Paper to be presented at the EMNet-Conference on "Economics and Management of Franchising Networks" Vienna, Austria, June 26 – 28, 2003 www

Jahangir Alam Associate Professor Department of Finance University of Chittagong Bangladesh Email: Phone: Office: 0088-031-726311-14 Extension: 4234 (Auto) Fax: 0088-031-726310 Abstract
Entrepreneurship is an outcome of complex balancing of opportunity initiatives, risks and rewards. Entrepreneurship is as a process by which people pursue opportunities, fulfilling needs and wants through innovations, without regard to the resources they currently control. Entrepreneurial resource is vital ingredient of economic development whereas a key element of economic development is that the 'people of the country' must be major participants in the process that brought about changes in structure of economic and population growths along with consumption pattern. Through the process of entrepreneurship, it is possible to argument the scope of capital formation, employment generation and facilitate industrialization in a country on the hand. On the other hand, entrepreneurship acts as a powerful tool of employment generation, raising productivity through innovation, facilitating transfer of technology, playing key role in commercializing new products, redistribution of wealth and income, earning foreign exchanges, promoting social welfare and the like. Adequate information is one of the important aspects of entrepreneurship development. Entrepreneurs have to face different problems such as, knowledge about markets, about key people in buyer organizations, and so on. Such information and understanding is not easily, cheaply or rapidly acquired. As a result, networks between buyers, sellers and other related parties, which form the basis of effective communication, must be established. Networks establishment can be a demanding and time consuming process where the gap between the accentuated by physical and cultural distance barriers. There is a considerable inertia amongst buyers who feel more secure with suppliers from familiar sources and location. As a result, the new entrants have to face more problems as compared to others existing entities. A core competence of overcoming barriers of innovation and development of entrepreneurship is franchising networks. This will reduce the costs of entrepreneurs/firms to gather information in different aspects. The benefits are enormous over and above reducing costs of information. The paper attempts to build a model for entrepreneurship development conducive to overall economic development of a country - developing or developed- taking franchising networks as a main variable along with some other associate variables.

Mohammad Akter Hossan Lecturer Department of Finance University of Chittagong Bangladesh Email: Phone: Office: 0088-031-726311-14 Extension: 4234 (Auto) Fax: 0088-031-726310

I. Introduction The concept of entrepreneurship is multifaceted and used in a wide variety of contexts. At its heart are entrepreneurs, i.e. persons that are believed to have characteristic traits or behave in some characteristic way. On the basis of these characteristic traits entrepreneurship is described as an innovator who undertakes the new combinations of factors of production. Innovation may occur in the form of: i) the introduction of a new goods, ii) the introduction of new method of production, iii) the opening of a new market, iv) the conquest of a new source of supply of factors of production and v) the reorganization of any industry. Entrepreneurs are specially motivated and talented type of individuals who are to see potentially profitable opportunities and tend to exploit them (Saha, 1989). It is recognized that mere existence of resources does not guarantee economic growth (Purhit and Rahman, 1995). Experience shows that progress is basically the human effort and it takes human agents to mobilize capital, to exploit natural resources to create new markets and to carry on trade (Frederick and Myers). According to J.A. Schumpter entrepreneurship is the central figure of the development process because the entrepreneur in the modern complex economic world, can create opportunities for production technology, by expanding or discovering new market, new product, new source of resources, etc. All these activities will embrace risk and uncertainties and at the same time will increase the demand for higher or increased investment in the economy. This demand for increased investment will necessitate higher capital accumulation and thereby the demand for increased rate of savings in the economy. The cumulative effects of all these factors will increase level of income ands total production of goods and services in the economy. In other words, in totality, the net result of expansion in the volume of economic activities will lead to growth in


By collecting information from such networking system. in practice it has to face the problem of adequate information regarding the potential opportunities in environment. existing and probable competitors. etc. entrepreneurs can reduce their cost of production and can contribute more to the economic development. market penetration strategies. share the experience with such foreign entrepreneurs even can take suggestions from successful entrepreneurs for overcoming any difficulties through networking support provided by any parent network company. 3 . in the world of information technology. required technology and expert personnel. Although entrepreneurship is a vital factor in the economic development process. 1989). sources of necessary resources for that new goods. suppliers of raw materials.national economy and if a proper and equitable distribution policy can be formulated by the state to suit the real development in the economy will take place (Saha. entrepreneurs have to pay royalties. if entrepreneurs want to collect this information by using the traditional methods then it will cost more to the entrepreneurs and this cost also leads to increase in the production and as a transaction cost too. As a result. To use these network support. various aspects of the markets. exchange views with the entrepreneurs at home and abroad. establishment and other fees to the parent network company and this system of network support of parent company is called franchising network where entrepreneurs are called franchisee(s) and the parent company is known as franchiser(s). entrepreneurs can only be benefited by gathering various information mentioned earlier. So. demand and choice of potential customers.

II. He wrote “the presumed mechanism by which n Achievement level translate itself into economic growth is the entrepreneurial class.e.This paper tries to build a structural model linking between franchising network and entrepreneurship development and to evaluate whether this model will be able to reduce the cost or not. one would expect a relatively 4 . These theories are discussed belowA.psychological theories and sociological & anthropological theories. We have also considered all these factors while we have tried to provide a new model. in this section we have tried to identify the variables used in the existing models. So. Critical Evaluation of Existing Theories of Entrepreneurship At present there are a number of entrepreneurship theories for the development of entrepreneurship. to find out the merits and demerits of present theories. All the existing entrepreneurship theories are divided here into two major categories. According to McClelland. If the n Achievement level is high. 1989). there will presumable be more people who behave like entrepreneurs-----" (Islam. the internal attitude and ability to judge and forecast the situation lead a man to become a successful entrepreneur. According to this theory the difference in attitude i. In his theory McClelland emphasized the relationship of achievement motivation or need for achievement (symbolically written as n Ach) to economic development via entrepreneurial activities. Some important theories of this field are critically discussed belowDavid McClelland’s theory on need for achievement is the most important one of the various psychological theories on entrepreneurship. Psychological Theories The essence of psychological or personal theory is the difference in individuals’ attitude.

He believes that the initial condition leading to eventual-entrepreneurial behavior is the loss of status by a group of collectivity (Islam. McClelland advocates increasing level of need-achievement in a society in order to stimulate entrepreneurship and economic growth (Islam. according to McClelland. work hard to achieve the goals and uses the skills and abilities needed to accomplish them (Islam 1989). it is the inner drive of individuals that propels them to work more and to achieve something for their own interest by taking personal risk (Islam and Mamun. 1989). reformism and rebellion. induce people to be an entrepreneur (Islam and Mamun. According to Hagen loss of status can occur in one of the four ways. Among these reactions retreatism is important for 5 . 2000) . innovation. So.i) the group may be displaced by force. reflects a strong goal orientation. He also suggests that the n Ach level can be increased in an individual through training and by creating appropriate culture. iii) it may drift into a situation of status inconsistency and iv) it may not be accepted in a new society. but for an inner feeling of personal accomplishment. Consequently. ritualism. Moreover. 1989) .greater amount of entrepreneurship in a society if the average level of need achievement in a society is relatively high. Because having a high n Ach encourages an individual to sit challenging goals. Finally. In the theory of withdrawal of status respect Everett Hagen’s argument is that certain social changes are cause of psychological changes in a group or in an individual of the society. entrepreneurship becomes the link or intervening variable between need achievement and economic growth. entrepreneurs are activated by the high extent of achievement motivation and he also stated a desire to do well. Need for achievement then. and the outcomes or reactions of the loss of status are retreatism. 2000). not so much for the sake of social recognition or prestige. ii) it may have its valued symbols denigrated. an obsession with job or task to be done.

So. Hagen discovered instances of the withdrawal of status respect by looking first at situation in which economic growth occurred and then by looking for status losses that might have preceded that growth. personality. because people taking a very big risk also have a great responsibility. Second criticism has centered on the long period of time. Then.entrepreneurship. In motive-Acquisition theory which is a revised version of McClelland n Ach theory expresses that the mentality. 6 . are not in-born but they are flexible and changes with situation. Because retreatism is characterized by psychological repression of the trauma associated with the status loss. thinking power. Risk taking theory which is introduced by Richard Cantillon and John Stuart Mill defined entrepreneurship as a mentality to take moderate or calculated much as five or more generations are required for the withdrawal of status respect to result in the emergence of entrepreneurship. attitude etc (Islam and Mamun. this theory advocates in favor of frequent training and development programs to influence and motivate an individual towards a goal by changing his/her thinking. attitude etc. This theory has been criticized for two major reasons. The suppressed rage resulting from the loss of status ultimately results in a later generation is standards of achievement being held up by mothers within the group to their sons. 2000). 1989). For this reason the son’s becoming innovators is increased and entrepreneurship becomes a feasible outlet for such tendencies (Islam. mentality. First reason is that this theory is post hoc that means. to perform this responsibility people has to take initiatives and this initiatives result entrepreneurship.

On the contrary. is essential. Another psychological theory of entrepreneurship named Creativity or Innovation Theory highlights the physical performance as the determinant to evaluate whether an individual is creative or not. This is because socio-cultural factors have a substantial influence in creating entrepreneur as well as entrepreneurship (Katz et al. This theory expresses that people having independent thinking. which is related to selfinterest.D Rotter of Ohio University highlights the self-confidence of a person. 1989). thinking ability to create new and fundamental ideas or views and they also find out techniques to bring new ideas into practice. self confidence. On the other hand. Power Motivation Theory has given emphasis on the authority to do a certain task properly. Sociological and Anthropological theories There are some other theories based on sociological and anthropological aspects. because creative individual use their talents. which also emphasizes on the independents thinking of entrepreneurs. Moreover. According to this theory internal locus of control i.Internal-External Locus of Control theory introduced by professor J. extreme belief over one’s ability and power motivates individual of a society to take initiatives for innovation which is very much helpful for individual side by side for society too (Islam and Mamun. B. self-confidence. 2000). Especially for entrepreneurship development personal power. self-controlling ability can avoid social condemnation for becoming an entrepreneur. 1991).e. the dependency on fortune and external environment for becoming an entrepreneur. Among these type of theories Max Weber’s 7 . social and cultural factors places a high value on innovation. risk taking and independence is more likely to produce entrepreneurial events than a system with contrasting values (Islam. Independence Motivation theory is the similar to internal-external Locus of control theory.

However. From this discussion we find some variables for the entrepreneurship development. an emphasis on the inherent goodness of work itself. iii) training for changing individual's mentality. a number of elect few predestined to share this grace. from the group of marginal man there is a likelihood of creating more entrepreneurs (Islam and Mamun. thinking and attitude. Over a period of many years. self-restraint in the case of consumption profit and. A person’s work was regarded as a calling in the very literal rendering of the concept of vocation. ix) social 8 . ii) withdrawal of status . These values included. Moreover. In another anthropological theory named Marginal and Tension theory introduced by Robert Park in 1928 stated that a marginal man is one whose fate has condemned him to live in two societies.i) need for achievement. v) self-confidence. whose yearnings were to be suppressed. money created temptations to the flesh. So. the experience of financial rewards from one’s work was regarded as a manifestation that one was blessed by God. Protestant values called for self-restraint and deferral of gratification. vii) inherent goodness of work.protestant values is ancient one. The two societies are not merely different but antagonistic cultures like occidental and oriental culture. one could practice such self-denial. etc. extreme belief over one's ability and power. first of all. the marginal men engage themselves in business because marginal man can’t be accepted widely in any society. In this theory Weber argued that protestant or Calvinistic logic or values were instrumental in promoting capitalist enterprise. These variables are. 2000). iv) risk taking mentality. By investing one’s earnings in the form of capital. repeated investment of earnings created the capital base for the take off of Western societies into the economic break-through of the industrial revolution. for their existence. Sometimes. vii) authority or personal power. vi) creative ability.

risk taking. that means why and when an individual acts as an entrepreneur. training opportunities and guidance. location and types as well for the 9 . marginality and tension. But these variables don't explain post initial stage of entrepreneurship development process. previous experience. Shifted Entrepreneurial Success factors In this section we have tried to know what are the shifted success factors for entrepreneurship development from the old factors with change of time. As a result. 1981). Anyway. education etc. and intelligence). age at entrepreneurial level. skill. Table-1 (Islam and Nazrul. need for affiliation.). etc. These factors can be used for overcoming the shortcomings of psychological and sociological models and also enhance their applicability. b) socio-cultural factors (religious values. These variables explain only the initial stage of entrepreneurship development process. d) opportunity factors (economic opportunities. the entrepreneurial success factors are broadly divided into four categories (Ahmed.).). existing schemes of entrepreneurial training and guided entrepreneurship etc. internal-external locus of control. motivation for autonomy. All these variables found from existing prominent theories of entrepreneurship These psychological and sociological variables are of qualitative type that play simulative role in an individual for becoming an entrepreneur. creativity. knowledge) from these models III. c) personal factors (family tradition in business. birth order. social cohesion. risk taking ability. etc) and overcoming their barriers (coordination. These are a) psychological factors (need for achievement. need for power. rural-urban orientation. we don't find any guidelines relating to how entrepreneurs use their resources (capital. 2000) shown in the appendix reveals that among these factors risk taking is the most important success factors irrespective of business size. peer group assistance.marginality.

social and political issues etc. dynamism and self motivation are the most success factors. demanding products and customer sophistication. and fifth important success factors are innovativeness and well coordinated-flexible persistent actions that indicate the quest for something new. third. fourth. are the most important success factors for the entrepreneurs. This chart also shows that the researchers before and after 90s tend to be different in their focus regarding success factors of entrepreneurs. self confidence and personal initiative. moral attitudes and values. The second. According to them. and development of information. competition. and self-confidence. innovativeness.-1: Emphasis The Shifting Focus of Global Entrepreneurial Success Factors After Business complexity. and business and other environmental consciousness. Customer and Sophistication. self motivation. before 1990s personal and psychological factors i.e. technology development. 2000). on managerial and environmental factors Emphasis on Personal and Psychological Factors Time (1990) Before Low 10 . of course according to the researchers this risk should be calculated and moderate in nature. This trend of entrepreneurial success factors shown in following figure High Fig. it can be said that entrepreneurial success factors have been shifted from personal and psychological factors to managerial and environmental factors due to the increasing complexity in business. product development. self awareness/self motivation for achievement. market knowledge and well coordinated flexible persistent managerial action factors followed by risk taking capability. like managerial capability. market knowledge relating to business environment like market demand. So. etc (Islam and Nazrul. respectively. personal initiative and industriousness. well coordinated flexible persistent managerial actions.entrepreneurs. innovativeness.e. as well as adaptability. globalization of business. On the other hand after 1990s managerial and environmental factors of business i. risk taking ability of entrepreneurs.

So. due to the increase in business complexity. globalization of business after 1990. etc. customer and product sophistication. development of information system. The main objective of this model is to show how economic growth can be accelerated through entrepreneurship development giving the network facilities in the form of franchise for coordination and knowledge (information). development of information systems and globalization of business were low in degree. But entrepreneurs are facing the problems of knowledge (information) and coordination to utilize or to use their resources like skill. capital. So. risk taking ability. IV. ideas.Source :Islam and Nazrul From the above diagram it is clear that before 90s. entrepreneurial successes were dependent on personal and psychological factors of entrepreneurs. increasing investment and consumption of a nation. 11 . On the other hand. customer and product sophistication. complexity in business was less. the shift in success factors from past to present reveals that present dominating success factors are knowledge (information) and coordination. Proposed Model Entrepreneurship plays the key role for the economic development creating employment. the entrepreneurial success focus has been changed towards managerial and environmental factors.

socio-cultural variables. These three phases of the proposed model discussed belowA. adopting or developing the technology environmental factors have been considered as vital. For this reason in selecting.There are three components in this model.i) development entrepreneurship through technology. ii) franchising of this network and linking it to entrepreneurship and economic development. In this phase we have tried to show the development of entrepreneurship through technological development. existing environmental concepts act as the guideline in designing and implementing the technology development programs. Moreover. the external variables are organization of the social setup.human resource 12 . politicolegal environment. transforming. So. The different integrating variables of this model are1) Primary review of the technological development The effectiveness and efficiency in performance of technology depends on internal and external environmental factors. Here. Development of Entrepreneurship through Technological development From our earlier discussion it is clear that the present dominating success factors are information and coordination. existing productive forces and relations. infrastructural facilities of the community and supply of technical experts in the society whereas internal variables to judge strengths and weaknesses are. for scanning external and internal environmental factors the Environmental Threats and Opportunity Profile (ETOP) and Strategic Advantage Profile (SAP) are suggested by Islam and Mamun (2000) respectively in their proposed model. ii) Networking support for knowledge (information) and coordination to increase economic growth. is the first phase of our proposed model. Thus the present model emphasizes environmental review as the primary task before going to take the initiative of developing technology. Based on these factors Islam and Mamun (2000) provided a model that is shown in appendix. demographic variables.

On the other hand. 2000). This transfer and absorption of technologies to the developing countries may be of different forms. Especially commercial research inventions and innovations are disseminated to the entrepreneurs for adoption in the industry and agriculture by preplanned programs and injects the financial benefits to the total economy (APO 1985).availability and their capability. present mode of operations in comparison with competitors strength. 2000). 2) Initiating Strategies for Technology Development Technology is a powerful tool for exploiting the competitive advantage in the interdependent world (Sharif. Another form of technology development strategy is transfer of technology from developed countries mediation with transnational companies. So. 1995).1) technological development by national efforts 2) technology transfer from developed countries and adopting it to the local community by careful investigations (Islam and Mamun. In developing countries technological development requires twofold initiatives according to Islam and Mamun. for the development of technology in-depth deliberation. These initiatives are . multi oriental consideration and combination of several important tasks (Islam and Mamun. such as. etc. direct foreign investment. international sub-contracting and licensing (Islam and Mamun. status of information available in organization and management capability. to develop technology within the indigenous structure research and development program is the basic contributing factor. 13 . 2000). financial capability of the organs. This is why attention should be made in researching the entrepreneurship development potentiality and strategies to the off farm sector for rural innovations and informal sector for urban innovations (Islam and Mamun. 2000) are required.

But for inventing and innovating new ways real entrepreneur always seeks and investigates into the technological phenomena by latest knowledge. solving problems in the new ways and learning by doing methods. At the initial stage. This life cycle of technology is divided into four stages named innovation stage. and substitution stage. Entrepreneurial ventures gradually march forward to the growth and maturity through occupation and expansion of market by initial cost absorption. At the ending point extender take the opportunity to purchase the old technology with minimum cost and by his available resources . per unit margin on the product is minimized by auto-game between the competitors in the total market. informer and orgaware which are dynamically interrelated (Islam and Mamun. humanware. competition comes to its highest peak. Rather they find new offerings or new methods for satisfying their needs.3) Total development in the technology Technology is a complex combination of technoware. Technological development is further influenced by its life cycle in that passage. new ideas are generated by need-pull and knowledge-push concepts. entrepreneur comes in the market with innovative new products. diffusion stage. And finally technology gains its highest possible market. On the other hand with the expansion o market creative customers do not feel satisfaction by consuming and utilizing existing products and services in traditional and conventional patters. 1994) and customers show interest to test revolutionary products. The dynamic entrepreneur in that stage conducts survey to know the hidden demand of the customers and translate it by the new blending of means of production for the fulfillment of new 14 . entrepreneurs can use technology leader. To face these four stages of technological development. which was referred in the article3 as knowledge push innovation. syndication stage. close contact with customers. and technology exploiter and technology extender strategies. (Islam and Haque. technology follower. 2000).

This way total society is blessed with breeding and development of huge number of entrepreneurial ventures. and engineering and production units with assessment and reassessment of the production and commercialization results are essential (Islam and Mamun. Thus implementation of the technology diffusion programs and integrated assistance services in combined form create avenues for the entrepreneurs to start and run their enterprises. developing technology by taking care of market demand and planned publicity for diffusion of technology to general mass increase the acceptability of technology to the target clients. The method of innovation in this way is regarded as demand-pull method.demands of the product. which in the output of combined consideration of market demand and purposeful marketing strategy for selling for the technology to its target markets. 15 . To keep this objective in view continuous coordination among the academic and research institutions. Other argued competent and dynamic industrial partner. reinvestigations for further innovation by creative entrepreneurs is started in the declining stage of old technology utilization. Providing integrated assistance package to the entrepreneurs for translating their dream into economic reality by utilizing technological innovation is another important prerequisite for mass entrepreneurial supply in an economy. 4) Mass Participation in Technological Innovation for Entrepreneurship The successful implication of the technology depends on the commercialization. their techno-managerial capabilities for project execution commitment and interest is also notable considering aspects in commercializing the technology to the ultimate entrepreneurs. Thus. research and development institutes. 2000). Development in technology is further affected by the macro environmental settings (Islam and Mamun. 2000). Thus.

modern and advanced production methods. This relationship is shown belowB. which leads economic growth. can create more employment and increase consumption. can reinvest a part of this profit. So. customers can purchase goods and services with low cost and the ultimate result is that suppliers can maximize their profit. But from our earlier discussion. it is also found that such type of model is important in the era of tremendous development of IT and people's perception of entrepreneurial development link to economic development of a country or a nation. etc. the increased profit also increases the investment. with least the appendix how the shifted entrepreneurial success factors accelerate entrepreneurship development as well as how it increases the economic growth through networks. Development of Entrepreneurship through Networks In this phase we have tried to show by the figure. etc. So. employment and productivity. First type of network may be used for horizontal coordination and second type of the same may be used for vertical coordination. All these factors also lead to contribute to economic growth. 2000). customers. Moreover. market share of the same product and it's new dimensions. the relationship between networks and economic growth through entrepreneurship development (Islam and Mamun. such networking system increases profit of entrepreneurs by reducing the cost of production. On the other hand. potential customer's need. In this figure networks may be established between entrepreneurs to entrepreneurs and also between entrepreneurs to suppliers. it is clear that 16 . So. in the second phase of our model. potential markets. suppliers can establish supply chain with low cost by collecting necessary information through this network. markets.The model discussed above doesn’t base on the concept of Franchising Networks. competitive products and their familiarity to the clients. etc. from this networks entrepreneurs may collect their necessary information related with the sources of raw materials. As a result.

Franchisee or entrepreneurs can use their capital. Franchise Company can earn more profit by increasing the number of users. Benefits of franchiser i. such type of company will assist entrepreneurs overcoming their constraints like knowledge and coordination Linking between cost for collecting Entrepreneur of Franchisee will Entrepreneurs and Network Company through franchising information come under the network with their resources like. This type of network facilities for knowledge (information) and coordination estimates individual to act as an entrepreneur. risk taking ability skill or experience etc.e. Moreover. C. royalties. coordination facilities both for the Entrepreneurs or Franchisee and also for the supplier.e.-2: franchisee i. lower Benefits of Linking between Entrepreneurs and Network Company through franchising Economic Growth Franchiser or the Network Company will provide knowledge (information) and . skill. with the help of knowledge and coordination facilities provided by Franchiser or Network Company by giving franchise fees. Linking it between franchising network and entrepreneurship and economic development: It is the third phase of the proposed model. increase the number of users etc. In this section network company will collect all necessary information for the entrepreneurs. which is shown in the following figure. market etc. which also increase the economic growth. This process accelerate entrepreneurs hip development Fig. That means such network facilities accelerate entrepreneurship development side by side of economic growth. 17 . franchise fees and other required fees. customers. This network company will give permission to the entrepreneurs to use their network facilities in the form of franchise business where entrepreneurs have to pay royalties. royalties and fees. venture capital. On the contrary.networks can help a nation to accelerate its economic growth through entrepreneurship supported by same.

Thirdly. (ii) efficient personal having the ability to identify wrong information provided by the both network company. (iii) this model requires competent and efficient personnel for creating new ideas by analyzing the information provided by this networks etc. considering these shifted success factors we have given a model for accelerating entrepreneurship towards economic growth. Because with the help of technology entrepreneurs can exercise their command on available resources and it is also discussed how this technological 18 . Finally. Conclusion In this paper we have tried firstly to show entrepreneurship is the essential and key factor to explore various opportunities from the surrounding environment of a nation for economic advancement. V.(i) privacy of the information. customers. which play dominant role for increasing the rate of entrepreneurship development.There are some shortcomings of this model. Secondly. These are. we critically evaluated the existing theories of entrepreneurship development with a view to find out the success factors or variables. In our proposed model we have shown initially the entrepreneurship development through technology as a first phase. suppliers. we have made an attempt to show the shifted success factors from past to present.

etc. Asian Productivity Organization. "The Institution and Infrastructre of Entrepreneurship". purchasing goods with low cost respectively. 2000. Manpower and Economic Growth : Strategies for Human resources Development. It also helps the entrepreneurs to coordinate horizontally and vertically. Purohit Kumar Kanchan and Rahman Shahedur. 1981. References Ahmed. Commerce Vloume. Mainul. New York. expanding market. Habibur. Then with the help of this network entrepreneurs can earn more profit by reducing cost of production. "Entrepreneurship and Management Practices Among Immigrants from Bangladesh in the United Kingdom". 1995. they can contribute to the economic growth of the same nation along with the entrepreneurs. increasing productivity and the volume of total sales. "The Development of Entrepreneurship in Bangladesh: A Study of Entrepreneurs in Garments Industry". 19 .H. employment. S. 1991. J. After this phase it is shown that franchising network can help the entrepreneurs to collect knowledge or information for generating new ideas with low cost. Chittagong University Studies. Brunel University.development can be possible. unpublished Doctoral Thesis. Dr. Habrison. etc for the economic growth of a nation. can also increase their profit by expanding the number of users. "Theories on Entrepreneurship". etc. 1985. Entrepreneurship Development An Operational Approach.11. Compiled and Edited by Volunteers in Technical Assistance. Published by . University Grand Commission of Bangladesh. (English version) 1989. Enrepreneurship Theory and Practice.A. Islam Nazrul and Mamun Z Mohammad. Fredefick and Charles Myers.U. Katz. Published by The University Press Limited. Commercialization of Indigevous Technology. As a result. suppliers.M. Edited by Rahman A. establishing supply chain with low cost. Education. McGraw Hill Series in International Development Islam M. London. Similarly other stakeholders of the model like network company. 15(3). Entrepreneurship. This profit also can increase the investment. Bangladesh. customers.

(English version) 1989. Sharif. Edited by Rahman A. 20 . " Itegrating Busness and technology Strategies in Development Countries".N. Technological Forecasting and Scial Change. "Entrepreneurship and Economic Development". 45. Vol. Entrepreneurship. M. Habibur.Saha Kumar Saroj.H.M. Published by . University Grand Commission of Bangladesh.

A. H. (1978) Rahman. (1982) Meridith et al. (1982) * * * * * * * * * * Continue to next page . Flexible Persistent Actions (2) Self Awareness/self motivation (achievement) (3) Selfconfide nce Person al initiativ es (4) Knowledge/i nformation (market issue) (5) Table-1: Shifted Entrepreneurial Success Factor Industriousn ess/dynamis m Success Factors Moral Intern attitude al and contro values/en l vironment (7) (8) Longterm involveme nt (8) Relatio n ship Entrepreneur s personality Socializati on pattern in childhood (9) Future orientatio n Opport unity seeking Persevera nce and determinat ion (9) (2) (1)* (4) (6) (9) (9) (9) (9) Cantillon R. (1961) * * * * * * * * * * * Timmos. M. (1755) Mill. J. J. J. (1979) Homaday.H.S.A. (1884) McClelland .A. D.Appendices Authors Risk Takin g Innovat iveness Well coordinate.

(1996) * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * . S.. (1994) Osborne. Debnath. S. J. R. C.K.. J.D.D. (1989) Kao. (1989) Ray.L. U. J. S. (1982) Stanworth. (1996) Carrier.A. (1993) Sengupta. (1981) Homaday. D. J. (1995) McKenna. D.Ahmed S.K. (1995) Krackhardl.

T.C. 2000 . (1998) Anderson. O. A. Bangladesh. Entrepreneurship Development An Operational Approach. of researches suggested 11 9 9 7 6 6 5 4 2 2 2 1 1 1 1 1 1 Source: Islam Nazrul and Mamun Z Mohammad. H.. M.. M.... (1997) Frese.Continued from previous page Authors Risk Taki ng Inno vativ eness Well coordinate . M.. C. Harvey.. McDonald. D. R. K. (1998) * Van Horn.... K.L.. Flexible Persistent Actions (2) (3) Brandstaller.. G. R. Hilburger. A. Leng. G.. A. (1998) * * * * * Self Awarenes s/self motivatio n (achievem ent) Self conf iden ce (4) Pers onal initi ative s (4) Knowl edge/in formati on (market issue) (5) Industri ousness /dynam ism Success Factors Moral Internal attitude control and values/en vironment (8) (6) (7) (8) Longterm involve ment Relatio n ship Manag ement (9) (9) (9) (9) (9) (9) Entreprene urs personality Socializati on pattern in childhood Future orientat ion Opport unity seekin g Perseve rance and determi nation (1)* (2) * * * * * * * No. Crick. Fay. (1997) Enright.. Published by The University Press Limited. (1997) Chen. Greene. Tag.

Fig.-2 : Development of Entrepreneurship through Technology Investment in basic and applied research in the formal and informal sector for supporting technology development at the national level Technological development in the indigenous structure Total development in the technology structure Primary review of the existing technological environment by ETOP and SAP * Mass Participation in technological innovation * Planned publicity for dissemination of information * Providing integrated assistance package to translate technological innovation into entrepreneurial ventures Technoware Multi disciplinary experts' participation from home and abroad for conducting high technological feasibility study Transformation of locally adaptive and environmentally suitable technology TOHumanwae Inforware Orgaware Entrepreneurial supply in the greater society Re-energizing the process after reassessment Industrialization in the country and multiplier impact of development Deliberate government and entrepreneurs associations' efforts for graduation of the enterprises Gradual increase in micro and small enterprises development Proposed Model for Promoting Entrepreneurship through Technological Development Source: Islam and Mamun .

birth order. motivatio n for autonomy . experienc e. age education ) Psycholog ical (need for achievem ent. markets . customers. Markets Supply chain with low cost -Personal (family tradition. risk taking. need for power. Customers. 3: Development of Entrepreneurship through Networks Old success factors- Knowledge (Information) Supplier. creativity) Maximizing profit that will increase – Consumption Reinvestment Employment New or changed Factors Networks Fo r -Sources of raw materials -New markets -New invention in production Methods Reduce the cost of transactions for entrepreneurs Increase economic Growth Coordination Entrepreneurs Accelerate or encourage Entrepreneurship -Increase productivity -Capital formation -Increase employment Between the entrepreneur and also with the suppliers.Fig.

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