Entrepreneurship development and trade helps the economic development. a case study of pioneer Bangladeshi company is also provided.

1. Entrepreneurship, Trade and
Economic Development
Mirza A F M Tawhidur Rahman
Research Officer
Bangladesh Tariff Commission
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2. Entrepreneurs: Who They Are!
• Believe it or Not! Every Goods in this Room is an
outcome of Entrepreneurship…..
• Presence of Entrepreneurs are All Around Us!
▫ From Bill Gates to Mustafa Jabbar
▫ From Warren Buffet to Samson H. Chowdhury
▫ From Dell to Rahimafrooz
▫ From TATA to Walton
▫ From BATA to Apex…… AND MANY MORE!
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3. Definition
• “An individual who, rather than working as
an employee, runs business and assumes all
the risk and reward of it.”
• New Thought: Social Entrepreneurship
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4. Definition (Contd.)
So, Entrepreneur, Commonly Interpreted as—
• A Business Leader/ Leader; And
• Innovator of New Ideas and Business Processes;
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5. Notions of Entrepreneur
• Risk Bearer;
• Innovator; (But can be Imitator Also!)And
• A Coordinator/Manager/Organizer;
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6. Factors Affecting Entrepreneurship
Development
1. Economic Factors
2. Social Factors
3. Psychological Factors
4. Government Actions
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7. Factors Affecting Entrepreneurship
Development
1. Economic Factors
a) Capital
b) Labor
c) Raw Materials
d) Market
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8. Factors Affecting Entrepreneurship
Development
2. Social Factors :
a) Social norms and values
b) Role models
c) Social pressure
d) Respect and Status
e) Security
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9. Factors Affecting Entrepreneurship
Development
3. Psychological Factors
a) Self Achievement Need
b) Innovativeness
c) Risk Bearing Trait
d) Leadership Trait
4. Government Actions
 Policy Intervention
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10. Govt. Initiatives
• Government acts as a facilitator through
▫ Formulating Different Policies
▫ Identifying Thrust Sectors
▫ Financial Patronization
▫ Tax Rebates
▫ Duty Drawback
▫ Infrastructure Development
Major Policy Shifts in Bangladesh’s History
helped the Entrepreneurs and Trade to thrive
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11. Entrepreneurship, Trade and Economic
Development
• Primary objective of a Government is
▫ Economic Stability and Growth, BUT those
depend on…..
Economic
Stability and
Growth
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12. Entrepreneurship, Trade and Economic
Development
• To Achieve Economic Stability and Growth
▫ Development of Entrepreneurship
▫ Development of Trade Activity
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13. Why Development of Entrepreneurship?
• What Entrepreneurs do—
▫ Create Economic Resource
▫ Develop New Goods/Services
▫ Identify and Fill Market Gaps
▫ Explore New Market
▫ Create Employment
▫ Transfer of Funds
▫ Take the Opportunities for Investment
• Entrepreneurship is the PRECONDITION for
Sustainable Economic Growth
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14. Why Development of Trade Activity?
• Benefits of Trade —
▫ Specialization of Production
▫ Creation of Productive, Higher Paying Employment
▫ Increasing Total Output
▫ Static gains (increasing Social Welfare)
▫ Dynamic gains (increasing Economic Development)
▫ Expanding the variety of products for purchase by
consumers and business
▫ Encouraging investment and more rapid economic
growth
• Trade Keeps the Economy OPEN, DYNAMIC,
and COMPETITIVE
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15. Synergy of Trade and Entrepreneurship
• Success Rate of Entrepreneurs signal the stability
and development of the Economy
• Increased Trade at certain level also works as a
factor for economic development
• Exporters and Importers of a country are mainly
Entrepreneurs
• When Trade and Entrepreneurship works together,
Synergy Effect is Found
• Example:
▫ 33% of US Export Constituted from SMEs
▫ 97% of US Export Oriented Firms are SMEs
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16. Barriers Faced by Entrepreneurs in
Bangladesh
• Non Tariff Barriers
• Access to Finance
• Training and Development
• Social Barriers
• Technological Barriers
• Trade Facilitation Related Barriers
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17. Probable Solutions
• Building Training Facilities
• Creating One-stop Service Center
• Promoting Some Thrust Sectors
• Increasing Accessibility of Funds Through
Reduced Interest Rate.
• Taking Investment Friendly Policies
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18. Entrepreneurial Development Cycle
Stimulatory
• Entrepreneurial education
• Marketing of entrepreneurial opportunities
• Identification of potential entrepreneurs

19. Entrepreneurial Development Cycle
(Contd)
Support
• Access to finance
• Providing utilities, land etc.
• Granting tax relief
• Offering management consultancy
• Help for marketing products

20. Entrepreneurial Development Cycle
(Contd)
Sustaining
• Helping modernization
• Helping expansion through diversification
• Facilitating quality testing
• Help re-engineer products or services

21. Success Story : :
• Today Square Group Consists of 13 sister
concerns
• Major Business Sectors:
I. Health and Pharmaceuticals
II. Textiles and Clothing
III. Consumer Products
IV. Agro
V. Media
VI. Securities
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22. Success Story : :
• No. of Employees: More than 28,000
• Yearly Turnover: $616 million
• Exports to More than 50 Countries
• Use Imported Raw Materials
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23. Success Story :
So, How Did It Commence?
• Founder Chairman: Mr. Samson H Chowdhury
• In 1952, he started a small pharmacy in Ataikula
village which is about 160 km off capital Dhaka
• In 1958, partnership pharmaceutical company
was formed
• Starting Capital: BDT 20,000
• Starting No. of Employees: 12
• Became Profitable By its fourth year
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24. Entrepreneurship in USA
Between 1993 and 2011, America's small firms
accounted for—
• 64% of the net new jobs creation
• 98% of exporters
• produce 33% of all export value
• create more than 46% of nonfarm private GDP
• create 43% of all high-tech employment.
• over $90 billion in Federal contracts in FY 2011.
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25. Benefits of Trade for USA
• Supported almost 9.8 million jobs in 2012.
• 20% jobs in the manufacturing sector are from
export related sector.
• Every billion dollars of U.S. agricultural exports
in 2011 required 6,800 American jobs
throughout the economy
• US jobs supported by goods exports pay 13-18
percent more than the US national average
• Exports at 13.9 percent of U.S. GDP in 2012 .
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26. You Have Two Options…..
A. Working, working and working for someone
else OR
B. Think Different and Become Entrepreneur
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