Problems prospects of Modern Business

Enterprise: Bangladesh Perspectives

EM: 501 Introduction to Business

Submitted to

Dr. Sabnam Jahan

Associate Professor

Department of Management

Submitted by

Farhana Ashrafee Dilshad

Id: 3-16-32-024

Section: B

University of Dhaka
 Problems prospects of Modern Business Enterprise:
Bangladesh Perspectives
In Bangladesh we can observe a vast number of modern business enterprises. We can see it from
the nearer road to the highway. There are a huge number of problems in the question of
developing modern business enterprise in Bangladesh. Government has no specific policy to help
those peoples and for these short of sector.

Problems of modern business enterprise

At present modern business enterprise sector is facing many problems in Bangladesh. Some
major problems are as follows:

Inadequate economic environment: The economic environment of our country is not hundred
percent suitable for operating the business another cause of the restrictions.

Excessive import of foreign product: Excessive import of foreign product in our country is
another reason cause when the people of the country will be mainly dependent on the imported
product then the entrepreneurs will lose their interest to develop modern business enterprises.

Political instability: Political instability of our country is another reason for developing the
modern business enterprise rate slow. Political environment of our country is not suitable enough
to run the efficient business in our society.

Lack of security: Security reason is a strong reason which is effecting the developing of modern
business enterprise in Bangladesh. Government are not being able the proper and adequate
security to the citizen of the country this is directly effecting the developing speed of the modern
business enterprise in Bangladesh.

Inadequate government support: Support from the government and so also non government is
not adequate in our country to develop modern business enterprise in Bangladesh. This is a major
obstacle which is not helping our modern business enterprise to develop properly.
Resource scarcity: In Bangladesh scarcity of raw materials hinder the ability of modern
business enterprise to be export oriented and limits its ability to reach more  advanced stages of
international business.

High employee turnover: Due to limited growth of business enterprise most of the skilled
employees leave. Human resources of our country are not skilled this is a problem with
developing modern business enterprise in Bangladesh.

 Absence of modern technology: One of the main barriers for the development of modern
business enterprise in Bangladesh is inadequate technologies. Many Modern business enterprises
have failed to adopt modern technology.

Poor physical infrastructure: Inadequate supply of necessary utilities like electricity, water,
roads and highways hinder the growth of modern business sector. Moreover, unfavorable
geographical conditions increase the transportation cost.

Lack of entrepreneurship skills: Conservative attitude towards risk, lack of vision, ability to
make plan and implementing those hinder the growth of modern business enterprise in
Bangladesh.

Participation of women entrepreneurs: Equality of opportunity is a major problem for modern

business enterprise. Female entrepreneurs are treated discriminately. They are not well
represented in business organization. Government does not provide adequate institutional
assistance for women entrepreneurs.

Lack of commitment to innovation and customer satisfaction: Ernesto (2005) stated that to
keep in pace with international competition, firms of all size are challenged to improve and
innovate their products processes constantly. But in Bangladesh Modern business enterprise are
still not relating the importance of satisfying and retaining customers by offering novel and
desired benefits.

Lack of quality assurance: Govt. has failed to frame a national quality policy, provide adequate
support systems and establish a national quality certification authority. As a consequence modern
business enterprise of Bangladesh has failed to ensure the quality of their products and services
both in local and international market.
Lack of research and development facilities: It is observed that investment in R&D is still
negligible in.

Opportunities of modern business enterprise

Lower amount of capital investment to start business: To start SMEs it requires a small
amount of fund. So, people with a little capital may start their business. Growth of SMEs may
have a positive impact on the overall economic development of Bangladesh.

Low risk involvement: Capital requirement is low in SMEs. SMEs are also diversified in nature.
As a result, SMEs are considered as low risk organizations.

Low cost products in domestic: market SMEs are providing a diversified range of products at a
lower price in local market. People are getting SME products at a lower price.

Accelerated growth of SMEs: It has been observed that in the last decade almost every year
SME sector has experienced positive growth rate in each year. The yearly growth rate is about
8%.

Availability of labor at a lower wage: Bangladesh is a labor abundant country. A large number
of laborers can be availed at a lower cost here.

Government and institutional encouragement: Government has established an independent

SME foundation to help and encourage the development of SMEs. Recently Asian Development
Bank (ADB) has provided some fund for SME sector development in Bangladesh.

Separate SME branches: It has been observed that recently many commercial banks have
opened separate specialized SME branches. Among them most pioneers are Brac Bank (Prapti
Current Account, Anonno Rin, Apurbo Rin), Standard Chartered Bank, Dhaka Bank, Eastern
Bank Limited, The City Bank, Mutual Trust Bank and National Bank.

Women Entrepreneurs Loans: Some commercial banks have special loan schemes for women
entrepreneurs, such as Orjon of Standard Chartered, Protyasha of IFIC, Mukti of Eastern Bank
Limited, Prothoma Rin of Brac Bank and Nokshi of The City Bank. Through these schemes,
women entrepreneurs may start their own businesses. This will help a lot of women
entrepreneurs to become self dependent.
Solution of the problems of modern business enterprise

To solve the problem of developing modern business enterprise in Bangladesh the following

policies may adopt to overcome the problems.

Government should have a clear policy about the modern business enterprise in Bangladesh.

Loan and this short of facility should be making available.

Control the inflow of importing such product which has the opportunities to produce in
Bangladesh.

Adopt extra tariff on importing the product which are producing in our country.

Make the political situation and economic situation stable as much as possible.

Make more entrepreneurs through proper training and loan facilities.

Develop modern business enterprise in Bangladesh through a proper long term planning.

Make arrange to export homemade product or domestic product into foreign countries.

Government must have to take adequate measures to ensure the uninterrupted supply of raw
materials for modern business enterprise.

Government needs to take appropriate measures to fix the minimum salary/wages of the
employees of modern business enterprise. That will help to minimize the employee turnover.

Government and financial institution may provide adequate finance for modernization and
technological advancement.

Development of infrastructure is essential for the optimum growth of modern business

enterprise. So government of Bangladesh needs to take appropriate policy strategy for the
infrastructure development of Bangladesh.

Government, financial institutions and Non Government Organizations (NGOs) may take
necessary steps to ensure uninterrupted financial support to the prospective Modern business
enterprise in Bangladesh.

Due to the absence of uniform definition, the policy formulation and implementations are not
possible. Government should take initiative to develop a uniform definition of each category of
modern business enterprise.
Govt. of Bangladesh should take the initiative to develop web pages exclusively for modern
business enterprise and an integrated modern business enterprise database. It will reduce the
barriers to modern business enterprise access to global market.

In order to ensure the retention of skilled workforce the government should make the
entrepreneurial career attractive by minimizing the uncertainty.

In order to encourage women entrepreneurship govt. may; involve women entrepreneurs in

policy formulation and implementation. Arrange funds for women entrepreneurs. Provide
necessary training to women entrepreneurs in rural and urban area of Bangladesh.

Modern business enterprise foundation may take appropriate marketing tools to popularize their
products.

For minimizing red tapes and accelerating the growth of modern business enterprise government
may provide one roof service under the modern business enterprise foundation.

Appropriate legal framework is necessary to ensure the development of modern business

enterprise of Bangladesh.

Government should establish a credible certification authority especially for modern business
enterprise So that this sector can obtain a technical evaluation of the quality of their products
within a shortest possible time. The certification of the authority should be worldwide accepted.
Govt. may also provide assistance to Modern business enterprise during the certification process
and promote the importance of product certification for international acceptance among the
modern business enterprise.