Factors Influencing the Choice of Entreprenurship in Bangladesh: A Case Study of Dhaka City

Abstract

In Bangladesh, the development of entrepreneurship is especially significant for its intrinsic role of creating new employment opportunities, income generation, and ultimately poverty reduction. This research has put substantial effort to identify what factors affect an individual to be an entrepreneur. The underlying factors are categorized as push associated with some negative forces and pull linked with some positive forces. Primary data were collected from 57 respondents picked up purposively from among the individuals engaged in various entrepreneurial activities. The ownership style, nature of enterprise, Experience, educational qualifications, push and pull factors of the sample enterprises were considered as the main sources of primary data. Due to Covid's 19 pandemic situation, primary data were collected through the construction of structured google based survey questionnaire containing 12 pull factors and 7 push factors, finalized by reviewing several national and international literature. The data analysis has been performed in two ways: Average Response of the Respondent on a statement, Principle Component Analysis (PCA) using STATA tool. Based on a comparison between the outcome of “Average Response of the Respondent on a statement” and “Principle Component Analysis (PCA) of the Responses”, “Curse of Unemployment” has been identified as a push factor that compelled the respondents to become an entrepreneur. On the other hand, “Strong will power to do something by own”, “Self-Employment and Economic Freedom”, “Use of Personal Knowledge and Previous Experience” and “Career Advancement” have been found to be leading pull factors that encourage respondents to become an entrepreneur.