Policy Contributions

The findings of this study provide important implications for the national development of LDCs. A significant international trade deficit (i.e. export and import trade imbalance), high unemployment and a vulnerable economy are among the major challenges faced by many governments from LDCs. For policy makers, the findings clearly indicate that to promote exports, boost GDP through foreign revenue generation, and reduce the unemployment rate, it is critical to invest resources in an education system that is more entrepreneurial focused. Moreover, policy makers may introduce training courses for potential entrepreneurs who do not have prior entrepreneurial and industry-specific exposures. As noted earlier, a survey by McKinsey & Co (2011) found that among the most important capabilities of Bangladeshi apparel manufacturers are the provision of satisfactory quality products, increasing value- added services and delivering bulk order sizes, with 30% of the top US and EU buyers regarding these capabilities as critical. This implies that Bangladeshi apparel manufacturers need to develop their capabilities to provide superior and innovative products and to deliver high value-added services and large order sizes. Policy makers can play a critical role in providing support to develop these skills and capabilities through the introduction of dedicated education and training courses. In particular, they should prioritise the provision of education and training courses for potential entrepreneurs of BGF.

The findings of this study also have policy implications for understanding the significance of EO dimensions themselves (Vora et al., 2012). The findings stress the importance of founders/entrepreneurs’ risk-taking attitudes in expanding their business abroad from start-up. Evidence suggests that the Bangladeshi apparel exports remain highly concentrated in the EU and US regional markets (Ahmed et al., 2013; McKinsey & Co., 2011; World Bank, 2012). Moreover, the industry’s manufacturing and exports capabilities are largely confined to basic garments11 (World Bank, 2012). This implies that entrepreneurs need to diversify risks through product upgrading and market diversification (Haider, 2007). Policy makers in Bangladesh should encourage the existing and

Although this involves risk, policy makers can lessen the risk by providing relevant information related to unexplored international markets. Effective risk management involves information acquisition and exploitation since information can reduce risk during decision making (Keh et al., 2007). In particular, organising trade fairs and establishing trade missions in potential international markets can help entrepreneurs with this regard. Trade fairs are critical to firms since they “disseminate facts about services, products and personal, identify prospects, gather intelligence” (Wilkinson & Brouthers, 2006, p239). With regard to establishing trade mission, this initiative is appropriate for new and potential exporters in terms of information acquisition related to (potential) international markets and dissemination of acquired information (Wilkinson & Broughers, 2000). Governments can help internationalisation by recognising that start-ups may benefit from exposure to external sources of knowledge on international markets (Fernhaber et al., 2009). Therefore, policy makers in developing countries urgently need to target existing and potential entrepreneurs with the appropriate kind of support measures (Ibeh, 2004), so that they can develop strong EO. Since risk is a strong barrier that inhibits a firm’s willingness to engage in exporting, governments can mitigate the degree of perceived risks and provide a competitive platform for the potential and existing exporters through trade policies, market access initiatives, export opportunity awareness campaigns and policies to decrease export disincentives (Shamsuddoha, 2004).

With regard to national export promotion policies, this study highlights a number of policy specific implications. Policy makers can provide different sets of EPPS according to the needs of firms in different industries. Since EPPS requirements may vary from industry to industry, governments should tailor EPPS according to the needs of firms in different industries. To be competitive as a nation, industries must have capabilities to innovate and upgrade (Porter, 1990). It can be argued that firms in LDCs may not be able to develop such capabilities without the help of governments, since they are the key change agents in these countries. Policy makers should take into account Porter’s argument (1990) that a nation cannot be competitive in every industry. As in the case of Bangladesh with its focus on a selection of industries, this study suggests that policy makers in LDCs should focus on a few potential

UNCTAD (2012; p11), ‘‘LDCs need to formulate innovative industrial policies that are compatible with both their current conditions and requirements and the rapidly evolving global context’’. Consistent with the suggestion of Seringhaus & Botschen (1991), this study maintains that international entrepreneurs require more specific and tailored programmes and they should be involved in the process of designing EPPS.

Concerning the individual benefits perceived from the finance and guarantee-related EPPS, the findings indicate that half of them (i.e. cash subsidy, interest-rate subsidy, income tax rebate on export earnings and duty free import of machinery)12 were not to any great extent beneficial in the case of BGF. In contrast, almost all market-development related EPPS were found to be beneficial. However, two market-development related EPPS (i.e. technical and practical training programmes for the development of skilled manpower and to assist participation in overseas training programmes on product development and marketing)13 were found to be least beneficial. These items are highlighted because of their lower mean importance scores relative to others. These findings suggest that policy makers in Bangladesh need to adapt finance and guarantee-related EPPS. Financial incentives may be required in greater volume and for prolonged periods to provide the competitive edge for firms (Shamsuddhoha, 2004). Bannò et al (2014; p35) suggest that ‘‘as short-term financial support to SMEs may be ineffective (possibly leading to a market-distorting effect), a more successful support should focus on broader policies promoting SMEs’ capabilities and competencies’’. With regard to the two least beneficial market-development incentives, they may require some modification.

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