Sample Business Studies Paper on Case of Bangladesh

Entrepreneurial activities in Bangladesh

Entrepreneurship is the ability, attitude and aspiration for the innovative opportunity that one can bring it to the market and result in economic growth. Therefore, the entrepreneurial activities are human actions aimed at generating value, through creation or expansion of commercial activity by identifying and exploiting new products, process or markets. Countries should set a favorable socio and economic atmosphere that influence local and regional innovation creativity and entrepreneurship which is the entrepreneurial ecosystem.

Bangladesh is a country in Asia continent; therefore, as long as the entrepreneurial activities of the company will be influenced its entrepreneurial ecosystems; some economic factors will be affected by the environmental performance of the continent (Szerb, et al. 2020). According to (GEI), some of the best practices fostering entrepreneurship and well-performing financial supports in the region include high human capital, top product innovation, top growth opportunities, and opportunity perception. The way Thus, the entrepreneurial activities in Bangladesh include;-

  • Discovering and creating opportunities– this involves recognizing an opportunity and organizing the resources to bring up a high growth venture.
  • Providing human capital– the presence of available social capital provides ecosystem services that shape economic performance.
  • Innovating and bringing new products to the market – the country has the potential of bringing products to the market, through employing innovative measure and proper resource allocation.

Entrepreneurs have the opportunity to promote the country’s economic development through using the available human capital by creating employment, improvement and welfare needed for economic growth Szerb, et al. (2020). However, the country has to provide the opportunity and support the entrepreneurship through provision of a well-functioning entrepreneurship ecosystem and creating efficient organizations that can harness technology that increases output and improves the lives of its citizens.

Step 2Take a look at the results achieved by this country based on the 14 pillars – This first analysis must be made on the 2019 report. Questions to be answered by you: What’s the global position of this country? Why? Which are the top 3 pillars? And the worse one?

Results achieved in 2019, based on the 14 pillars, top 3 pillars and worse one

The results of a company depend on threes sub-indices; – entrepreneurial attitude (how the country thinks about entrepreneur), entrepreneurial ability (capability and skills), and entrepreneurial aspiration (object). These sub-indices are spread into the 14 pillars which contain both individual and institutional variables of entrepreneurship Szerb, et al. (2020). Therefore, GEI uses these indices to rank a company’s level of global entrepreneurship. The results for 2019 shows that Bangladesh ranked number 132th , with 12.5 scores, being 6th less entrepreneurial countries that have not applier the pillars well across the globe. This indicates that the company is entrepreneurially less efficient and it is unable to balance the 14 components of entrepreneurship.

According to GEM, Asian countries can build some of the pillars entrepreneurially effectively. However, it will depend on the capacity of the country to produce more goods irrespective of how advanced the production is realized Szerb, et al. (2020). The top three pillars are;-

  1. Human capital– the country has high-quality human capital which is suitable for a highly innovative venture that requires a skilled and educated workforce. It shows that the country’s workforce is capable of starting and managing high growth businesses with sophisticated strategies.
  2. Product innovation– the country is aspiring (entrepreneurial ability) to produce new products. It implies that the country has the potential to generate and improve the existing products, through innovation or the use of modern technology.
  3. High growth– It shows the company company’s ability to combine its resources, to grow business, and employ at least ten workers, with the aspiration of increasing the number in a few years. The high growth pillar combines Gazelle variables with Business strategy variables and venture capital to pursue distinct strategies.

However, the worse pillar is risk acceptance; the entrepreneurial attitude on risk acceptance is low, and an indication of one’s fear of failure, which limits attempts to startup opportunities. Thus, the country’s concerns transfer or support starting businesses.

 

 

Step 3 – Compare the results achieved in 2019 by this country with 2017 and 2018 (same country). The goal here is to check if the selected country improved its position or not? If yes, why? If no, why? Any significant change on those top and worse pillars?

Comparison of Country’s achievements in year 2019, 2018 and 2017

  Year 2019

Source: (GEI 2019 report)

Year 2018

Source: (GEI 2018 report)

Year 2017

Source: (GEI 2017 report)

-Results achieved based on the 14 pillars -132th, with 12.5% GEI scores

Szerb, et al. (2020)

-134th, with 11.8% GEI score

(Ács. et al. 2018)

-133rd, with 11.8% GEI score

(Ács, et al. 2017)

Top 3 Pillars – Human capital

-Product innovation

-High growth

-Human capital

-Product innovation

-High growth

-Opportunity start up

-Opportunity perception

-Culture support

Worse pillar – Risk acceptance -Risk acceptance -Internationalization

From the above analysis, the company has improved its position slight from 11.8 scores in 2018 to 12.5 scores in 2019; while there was no significant change in the year 2018 and 2017, Ács, et al  (2017): Ács. et al. (2018).

In the year 2017, the country’s had a great entrepreneurial attitude towards entrepreneurial opportunities which contributed to economic freedom and property ownership, thus encouraging individuals and institutions to exploit startup opportunities Ács, et al  (2017). Also, the country’s cultural attitude towards individual status and career choice is engineered to the growth of entrepreneurship in the country. The economic potential of the country’s large and youth population contributed to economic growth.

The attitude towards culture in 2017, lead to high rise in human capital, high growth and product innovation in the year 2018 that has continued through the year 2019 Ács. et al. (2018). Therefore, human capital and attitude towards change indicate the country has a highly educated population who can move freely within the labor market. Also, it means the country is producing new products and integrating new technologies.

However, in 2017 the county had an aspiration to industrialization was less entrepreneurial; this can be attributed to institutional dimensions, complex economy due to laxity in engaging in complex networks Ács, et al  (2017).. The country was not able to produce complex products and an indication of unexploited potentials. Also, this could be associated with the country’s weak economy, hence limited resources for investment. Country’s risk acceptance level is low for the last two years, which seems to hold back the performance of the whole system.

 

 

Step 4 – Use the data presented on the reports to conclude the analysis providing your perspective regarding potential improvements that you believe will help the entrepreneurial environment of this country. Invest in Business Education? Attract Investors? Improve policies and laws?

Conclusion

From the above analysis, Bangladesh has poorly applied most of the 14 pillars to improve its entrepreneurial environment. Therefore, for the country to fully utilize all component it should;-

  • Invest in Business Education – The nation should invest in the education system to increase skill perception and the cultural attitude of its growing population. This would require both formal education as well as training skill. Additionally, the country should invest in technology both in school and infrastructure. It will enable the country to diversify, the capability to absorb and innovate its goods and services. Emphasizing on entrepreneurial skills as well as sponsoring local associations that deal with business innovation will increase the level of entrepreneurship in the country.
  • Attract Investors- The country should encourage networking within and outside the country; this will promote venture creation and identification of opportunities within and outside the country. Also, it supports, transfer of technology and information and economic development. Venture creation will lead to the production of unique products and services will encourage competition with results to business growth. It is improving access to ICT and infrastructure to enhance innovation and technological development. The company should provide opportunities for export to new markets.

 

  • Improve policies and laws- corruption undermines development and growth; for this reason, the country should develop rules and policies aimed at reducing the level of corruption. Also, development of regulations will influence competition and growth of the economy. Promoting economic initiative developments, as well as local technology, will encourage new innovators and startups.

 

 

 

 

Reference

Ács, Z. J., Szerb, L., Autio, E., Lloyd (2017). Global entrepreneurship and development index 2017

Ács. Z.J, Szerb,L.&Lloyd, A (2018). The Global Entrepreneurship Index 2018
Szerb, L., Markus, G., Lafuente, E & Acs, (2020). Global entrepreneurship index 2019.