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6 ASIAN AFFAIRS

(Schumpeter 1955: 51-52). Federick Harbison states that the


organisation building ability is the most critical skill needed for the
industrial development. According to him, entrepreneurship means the
skill to build an organison (Harbison 1956: 364). However,
DEVELOPMENT OF ENTREPRENEURSHIP
entrepreneurship is commonly understood as an act of drive, initiative,
WITH REFERENCE TO POULTRY FARMS organised effort and achievement-oriented outlook to perform specific
OF CHITTAGONG function for undertaking productive activities and the capacity to bear
associated risk and uncertainty (Rahman 1985: 105). Obviously,
entrepreneurs are keystones in a private enterprise system. They are
Mohammad Solaiman man of drive, ability, ambition and technical knowledge. They are man
Mohammad Tayub Chowdhury of drive, ability, ambition and technical knowledge. They emerge in the
society by virtue of their personality characteristics with necessary
support from the socio-economic environment of the country.

E ntrepreneurship development is a precondition for the sustained


economic development of a country (Enke 1978: 538). It
produced the forces of change and also used them and eventually
Rationale of the Study
Bangladesh is one of the most populous countries of the world.
became the human generator that accelerated the pace of development Within a small territorial area of 55,598 square miles a population of
throughout the world (Rahman 1985:78). Over the last several years, the size of about 13 crores live, majority of them, are illiterate, poor,
some developing countries recorded spectacular growth and success unemployed and suffer from malnutrition. Among the various factors
of small entrepreneurs (Chowdhury 1988: 1). It is true that a congenial contributing to malnutrition, it appears that lack of animal protein is
environment is indispensable to create and develop effective the important one. But live stock products such as meat (including
entrepreneurs in the country (Chowdhury 1992: 211) 1. The poor poultry), milk and eggs contribute about one-sixth of the calories and
economy of Bangladesh can hardly afford entrepreneurship development one third of the protein in the per capita food supplies in the world
other than in small-scale ventures. In fact, a balance development of (Sarma and Young 1985: 12). Again, the economy of Bangladesh is
the economy is largely contingent upon small- scale enterprises for a primarily agrarian in which agriculture contributes about one third
good many reasons, viz., huge unemployment, technological per cent of G.D.P. (2000-01:7) and poultry is one of the most important
backwardness, poor infrastructural frame-work and scarcity of capital items in this sector. Thus, by providing employment opportunities,
etc. (Rahman 1993: 67). poultry farms help in reducing unemployment, under-employment and
disguised unemployment on one hand and it may play a positive role in
Entrepreneurship Defined solving the problem of malnutrition by supplying meats, eggs etc. in
Entrepreneurship is essentially creative in nature. It is a matter of our country on the other. Again, the Government of Bangladesh for
exploration and initiation of new things, new way of doing things, new sometimes back has been giving emphasis on balanced food habits
methods of production, new use and new market for products or and concentration on nutritious food. In the latter context, poultry
services. But scholars have explained entrepreneurship much above farming has received increased attention of the Government and the
this general definition. Entrepreneurship, according to Schumpeter, is people of our country is found keeping poultry as domestic birds.
essentially a creative activity, the entrepreneur being an innovator Further, there is an ample scope for the development of poultry farming
introduces something new into the economy, a method of production to boost up its production such as meats, eggs etc. both for home market
not yet tested by experience in the branch of manufacture, a product consumption and exporting abroad.
with which consumers are not familiar, a new source of raw material or Economic development and self-reliance for the people have been
new market hitherto unexplored and other similar innovations an important issue in the political and economic arena of the country.
DEVELOPMENT OF ENTREPRENEURSHIP 7 8 ASIAN AFFAIRS

Again, the entrepreneurial spirit/initiative is very much present among The sizes of sample entrepreneurs were limited to 50. The technique
the people of Bangladesh (Rahman 1978:4). So the issue of the of purposive sampling was used to select the respondents.
entrepreneurship development of Bangladesh in the context of poultry
farming needs to be carefully analysed. The size of poultry farms is 1350 in the study area. Out of these, 50
farms were chosen for study purpose on purposive sampling basis.
This paper is orgainsed as follows: Section-2 sets the objective of The main reasons for limiting the study to 50 farms of Chittagong were
the paper and Section-3 explains the methodology, Section-4 presents easy access of the researchers to the sample farms, time and financial
the potentialities, problems and relevant issues of entrepreneurship constraints at the disposal of the researchers. Requisite data and
development with special reference to poultry farming and finally, in information were collected through direct interview method by the
Section-5, a line of policy actions has been offered for the researchers personally. It may be mentioned that the data and
entrepreneurship development among the people of the country. information of this paper were collected during the period from January
2002 to March 2002.
Objectives
The main objective of this study is to pin-point the favourable socio- The relevant and supporting secondary data were collected through
economic factors and relevant issues for entrepreneurship development desk study in order to present the fact in a logical format. The desk
with particular reference to poultry farming. In the light of this main study covered textbooks, research articles, research monographs and
objective and the research problem cited above, the specific objectives various published & unpublished materials on the subject.
of the study have been earmarked as follows:
The data and information, thus collected were processed and
(i) To bring to focus socio-economic background of sample analyzed in order to make the study more attractive, useful and
entrepreneurs. informative to the readers. Various statistical tools namely averages
(ii) To examine the potentialities of entrepreneurship and percentages were used in the study. Factors indicating growth of
development with reference to sample poultry farms. entrepreneurs with reference to weighted scores rated poultry farmers.
Seven points bi-polar scale systems were used in measuring opinion of
(iii) To identify the problems faced by sample entrepreneurs. the sample respondents.
(iv) To suggest probable lines of action to overcome these
problems. The analyses of findings are made under the following main captions
keeping in mind the objectives of the study.
Methodology
The present study was confined to the Chittagong district. The reason Socio-Economic Background of Sample Respondents
for selecting Chittagong was based on the consideration that it will Existing literature reveals that there is a relationship between socio-
fully represent the picture of a district and be homogeneous in terms of economic background and entrepreneurship development. The trading
socio-economic environment. and industrial activities call for certain values (Kennedy 1962): 11-12)
viz., acquisitive rationality, financial rationality and rationality of work
The main feature of the present study is the extensive use of primary etc. These can be acquired by systematic efforts. But, in a socio-economic
data relevant to socio-economic factors by the sample entrepreneurs of inheritance process some benefits, resources and privileges are passed
poultry farms. In order to get the requisite primary data, a structured on from the father and other family members to the next generations.
questionnaire was prepared in the light of the objectives of the study. A Entrepreneurship just can not be considered an individual phenomenon
pilot survey was conducted before the finalisation of the questionnaire and strictly intrinsic to the personality involved (Deshpande 1982:130).
and expert opinion was also solicited in the finalisation of the same. As such, in order to measure the socio-economic background of the
DEVELOPMENT OF ENTREPRENEURSHIP 9 10 ASIAN AFFAIRS

sample entrepreneurs, the main indicators such as – age, education, marshalling resources for small ventures like poultry farming in
annual income, family size and occupation have been considered more building his career, on the other.
relevant to the purpose of the study.
Education
Age at the Time of Starting Their Farms The formal education has always been considered an important
Age plays an important role in the development process of asset of an individual in building his occupational career (Lipset & Bendix
entrepreneurship. It has been gathered that analysing the socio- 1959: 197). Further, education may eradicate inferiority complex and
economic characteristics by age groups is an effective tool in judging provide social ladder for occupational mobility (Chowdhury 1988: 9).
the personality of an entrepreneur in entry stage of a venture. The However, a minimum level of education seems to be needed to evaluate
collected data in this regard have been shown in Table – 1. the opportunity structure and attain the skill to exploit the available
opportunity. The collected data in this regard have been shown in
Table – 1 Table – 2.
Age of sample Entrepreneurs at the time of starting their farms
Table – 2
Age (in years) Number of sample Frequency in Table showing Education of sample Entrepreneurs
Entrepreneurs percentage
Below – 20 3 6%
Education Number of sample Frequency in
21 – 25 7 14%
Entrepreneurs percentage
26 – 30 13 26%
31 – 35 15 30% Less than S.S.C. 8 16%
36 – 40 6 12% S.S. C. 15 30%
40 – 45 4 8% H. S. C. 19 38%
45 and above 2 4% Graduate Post-graduate 5 10%
Technical & others 3 6%
Total 50 100%
Total 50 100%
[Source: Field Survey]
[Source: Field Survey]
Table- 1 portrays that the sample entrepreneurs had an average
(modal) age of 31.91 years at the time of starting their farms. Out of the Table-2 reveals that the education level of sample entrepreneurs
50 respondents, 38 (76%) established their farms up to 35 years of ranges from 38% in the “H.S.C.” category, followed by 30% respondents
their age and only 24% of the total sample entrepreneurs established having educational background at S.S.C. level. Again, it has been shown
that 16%, 10% and 6% of the sample entrepreneurs have educational
their farms after reaching 36th year of their ages. The scenario is also
background Less than S.S.C., being followed by “graduate” and “post
the same for Indian and Korean entrepreneurs (Sharma et. al. 1979:
graduate, technical and others” respectively. However, it has been
226). It is also argued that this is the age when men can exert his gathered that 86% of the Malaysian entrepreneurs have some formal
talent, skill on one hand and seems to be motivated to contribute towards education although the percentage of higher education is not high.
innovation, risk taking, acquisition of managerial capabilities and in Again, most Nigerian entrepreneurs are primary school leavers and
DEVELOPMENT OF ENTREPRENEURSHIP 11 12 ASIAN AFFAIRS

Hong Kong entrepreneurs have lower level of academic achievement and 13001 & above respectively. It is also true that economic gains are
and Chinese generally thinks business as a substitute for education always conceived as a means to or as an indicator of social status. This
(Lim 1979). But, the formal education is expected to increase the supply observation elucidates the faith on money power to gain status in the
of entrepreneurs by making available more skill, which is necessary to society (Siet 1974: 27).
entrepreneurial endeavors (Ralph 1969: 84).
Family Size
Annual Income This factor has definite bearing on level of savings and investment
Income may be conceived as a motivating factor, which induces a and therefore on the emergence and development of entrepreneurs.
man to play a positive role in sharpening his career and skill. Moreover, The small family size of Hong Kong entrepreneurs has enabled them to
the income level is one of the significant ingredients of financial carry on business with own savings. This has perhaps encouraged
incentives and thereby, ultimately affects development processes of greater amount of profit recycled for expansion and growth (Sit 1979).
entrepreneurship. Against this background, the monthly income of In such a context, the survey results have been shown in Table – 4.
sample entrepreneurs have revealed in Table- 3.
Table – 4
Table – 3 Distribution of Sample Entrepreneurs According to Family size
Table showing sample Entrepreneurs According to Income Level
Family size Number of sample Frequency in
Income Group Number of sample Frequency in Entrepreneurs percentage
(In Taka.) Entrepreneurs percentage
Up to –2 5 10%
Below – 2,000 3 6% 3–4 15 30%
5–6 21 42%
2001 – 5,000 7 14%
7- 8 7 14%
5001 – 6,000 10 20% 9 and above 2 4%
6001 – 9,000 15 30%
Total 50 100%
9001 – 10,000 8 16%
10,001 – 13,000 5 10% [Source: Field Survey]
13,001 and above 2 4% Table – 4 reveals that out of 50 respondents, 21 (42%) have family
size between 5 – 6, followed by 15 (30%) with family size between 3 – 4
Total 50 100% and by 7 (14%) with family size between 7- 8. The table further shows
that the sample entrepreneurs numbering 5 (10%) and 2 (4%) fall within
[Source: Field Survey] the family size of up to 2, on one hand, and 9 & above on the other. It
is, thus, asserted that the larger family size of sample entrepreneurs
Table- 3 shows that out of 50 sample entrepreneurs interviewed, perhaps causes lower rate of savings and investment, which, in turn,
30% have monthly income between Taka 6001-9000, followed by 20% may lead to adverse impact on the flourishment of entrepreneurship.
with income distribution of Taka 5001-6000 and by 16% with income
between Taka 9001-10000. It further portrays that the sample Occupational Mobility of Sample Entrepreneurs
entrepreneurs numbering 7 (14%), 5 (10%), 3 (6%) and 2 (4%) fall with The occupational mobility in a society, where an individual has
in the income groups of Taka 2001-5000, 10,001-13,000 below 2000 greater freedom of choice, is mainly determined by factors like
DEVELOPMENT OF ENTREPRENEURSHIP 13 14 ASIAN AFFAIRS

motivation, efforts of an individual and opportunities available. Potentialities of Entrepreneurship Development


Moreover, it is argued that the socio-economic position of the father, as The link between entrepreneurship and economic development is
indicated by his occupation, helps the entrepreneurs financially in important for any country. The determinants of entrepreneurship
building their occupational career as entrepreneurs (Deshpande 1984: development are based on the socio-economic conditions of a country.
109-134). In such a context, the collected data in this regard have However, Foreign scholars who have studied the socio-economic and
been shown in Table – 5. cultural setting of Bangladesh appear to think that Bangladesh has
youths with potentiality to be developed as entrepreneurs (Habibullah
Table – 5 1985: 49). A.F.A. Hossain fined that the entrepreneurs in Bangladesh
Distribution of Sample Entrepreneurs According to possess sufficient intelligence and smartness to take advantage of
Parental Occupation available business opportunities (Hossain 1963). Study of Abdullah
Farouk shows the same result (Farouk 1983: 79). These are indicative
Parental Occupation Number of sample Frequency in of the potentialities of entrepreneurship that can be developed. In such
Entrepreneurs percentage a context, the collected data in this regard have been revealed in
Table-6.
Farming 4 8%
Table – 6
Service 9 18%
Factors Indicating Potentiality of Entrepreneurship Development
Officer 7 14%
Factos EntrepreneursRanking of Weighted Rating Rank
Business 27 54%
Factors Scores Percent No.
Labourers 3 6%
No. 1 No. 2 No. 3
Total 50 100%
To be self-employed 33 9 5 122 32.70 1

[Source: Field Survey] To earn more money 9 23 6 79 21.70 2

Table-5 portrays that the occupational mobility of 27 (54%) sample To gain social status 13 9 7 64 17.68 3
entrepreneurs out of a total of 50 have been business, followed by 9
(18%) with service. It has been further revealed that 7 (14%), 4 (8%) To use abundant
material & cheap
and 3 (6%) of the sample respondents pointed out service in office, human resources 7 10 6 47 12.98 5
farming and labour as their parental occupation. Moreover, the parental
To choose poultry
occupation is an enabling factor since the bundles of skill, experience farming as a carreer 11 6 5 50 13.81 4
and training necessary to sense, view, evaluate and exploit given
opportunity can be obtained from parental circle free of cost, easily, Total 73 57 29 362 100.00 -

quickly and without undergoing exploitative apprenticeship system [Source : Field Survey]
(Chowdhury 1988: 6). It has been gathered that 84% of Indian, 79% of
Hong Kong and 84.5% of Malaysian entrepreneurs originate from [Note: The ranking factor indicates 3, 2 and 1 points respectively.
non-farm parental occupation background. It is found that relevant The overall ranking have been made on the basis of the percentage of
parental occupation counts for success in entrepreneurship (Ouh 1978). total weighted scores for each facilitating factor.]
DEVELOPMENT OF ENTREPRENEURSHIP 15 16 ASIAN AFFAIRS

Table – 6 reveals the major factors as opined by sample depends on multiple factors, which may be offered in an integrated
entrepreneurs regarding potentiality of entrepreneurship development. package programme. This type of programme includes:
It shows that more than 32% respondents regard “self employment” as (i) Stimulatory activities,
a significant factor. It occupies the highest position in the overall ranking. (ii) Supportive activities and
Again, 33 of them ranked it first, 9 ranked second and 5 of the sample (iii) Sustaining activities (Sharma 1979: 107).
respondents ranked it third. The table further reveals that the factors How do the sample entrepreneurs look at such a programme? How
of potentiality ranges from use of abundant material & cheap human far such a package programme is adequate? These pertinent questions
resources having 12.98% at the lowest, ranked at fifth, to earning more require attention. Recognizing the need for knowing the attitude of the
money with 21.82% at the second highest, i.e., ranked at second entrepreneurship development, relevant information has been collected
position. It is further observed that 9 sample respondents ranked it as from the sample entrepreneurs. Table – 7 reveals the opinions expressed
factor number one, 21 as factor number two and 6 as the third potential by the sample respondents regarding the factors of adequacy and efficacy
in the area concerned have been processed through 7 – points bi-polar
factor. It is also revealed that the other factors of potentiality are gaining scale system. In this scale, + 3 indicates full satisfaction, + 2 medium
social status and choosing poultry farming as a career and in terms of satisfaction and + 1 least satisfaction and, on the contrary, - 3 indicates
rating are 17.68% and 12.98% respectively. From the above facts it complete dissatisfaction, - 2 moderate dissatisfaction and – 1 least
can be inferred that the potentiality of entrepreneurship development dissatisfaction.
in the study areas of sample respondents is of very high degree. Table – 7
Opinions of the Sample Entrepreneurs Regarding Adequacy and
Package Programme for Entrepreneurship Development: Efficacy of Package Assistance for Entrepreneurship Development
Its Adequacy
Variables Average Score Remarks
In order to build up a stout and healthy nation, food-rich in protein
is essential. The quantity of protein us food of the country can be Stimulatory activities:
Techno-economic information is available 1.4 Insignificant
augmented by raising poultry in a large scale. The Government of
Motivational training for entrepreneurship
Bangladesh appears to have recognized the problem and thus the first is purposeful 1.6 Insignificant
Five Year Plan emphasized on poultry farming (First Five Year Plan Entrepreneurial education is adequate 1.5 Insignificant
1973-78: 127). The Second Five Year Plan also went further for district Publicity for entrepreneurial opportunities is
level poultry farm (Second Five Year Plan 1980-1985: 26). The Third effective 2.0 Insignificant
Guidance serves the desired purpose 1.3 Insignificant
Five Year Plan emphasized poultry as a source of generation of
Supportive activities:
employment and allocated Taka 28.70 crores for poultry breeding (Third Availability of land, water etc. 2.0 Insignificant
Five Year Plan 1985-1990): 192). The Fourth Five Year Plan emphasized Management consultancy is effective 1.6 Insignificant
on credit support relevant for the growth & development of poultry Provision for tax relief is adequate 1.7 Insignificant
farms in the country (Fourth Five Year Plan 1990-1995). These credit Arrangement of fund is adequate 1.6 significant
Guidance of Govt. agencies is significant 1.5 Insignificant
facilities are being channelised through Bangladesh Krishi Bank,
Sustaining activities:
nationalized commercial banks, Grameen Bank and Rural Development Marketing facilities are adequate 1.9 significant
Board. At present the Fifth Five Year Plan also emphasized on poultry Quality control process is effective 1.6 Insignificant
farming for generation of employment and income for the landless, Full capacity utilization is ensured 1.7 Insignificant
unemployed youth and destitute women. Consultancy services is regular 1.5 Insignificant
Modernisation, diversification & expansion
programme is purposeful 1.4 Insignificant
Entrepreneurship development involves the development of the
Total 1.63 Insignificant
entrepreneur himself, the human factor, and also creation of an
environment where entrepreneurial activities can flourish. Moreover, it [Source: Field Survey.]
DEVELOPMENT OF ENTREPRENEURSHIP 17 18 ASIAN AFFAIRS

Table-7 portrays that the average score for all the 15 sub-variables entrepreneurs in taking right decision in right time like shifting to new
taken together is 1.63. The range of score is from 1.5 to 2.0. It is production technology or expanding new venture. Motivational
indicative of the inadequacy and inefficiency of the integrated package programmes offered by Government and other development agencies
assistance measures for entrepreneurship development in selected areas like UNDP, IDA do not reportedly cover the prospective entrepreneurs.
of sample farms. It is observed that some components of the Scope of training to develop skill is far from satisfactory. It appears
programmed, viz., publicity for entrepreneurial opportunities, availability from the observation that MIS and research on entrepreneurship
of land water etc. indicate significance, which indicates adequacy and problems are absent in study areas. Thus, it has been found that the
efficiency. sample entrepreneurs are deprived of receiving right information in
right time and their attitude towards integrated package programme
Problems of Sample Entrepreneurs do not corroborate in the formulation of programmes of
Many problems engulf the processes of entrepreneurship entrepreneurship development of the country.
development among the sample entrepreneurs of study areas in selected
farms. Based on empirical data a number of problems has been identified Policy Implications
which are revealed in Table- 8 in order of magnitude. Although the present study was confined to some selected poultry
farms, it may be appropriate to state briefly the policy implications
Table – 8 arising from the findings of the study. In this context, the following
Opinions of the Sample Entrepreneurs Regarding Problems of policy actions may be considered worthwhile.
Entrepreneurship Development
Courses on Entrepreneurship may be Introduced in the
Problems Frequency in percentage Curricula of Educational Institutions
Courses on entrepreneurship may be introduced in the curricula of
Instability of Govt. policy in the issue Secondary and Higher Secondary Education in Bangladesh so that
concerned 100 school/college dropouts are exposed to possibilities of independent
Lack of adequate financial support 100 economic status. Further, the youngsters, on completion of school/
college education may emerge as a job- creator instead of job seekers.
Absence of entrepreneurial courses in the
In Bangladesh, profitable investment avenues are available in various
curriculum of educational organization 67.33
fields like poultry farming involving simple technology, small capital
Ineffective motivational programmes 50.66 and low gestation period.
Lack of effective training programmes 40.55
Availability of Credit Facilities
Absence of effective management information
system (MIS) 33.33
Adequate institutional credit facilities may make available to sample
poultry farmers so that they do not fall prey to moneylenders. Further,
Lack of research on entrepreneurship problem 26.67 red-tapism of the bank officials need to be simplified, so that prospective
entrepreneurs can avail themselves of credit facilities offered by
[Source: Field Survey] concerned agencies.
Table –8 portrays that instability of Govt. policy and lack of adequate
financial support are two most important problems in the process of Arrangement of Training Facilities
entrepreneurship development. Absence of entrepreneurship courses Training to entrepreneurs has become and essential factor at this
in the curriculum of educational institutions affect the entrepreneurship moment. For better assessment of training needs, training of
development adversely which ultimately frustrate the sample entrepreneurs is most essential. It is also necessary to train the trainers
DEVELOPMENT OF ENTREPRENEURSHIP 19 20 ASIAN AFFAIRS

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