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

A host of environmental factors (see figure 1) impede the success of small business in Bangladesh. For example reports lack of government efforts and incentives. Several studies report absence of adequate infrastructure facilities. Some study reports myriad of bureaucratic obstacles that entrepreneurs face in their quest to start a business. A host of factors such as lack of long-term capital, limited personal and family savings, limited access to market, technology and information have been found to be impeding the success of entrepreneurs of small and medium enterprises of Bangladesh. Personal and political enmity between political rivals, frequent haratal (strikes), lack of respect for elementary principles of democratic governance have become the principal characteristics of political system of the country. A series of prolonged haratal and labor unrest at garment factories affect the socio-economic and political condition of the country. The average cost of haratal during 1990s to Bangladesh economy was 3 to 4 per cent of GDP of the economy.
The foregoing discussion reveals that the success of entrepreneurs is influenced by environmental factors. The following hypotheses are, therefore, proposed on the environmental variables stated in our theoretical framework.
H4: There is a significant relationship between market and the success of entrepreneurs H5: There is a significant relationship between government support and the success of entrepreneurs H6: There is a significant relationship between access to capital and the success of entrepreneurs.
H7: There is a significant relationship between technology and the success of entrepreneurs.
H8: There is significant relationship between information access and the success of entrepreneurs H9: There is a significant relationship between infrastructures and the success of entrepreneurs H10: There is a significant relationship between political environment of the country and the success of the entrepreneurs
To achieve the objectives of this study a sample of eighty seven entrepreneurs was conveniently chosen from southern region of Bangladesh. Convenience sampling was employed because of the paucity of statistics on the target group. The questionnaires were distributed to the entrepreneurs and in distributing the questionnaire “drop and collect” procedure was chosen. The questionnaires were collected after a period of 30 days. Eighty entrepreneurs filled the questionnaire correctly. Therefore, only eighty entrepreneurs were taken into consideration in the study. Enterprises taken up for the study were food, printing and publication, wooden & steel furniture, boutiques, beauty parlors, handloom units, and nursing homes.

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