MSMEs and economic growth: Fostering an entrepreneurial ecosystem in Bangladesh for sustainable development
Issued Date
2024-09-01
Resource Type
eISSN
25723170
DOI
Scopus ID
2-s2.0-85201071817
Journal Title
Business Strategy and Development
Volume
7
Issue
3
Rights Holder(s)
SCOPUS
Bibliographic Citation
Business Strategy and Development Vol.7 No.3 (2024)
Suggested Citation
Dhar S., Zaman K.A.U., Dhar B.K. MSMEs and economic growth: Fostering an entrepreneurial ecosystem in Bangladesh for sustainable development. Business Strategy and Development Vol.7 No.3 (2024). doi:10.1002/bsd2.423 Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/100560
Title
MSMEs and economic growth: Fostering an entrepreneurial ecosystem in Bangladesh for sustainable development
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Author's Affiliation
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Abstract
Micro, small, and medium-sized enterprises (MSMEs) are fundamental to the economy of Bangladesh, significantly contributing to job creation and poverty alleviation. Securing financing is essential for the growth and development of the MSME sector. This research investigates the entrepreneurial environment in Bangladesh, highlighting challenges and opportunities to enhance youth entrepreneurship. By analyzing secondary data from 2010 to 2022, the study employs a multiple regression model to examine the statistical relationship between MSME financing and economic growth. Gross domestic product Regression Equation Specification Error Test per capita is the dependent variable, loans to MSMEs are used as a proxy for MSME financing, and the unemployment rate is included as a control variable. The results indicate that MSME financing has a substantial positive impact on economic growth, while the unemployment rate has a significant negative effect. The study suggests implementing blended finance funds and a variety of supply, demand, and financial solutions to strengthen the MSME ecosystem in Bangladesh, thereby supporting national development goals and sustainable development.