Credit culture and entrepreneurship.

Abstract

The article "Credit Culture and Entrepreneurship" by M. Azizur Rahman examines the critical role of accessible credit in fostering entrepreneurial growth, emphasizing long-term loans as more conducive to business sustainability than short-term financing despite higher cumulative costs. The author identifies entrepreneurs—driven by innovation, risk-taking, and opportunity exploitation—as key to economic development, with their success influenced by family background, education, and social environment. Highlighting systemic challenges like high interest rates and stringent collateral requirements, the piece advocates for government subsidies, liberalized loan terms, and corruption reduction to enhance credit accessibility. Paradoxically, it notes that some "productive corruption" (e.g., expediting processes via "seed money") in East Asian economies has coexisted with robust entrepreneurship. The article concludes that a balanced credit culture, combining affordable financing with minimal bureaucratic hurdles, is essential for nurturing entrepreneurship and industrial progress.