Success Factors of Entrepreneurs of Small and Medium Sized Enterprises: Evidence from Bangladesh – Discussion

Success Factors of Entrepreneurs of Small and Medium Sized Enterprises: Evidence from Bangladesh - DiscussionThe main objective of this study has been to present a general model toward understanding the dynamics of entrepreneurial success. We have developed the framework that included demographic and environmental factors (see figure 1). The study supports the contention that age, education and experience affect the success of entrepreneurs in Bangladesh. Several studies support this contention of our study. The study reveals that supportive environmental factors may well be linked with the success of the entrepreneurs in Bangladesh. This study clearly supports that volatile political environment, lack of access to capital, lack of infrastructure and technology are the major constraints limiting the success of entrepreneurs in Bangladesh. Entrepreneurs in all parts of the world seem to have a problem accessing capital, securing financing, convincing bankers and obtaining bank loans or credit from suppliers. This conforms to several studies around the world that have been carried out to throw light on the challenges faced by entrepreneurs. For example, in South Asia, lack of access to capital has been a primary obstacle for entrepreneurs, and recent research suggests it continues to be”. This could also include start-up financing and credit, cash flow management in the early operations and financial planning. Research suggests that the primary source of funding has been through family loans, personal savings, credit cards, and home equity loans.
The challenges towards success of entrepreneurs of small and medium size enterprises have depicted several key issues, relating to demographic and environmental factors. Despite many barriers to success, a new entrepreneur class has arisen in the country taking on the challenge to work in a competitive and complex economic and business environment. Not only have their entrepreneurship improved their living conditions and earned more respect in the family and the society, but they are also contributing to business and export growth, supplies, employment generation, productivity and skills development of the country. Therefore, there is a need for a continuous and coherent focus on financing, advisory and work life balance for enhancing entrepreneurship in Bangladesh. The country needs a frame for policy learning in order to develop a proper policy mix towards promoting entrepreneurship.
A favorable political and economic climate is a pre-condition for the development of any business in any country in this world. The entrepreneurs of Bangladesh must be recognized as an important unit contributing to the economic growth of the country since small and medium business sector is going to attract and create jobs for many more Bangladeshis. They must be supported by the governmental organizations and their constraints must be recognized and a structured and organized strategic plan put in place to help them overcome these limiting factors. Bangladesh Government must come forward to enhance the entrepreneurial capabilities of entrepreneurs through funding and skill development.
The study has been able to explore a number of issues that require further investigation. Future research should seek to investigate into the factors other than demographic and environmental factors (e.g., entrepreneurs’ innovative behavior, personality traits) that affect the success and growth of entrepreneurship in the country. Longitudinal data may reveal a trend in constraints to entrepreneurship success that this study was not able to uncover. Such study will provide a clearer picture of the antecedent’s influence on entrepreneurial success. A combination of survey and case study methods should be employed. The findings of such a study should assist various actors to focus their efforts on the growth and success factors of SME sector of Bangladesh.

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