Entrepreneurship & SME Success in Bangladesh

This assignment explores the relationship between entrepreneurship and firm characteristics, and their influence on the business success of Small and Medium Enterprises (SMEs) in Bangladesh. It draws upon academic research articles to examine various factors such as innovation, gender, lending practices, and networking, highlighting their role in shaping SME performance within the Bangladeshi context.

ENTREPRENERUSHIP

Table of Contents
ENTREPRENERUSHIP..................................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship......................................................................................................3
P2Explore the similarities and differences between entrepreneurial ventures............................4
TASK 2............................................................................................................................................5
P3Assess and interpret relevant data and statistics in your mini-research, to illustrate how
micro and small businesses impact on the economy. .................................................................5
P4 Explain how important small businesses and business start –ups will contribute to the
growth of the social economy.....................................................................................................6
TASK 3............................................................................................................................................8
P5 Determine the characteristics, traits and skills of successful entrepreneurs, which
differentiate them from other business managers.......................................................................8
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation
and mind-set..............................................................................................................................10
TASK 4..........................................................................................................................................11
P7Examine , using relevant examples obtained through your mini-research, how background
and experience can hinder or foster entrepreneurship...............................................................11
CONCLUSION..............................................................................................................................12
REFERECES.................................................................................................................................13

INTRODUCTION
Entrepreneurship played a important role for each and every country growth and
development. An entrepreneur is a person who start business and transform in to a large business
organisation. It provide a large number of jobs in a variety of sector such as retail, hospitality,
information technology and so on. There are various micro and macro factors which can affects
the growth and development of these businesses. These factors can be economic factors, industry
factors, personal and professional experience, fund issues and competitive advantage
(Gronum,Verreynne, and Kastelle, 2012). These entrepreneurship contribute approx. 99 percent
in the UK economy with 5.6 million small and medium enterprises. The purpose of this report is
to identified factors which can influenced entrepreneurship and its skills. The research report also
provide an detailed analyses all these factors and its role in the social and national economy.
TASK 1
P1Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.
Entrepreneurship is a process which is related with the creating, designing, and
developing a new idea in a appropriate manner. As a entrepreneurship there are various
challenges which can be faced by them in order to develop a consistent growth in their business
and its profitability (Altman, Sabato,nd Wilson, 2010). There are following entrepreneurship
ventures which as given below:
Local entrepreneurship: This is one of the basic form of small business enterprises
which run and control these business. It can includes local grocery stores, hairdressers, marketing
consultants and so on. Most of these SME are running by the family members and they can hires
local people for their daily operations. The main objectives of such business organisation is to
earn profit in order to selling goods and services to its customers.
Global entrepreneurship: These are considered by the large corporate houses which can
operate their business in to large geographical area. The size and scope of these business units
are quite large as compare to other business firm's. They provide products and services in to
more than one country and their risk is also quite large. There are various factors which can
influenced the business operations of these business units (Cowling,Liu,and Ledger, 2012). The

main objectives of these businesses are earn profit through providing high quality goods and
services.
Social entrepreneurship: This is another form of business which is related with the
social services. There are various start up which are focused on the community welfare and
works for its betterment. They provide goods and services to the society which can help to
improve its standard of living.
Scalable start ups: There are various small businesses which are related with the
innovation, information technology and other aspects. It can involved business research, e-
commerce platforms, mobile apps etc. they required highly educated and skilled workforce in
order to implementation their ideas in to the reality. Its vision to change world with the
innovation and technology.
Female entrepreneurship: This is another types of entrepreneurship in which a small
business can be controlled and managed by the female. This is essential for the society in order
to empower women through generating entrepreneurship skills and capabilities so that they can
run a business in a effective manner (Islam, Khan, ,and Alam, 2011).
Serial entrepreneurship: A person who continuously comes up with a new and
innovative idea in order to start a new business. They are different form the traditional
entrepreneur who come up with the new idea and involving in to daily operations. These
business sell their business after a period of time and start new business.
In addition, they are related to typology of entrepreneurship it means various types of
entrepreneurship are connected with typologies. Local business which is run by local people to
earn profit while global entrepreneurship is focused on offering their services at international
level and require more capital to run business. It main aim is to earn wealth maximization along
with long term growth. They mainly aim to get higher returns on the products and services that
has been offered by them to public
P2Explore the similarities and differences between entrepreneurial ventures.
There are various types of similarities and differences between entrepreneurial ventures ,
different - different types of ventures are helps to define benefits , issues for society and local
etc. These are help to develop economic growth and also increase GDP of the country. These
ventures can includes local ventures, global ventures, social ventures, female ventures etc. there
are various similarities and differences between them (Forsman, 2011). Business ventures are

main aim is provide goods and services to its customers and earn maximum profits. On the other
hand social start ups main objectives is to provide social welfare and well being to the
community. Business venture always try to earn profit and develop our business to compete
competitors in the market. All business wants to provide goods and services with good quality
and maximum satisfaction to customers . In the other hand , social venture and female venture
are may be profit and non profit organization those are help to develop women welfare
organisation and also motivate to women for effective works and build a effective image in the
society . Global venture through extend our business at the international level in the whole
world. so it can be increase economic growth of the country and also increase GDP of the
country. Global venture through highly export goods and products so, our country become in
surplus if in case of import of goods level become high so in this case country become deficit . In
the other hand , business venture help to earn profit at high level with beat the competitors
(Temel Bellucci, Borisov, and Zazzaro, 2010).
In different types of venture has many types of similarities also those are help to develop
our country and economy. Local venture and global venture both are similar in the nature just
like both are help to increase image of companies at national level and also international level.
Its is earn maximum profit with highly risk in the business . Ventures in not easy to manage
situations and money , where we should invest for develop our business or not. Social venture
and female venture both are important to increase standard of living of society and women ,these
are provide freedom to females do works freely with rights in the society not anybody bound to
them for work , government are also help to motivate women for independent so these ventures
are help to change thinking level of society and open various types of community centre for
women and also open education centre to provide better society (Berger,and Frame, 2007).
TASK 2
P3Assess and interpret relevant data and statistics in your mini-research, to illustrate how micro
and small businesses impact on the economy.
Small and medium enterprises having a great role in the growth and
development of economy. United kingdom is one of the leading economy
approx. $2.8 trillion in the world. The contribution of SME is approx. 99

percent with 5.2 million business. And total SME was 15.7 bill en In the all
private sector turnover in UK 47%.these the various factors to related
economy. There are various significance of SME sectors in the nation
economy which as given below:
Employment generation: SME sector is provide a large number of
job in the UK economy. There are more than 5 million business which can
provide skilled and semi-skilled job for the public. In order to meet their
requirement employment is grown day by day which is having a great
significance. Apart from that today UK economy is transforming in to
Knowledge based economy which required educated workforce in the
various areas such as marketing, finance, HR etc.(Bridgeand O'Neill, 2012).
Revenue generation: The SME is also helps to the government in
order to provide revenue in terms of tax. There are various sectors such as
retail, marketing, hospitality and other sectors. They have to pay tax on
their income which can increase the revenue for the government.
Support economic growth: Support economy to increase in the
capability of an economy product and services and economy growth is an
increase growth rate of the country. There are various economic indicators
such as interest rate, inflation rate and employment situation can also be
managed. Because employment can help to increase the standard of living
of an individual which can also increase the spending power. It can increase
the demand of product and services. Such kind of economy also helps to the
foreign direct investment in the country which cam resulted in more
employment.
Innovation: There are various start ups which basically related with
the innovation, information technology and knowledge based. Government
and large business houses are help to these innovation in order to provide
various support. It can create a innovation environment in the economy
which can overcome the dependability over the other country and increase
the trading activeness within the nation (Burns, 2010).

P4 Explain how important small businesses and business start –ups will contribute to the growth
of the social economy.
Small business means doing work independently. If there is a bakery and up-to 10
members are working then it is an example of small business. But in case of manufacturing
facility, there will be less than 500 employees. Importance of Small Businesses as given below:
Job creators :Small businesses play an important role to contribute in job creation. They
create more new employment compare to large organisations or firms. The Small Business
Administration reports that from 2005 to 2008, small businesses were responsible for creating
81.4 percent of the new jobs in the U.S. Job growth is instant for the continued growth of the
U.S. economy, and SME meet those needs with new jobs being created all the time.
Economic growth :It brings growth in economy of the country by providing employment
opportunities. They provide employment to the people who will not fulfil the job requirement of
the larger corporations. SME attract new talents who innovate new idea or apply new solutions to
existing ideas. Large organisations also take benefits from small organisations within the same
type of works. Many large organisations depend on small organisations for the completion of
different business functions through outsourcing (Ciampi,and Gordini, 2013).
Accept changes easily :Small businesses adapt quickly the changing environmental
condition. SMEs are very customer oriented. Customers will stay loyal to their favourite small
businesses, and this loyalty means they will able to stay in their tough times. They may have less
lose compare to large businesses in times of crisis.
Future growth :If they increase continuously or earn profits in high ranges then coming
years they will not stay only small but they will also do work national or international level.
Microsoft is a first example of how a small business idea can change world.
Innovation :It is easily possible for the small businesses. Employees of SME's are so
close to their customers so that they can easily understand the needs of them, through this
employees can help their organisations grow by communicate their ideas that will benefit
customers. Innovation will help the small organisations to earn maximum profits.
Competitiveness :Small businesses are more competitive and attractive to investors and
visitors also. They give high competition in the local market. As competition increase then which
business not gain profits or we can say less productive can't able to survive in the market and

which business earn more profits or more productive will expand and take competitive
advantage. They can also take advantage in the dynamic environment and earn maximum profit.
Improve standard of living: With the help of SME, people get new job which increase the
demand of goods and services in the market. the people will get more money to spend which
enhanced their standard of living which is too significant and create an ideal image of a wealthy
society at the global level.
Reduction poverty line: Poverty is one of the major issues for developing and developed
society. Therefore, government its try to improve poverty from the society. The role of small and
medium enterprises in this issue is very essential. It creates large number of jobs in variety of
fields which reduced unemployment and poverty from the community.
TASK 3
P5 Determine the characteristics, traits and skills of successful entrepreneurs, which differentiate
them from other business managers.
ENTREPRENEUR:
Entrepreneur is the person who start the business taking financial risk and other business
risk for higher profit in the future. Entrepreneurship is the process to design the new business and
try to compete competitors .In the other words, Entrepreneur is who start a new business and
organise also manage that business with different types of risks as well as the market risk. There
are many types of characteristic, traits and skills of an entrepreneur those are follows:-
RISK TAKERE:
Entrepreneurs are risk takers because they are ready to face future uncertainty. But it is not
require all risk takers are successful entrepreneur. This is important to processing well developed
decision making skills and abilities in an entrepreneur even in the failure also being flexible in
the market situation (Gronum, Verreynne, and Kastelle, 2012).
GOOD LEADER :
Entrepreneur should have good leadership skills to motivate other employees for that business
and also have understanding level. When an entrepreneur have all those qualities skills and
abilities to maintain business so leadership quality help to grow up business successfully .
SELF BELIVE AND HARD WORKING:

Entrepreneur should enjoy what they are doing for developing business. They believe in
themselves and are confidence their works.
FULL DETERMINATION
When you set up a business it will require you set up very clear goal and task for business
development. Entrepreneur try to growing business, increasing sales, and hiring new employees
for business.
CONFIDENCE
Entrepreneurs should have high level of confidence able to get job done even under the stressful
situations. They understand challenges and also understand competitors always try to understand
what we have to do for developing business .
GOOD UNDERSTANDING OF MONEY MANAGEMENT
It does not mean if you are using your own money , personal credit cards or have millions of
dollars from the market or investors. Entrepreneur should have money management skills , for
money management clearly Identifies where we have to invest money and how much in which
department (Jenkins, 2009).
ABILITY TO SELL AND PROMOTE
Entrepreneur should have to knowledge sell and promote their products in the market and define
product qualities. If you are not able to define your products feature to customers so they are not
satisfied to buy products and goods.
ABILITY TO RAISE MONEY
Once you can manage the fund for business then must important thing is where from raise
money for business development.
DIFFERENCE BETWEEN ENTREPRENEUR AND BUSINESS MANGERS
ENTREPRENEUR BUSINESS MANAGERS
Entrepreneur is that person who start a new
business on their own financial and market
risk.
Business mangers is that individual person
who controlling business and have some
responsibilities for administrating the
organization.

Entrepreneur focus on new business start up
with an innovative idea.
Business manager is focus on going operations
and work.
Entrepreneur approach to task is informal in
nature ,there are own rules and regulations.
Business manager approach to task is formal in
nature because they have to follow business
rules and regulations according to conditions
and situations.
Entrepreneur is the owner of the business and
they take part of profit (Laforet, Sand Tann,
2006.).
Business manger is the employees of the
organisation and they take salary.
P6 Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and
mind-set.
Entrepreneurship is one of the competitive and challenging task which required specific
skills and capabilities in order to operate business operations. These abilities and personal traits
can be included leadership skill, communication skills, management and administration etc. these
characteristic can make a businessman in to successful entrepreneur. These entrepreneurs are
taking risk in order to gain profit and revenue. They can set the example for the next generation
start up runner and motivate them through its skills and innovation. There are various successful
entrepreneurs such as Larry Page and Larry Ellison both are world most famous entrepreneurs in
the current era. Larry page is considered is the young businessman who is the co founder of
Google. This is one of the most innovative company which provide a search platform for the the
public. It also provide communication tools such as G-mail, chat video conferencing where a
company can shared data and information with each other (Landstrom, 2007). According to the
Larry page entrepreneurship required full of dedication and hard work. On the other hand, Larry
Ellison who is the co founder of Oracle corporation which is one of the leading financial services
company. They create a lay of the foundation to empower to the other people start up new

businesses. They can motivate to their subordinates in order to attain organisational goals and
targets. They also suggested that to develop their own skills and capabilities so that it can help to
meet the future challenges in a appropriate way. The young generation can get inspired and
motivated and become more passionate towards their work.
As per the Larry page innovation is not a one time product is required continuous improvements
in their innovative products which can make them perfect. It required full of dedication and
positive attitude. Communication also played a important role as a successful entrepreneur. It can
help to attract its stakeholders such as investors, suppliers, customer and staff so that they can
influenced its personality traits and skills.
It has been further assessed that reflected entrepreneurial personality support the existing
entrepreneur in taking risk activities so they can easily engage in developing innovation activities
so they fulfil the requirement for their customers.
It is essential for an entrepreneur is to use their personality dimension in order to motivate and
mind set of other. There are various personality traits are required to create impression on other
which are given below:
Risk taker: This is one of the key dimension in the entrepreneur personality which is related to
risk. A successful entrepreneurs ready to take risk which differentiate from others. They plan in
their strategy in advance and evaluate potential risk in an effective manner.
Money management: Financial management is one of the most complex and competitive task
for an entrepreneur. They required that to analyse their projected cost and budget arrange their
capital from various sources.
Continues looking for new opportunity: An entrepreneur is also find out new market
opportunities which provide long term growth to their business. for this they are using innovative
idea in order to generating new opportunities which helps to attain their short and long term
targets in an effective manner.
TASK 4
P7 Examine , using relevant examples obtained through your mini-research, how background
and experience can hinder or foster entrepreneurship
Background is played a vital role on the entrepreneurship. Because most of the
entrepreneurs are influenced by the background and its history. Most of the entrepreneurs having

family background which can motivate them towards the business (Lepoutre, and Heene, 2006).
For example, if an individual is belongs to family business they can make their decision which
can be related with the risk. On the other hand those people who are new in this field they can
facing challenges in the decision making. Apart form that history also played a vital role in order
to inspiring new business man. For example, if an the success rate of start up is quite good it can
motivate young generation in to start ups. On the other hand, if these rate are quite law it can
demotivate those individuals which is not good for them.
Experience also matter for a start up runner in order to make effective decision making. If their
experience are positive it can motivate and influenced them to start their business. The other
factors which can influenced them can be government policies towards the business
environment. Government can played a vital role in the growth and development of
entrepreneurship in the economy. In order to promote such environment they required to use ease
of doing business in overcome the legal and regulatory complexities. There are various laws such
as environmental act. Minimum wage rate act, competition policy, health and safety act at the
workplace also a great importance. The tax liabilities also prevent entrepreneur to start their
business. For this they can provide a tax holiday over a period of time which can motivate them
to start and maintain business for a longer time (Lepoutre, and Heene, 2006). They can also
provide various facilities such as technical expertise so that they can manage their business in a
effective manner. Most of the entrepreneurs fails due to lack of fund, it is the responsibilities of
the government authorities is to provide financial support to them. Large corporation can also
support them in to their growth and development. Today there are various capital ventures which
can provide such facilities for a longer period of time so that they can make profit in the long
run.
The role of background and experience having great significant foster entrepreneurship in an
effective manner. for example, Mark Zuckerberg who is the owner of Facebook motive new start
up runner in the area of information technology. He belongs to innovation and technology which
helps him to build such a giant corporation in the field of social media. He having good
experience in this area which help him to become successful entrepreneurs in the world. It shows
that if a person is having enough knowledge and expertise in any field helps in motivate and
foster entrepreneurship.

CONCLUSION
As per the above mentioned report it has been concluded that entrepreneurship having a
large role in the economy of a particular country. The report is explained about the different
types of ventures and its role in the economic growth and society development in the United
Kingdom. The report also discussed about the major characteristic and traits of a leadership and
how its differentiate from a manager. The role of personality and leadership in the influencing
factors and success in the business operations. In the end the report has been concluded about the
background and experience in small business enterprises so that they can attain their targets in a
effective manner.

REFERECES
Books and Journals
Lepoutre, and Heene,2006S., Lepoutre, and Heene,2006M.L. Lepoutre, and Heene,2006T.,
Lepoutre, and Heene,2006Lepoutre, and Heene,2006 The role of networks in small and
medium‐sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2). pp.257-282.
Altman, E.I., Sabato, G. and Wilson, N., 2010. The value of non-financial information in small
and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2). p.95.
Cowling, M., Liu, W. and Ledger, A., 2012. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal. 30(7). pp.778-
800.
Islam, M.A., Khan, M.A., Obaidullah, A.Z.M. and Alam, M.S., 2011. Effect of entrepreneur and
firm characteristics on the business success of small and medium enterprises (SMEs) in
Bangladesh. International Journal of Business and Management. 6(3). p.289.
Forsman, H. and Temel, S., 2011. Innovation and business performance in small enterprises: an
enterprise-level analysis. International Journal of Innovation Management. 15(03).
pp.641-665.
Bellucci, A., Borisov, A. and Zazzaro, A., 2010. Does gender matter in bank–firm relationships?
Evidence from small business lending. Journal of Banking & Finance. 34(12). pp.2968-
2984.
Berger, A.N and Frame, W.S., 2007. Small business credit scoring and credit availability.
Journal of small business management. 45(1). pp.5-22.
Bridge, S and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Ciampi, F and Gordini, N., 2013. Small enterprise default prediction modeling through artificial
neural networks: An empirical analysis of Italian small enterprises. Journal of Small
Business Management. 51(1). pp.23-45.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Gronum, S., Verreynne, M.L and Kastelle, T., 2012. The role of networks in small and medium‐
sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2). pp.257-282.
Jenkins, H., 2009. A ‘business opportunity’model of corporate social responsibility for small‐and
medium‐sized enterprises. Business ethics: A European review. 18(1). pp.21-36.
Laforet, S and Tann, J., 2006. Innovative characteristics of small manufacturing firms. Journal of
Small Business and Enterprise Development. 13(3). pp.363-380.
Landstrom, H., 2007. Pioneers in entrepreneurship and small business research (Vol. 8). Springer
Science & Business Media.
Lepoutre, J and Heene, A., 2006. Investigating the impact of firm size on small business social
responsibility: A critical review. Journal of business ethics. 67(3). pp.257-273.
Online

The Role of Small Business in Economic Development. 2017. [Online]. Available Through:
<http://isbdc.org/small-business-in-economic-development/>. [Accessed on 4th April
2017].