Entrepreneurial actives and business innovation
An entrepreneur is a personality who has control over an innovative enterprise, venture or idea and is accountable for the inherent risks and the outcome is establishment of a company with a service record. These companies, normally not long created, are in a phase of expansion and explore opportunities for markets starting from grass root level to domestically, regionally and globally. Today “Entrepreneurship” has become a buzzword.
Entrepreneurship and innovation can lead to Economic growth plus change. Informal sector of Bangladesh should be gradually converted to formal sector. To promote entrepreneurship and science-led solutions for sustainable and continuous inclusive growth in Bangladesh is required. Around 6.6 million of Bangladeshi people, who are able to do jobs at the formal sector, have not been made available with employment opportunities as reported by the Labour Force Survey.
Social entrepreneurship in Bangladesh has progressed significantly over the last decade. More and more people are using entrepreneurial skills in building sustainable enterprises for profit and non-profit to effect will lead to change in Bangladesh. Social business is not a new phenomenon as it prevails in this subcontinent for long 1000 years back. However, Bangladesh needs to shift away from dependence on the primary source of production and commodity-based industries to open up to international trade and to building capacity in some knowledge-intensive industries.
Competitiveness refers to set of factors, policies and institutions that determine the level of efficiency of a country taking into account its level of development. Attitude refers to the individual’s mindset, particularly a risk-taking nature and levels of perseverance, qualities identified as essential among entrepreneurs; Skills refer to the set of job-related and behavioral skills required to successfully found or work in a fast-growing, innovative organization. Cultural/social framework refers to the set of social and cultural factors that either support or inhibit an individual’s decision to engage in the entrepreneurial ecosystem rather than other occupational pathways.
Regulatory framework refers to the administrative processes and rules required to start and operate a company, including licensing, tax and labour market regulations. Market framework refers to the availability of necessary inputs, transformation processes and customer demand necessary to operate and develop the venture. Network access refers to the availability of supporting partners, advisers and enablers who transfer expertise and create opportunities for growth. Innovation and entrepreneurship offer potential for transformational impact. This transformation can be driven by a growth-oriented agenda that leverages, import substitution and export oriented SMEs with strong growth potentialities; Development oriented start-up companies; Industry-facing research and development capabilities.
During the 18th Century French Economist, Richard Cantillon used Entrepreneurs, with non-fixed income earners and pay known costs of production but earn uncertain incomes, due to the speculative nature of pandering to an unknown demand for their product. Jean-Baptiste Say pointed out that it was an entrepreneur, who sought out inefficient uses of resources and capital to more productive, higher yield areas. According to Joseph Schumpeter “carrying out innovations is the only function which is fundamental in history”.
Creation of new products and methods destroys the old products and methods. To provide risk, capital to high potential ventures in exchange for partial ownership of the firm, venture capitalists are typically active investors who seek to add value through their interaction with and advice for the managers of the entrepreneurial venture (Arthurs and Busenitz). Clayton M. Christensen divided new technology into two categories: sustaining and disruptive. Mises and Hayek developed a modern society owes its preservation to private or separate ownership of the means of production and to market-exchange processes. The economic freedom stemming from private ownership and free markets becomes a necessary condition for an overarching political freedom.
Cassim et al. (2014) argued that stimulation of entrepreneurship and small business is important as the global competitiveness race and the moves occurring in other parts of the world require hastening towards the development and adoption of policies that encourage innovation and entrepreneurship. Amartya Sen argued that the business community plays a unique role but they should not get into making quick money on the sly; they have to think big, not just in terms of money, but also in terms of remedies for the society. Littlewood and Holt (2015) depicted that social entrepreneurship considering a framework of new institutional theories and writing on new venture creation, this research explores the significance of environment for the process of social entrepreneurship, for social enterprises, and for social entrepreneurs.
Strategically advantage refers to traditional sectors and emerging industrial verticals could benefit from a combination of the following initiatives, including, reintroducing incentives for technology adoption. Developing channels for greater access to supply chains and international markets; strengthening the national quality infrastructure; addressing technological skills gaps. Both entrepreneurship and innovation are demanding for creativity. Creativity is a process by which a symbolic domain in the culture can be changed. Creativity is a function of three components:Expertise; Creative thinking skills; Motivation. Creativity consists of anticipation and commitment. Entrepreneurs need to take bold creative steps but environment must encourage creativity. Sustaining technology relies on incremental improvements to an already established technology. Disruptive technology lacks refinement, often has performance problems because it is new, appeals to a limited audience and may not yet have a proven practical application. Cloud computing has been a hugely disruptive technology in the business world; cloud computing is encompassing everything from infrastructure as a service through a software to provide service. In the middle, there is a platform tier providing the micro-services that power the likes of Android and iPhone apps, and many web-delivered services.
Conclusions and Recommendations:
Building linkages between the enterprises and import substitution, and export, oriented MSMEs (Micro-small and medium enterprises) could be an important way to facilitate integration with global value chains and new markets. The significant part of SMEs in an economy consist of: organization of business chances, small business promotion organization, buying, industrial and financial supervision; substitute ways to entrepreneurship; backing of chances in the market setting; organization of development of the insignificant business.
The writer is a Post Doctorate Professor, Dhaka School of Economics