Entrepreneurial Intention: Triggers and Barriers to Small Business Venturing in Khulna City

Abstract

Entrepreneurship is a complex social behavior involving different endogenous and exogenous factors in its genesis. Importance of entrepreneurship in regional development has been highlighted both in classical and modern literature e.g. 'Marshallian agglomeration' and 'industrial cluster'. The research focuses on exploring the triggers and barriers for setting up small business in Khulna city, a city in the southern part of Bangladesh, which is struggling for its economic revival. It has been found that greater economic return, working on the location of choice, propensity to investment own savings and desire for autonomy are among the highly ranked motives to start small venture. 'Need for a job' was ranked as the lowest among the statically qualifies motivation factors. Government regulations, scarcity of venture capital, high tax rate and difficulty in accessing formal financial institutions have been found as the high ranking barriers. Interestingly, lack of managerial skills, availability of qualified employees and role of the family have been reported as lowly ranked barriers to start new venture. Finding of this research suggests that the popular perception 'small business in developing country is a 'non or minimal growth sector' is more a stereotype. Small businesses have enough possibility to grow as a 'growth focused sector', as the small business possesses significant amount of managerial abilities and have positive frame of mind for taking risk, invest and grow.