Social Responsibility And Business Ethics

8.1 Social Responsibility

Social responsibility is the awareness that business activities have an impact on society and the consideration of that
impact by firms in decision-making. Business organizations produce goods and services to generate profit. At the
same time, it does have some impact on the society as well as the whole community. Social responsibility is a must
for a business organization. If business firms fail to discharge the responsibility then they will fail to create goodwill
and last long.
Consumers

A business organization must have responsibility to the customers, employees, environment and investors.

1. Responsibility to the customers:

Business organization customers are the main stakeholders. So the business organization must Business organizations
survive through selling their products to the customers. And for a have some responsibility to the customers and these
are discussed below:
The right to be sure about safety: The most basic consumer right is to be sure about safety of product's possession. The
business organization should taste the product and give direction to the consumer about its proper use. It should also
monitor the product's safety that is sold to the customer.
The right to be informed: Customer has the right to receive available information or all relevant information
before purchasing a product. The business organization should inform the customer about the limitation, or any
kind of problem about the product. They should inform the customer about the harmful effects of products like,
"smoking is injurious for health".
The right to choose: Customers have also the right to choose a variety of products at competitive prices. They also have
the right to buy a product of the right quality at a fair price. The right to be heard: The business firms should give the
customers the opportunity to be heard before taking major decisions regarding the production of goods and services.
Consumer relations department must be activated to learn about consumers’ grievances.
2. Responsibility to the employees: No business organization can run its operations without the co-operation of
employees. So, the business firms have some responsibility to the employees. The employees expect safe working
conditions, fair compensation, equal opportunities and adequate benefits etc. Major rights of the employees are
discussed below:
Equity in the work place: Employees expect to be treated equitably in the work place. The business firms have to
ensure fair treatment to all employees regardless of age. race, gender, religion or national origin.
Safety in the work place: The business organization should take necessary steps for safety programmes. Emphasis on
safety training to avoid different types of accident should decrease repetitive motion. The organization should also
introduce job rotation to avoid repetition.
3. Responsibility to the environment: The business activities have an impact on the environment. Our environment is
always polluted by the wastes of business organizations. So, the business organization has some responsibility to the
environment and these are discussed below:
Preventing air pollution: Air pollution is caused by carbon monoxide and hydrocarbons that come from motor vehicles
and smoke. Smoke come from brick fields. The business organizations which manufacture motor vehicles should take a
step to catalytic converters which have been developed to help control air pollution.
Preventing water pollution: Water pollution is caused by dumping of toxic chemicals, and garbage to rivers thereby
causing water pollution. So, the business organization should take necessary steps to control water pollution.
Preventing land pollution: Land is polluted by coal and minerals, forest fires. garbage disposal, cutting of trees etc.
Land pollution often results in water pollution because. toxic water drains into water supply. So, the business
organizations can take steps by reusing materials such as papers, plastic, glass and aluminium to make other products
and control land pollution.
4. Responsibility to the investors : Business organizations also have some responsibilities to the people who invest
money. Because the business is run with the investors’ money. The responsibilities of investors are given below:
Proper management of funds: Firms have a responsibility to manage funds properly. Management has the responsibility
to safeguard the interests of the investors. They have to be conscious about the faith of the investors.
Access to information: Firms have the responsibility to make stock information available to all potential investors and
have to stop insider trading for reserving the faith of the investors.
Executive compensation: The company should maintain a suitable compensation structure for the executives. They
should be well paid; and rewarded for good performance. From the above discussion we have understood clearly the social
responsibilities of business. Business organizations must take proper care of them in order to survive and grow.
8.2 Advancing Social Responsibility
Many firms recognize the importance of social responsibility and take steps to see that policies are taken and implemented
in such a way that they make a positive impact on society. They should practise social responsibility through community
support, self-regulation and social audit.
1. Community support: Business organizations provide a wide variety of support for the community. They donate money
for the welfare of the community. They build schools, parks, roads etc. and sponsor academic scholarships and help to
reduce distress from the community.
2. Self-regulation: Sometimes business organizations establish code of conduct and ensure that all the members of the
community follow it.
3. The social audit: Social audit means a systematic review of an organization's performance of social
responsibility activities. With information from social audit, managers can evaluate how effective are the current
programs, prices safety, measures etc. and initiate new courses of actions.
8.3 Business Ethics
Ethics are principles of behaviour that distinguish between right and wrong. Ethical conduct conforms to what a group
or society as a whole
Considers right behaviour. Business ethics is the evaluation of business activities and behaviour as right or wrong.
Ethical standards in
Business are based on commonly accepted principles of behaviour established by the expectations of society, the firm,
the industry, and an
Individual‟s personal values. According to Nuner and Kelling "Managerial ethics or business ethics are standard of
organon's in carrying out
their business."

The gray area between what is legal and what is patently illegal is the domain of ethical dispute. People working
in business frequently

face ethical questions. For instance, is it ethical to take home pens and pencils from the office? Is it okay to make a
short, personal long-
distance call on the company phone, use the company mail for a few personal items, or take the company car on a trip
to the mall? Is it
unethical to "pad" an expense account? Should a family member be hired even if there was a more qualified
person available? Should an
employee withhold information from a local reporter who is investing whether or not the company is dumping hazardous
waste into a
local river?
These are examples of ethical dilemmas that individuals face which have no absolute right or wrong answers. There are no
agreed-upon
ethical standards that guide all behavior in organizations because ethical behavior depends on what society considers
the norm for such
behavior and on whom in judging the behavior. And since there is such an individual quality, individual interpretations
of what is and is not
ethics serve to keep the gray area in constant ebb and flow.
Ethics and values are intimately related. Values are learned early in life from parents and family. peers, teachers
and significant others and
are either reinforced or altered by subsequent experience. Values consist of those enduring beliefs which specify that
a certain mode of
conduct or end-state of existence is personally or socially desirable. Now-a-days, a business organization cannot do
whatever it likes to do. It cannot focus on its profit maximization. At the same time, it has

to consider the profit as well as the welfare of the society. So, it has to follow some rules and regulations and social
customs and
obligations. By doing this a business enterprise can satisfy the different categories of people in the society. Business
ethics refers to the
moral judgment of business enterprises towards the society.
So we can say, ethics follow from values and concern an individual's beliefs about what is right or wrong, good or
bad. There is always a
degree of subjective judgment involved.
8.4 Nature of Business Ethics
Ethics are learned early in life from parents and family, peers, teachers and significant others and are either reinforced
or altered by
subsequent experience. Business ethics deal with those activities of business enterprises-some of which should be
done and some should
not be done for the society. A businessman must practice some ethics. Which are discussed below:
1. Ensure legality of business activities: Business activities must be legal and a business man should not not do any kind
of illigal
activity.
2. Customer orientation: All of his operations must be customer oriented. He must bear goods and services which
can satisfy the
customers. in his mind that the "customer is the kinds" So, he should produce and distribute that types of goods
and services which can
satisfy the customers.
3. Supplying good quality product: A businessman must have to ensure the supply of good quality products and
services. He has to
maintain the minimum standard of his product and services.
4. Price: Businessmen have to claim a reasonable price for his products or services that are under the buying capacity
of the customers.
5. Following rules and regulations: A businessman must have to follow all business related rules and regulations that
is formulated
by the government.
6. Employer-employee relationship: This is an important issue to build up a friendly relationship between employer
and employees
in an organization because the success of the organization largely depends on it.
7. Avoiding fraud and cheating: A businessman has to avoid unfair means. He should not try to cheat or fraud the
customers or
general public. He should always practice honesty and sincerity in his activities.
8. Environmental issues: In the present world, environmental issues are considered a vital matter. A businessman
ensures healthy
environment for the insiders as well as the outsiders for running the organization smoothly.
9. Avoiding artificial shortage: Some dishonest businessmen create artificial shortage of products and thereby they want
to gain more
profit. This is not acceptable.
10. Meeting the claims: Chains of different categories of people like workers, executives, suppliers etc. are not the same
but
businessmen have to satisfy them as per their requirements.

11. Avoiding harmful competition: In order to survive in the market successfully, each and every business
organization should co-
operate with each other. They should avoid harmful competition.

12. Social welfare: Profit earning cannot be the sole motive of business activity. Businessmen have a social
responsibility that must be
met. Moreover, business organizations produce goods and services to generate profit. At the same time, it must
have some impact on
society as well as the whole community. The responsibility of businessman is to provide the goods and services in that
way that is not
harmful to society. Finally, a businessman must consider the overall social
welfare.
 Entrepreneurship: A New Venture Strategy

Definition of Entrepreneurship

In a broad sense, entrepreneurship refers to the activities related to undertaking the efforts to set up an
industry or business establishment. He who takes initiative to establish business is the entrepreneur.

9.2 Who is an Entrepreneur?

Entrepreneur is a person who shifts economic resources out of an area of lower need into an area
of higher productivity and yield. In fact an entrepreneur is a person who:
 is able to recognize potentially profitable
opportunities;
 is able to conceptualize the venture strategy:
 has lots of energy, an idea and a dream and willing
to drive hard to make his chosen course of action
work;
 is a risk taker,
 has the need for high achievement;
 Is growth oriented;
 is an innovator;
 decision maker etc.
Finally, entrepreneur is a person who takes the risks necessary to organize and manage a business
and receives the financial profits and nonmonetary rewards.

9.3 Qualities/Traits of an Entrepreneur

The major entrepreneurial qualities / traits that are required to be a successful entrepreneur consist
of the following:
1. Self-confidence: Confidence, independence and individuality, leadership dynamism,
commitment, etc.
2. Originality: Innovative, creative, resourceful, initiative, versatile knowledge.
3. People oriented: Gets along with others, flexible, and responsive to the suggestion criticisms.
4. Task-result oriented: Need for achievement, profit oriented, persistence, persevere
and determination, hardworking and energetic.
5. Future oriented: Foresight, perceptive, concern for improvement.
6. Risk taking: Risk taking and challenging.

9.4 Major Functions of Entrepreneur

Entrepreneur is a person who takes the risks necessary to organize and manage a business and receives
the financial profits and nonmonetary rewards. The major functions of entrepreneur are given below:

1. Organizing functions: Organizing is the part of managing that involves establishing intentional structures
of role for people in an organization. The entrepreneur is responsibility for organizing the activities necessary
for the production of goods and services.

2. Conceptualizing new opportunities and possibilities: The entrepreneur plays a effective role in
identifying possible opportunities for production purposes. He always look for opportunities for investment.
3. Risk taking: He takes risks associated with investments. He faces numerous risks in his/ her
entrepreneurial endeavour. In order to encounter the risks he/she formulates long term plans
and policies and undertakes innovative efforts.
4. Decision-making: Entrepreneurs take decision about investments. Investment decision
includes selection of assets where money would be invested. On the other hand, business
decisions include decisions about procurement of machinery and supplies, quality products,
pricing of products, diversification of products, determining optimal capital structure etc.

5. Technology transfer: Entrepreneurs play a very important role in transferring technology

from sources where these are available. In the developing countries, the entrepreneurs try to
adopt appropriate technology.
6. Implementation of innovations: They introduce newness in the venture activities through
innovation of new production process, exploring of new markets, and identification of new
management techniques, and so on.
7. Utilization of experience: Entrepreneurs utilize their own experience and also the experience
of others, especially of the successful entrepreneurs of other countries.
8. Managerial role: Successful entrepreneurs are also efficient managers. They perform the
managerial functions of planning, organizing, leading and controlling.

9.5 Importance of Entrepreneurship Development in Bangladesh

Bangladesh is confronted with severe unemployment and underemployment problems. The problems
are becoming worse day by day with the increasing growth of unemployed population in the country.
The worst sufferers are the educated and half-educated youths, it is the responsibility of the
government and the society to provide gainful employment opportunities for the youths and use their
energy for productive purposes. However, promotion and development of micro enterprises and
labour-intensive small and medium industries could be an important strategy to overcome these
problems. Bangladesh has an immense potentiality in terms of resource endowments, both material
and human for the development of industries.

9.7 Entrepreneurs are Born and Made

The proverbial myth that ; “Entrepreneurs are born but not made” is no longer a valid concept.
In fact it always has been taught and learned except that education delivery system has been an informal one,
built around an entrepreneurial father, family, commercial orientation, needs and tradition of particular
cultural group. The truth of the matter is that experiences are made and forged, by learning experiences.
However, no one denies the fact that a certain level of intelligence, energy, achievement orientation, etc, are
required. A good deal of evidence now exists that entrepreneurial traits and tendencies can be developed or
enhanced through formal training and education. Eminent psychologist, McClelland has proved through
experimental studies that people with need for high achievement characteristics can be developed as
entrepreneurs through entrepreneurship development training, offering assistance and creating favourable
conditions for business. The concept for entrepreneurship development through training has been originated
and established on these principles.
9.8 Entrepreneurship Development as a Strategy for
Industrialization
Successful entrepreneurship means nothing less than the creation of wealth. Be neither
significant wealth nor major increase in the level of wealth without entrepreneurship.
Industrial development, which is one of the avenues for creating wealth, is a major
entrepreneurial activity. This claim is substantiated by the evidence found in the history of
developed and newly industrialized countries. According to information from fortune each
of the most successful 500 companies in the USA was started and developed by one or
more entrepreneurs. These founders engineered the major advances over the years and
were assisted by later generations of „corporate entrepreneurs‟ who were „successors
without portfolio‟. They along with other thousands and thousands account for the lion‟s
share of new jobs, a disproportionate share of new innovations, plus high share of
exports and taxes per every dollar of invested capital in the USA and overall economic
development of the country.
In the new industrialized countries of Asia, the entrepreneurs played a significant role in
realizing the goals of their rapid industrialization program. The newly industrialized
countries namely, South Korea, Taiwan, Singapore and Malaysia, popularly known as
„Asian Tigers‟ achieved high economic growth during the recent years due to the
constructive role of the entrepreneurs. The public policies in these counties emphasized
on the development of human capital and flourishment of entrepreneurial spirit by
providing various support services to individuals and groups of individuals. The impact
of human resource development efforts was very significant towards productivity growth
and largely accounted for their rapid economic growth. Rapid industrialization is an
inescapable necessity for economic growth of the developing countries. Industrialization
is especially important for generating employment opportunities to tackle the menacing
problem of unemployment of educated and semi-educated youths in these countries. In
the context of the present free market economic system, rapid technological change
and its impact on the production system, more dependence on foreign assistance for
financing development programmes, the entrepreneurs in developing countries must
rise up to the occasion to meet the challenge of time and space in keeping the
productive sector more competitive and viable. Indeed entrepreneurs in developing
countries have to perform more dynamic functions than their counterparts in developed
ones. The dynamic functions include perceiving new opportunities and potentialities,
technology transfer and adoption, innovation and transforming innovative ideas into
realities, emulation of experience from other countries, improvement of indigenous
technology, taking appropriate investment decisions, bearing calculated risk associated
with investment, efficient management of enterprises and working for social justice. It is
for these reasons; entrepreneurship development has become a critical necessity.

9.9 Essential of Entrepreneurial Development Assistance

Experience of the last few decades in different countries clearly shows that it is
possible to develop entrepreneurs through planned educational and training efforts. A
number of approaches have been attempted to promote entrepreneurship in different
countries and many have succeeded and acquired experiences in these regards. By
and large, a holistic view consisting of stimulatory assistance, support and sustaining
efforts have emerged as prerequisites for the success of Entrepreneurship
Development Programmes. Indeed in order to set up an industrial enterprise and run
it successfully an entrepreneur requires these three types of assistance:

Ø The stimulatory assistance comprising entrepreneurial education, training,

planned publicity to entrepreneurial opportunities, and guidance in
selecting products and preparing project plans which are needed to help
the emergence of entrepreneurs in the society.
Ø The support activities that refer to those, which enable the
entrepreneurs in setting up and running the enterprises successfully.
Ø The sustaining activities that include efforts, which help the entrepreneurs,
sustain themselves against the challenges of actual operation.

The groups of activities mentioned above play complementary roles to each other. In the
absence or negligence of one, the overall objective is frustrated. Training without
matching support results in failure and frustration for entrepreneurs. This causes national
wastage of resources in terms of men and material. Similarly, if support activities are
overemphasized and the other two are neglected, then there may be facilities available
with no or few entrepreneurs to avail such facilities. This causes frustration on the part of
promotional agencies/ institutions. When sustaining activities are over-emphasized the
growth in the number of enterprises is bound to be stagnant. However, the types and
extent of assistance may vary according to the nature and status of entrepreneurs. For
example, for emerging entrepreneurs all types of assistance may be required in
integrated form and for existing entrepreneurs only management skill development
training will be needed. It is thus imperative that the needs of entrepreneurs are
required to be identified in the total perspective before devising assistance
programmes.

9.10 Entrepreneurship Development Training

Entrepreneurship development training refers to the training and other support
Services that are incorporated into a structured programme. This programme is
specially designed to assist individuals and groups of people who are interested and
have potential of becoming entrepreneurs and starting small businesses.
Entrepreneurship development training also includes the training for executives,
personnel of promotion agencies who are involved in providing support and extending
services to the entrepreneurs. Entrepreneurship development training program here is
used in a wider sense covering training, support and sustaining assistance to the
existing and emerging entrepreneurs.
Training is an effective tool for improving human factors like the attitudes, desires
and motivation of the individual, the capability to protect environmental changes and
opportunities as well as to solve problems, which an entrepreneur is likely to face.
Training is particularly important for first generation entrepreneurs who require
developing their:
Ø Entrepreneurial quality or motivation
Ø Capacity for enterprise launching and resource mobilization
Ø Practical management skill
Ø Sense of responsibility to society
Ø Ability to formulate business plan
Ø Ability in understanding the process and procedures of setting up an
enterprise A well designed training program with appropriate curriculum and
methodology make
effective. Trained and experienced trainers and motivators must give further training. The
training program must be followed by provision of required support assistance like credit
selection of plant and machinery, infrastructural facilities viz. land shed, road,

power, water, supervision of the implementation of the project, marketing the product
etc. So, before designing a training program, training needs of the target groups
must be assessed properly.
9.12 Problems and Constraints to Entrepreneurship Development
The major constraints that are identified in the field of entrepreneurship and
small enterprise development are mentioned below:
1.Frequent changes of government and its policy: The frequent change of
governments with different ideological viewpoints adversely affect the business and
investment climate and development of entrepreneurship. Science independence of
Bangladesh, the governments and its economic policy were changed several times.
The first government of Bangladesh introduced socialism in the economic policy
followed by subsequent governments with the concept of mixed economy first and then
free market economy. Frequent changes of governments and consequently change of
economic policy influenced the development of private entrepreneurship of the country.
Moreover, political instability, law and order situation, corruption and deterioration of
values during the period under study created major impediments towards the economic
growth and development of the country. The frequent changes in industrial policy and
strategy, wide gap between policy and implementation measures, slowed down the
promotion and development of entrepreneurship in the country.
2. Lack of priority of entrepreneurship development in industrial policy:
Entrepreneurship development has not yet been given top priority in all industrial policies.
It appears that while the country has set out a strategy to encourage the process of
enterprise development, the entrepreneur who acts as the catalytic change agent in that
process is still neglected. Government‟s emphasis on privatization is not yet matched
by adequate complementary human resources development programs. The industrial
policy in general emphasized more on increasing the number of enterprises rather
than on developing entrepreneurs.
3. Lack of coordination among institutions: The field of entrepreneurship
development is both over-researched and under-researched at the same time. It is over
researched in the sense that too many people look at the same problem from different
viewpoints (credit, marketing, poverty, policies, etc.) whereas too few people carry out
problem oriented and sponsored research that could lead to program development
catering to the needs of specific regions and target groups. There is still uncertainty
about the overall right strategy for entrepreneurship development, with regard to finding
the right balance between properly oriented and modern small enterprise promotion
priorities, etc.
4. Problems related to entrepreneurship development training: The
demand for training programs within small industries far exceeds supply both for
existing as well as emerging potential entrepreneurs. Limited number of training
programs have been developed mostly without any formal assessment of training
needs of the target group. Hence the existing training programs are not need based and
not effective. The features of such programs are:

Ø The duration of the training courses is too often short and inadequate to
train entrepreneurs successfully. Curriculum used in the training program
with some exception does not encompass all essential ingredients of a well-
designed program. The methods used in selecting participants are not also
scientific and appropriate. Methodology of training is also not up to the mark.
Ø Trainers and motivators in many cases are not well trained and
lack motivation to offer need-based training to the participants.
Ø Entrepreneurship development training programs are not evaluated on a
regular basis using well-development or appropriate instruments. Most of the
training programs are evaluated at the trainee reaction level but
effectiveness of training programs needs to be determined at the results
level. That is how many of the trainees have become entrepreneurs after
completing training and how many of them are doing well.
Ø Beyond the level of income generating activities no entrepreneurship
development program is linked with financial institutions so that trainees
are assured of credit supply to start running his venture.

With the exception of some schemes of pilot character (notably those implemented
by MIDAS) most training programs for advanced entrepreneurship development are
not integrated in the sense of identification of opportunities, selection of trainees with
entrepreneurial qualities, preparation of business plans, understanding management
techniques and follow up services for both new and existing entrepreneurs. The
continued follow-up support is considered to be vitally important for the promotion of
entrepreneurship and small enterprise development.
5. Lack of training facilities for trainers: The success of entrepreneurship
development is largely dependent on the supply and availability of qualified and
skilled trainers/motivators. There is a dearth of well experienced bank executives
and personnel or promotional agencies involved in the promotion and development
of entrepreneurship in the country.
6. Lack of awareness about facilities and support services: Entrepreneurs
are not generally aware of the sources of various types of assistance and the
procedures of getting this assistance from the concerned institute. Mechanisms for
disseminating information on investment opportunities, types and sources of
assistance available, are not appropriate and adequate. Awareness creation and
orientation for entrepreneurship and self-employment opportunities have not yet
fully become a part of primary, secondary and tertiary level of education.
7. Lack of adequate credit support: Lack of adequate credit support from
financial institutions is a big problem for healthy growth of entrepreneurship
development in the country. This problem is particularly crucial for emerging
educated young entrepreneurs, as they are not capable of providing collateral
demanded by the bank for sanctioning loans. The procedure and documentation
formalities required for obtaining a loan are complex and cumbersome.
8. Lack of appropriate institutional set up for entrepreneurship
development training: There is no institution exclusively engaged in entrepreneurship
development training in the country. The entrepreneurship development training given
by different organizations is not complete and lacks comprehensiveness in the
approach. The training program is not supported by support assistance like finance,
infrastructural facilities and supervision. There is no institute in the country to conduct
research on the problems of entrepreneurship and small enterprise development. So,
there is an immediate necessity for establishing an institution to provide
entrepreneurship development training, give counseling services to financial institutions
as well as undertake research on the problems.

9. Crisis of confidence among the parties involved in entrepreneurship

development: The responsibility for promoting entrepreneurship development lies
mainly with three parties viz. the government, financial institutions and the entrepreneur. Each group has specific functions
and
responsibilities to perform towards the promotion of entrepreneurship. The role of government is to
create a congenial business climate by formulating and implementing sound industrial policy, devising
appropriate legal framework for the business, maintaining law and order situation etc. Financial
institutions on the other hand, help the entrepreneurs by selecting a viable project and supporting loan
capital in setting up and running the enterprises. The entrepreneur, the key person behind the
enterprise, is required to submit a viable project to the bank for assistance and demonstrate his
honesty and commitment to operate the enterprise properly and re-pay the loan according to the
schedule of repayment. In the course of their operation, however, mutual distrust and lack of
confidence have developed over the years due to shortcomings of the parties in performing
responsibilities. This has resulted into a crisis of confidence among the parties, which has affected the
climate for entrepreneurship development

9.13 Recommendations for Entrepreneurship Development,

The present government, after assuming power, has expressed its strong determination to promote
industrialization for the overall economic development of the country. To create congenial investment
climate for private sector investment in industry, the government has already initiated some measures
to improve law and order situation, prepare legal framework. favourable to business and also
committed to formulate and implement sound industrial policy in the country. It is hoped that
government will be successful in improving the situation. However, the industrial development
objectives of the country can only be achieved if the men behind are made capable and motivated to
perform their functions effectively and efficiently. There is no alternative to the presence of efficient
entrepreneurs and growth of entrepreneurship in the country for sustainable industrial growth and
development. The following recommendations are put forward for consideration by the government and
concerned agencies towards the promotion and development of entrepreneurship:
1. Assigning top priority to entrepreneurship development in industrial policy:
Entrepreneurship development should be given a top priority in the industrial policy within the
framework of general economic policy of the country. In that policy the objectives, strategies, and
implementation measures must be clearly spelt out. The specific responsibilities and accountabilities
of concerned agencies for development must also be ascertained.
2. Organizing entrepreneurship development programs: Entrepreneurship development program
should be recognized as the key tool for developing entrepreneurs without further delay. In view of the fact
that training needs of different target groups may differ in terms of contents and methodology it will be
necessary to design separate training program for different groups keeping in view their specific needs
training. The participants for training should be selected based on scientific selection criteria. Moreover,
training programs should be linked with the provision of support and sustaining assistance.

3. Comprehensive training for emerging entrepreneurs: There is a special need for stand-alone
entrepreneurship development program for emerging new entrepreneurs who mostly come from non-
industrial background. The educated male and female youths including technical graduates and
university graduates will come under this category. They need comprehensive entrepreneurship
development training (CEDT) before starting a new venture. The course contents of the training,
among others, should include entrepreneurship career orientation, entrepreneurial motivation,
project/product identification, selection of project, appraisal of project, preparation of business plan
and enterprise launching competencies and social responsibility to the community. The training
program should be followed by support and sustaining assistance.
4. Training program for micro entrepreneurs: Specific program should be designed and conducted for
micro entrepreneurs who have demonstrated ability to graduate out of income- generating activities.
5. Compulsory entrepreneurship training for borrowers of industrial credit: Borrowers of
industrial credit from financial institutions are in many cases first generation entrepreneurs who lack
industrial management experience, knowledge about the essential management techniques;
achievement motivation and information about sources of assistance etc. that appear to be major
causes of industrial failure in our country. Evidences suggest that awareness about this knowledge
among the
entrepreneurs will reduce the chances of business failure. It is thus recommended that borrowers
of industrial credit from banks, particularly first-generation entrepreneurs, should be given
entrepreneurship development training before they are given credit.
6. Entrepreneurship management training for executives of banks and promotional agencies: The
success of entrepreneurship and small enterprise development program is largely dependent on the
efficient management of credit programs organized by the organizations. In order to, manage
programs efficiently and offer services to the entrepreneurs properly, the bank executives must be
acquainted with the techniques of selecting right borrowers, identifying and selecting viable project,
assessment of entrepreneurial needs as well as means to motivate potential entrepreneurs to enter
into productive sector. A well-designed training program for bank executives as well as extension
officers of the promotional organizations would help substantially to improve their skill.
7. Training of trainers and motivators: Arrangement should be made for adequate training facilities in
in order to impart training to trainers and motivators. Hence, necessary institutional arrangements
should be made at an early date.
8. Developing mutual trust and confidence among the stakeholders: The crisis of confidence
among parties involved in industrial development could be reduced by organizing seminars,
symposiums and workshops to be participated by personnel of promotional agencies, bank executives
and entrepreneurs together so that they can interact and discuss freely their mutual problems and
benefits from each other#39;s suggestions and comments. Attempts should be made in these seminars
to promote mutual understanding that all should work towards the success of the enterprise.

9. Evaluation of training programs: There must be a constant evaluation as to how people after
training are doing in terms of setting up and running the enterprises.

10. Enhanced collaborations among banks, universities and training institutions:

Universities and training institutions may be associated with entrepreneurship development
programs particularly for research and consultancy on entrepreneurship and small enterprise
development.
11. Developing consultancy services: In Bangladesh consultancy profession is very weak to prove
efficient services to small entrepreneurs. Measures may be taken to improve consultancy profession
in the country so that small entrepreneurs can have their services at reasonable cost.
12. Institutional arrangement for entrepreneurship development: There exists a vacuum in the
institutional facility in providing entrepreneurship development training in the real sense of the term.
Such vacuum can be minimized by strengthening the existing institutions or through establishment of
institutes under the joint sponsorship of banks and industrial enterprises concerned. The main
objective of the center/institute will be to provide institutional framework for conducting
entrepreneurship development training, offering consultancy services to both financial institutions and
entrepreneurs and undertaking research on problems relating to entrepreneurship development. The
center for Entrepreneurship and Enterprise Development (CEED) is a kind of such institution
established recently by a group of academics, bankers, entrepreneurship training specialists and social
thinkers to perform these objectives in the private sector.

Finally, it would be inappropriate to claim that recommendations mentioned above can solve all the
problems related to entrepreneurship development. There are a variety of other factors, which
influence entrepreneurial climate, the policy and the regulatory environment. For instance, provision
of appropriate support and sustaining assistance. However, human resource development efforts are
of central importance in the sense that they can help to make concerned individuals aware of
constraints as well as opportunities in the environment and show up options as to how to address
them.