed since Bangladesh achieved independence after bloody
liberation war. The liberation generated great hope for accelerated economic growth through
rapid industrialization. The successive governments in power in order to guide the emerging
entrepreneurs announced Industrial Policies from time to time keeping in view the changing
needs of the country; the first Industrial Policy was announced in 1972 heavily emphasised the
role of public sector dealing as well the role of private sector. The private sector investment was
restricted to the investment of only Taka 25 lacs ceiling since the announcement of first Industrial
Policy. The policy was revised and changed several times. The last Industrial Policy was
announced in 1999. In this policy the Government reiterated its firm commitment to rapid
industrialization and extended more liberal support services to entrepreneurs and clearly stated in
the policy the role of government which will be facilitator than regulator. The small and cottage
industries were provided with some special incentives. It has been stated that in the next two
decades there will be a 25% contribution to the GDP and also a 20% increase in employment by
the industry sector.
7. Organizations involved in Entrepreneurship Development Program (EDP) in Bangladesh
As has been seen that EDP has since been implemented by the government organisation and the
non-government organisation, the Industrial Policy remains the major guide for the purpose.
7.1 Government Organizations include
* Bangladesh Small and Cottage Industries Corporation (BSCIC)
* Bangladesh Rural Development Board (BRDB)
* Bangladesh Management Development Institute (BMDI)
* Directorate of Women Affairs (DWA)
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* Development of Youth Development (DYD)
* Bangladesh Manpower Training Bureau (BMTB)
7.2 Non-government Organizations
* Micro-Industries Development and Assistance Services (MIDAS)
* Bangladesh Rural Advancement Committee (BRAC)
* Gono Shasthya Kendra (GK) etc.
Professional Association: Dhaka Chamber of Commerce and Industry (DCCI), Chittagong
Chamber of Commerce & Industry (CCCI), Sylhet Chamber of Commerce & Industry (SCCI)
and the National Association of Small and Cottage Industries of Bangladesh (NASCIB) in a
limited scale. All these organizations, among others, have been organizing training program for
both men and women. However, these programs in true sense of the term provide training
assistance which is a part of the total Entrepreneurship Development Program.
7.3 Impact of the Programs
The Government of Bangladesh in its policies has awarded priority to privatisation especially to
small, medium and micro industries development. Human resources development efforts to
existing and potential entrepreneurs have to be supported by required appropriate implementation
measures. The country features a number of innovative grassroots schemes for income-generating
activities; however, entrepreneurship development programs at more advanced level of business
operations were found inadequate. Demand for education and training far exceeds supply and,
notwithstanding the fact the first-generation entrepreneurs predominate. There seems to be ample
potential and talent for entrepreneurial growth. A country like Bangladesh rich in human rather
than natural resources, can not afford to this potential, particularly in view of serious
unemployment and underemployment.
Overall performance of the training on entrepreneurship development programs differs according
to target groups. At all levels of income-generating programs organised both by governmental
and non-governmental agencies are mostly related to orientation and motivation sessions and in
some cases skill development training efforts and impact achieved through distribution of micro
loans to needy beneficiaries. A crude estimate suggests that over 65% of rural under-
unemployment are not reached by these schemes. Nevertheless, outreach has been quite
substantial. BSCIC has undertaken some training schemes to assist small entrepreneurs in the
form of starting small business, small business management training, etc, but those were
inadequate in relation to demand. MIDAS has done some commendable work with regard to
entrepreneurship development but those were too inadequate.
7.4 Weaknesses of Entrepreneurship Development Programs
In Bangladesh, there is no specialized Institution organizing entrepreneurship development
program. The Institution mentioned above offers entrepreneurship development progr ams. They
are designed to help individuals achieve income generating and self-employment or skill
development. The following are some of the problems of these programs:
• The concept of entrepreneurship development through formal training programs is completely
new to the participants. The entrepreneurship development course, has been introduced in
some courses, say, business education, technical education system. However, this course has
not been introduced in other disciplines.
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• Lack of awareness that business could be a good profession is another problem for the
training.
• Most training programs were designed without formal assessment of the needs of the trainees.
• Neither the trainers are well trained to give training nor methodology used in the program is
appropriate. Training programs are not followed by appropriate provision of support
assistance.
7.5 Importance of Entrepreneurship Development in Bangladesh
Bangladesh need a large number of entrepreneurs and in quality. It is important for creating
incremental wealth by undertaking productive activities particularly industrialization. Rapid
industrialization is an inescapable necessity to generate employment opportunities to meet crucial
educated unemployment and underemployment problems. Every year thous ands of educated
unemployed is joining the labor force. In addition there are thousands of dropouts from different
levels of our education system. Who are the wealth as well as job creators? Definitely the existing
as well as emerging entrepreneurs. Among three important sources (the individuals, the spin off
and Entrepreneurs) the most important source is individual entrepreneurs. The major source of
entrepreneurs are the college and university graduates and educated youths.
Bangladesh is predominantly an agricultural country in search of employment to a large number
of individuals start business with great enthusiasm but retire soon facing innumerable problems.
As a result our first generation entrepreneurs having no family or industry / business experience
go ahead to operate their promotion. Excepting few vulnerable industries all sectors were open to
local foreign investors. Despite generous support and encouragement the overall performance has
remained unsatisfactory. The impact is reflected in the share of contribution in GDP and
employment.
8. Experiences of Selected Countries on EDP
Technonet Asia, Singapore, a regional organisation with 12 countries in the South East Asia,
since 1974 has been providing various assistance to the Small and Medium-Scale enterprises.
One of the activities of this organization was to support entrepreneurship development training.
The organisations in the respective counties - say in Bangladesh the BSCIC organized several
workshop / training on EDP but it was a part of the total EDT.
The German Confederation of Small Business and Skilled Crafts (ZDH), Germany in its 400
vocational institutes has been regularly conducting a 3-year diploma course on Comprehensive
EDP. The passed out trainees with a 3-year diploma on specific subject is entitled to establish an
enterprise with all the needed assistance including bank financing. The government for each
trainee is to bear 70% of the cost of training, 20% is the contribution of the trainee or his sponsor
and the remaining 10% is from the ZDH.
9. Entrepreneurship Development Process
Major assistance requirements of the new entrepreneurs are worth mentioning while discussing
the entrepreneurial development as a tool of economic growth of a nation. They need multiple
assistance which may be offered in a package form. To set up an enterprise and run it
successfully an entrepreneur need these types of assistance. These three groups of assistance form
an Entrepreneurship Development Cycle. The groups of assistance are:
a. Stimulat ory;
b. Support; and
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c. Sustaining.
a. The stimulatory activities comprise entrepreneurial education, provision of entrepreneurial
opportunities and guidance in selecting industries are needed to help emergence of
entrepreneurship in the Society. This support ensures a good supply of entrepreneurs to start a
new venture and develop potentiality to succeed in a venture.
b. The support activities refer to those which enable the entrepreneurs in setting up and running
the enterprises successfully. They help in mobilising resources and assistance.
c. The sustaining activities include efforts which help the entrepreneurs sustain themselves
against the challenges of actual operation. Many enterprises starting well, meet immature
death subsequently because of some problems. Such cases are many and they are particularly
more significant in the field of small enterprises.
The above groups of activities play complementary roles to each other. In the absence or
negligence of one, others may be rendered infructuous. If the stimulatory activities are over-
emphasised, there may be better supply in failure and frustration. This causes national wastage of
resources in terms of men and materials. Similarly, if support activities are over emphasised and
the other two are neglected, then there may be facilities available with no or few entrepreneurs to
avail such facilities. When sustaining activities are over -emphasised the growth in the number of
enterprises is bound to be stagnant. It is thus imperative that the needs of enterprises are required
to be identified in the total perspective before devising package of assistance. Entrepreneurship
Development Cycle is shown in Exhibit -II.
9.1 Entrepreneurial Development Cycle
1. Registration of unit
2. Arranging finance
3. Providing land, shed, power, water etc.
4. Guidance for selecting and obtaining
machinery
5. Supply of scarce raw materials.
6. Getting licences / import licences
7. Providing common facilities
8. Granting tax relief or other subsidy
9. Offering management consultancy
10. Help marketing product
1. Entrepreneurial education.
2. Planned publicity for entrepreneurial opportun ities.
3. Identification of potential entrepreneurs through scientific methods.
4. Motivational training to new entrepreneurs.
5. Help and guide in selecting products and preparing project reports.
6. Making available techno-economic information and product profits.
7. Evolving locally suitable new products and processes.
8. Availability of local agencies with trained personnel for entrepreneurial counselling and
promotions.
9. Organising entrepreneurial forum.
1. Help modernization
2. Help diversification/expansion / substitute production.
3. Additional financing for full capacity utilization
4. Deferring repayment/interest.
5. Diagnostic industrial extension/consultancy source.
6. Production units/ legislation/policy change
7. Product reservation / creating new avenues for marketing
8. Quality testing and improving services
9. Need - based common facilities centre.
9
Exhibit-II
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10. Conclusion and Recommendations
10.1 Conclusion
To sum up experiences of the programs of entrepreneurship education and training, it may be
stated that it has not yet received due attention at the policy level as a strategy of human resource
development. This is also reflected in the educational curriculum and inadequate training
provisions in the country. General awareness of entrepreneurial attitude and motivation are
required to be developed during the learning periods of the students. Entrepreneurship course has
not yet been included in the curriculum at all levels of education system in our country. This
shortfall can be dealt by bringing reforms in the Education system of our country. Lack of trained
and experienced teachers, absence of text books and reading materials exposing Bangladesh
situation, inconsistencies and over-lapping of course contents and absence of positive attitude of
concerned authorities appear to be major problems for effective delivery of entrepreneurship
education. However, it is observed from the experience of few seminars organized by Technical
Education Board for teachers and institutional heads that the attitude towards entrepreneurship
education is changing in a positive direction.
Regarding entrepreneurship training, it appears that the country featured a number of innovative
income generating programs for the poor organized by NGOs. Their programs include training
for creating awareness on group activity and skill development. NGOs like BRAC have achieved
remarkable success in bringing landless people under the umbrella of productive activities and
thereby generating income earning opportunities for disadvantaged people of society. It is,
however, doubtful that there exists hardly any entrepreneurship development programs in the
truest sense of the term. Entrepreneurship development training programs are inadequate and
suffer from many weaknesses to create major impact on entrepreneurship development in the
country. The major weaknesses, as identified, are: (i) missing needed attention at policy level, (ii)
shortage of qualified, leaders and trainers, (iii) lack of training program need analysis, (iv)
insufficient number of programs geared at entrepreneurship for those who would like to step in
starting Small Enterprise after being successful in income generating activities, (v) absence of
integrated education and training approach for youth and provisions for followed-up assistance,
(vi) insufficient application of innovative training methods materials, (vii) lack of co-ordination
between concerned institutions at National, Regional and International level.
10.2 Recommendations
10.2.1 General
Despite these limitations, the study of the programs for entrepreneurship education and training
indicates the proposition that given the motivational training and key inputs, the educated youth
particularly having entrepreneurial qualities could be attracted to entrepreneurial activities and
lured to undertake small ventures. Bangladesh has immense potentiality in terns of resource
endowments both material and human for entrepreneurship development. What is needed is to
devise appropriate policy and implementation measures for the improvement of entrepreneurship
education and training in the country. For developing sound entrepreneurship education and
training, the following measures are recommended:
a) Entrepreneurship education and training should be recognized as an important component of
human resource development in the country. This should be reflected in the education and
development policy of the country.
b) In order to create general awareness on the subject entrepreneurship course should be
introduced in the curriculum at different levels of educational system in all disciplines. The
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courses should be designed by experts and offered by trained teachers. The graduates
intending to take self-employment by starting small ventures should be provided by required
support & sustaining assistance.
c) Short term training course should be designed and organized for different target groups and
offered by trained motivated and trained/trainers. While designing the training programs,
specific needs of the target group are required to be identified by appropriate means. Needless
to say that the training program should be supported by appropriate assistance.
d) Training of trainers and motivators is essential for organizing successful operation of
entrepreneurship Education and training
e) Provision should be made for improving the capability of existing training institutions by
providing needed assistance.
f) A separate training institute for entrepreneurship development should be established.
Establishment of new training institutions particularly in the private sector should be
encouraged by taking policy initiative and promotional assistance.
g) Special program should be designed for those beneficiaries who want to graduate themselves
out of income generating activities in the country.
h) Appropriate mechanism should be developed to establish effective linkage with institutions
(including universities, donor agencies) engaged in entrepreneurship education and training at
national, regional, and international level for strengthening existing and new approaches in
bringing qualitative improvement in force.
10.2.2 Specific Recommendations for Technical Graduates
(i) Introduction of general awareness and basic courses on entrepreneurship and self-
employment into the vocational training curriculum. The objective of adding the new
dimension to the Technical Education curriculum should be to create awareness of business
opportunities available for the graduates as well as to motivate them toward self -employment
and entrepreneurship.
The following key points should be considered in implementing this recommendation.
a. A compulsory module or course on entrepreneurship should be introduced for all disciplines
in the technical education system.
b. The curriculum on entrepreneurship should be developed by an expert committee
c. Reading, instructional materials, and teaching aids for the course should also be developed by
specialists in the area of entrepreneurship, small business management, behavioural science.
d. Instructors offering entrepreneurship courses should be professionally trained and motivated
to teach the subject successfully. A cadre of dynamic young instructors should be recruited
from accredited business schools and by carefully screening and selecting applicants from
among those existing instructors who have the aptitude and ability to serve in this capacity.
(ii) An intensive short term entrepreneurship training program should be offered for Technical
graduates and others living in the immediate vicinity of the technical centres who are
unemployed and interested in starting micro-enterprises and small business ventures.
An integrated package of assistance in terms of capital, kits, etc. may be designed and made
available to the graduates motivated to take up self-employment or start a small business
venture.
(iii) For effective administration and proper implementation of the entrepreneurship education in
technical education system as separate division named entrepreneurship development should
be established under the Bangladesh Technical Education Board.
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