Credit culture and entrepreneurship

Abstract

Prof. Dr. M. Azizur Rahman defines entrepreneurs as the "engine of economic growth" who initiate ventures by organizing resources and taking risks. The article argues that for sustainable entrepreneurship, long-term loans and investments are superior to short-term credit, despite their higher cumulative costs. The author emphasizes that a healthy "loan culture" must be developed, where interest rates are minimized and banks provide rescheduling facilities to make repayment relatively easy. He also highlights the role of the environment and family background in contributing to an individual's entrepreneurial skills. He notes that while some corruption (seed money or speed money) exists in successful economies like the "Four Asian Tigers," these nations thrived because of their highly skilled entrepreneurship and efficient external credit facilities. The article concludes that the loan market must be made free of bureaucracy and bribes to increase the cost of funds and decrease profit rates for new businesses.