1

Seminar for PhD

The Role of Bangladesh Small & Cottage Industries Corporation (BSCIC) in
Entrepreneurship Development

Abdul Latif Supervisor

Registration No.:
2015761002 Dr. Nazrul Islam
Professor

Area of Study: Business Administration

Shahjalal University of Science and Technology.
Entrepreneurial
Development
July 2018

Shahjalal
Shahjalal University University
of Science and of Science and Technology
Technology Department of Business Administration
 2

Contents of the Presentation

Slide
No. Contents No.
1. Background of the Study 03
2. Problem Statement of the Study 05
3. Research Gap of the Study 07
4. Objectives of the Study 08
5. Literature Review, Research Questions, and 09
Hypotheses
6. The Conceptual Model of the Study 20
7. Contribution of the Study 22
8. Methodology of the Study 23
9. Research Considerations 26
10. Research Time Line 27
11. Plan of the Study 29

Shahjalal University of Science and Technology Department of Business Administration

 3
Background of the Study

Entrepreneurial Development

Schumpet
Entrepreneurship Development acts as a catalysts to the development
1963
of economy. (Schumpeter, 1963)
Knight 1921
Max Weber The main objective of Entrepreneurship Development scheme is to inspire,
1930 motivate and assist the prospective and potential entrepreneurs to
Mccelleland contribute the economy by establishing enterprises.
1961, Three factors of Entrepreneurial growth are: Ambition, Compulsion,
Hagen 1962 Facilitation
Rao 1961
Inspire, Motivation and Facilitation of prospective person

Shahjalal University of Science and Technology Department of Business Administration

 Background of the Study 3

Support Organization
Ministry of Industry
Bangladesh Small and Cottage Industries
Corporation (BSCIC)
SME Foundation
BSTI
Banks & NBFI

Inspire
Training & Information
Infrastructural Support
Financial Support

Technical Support
Policy Making

Shahjalal University of Science and Technology Department of Business Administration

 Background of the Study 4

BSCIC in
Entrepreneurial
Development

Function Department Goal

Intention &
Counseling & Training, model project SCITI & BSCIC offices Compulsion

Infrastructural facilities Industrial Estates Facilitation

BSCIC offices , Bank &
Credit facilities NBFI Facilitation
Project profile, project Appraisal,
Technical & consultancy for new unit, BSCIC offices Facuilitation
BSCIC offices
Design development Intention
BSCIC offices
Collect & Dissemination of Information Facilitation
BSCIC offices
Research, Study Innovation
Other BSCIC All
Shahjalal University of Science and Technology Department of Business Administration
 6

Problem Statement of the Study

Ambition The spirit of

of Entrepreneurs entrepreneurs.

Compulsion Impact on
of Entrepreneurs Entrepreneurship

Role of BSCIC in Growth of

Facilitation
Entrepreneurial Enterprises
of Entrepreneurs
Development
Problems faced
Rao 1961 by the Enterprise

Shahjalal University of Science and Technology Department of Business Administration

 7

Problem Statement of the Study

Entrepreneurial
Development
Compe Ambitio
Alam and lling n factor
Demonstration, Model
Ullah (2006) projects etc
- Entrepreneurial
Rahman ambition. Preparation &
Factors

(2005) Training, Technical know-how,

Alam (2005)
start up
Resource allocation
ADB (2009), … Enterprises spirit
Supporting

Hossain & Infrastructural facilities, … Enterprises growth

Factors

Huq (1995) Financial, Information & ---Impact

Technical Support
… Satisfaction
Therefore, referring to the current literature, an integrated conceptual model
incorporating three main factors can assess the role of BSCIC in Entrepreneurial
Development .

Curtin University
Shahjalal Faculty
University of Business
of Science An Empirical Examination of Tourists’ Future Behavioural Intentions:
and Technology
Sarawak, Malaysia
Department of Business Administration
A Study in the Context of Beach Destinations in Bangladesh
 8

Research Gap?

But,
(i) no integrated model, so far, has been found in the current
literature covering the role of supporting organization, BSCIC in all
the factors of entrepreneurial development.

(ii) no study, so far, has been found to investigate the

entrepreneurial spirit, growth, impact and satisfaction of enterprises
through BSCIC support

Shahjalal University of Science and Technology Department of Business Administration

 9
Objectives of the Study

The main objective of the study is to evaluate the role of BSCIC in

entrepreneurship development through inspiration, compulsion
and facilitation function.

This study also intends to address the following specific objectives:

 To identify the different functions of BSCIC in Entrepreneurial

 development
To appraisal of. all the functions of BSCIC in Inspiration,
compulsion and facilitation of entrepreneurship development.

 To pinpoint the limitations of BSCIC support in sufficiency,

appropriateness and necessity of sick and problem- ridden
enterprises.
 To provide recommendation & policy support for overcoming the
limitations.

Shahjalal University of Science and Technology Department of Business Administration

 1
0

Literature Review
!! Entrepreneurship Development of BSCIC through Industrial Estates !!

Entrepreneurship development through planned location

Ahmed 2009 development strategy
World Bank 2007 BSCIC is facing some limitation
Impediments in the entrepreneurship development in the SME
Moazzem 2006 sector
Kalyani. B. 1969 Industrialization through industrial estates
Bhati 1976 Utilization of industrial estates are in lower level.

Utilization
of
Industrial
Estates
Entrepren
Performan
eurship
ce
Develop
ment of
BSCIC

Shahjalal University of Science and Technology Department of Business Administration

 1
Literature Review 1
!! Growth of Enterprises in Industrial Estates !!

Rao 1986Entrepreneurship is accelerated by Industrial Estates.

Industrial estates played a significant role in promotion of
Mehta 1987 SMEs

Ghodke 1987Atmospheres are conducive in growth of industries

Industrial Estates are contributing in Growth of Industries &
Suresh 1992 Income of People

Entrepreneurshi
p Accelerated

Growth
Industrial
Estates

Shahjalal University of Science and Technology Department of Business Administration

 1
2

Literature Review
!! Constraints and Limitations of Industrial Estates !!

Main constraints of industrial estates as selection of

Manickan 1969 area, plot planning and placement of plots
Somasekhara 1975 Industrial estates are not successful in backward area
Limiting factors are insufficient road connection,
drainage facilities, lighting, water supply, and high
Pareek 1978 cost of construction of sheds
Lavakumar 1980 Revealed number of difficulties in industrial estates
Chattopadhaya 1984 Inefficiency in leadership
Area

Facilities

Unsuccessfu
Difficulties
l

Shahjalal University of Science and Technology Department of Business Administration

 1
Literature Review 3
!! Difficulties in BSCIC Supports!!
Identifies some problems like lack of proper infrastructure
Narayana 1985 &others
Pradeeppuri 1985 Erratic power supply as the main cause of failure
Insufficient street lights, lack of drainage and sanitation
Kumar 1985 facilities as difficulties
Surinderkall
ar 1985 limiting factors of industrialization in Industrial Estates
Shahulhame Lack of pre-investment study of the viability of Industrial
ed 1986 estates
Deepakagar The role and prospects, achievement and shortcoming of
wal 1986 Industrial Estates
Infrasture

Insufficient
facilities
Limiting
Factors

Lack of
Shortcoming
Viability
 1
Literature Review 4
!! Opportunities & Difficulties in BSCIC Support !!

Bredo 1960Opportunities and difficulties of Industrial Estates

Found Industrialization as very estate is very slow due to
Hajra Jafer 2012 lack in Energy and other factors
Dhar and
Lyndell 1960 Role of small entrepreneurs in Indian Economic development
Some estates are satisfactory but in other estates they are not
Nagiya 1971 doing satisfactorily
Bharti 1978 achievements, difficulties and problems of estates

Opportunities

Difficulties

Success

Industriati
on
Failure thorugh IS

Shahjalal University of Science and Technology Department of Business Administration

 1
5

Literature Review

!! BSCIC Infrastructural Support !!

Nazim 2007 70 industrial estates of BSCIC is still in the infancy level

Industrial estates development is mainly for developing the
Shah 2001 backward regions
Haque 2001 lack of operation and maintenance (O & M) is the major problem

Lack of operation

Operation &
Maintainence
Backward
regions

Infancy level

Shahjalal University of Science and Technology Department of Business Administration

 1
6

Literature Review

!! Services of BSCIC !!

Alam and BSCIC fails to provide needed services to the small firms due to
Ullah (2006) manifold reasons: primarily due to its unorganized management
Rahman the poor performance of firms can be improved
(2005) through developing subcontracting practices in BSCIC units
Alam (2005) A number of researches consider environmental issues in
addressing BSCIC units Unorganized
Measurement
ADB (2009), the government has initiated a number of restructuring measures
Subcontracting
for BSCIC on policy, governance, strategic development, Industrial
location, better
management
Structuring structure and a staffing plan to move BSCIC towards
Failure t entrepreneursh
Improvement ip
more effective organization.
Measure

Hossain & currently

Enviornmenta operating renowned industrial estates in Bangladesh are
Performance
l Issues Better
Huq (1995) located at Tongi and Konabari of Dhaka; Kalurghat, Foujdarhat and
Sholashahar of Chittagong; Jessore; Shiromoni of Khulna; and
Narayangonj. Products worth millions of taka are being exported
from these estates every year
Shahjalal University of Science and Technology Department of Business Administration
From the literature survey it can be concluded that the
positive aspects of BSCIC supported enterprises are:

* Favorable environment for industrial

development.
• Sustainable development of industries
• Satisfactory role in production of goods.
• Significant role in employment opportunities.
• Presence of entrepreneurship with technical
and managerial experiences.
 Though the shortcomings may be summarized like

• Poor location planning

• Economic factors are not considered properly.
• Poor area for industrialization, inaccurate plot dimension and
faulty placements.
• High cost of constructing sheds
• High price of plots
• Lack of transport facilities
• No proximity with market
• Erratic power supply
• Lack of sufficient quality and quantity raw materials.
 1
19
9

The Conceptual Model

Demonstration of
entrepreneurial
success & support

Training,
Inspiring Counseling
Infrastructural

Compelling Infrastructural, Entrepreneurial

Financial and Development
technical
Supporting
Informative

Figure: The Conceptual Model of the study developed by the Researcher

Shahjalal University of Science and Technology Department of Business Administration

 Hypothesis
• Hypothesis 1: There is no relationship between
demonstration of entrepreneurial activities and generation
of entrepreneurial intentions.
• Hypothesis 2: There is no relationship between
entrepreneurial training and entrepeurial initiatives.
• Hypothesis 3: There is no relationship between BSCIC credit
facilities and entrepreneurial success.
• Hypothesis 4: There is no relationship between BSCIC
provided Infrastructural facilities and continuation of
entrepreneurial effectiveness.
• Hypothesis 5: There is no relationship between technical,
informative and other supports of BSCIC and
entrepreneurial success.
 2
Methodology of the Study 1

Study Area: Industrial estates of Sylhet, Sunamgong, Moulabibazer and Hobigong of

Bangladesh and the entrepreneurs of that area who are receiving services of BSCIC.

Research Design:
Study 1: Qualitative study by Focus Group Discussions with the policy
makers, service providers, and service recivers

Study 2: Quantitative study by self administered survey and secondary data

analysis

Sample Design:
Sampling techniques: Convenient sampling
(Tosun et al., 2015; Hsu & Huang, 2012; Tsai, 2010; Lam
& Hsu, 2006)

Sample size: 400 respondents of service receivers and all the working
industrial units of four industrial estates. Burns and Bush (1995)= 385; McNamara
(1992)= 384, Kline (2005) = 200+ (Teng et al., 2015=258; Zhang et
al., 2015=300;
Jeremy, 2014=312; Hsu & Huang, 2012= 311

Shahjalal University of Science and Technology Department of Business Administration

 2
2
Methodology of the Study
Questionnaire Design:
Measurement: Measurement are adapted from previous studies
Scaling: 5 point Likert and Semantic scales are used (Hair et al.,
1988).

Pre-test: 3 Academic experts form the faculty of Business, 2 executives and

2 business leaders
Pilot test: 5 enterprises and 20 individuals will be interviewed .

Data Collection Methods: Self -administered survey of enterprises of industrial estates

sampled

Shahjalal University of Science and Technology Department of Business Administration

 2
3

Methodology of the Study

Data Analysis:
Descriptive Statistics (DS): Overview of the sample, data’s
distribution, frequency, and demographic information.

Reliability and Validity: Reliability by Composite reliability and

Cronbach’s alpha coefficient, construct validity
(convergent) by AVE and (discriminant) by standard
factor loading

Correlation & Regression, Chi-Square and ANOVA

Data Analysis Software: Statistical Package for Social Sciences (SPSS)

Shahjalal University of Science and Technology Department of Business Administration

 2
4

Contributions of the Study

Theoretical contributions:
(i) Developing an integrated conceptual model to evaluate the role
of supporting authorities in Entrepreneurial Development
through the Infrastructural and other facilities provided by
Industrial Zoning, Training & Supporting.

(ii) To Examine the relationship between the support services and

entrepreneurial development in SME sector .
Managerial contributions:
(i) Build up an attractive facilities to meet the entrepreneurs need,
expectation and satisfaction.
(ii) Retaining the Entrepreneurial Spirit for the growth and
development of enterprises.

Shahjalal University of Science and Technology Department of Business Administration

 2
5

Research Considerations

Ethical Issues: The objective of survey will ne clearly discussed with the
respondents and secrecy of data will be maintained.

Facilities and Resources: A computer with internet access, library

facilities, printing, photocopying, stationery supplies, SPSS software for
data analysis, and financial arrangement for data collection.

Data Storage: All data collected and research materials will be stored in a
Computer Data Management System.

Shahjalal University of Science and Technology Department of Business Administration

 2
6

Research Time Line

2016
2017 2018
Activities
Q. 1 Q. 3 Q. 2 Q. 3
Q. 2 Q. 4 Q. 1 Q. 3 Q. 4 Q. 1 Q. 2 Q. 4

Literature Review

Development of Questionnaire

Collection of Data

Data Process and Analysis

Thesis Preparation

Finalization and Submission of thesis

Shahjalal University of Science and Technology Department of Business Administration

 Plan of Thesis
Chapter 1: Introductory Aspects of the Study-
covering Statement of the problem, Objectives
and Methodology
Chapter 2. An Overview of BSCIC and its Role in
Entrepreneurship Development
Chapter 3. Literature Review
Chapter 4: Conceptual Framework
Chapter 5: Analysis & Interpretations
Chapter 6: Summary, Findings & Policy Making
 Chapter 1
• Background of the Problem
• Statement of the problem
• Objectives
• Methodology
 Chapter 2. An Overview of BSCIC
• History of BSCIC
• Role of BSCIC in Entrepreneurship
Development
a. Training & Counseling
b. Credit Facilities
c. Infrastructural & Physical Support Facilities
d. Innovative & technical support
e. Regulatory & Other Support
 Chapter 3. Literature Review
• The findings of previous researches in
appraisal of support agencies’ activities like
BSCIC in Entrepreneurial Development.
Chapter 4: Conceptual Framework
• Build up a conceptual framework to conduct
the research and helping the readers in
understanding the findings.
 Chapter 5: Analysis & Interpretations
• An appraisal of training facilities provided by
BSCIC in developing and maintaining
Entrepreneurial intention and Spirit.
• Evaluating the Effectiveness of Financial Support
to the entrepreneurs provided by BSCIC .
• Evaluation of Infrastructural Support provided to
the Entrepreneurs through Industrial Estates of
BSCIC.
• An Evaluation of Technical, Informative & Other
supports to the entrepreneurs provided by BSCIC.
Chapter 6: Summary, Findings & Policy
Making
• Summary, Findings and policy making of BSCIC
regarding the
i. Training facilities
ii. Financial Support
iii. Infrastructural Support
iv. Marketing Support
v. Technical, Informative and other Supports
 3
4

Acknowledgements

 Prof. Md. Nazrul Islam, Supervisor.

 Head, Department of Business

Administration
 Dean, Faculty of Business.
 Industrial Estates Authority.
 Business Enterprises
 Honorable Attendance.

Shahjalal University of Science and Technology Department of Business Administration

 3
5

Thank you all

Shahjalal University of Science and Technology Department of Business Administration