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close this bookTraining Entrepreneurs for Small Business Creation: Lessons from Experience (ILO, 1988, 154 p.)
View the document(introduction...)
View the documentManagement Development Series
View the documentPreface
View the document1. Introduction
Open this folder and view contents2. Factors influencing programme design
Open this folder and view contents3. Organisation and administration
Open this folder and view contents4. Components of training programmes
View the document5. Some observations
View the document6. Xavier Institute of Social Services, Ranchi, India
View the document7. Madhya Pradesh Consultancy Organisation Ltd., India
View the document8. Directorate of Industrial Training, Uganda
View the document9. Calcutta “Y” Self-Employment Centre
View the document10. Bangladesh Management Development Centre
View the document11. Entrepreneurship Development Institute of India
View the document12. Hawaii Entrepreneurship Training and Development Institute
View the document13. The Entrepreneurship Institute, Columbus, Ohio
View the document14. Manpower Services Commission: New Enterprise Programme, United Kingdom
View the document15. Bibliography
View the documentOther ILO publications
View the documentBack Cover

10. Bangladesh Management Development Centre

Self-employment of educated unemployed youth

Organisation

Responsibility for the programme, which was created in 1978, rests with a Central Committee which in turn has three subcommittees: (1) Selection of Youths; (2) Course Committee; and (3) Project Appraisal Committee. The programme consists of:

(a) selection of potential entrepreneurs;
(b) training of potential entrepreneurs;
(c) appraisal of projects;
(d) financing of projects;
(e) supervision of loans.

The methodologies and materials presented here deal in particular with some aspects of applied selection techniques.

Identification, recruitment and selection of trainees

The selection committees have representatives from local commercial banks, colleges, Chambers of Commerce and industry. They are responsible for making the initial selection of five youths from each district subdivision by means of a competitive examination and the selection mechanism supplied by the Course Committee.

The selection of potential entrepreneurs is made on the basis of measuring business propensity, business mentality and business habits.

It has been observed that most of the youths that get low scores in the selection examination fail to prepare viable projects, and that the entrepreneurial ability of most of them is also below average. This tends to confirm the hypothesis of the programme that if during the entrepreneurial development training period entrepreneurial ability cannot be developed to an above average level, there is every possibility that the trainee will ultimately not make a successful entrepreneur.

This hypothesis is undergoing further tests, but the results are not yet available.

Selection questionnaires (for potential entrepreneurs)


Measurement of business propensity (BP)




1.

(a)

Do you want to start a business? If yes, big or small?






Yes ___________

No ___________



Big ____________

Small _________





(b)

Do you want to join a big firm as an employee?






Yes ___________ No ___________




2.

If you want to start a business, how much capital would you need?






Thousands? ___________ Millions? ___________




3.

If you want to start a business, how would you like to gather your capital? (Choose one only)





(a) From family sources or real estate?

(b) From a bank loan?

(c) From co-operative societies in your area?




4.

If the required capital is available from a bank, at what rate would you like to borrow? (Choose one rate only)





2, 5, 8, 10 or 13 per cent, or current rate?




5.

Name three products that you would like to produce and market.





(a) ___________ (b) ___________ (c) ___________




6.

Show the wholesale and retail prices of products mentioned in 5 above.





Wholesale price

Retail price



(a) ___________

___________



(b) ___________

___________



(c) ___________

___________





7.

If you do not become successful in your business, would you be willing to join the same organisation under another efficient entrepreneur?





Yes ___________ No ___________




8.

When the workers of your factory go on strike, which of the following measures will you take? (Choose one only)





(a)

Fire all the old workers and hire new ones.





(b)

Bring your relatives and carry on the work by yourselves.





(c)

Find out the causes of the strike and try to eliminate those causes.





(d)

Dock the wages of the workers who went on strike.




9.

If the site of your factory is such that marketing your products is not at all easy from that location, which of the following actions would you like to take? (Choose one only)





(a)

Move your factory to another place.





(b)

Close the factory and look for a job.





(c)

Adopt all possible means to increase your sales.




10.

Name five important qualities of a business owner/entrepreneur that you think you possess.




11.

After the training, what business or industry would you like to start?




12.

Choose one alternative from each of the following pair of statements:





1(a)

However hard you try, there is no guarantee that you will succeed.





(b)

If you work attentively and seriously, you are sure to get good results sooner or later.





2(a)

In all our endeavours, fate is a great obstacle,





(b)

Man can change his fate by his endeavours.





3(a)

You can make yourself into a successful person, even if you come from unsuccessful parents.





(b)

Parents’ influence on their children has a lifelong effect.




13.

Mr. A, an electrical engineer, is married and has one son. Since getting his degree, he has been working for a big electrical company earning a good salary, enjoying social security and other benefits. It is not likely that his salary will increase much before his retirement.

One day, Mr. A receives a proposal from a small company offering him a job at a very high salary. The future of this small company is uncertain, but he may get a share in the ownership of the company.

Mr. A is seeking your advice. What would the possibility of economic success of the company have to be before you would recommend Mr. A to join the company? (Please tick one of the suggestions below)

Possibility of economic success






1 out of 10 ___________
3 out of 10 ___________
5 out of 10 ___________
7 out of 10 ___________
9 out of 10 ___________





Or would you tell him not to join at all? ___________




14.

Mr. B is an industrialist in an industrialised country. He wants to expand his business. He has two alternatives:





(a)

To establish a new factory in his own country and earn a moderate profit.





(b)

To establish a second factory in a less developed country (LDC) where the potential is uncertain, and earn a very high profit. What would you recommend?






Not to move to the LDC ___________





To move to the LDC when the possibility of political stability has reached






1 out of 10 ___________
3 out of 10 ___________
5 out of 10 ___________
7 out of 10 ___________
9 out of 10 ___________

The same set of questions is used to identify potential entrepreneurs and to select them for entrepreneurial development (ED) training.

Tests of this set of questionnaires have proved their reliability. A minimum score of 25 is an indication that the trainee has entrepreneur potential, whereas a score of 31 is usually obtained by the average trained and settled entrepreneur.

Measurement of business mentality (BM)

Rotter’s I-E scale using 25 pairs of statements with assigned scores for each alternative statement is used for this purpose. A score of less than 60 per cent is an indication of the weakness of the potential entrepreneur who is then given specific exercises to improve his BM. In any particular group there is usually a good correlation between the BP and BM scores, with the value of the coefficient of correlation varying between 0.7 and 0.8.

The 25 pairs of statements on the Rotter I-E scale to measure the BM of an entrepreneur are as follows:

ROTTER’S I-E SCALE MODIFIED

1.

(a)

Many of the unhappy things in people’s lives are partly due to bad luck.


(b)

People’s misfortunes result from the mistakes they make.




2.

(a)

One of the major reasons why we have wars is because people don’t take enough interest in politics.


(b)

There will always be wars, no matter how hard people try to prevent them.




3.

(a)

In the long run, people get the respect they deserve.


(b)

Unfortunately, an individual’s worth often passes unrecognised no matter how hard he tries.




4.

(a)

The idea that teachers are unfair to students is nonsense.


(b)

Most students don’t realise the extent to which their grade is influenced by accidental events.




5.

(a)

If one does not get the right opportunity, one cannot become an effective leader.


(b)

Capable people who failed to become leaders have not taken advantage of their opportunities.




6.

(a)

No matter how hard you try, some people just don’t like you.


(b)

People who can’t get others to like them don’t understand how to get along with people.




7.

(a)

Heredity plays the major role in determining one’s personality.


(b)

It is our experiences in life which determine what we’re like.




8.

(a)

I have often found that what is going to happen will happen.


(b)

Trusting to fate has never turned out as well for me as making a decision to take a definite course of action.




9.

(a)

In the case of a well-prepared student there is rarely, if ever, such a thing as an unfair test.


(b)

Often examination questions are so unrelated to course work that studying becomes really useless.




10.

(a)

Being successful is a matter of hard work. Luck has little or nothing to do with it.


(b)

Getting a good job depends mainly on being in the right place at the right time.




11.

(a)

The average citizen can have an influence on government decisions.


(b)

The world is run by a few people in power. The average citizen cannot influence the course of their actions.




12.

(a)

When I make plans, I am almost certain to carry them out.


(b)

It is not always wise to plan too far ahead because, in the course of time, many things turn out to be a matter of good or bad fortune.




13.

(a)

There are certain people who are just no good,


(b)

There is some good in everybody.




14.

(a)

In my case, getting what I want has little or nothing to do with luck.


(b)

In making decisions we often take a chance (i.e. toss a coin).




15.

(a)

Who gets to be the boss often depends on who happened to be in the right place at the right time.


(b)

Becoming the boss depends upon the ability to work and to lead. Luck has little or nothing to do with it.




16.

(a)

As far as world affairs are concerned, most of us are the victims of forces we can neither understand nor control.


(b)

By taking an active part in political and social affairs, the people of the world can control world events.




17.

(a)

Most people don’t realise the extent to which their lives are controlled by accidental events.


(b)

There is really no such thing as “luck”.




18.

(a)

One should always be willing to admit one’s mistakes.


(b)

It sometimes becomes necessary to cover up one’s mistakes.




19.

(a)

It is hard to know whether or not a person really likes you.


(b)

How many friends you have, depends on how nice a person you are.




20.

(a)

In the long run, the bad things that happen to us are balanced by the good things.


(b)

Most misfortune is the result of either the lack of ability, or ignorance, or laziness, or all three.




21.

(a)

If we try hard enough we can wipe out political corruption.


(b)

It is difficult for people to have much control over the things that politicians do in their offices.




22.

(a)

Sometimes I can’t understand how teachers arrive at the grades they give.


(b)

There is a direct connection between how hard I study and the grades I get.




23.

(a)

Often I feel that I have little influence over the things that happen to me.


(b)

It is difficult for me to believe that chance or luck play an important role in my life.




24.

(a)

People are lonely because they don’t try to be friendly.


(b)

There’s not much use in trying too hard to please people, if they do not like you.




25.

(a)

What happens to me is my own doing.


(b)

Sometimes I feel that I don’t have enough control over the direction my life is taking.

Measurement of business habits (BH)

The following 12 pairs of statements with assigned scores for each are used to measure the BH of the potential or present entrepreneur with the total score multiplied by 8 to obtain the percentage score.

1.

(a)

I cannot mix with just any type of person.


(b)

I feel like knowing or at least talking to everyone I meet.




2.

(a)

When I see too many people doing one job, I get annoyed.


(b)

At any meeting, gathering, or get-together, the more people present, the better I feel.




3.

(a)

I cannot do a thing as well if I think too much about it beforehand.


(b)

If I do not think well before starting a job, I cannot do it well.




4.

(a)

However busy I may be, I lose my temper if I cannot take time off for a rest.


(b)

I have often worked for 15-20 hours at a stretch without food or rest. I know no peace of mind until the job is done.




5.

(a)

I do not like to take responsibility for anything.


(b)

I enjoy taking responsibility and do so whenever there is an opportunity, and am pleased if I can do the job well.




6.

(a)

I can take a decision in a moment.


(b)

If I do not think carefully, I cannot decide whether to do a job or not.




7.

(a)

I could do much more if I had better health,


(b)

I am unhappy when I have no work to do.




8.

(a)

Sometimes it is necessary to say what one does not mean.


(b)

I am a man of my word. If say that I will do something, I keep my word.




9.

(a)

If I have a job that must be done, I do ‘it without considering my health, state of mind, or my family.


(b)

If a job has not been properly prepared, I do not start the work even if this causes some delay.




10.

(a)

I am happy if I can help people.


(b)

I do not like to meddle in other people’s affairs.




11.

(a)

Whenever I see a crowd I leave quickly. I do not want to get involved.


(b)

Whenever I see a crowd I run to see what is happening. If there is a quarrel going on, I do not leave until I have tried to solve it.




12.

(a)

I never do a job myself if I can get someone else to do it.


(b)

If I can do a job myself, I never leave it for someone else.

BANGLADESH MANAGEMENT DEVELOPMENT CENTRE
4 Sobhanbag Mirpur Road
DACCA-7, Bangladesh