An Examination of Local Non-Structured Institutional Impact on Microentrepreneurship Development in Bangladesh
Uddin, M.G.S., Umnia, T., and Alam, M.M. 2011. An Examination of Local Non-Structured Institutional Impact on Microentrepreneurship Development in Bangladesh, In Mandal, R.K. (ed.), Development of Entrepreneurship and Rural Development in North-East India, pp. 92-99. Guwahati: DVS Publishers, India.
10 Pages Posted: 1 Apr 2017
Date Written: 2011
The role of entrepreneurship development has received intense attention for a long time because of its multidimensional contribution to socioeconomic development. Microentrepreneurship, especially, is considered as a bridge for economic and social development both in micro and macro level for high poverty rate countries, such as Bangladesh. Structured institutions, who are working to develop micro-entrepreneurship, provide the financial, technical and conceptual supports. But due to lack of proper support of local non-structured institutions, development of micro-entrepreneurship in Bangladesh has not yet been able to reach its expected level. In this context, many crucial local socio-economic-cultural elements need to be considered in Bangladesh. Structured local institutions administered by local government and non-government bodies have received attention regarding their role in assisting micro-entrepreneurship, but there are numerous and varied non-structured institutions that influence the lives of local people - who are existing and potential entrepreneurs. An example of non-structured institutions is “Shalish” - a body of opinion leaders who act as guardians of the village community, and can dictate what is right and wrong, what should be done, resolve conflicts etc. Another example is “Local religious leaders” who are also significantly powerful in terms of social decisions and public sentiment. As a result, area-specific cultural, social and religious factors strongly influence local people, and these factors are promoted and manipulated by these non-structured institutions, and can act as barriers to entrepreneurial development. Therefore, to develop and ultimately foster sustainable micro-entrepreneurship in Bangladesh, focus should be made on both structured and non-structured institutional factors, and also on cooperation among these institutions.
Keywords: Micro-entrepreneurship, Socio-Economic Development, Structured Institutions, Non-structured Institutions, Bangladesh
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