A STUDY ON THE DEVELOPMENT OF ENTREPRENEURSHIP AND ITS INFLUENCE ON THE POVERTY ALLEVIATION IN BANGLADESH

Abstract

Entrepreneurship is a common topic of discussion in the contemporary world, which denotes new business venture, creation of new industries and inherent in the system is the bearing of risk. The act of entrepreneurship gives birth to value addition, employment and income generation and thus helps in economic development. Entrepreneurship also has got many dimensions. Historically Bengalis lack entrepreneurship among the nations of the Indian subcontinent. The culture of entrepreneurship developed in Bangladesh in the wake of induction of garments industries in the late nineteen seventies. Development of entrepreneurship helps in workforce mobility from the rural subsistence sector to the urban productive sector; thus help in economic development. However, does the development of entrepreneurship help in social welfare particularly in poverty alleviation is the question in view. Poverty alleviation is a pervasive problem for Bangladesh. Over the years she has achieved remarkable success in poverty alleviation. Yet, almost one third of her population still live at the poverty level. Apparently, development of entrepreneurship helps in poverty alleviation, but there are other host of factors that contribute to poverty alleviation. Besides, all people, especially of the lower strata of the society may not be benefited out of economic development. This is evident from the comparison of economic development vis a vis poverty alleviation between India and Bangladesh over the last three decades. India had higher economic growth in average over Bangladesh, but Bangladesh had been more successful in the case of poverty alleviation. Thus the judicial distribution of wealth for that matter some degree of state intervention is necessary to get the optimum benefit out of economic development. Beside developing a set of ancillary factors, Bangladesh needs to improve the infrastructure and power supply to enhance the investment opportunity and the development of entrepreneurship for the faster economic growth and poverty alleviation.