Perception of entrepreneurs In Bangladesh towards social business: An empirical investigation

Abstract

In the capitalist system, on the one hand, companies can be seen as profit maximizing business whose main purpose is to create shareholder value. On the other hand, non-profit organizations exist to fulfill social objectives. Social business is a new form of business that can be located somewhere between a profit-maximizing and non-profit organization whose primary purpose is to solve human problems. Social business has its products, services, customers, expenses, markets as well as revenues like a regular business. Social business is a non-loss, non-dividend, self-sustaining company and investors can get their money back if they wish. The owner of the social business never intends to make a profit for himself. The aim of this study was to analyze perception of entrepreneurs in Bangladesh towards social business. The targeted entrepreneurs were classified as profit seeking entrepreneurs located at Dhaka and Chittagong City. Simple random sampling technique was used to collect data via structured questionnaire. Both descriptive and statistical statistics analysis were used for interpreting data. This study used SPSS version 22 (Statistical Package for Social Science) for descriptive analysis. Structural Equation Modeling (SEM) was conducted using AMOS 22 to test the proposed relationship among the study variables. The results of this study reveal that most of the entrepreneurs are somewhat agree with several principles of social business and their expectations are also consistent with the objectives of social business. But entrepreneurs are somewhat disagree on receiving invested amount over a period of time. Entrepreneurs are neither agree nor disagree to take risk and challenges of implementing social business. The results of this study also describe that the overall perception of entrepreneurs changes with the changes of motivation, experience, Risk taking, proactivity, expectation and cultural factors. There are some challenges of implementing social business in Bangladesh. Lack of social business skills, risks of managing social business, inadequate data of social business, lack of designing successful social business model, profit seeking mindset of entrepreneurs and inadequate marketing programs of social business are the most challenges of implementing social business in Bangladesh. In spite of the challenges of social business, the prospect of social business in Bangladesh is bright. Bangladesh is full of raw materials of various types of social businesses; Bangladesh has experience of implementing microcredit programs, and has a supply of low cost human resources. Awareness creation regarding social business, promotional programs of social business, training program of social business, support services and changing mindset programs of entrepreneurs towards social business can make the social business development effective as well as efficient.