This paper analyzes the growth of entrepreneurship in Bangladesh in relation to its Government's privatization efforts. A survey instrument was designed to elicit opinions of entrepreneurs regarding the level of privatization and the growth of entrepreneurship. The instrument was designed in such a way that the responses were dichotomous. A Discriminant Analysis was then conducted in order to classify entrepreneurs and to determine the key variables responsible for privatization and the growth (or lack of growth) of entrepreneurship. Results indicate that the non‐availability of long‐term capital, the poor state of the economy, and excessive government regulation are the three most important explanatory variables for non‐privatization and lack of growth of entrepreneurship.
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