Effect of ecommerce generating young entrepreneurs in bangladesh(mkt 470)

Mehedi Hasan, Mst. Sabina, Chowdhury Shibli, Md Shawon, Samiha Anis 1
Course Code: MKT 470; Marketing Research
Section: 5; Semester: Fall 2020
"Effect of e-commerce for generating young entrepreneurs in
Bangladesh."
Submitted to:
Mr. Syed Kamrul Islam
Senior Lecturer, Department of Marketing
School of Business & Economics
Submittedby: Group 8
Name ID
Md Shawon Hossain Khan 1631202630
Chowdhury Shibli Maruf 1421456030
Mehedi Hasan Polash 1620850030
Mst. Sabina parvin 1330122030
SamihaAnis 1631889630

Executive Summary
Internet is changing the way people do business, from retail to service; everything has been
changed rapidly comparing the last twenty years just because of electronic commerce or E-
commerce. Not just how business deal with customers but also business functions, marketing, and
logistics has been changed too.
As an emerging economy country, Bangladesh's government has also introduced several programs
and provides various facilities to encourage the adoption of technology in different sectors like e-
commerce in order to take advantage of opportunities in the growth of the economy. E-commerce
is totally dependent on the internet; the figure of internet users has expanded from 3.2 percent to
12 percent in the last ten years. An extra 2.6 percent increase in GDP because the young generation
is adapting to the internet. E-commerce has a strong influence in that 2.6 percent increase in GDP.
Retail e-commerce is growing at 72 percent a month. At present, more than 35,000 individuals and
above 25,000 small and medium enterprises (SMEs) are part of this sector.
Our goal is to identify whether the e-commerce industry's current market is motivating young
people to create a new business. As the demand for online market service is increasing, it’s also
opening opportunities for young people. As it’s more convenient than regular shopping, people
are willingly paying for it and attracting new investors. We’ve selected three hypotheses and
created independent and dependent variables to prove the hypothesis is correct or not. We’ve run
the Chi-square test, ANOVA, to find multiple variable links. A paired sample T-test was also
conducted to know any correlation between two variables.
As the research was solely based on primary data, we’ve tried our best to get as many respondents
as possible. However, total fifty-four respondent has been joined this survey. The survey
questionaries were set to answer three selected hypotheses with the help of dependent and
independent variables. All of the hypothesis was not accepted; unfortunately, the topic we have
selected has not been proved. We get a result that not only the young generation is moving towards
e-commerce but also median age category people adapting to the industry.

Contents
Introduction ..................................................................................................................................................4
Objective.......................................................................................................................................................5
Methodology.................................................................................................................................................5
Scope.............................................................................................................................................................5
Limitations ....................................................................................................................................................5
Data Analysis and Interpretation..................................................................................................................6
Demographic Analysis...............................................................................................................................6
Gender: .................................................................................................................................................6
Age Group:............................................................................................................................................6
Profession: ............................................................................................................................................7
Region ...................................................................................................................................................7
Data Analysis.............................................................................................................................................8
Testing and Analyzing the Hypotheses.....................................................................................................8
Chi-Square Test.....................................................................................................................................8
Multiple Regression: .................................................................................................................................9
ANOVA ........................................................................................................................................................10
Paired Sample T-Test ..................................................................................................................................12
Recommendation and Conclusion..............................................................................................................13
References ..................................................................................................................................................14
Appendix .....................................................................................................................................................14

Introduction
Electronic Commerce or E-commerce is changing the traditional way of doing business and
transaction. The purpose of e-commerce was to create efficiency for suppliers or sellers in the
marketplace and provide convenience to the customers, but it has gone further. Now, most of the
transaction, selling, and buying process becomes faster than we previously thought. It started in
2009 when the government supported plans to empower online electronic commerce by agreeing
to Bangladesh's E-CAB, the E-Commerce Association of Bangladesh. According to E-CAB.There
are currently around 500 websites and 2000 Facebook companies registered on E-CAB.
Only Chinas’ largest e-commerce site Alibaba makes $570 billion alone, which is more than the
GDP of whole Argentina ("Company as an economy: Alibaba aims to be No 5 by 2036", 2021).
The opportunity is huge, e-commerce can not only eliminate the problem of unemployment but
also can offer a better lifestyle for people.
The currentlargest E-commerce platform in the country, Daraz Bangladesh, has the highest number
of small entrepreneurs. According to the data, until May 2020, around 30,000 SME’s are registered
to the platform, and most of them are solely online-based (Express, 2020). And the self-claimed
number 1 e-commerce site of the country Evaly.com.bd, has 15,000registered merchants.
Nowadays, Facebook pages and groups are used as business platforms; according to the E-
Commerce Association of Bangladesh (e-CAB), there are 10,000 plus e-commerce pages
(including registered and non-registered) on Facebook running a business operation ("How small
businesses use Facebook to promote products and services," 2018). But according to recent data
published by the renowned business newspaper “The Financial Express,” at present, there are
approximately 2,000 e-commerce sites and 50,000 Facebook-based outlets delivering almost
30,000 products a day. And the numbers are surprisingly increasing.

Objective
Our objective is to see if the industry is influencing to enhance the ecosystem to create new
business and young people are adapting to it. The study is based on primary information.
Objective Methods
Effect of e-commerce for generating young
entrepreneur in Bangladesh
Primary Data: Survey on different
demographic groups, how many of them are
chosed to do online-based business.
Methodology
There’s no journal or article available on this topic; also, no one has published a similar topic based
on e-commerce. Because of that, the research was conducted based on primary data. So, we have
to rely on primary data solely. An online survey has collected the preliminary data on a google
form.
Scope
After the study, we will have a few significant scopes for further research to focus on as follows:
➢ What are the factors for online business growth in Bangladesh?
➢ Why still e-commerce sector entrepreneurs only growing from urban areas?
➢ What are the issues that keep some people away from investing in e-commerce?
➢ Does online Business decrease the unemployment rate of Bangladesh?
Limitations
We live in a country where finding information is challenging. The number of research that has
been conducted every year is extremely limited. In a country with a 167.6 million population,
we’ve only one reputed journal publication site (Banglajol.com) with around forty-four published
papers, and none of them is related to e-commerce. Also, some organization does not update their
data on a regular basis. That’s the reason we aren’t able to give a brief comparison based on
secondary data. Thus we’ve to rely on our primary data findings.

Collecting primary data requires time and resources; it’s hard to find people who want to take a
free survey. As we do not get any investment or budget for the paper, we could not offer something
in return. So, primary data collection took a long time with a small number of respondents. This
inefficient number of data might lead to a bad result.
Also, it’s hard to complete all the tasks carefully in a short time. And it’s a new type of business
which was never experienced.
Data Analysis and Interpretation
Demographic Analysis
The demographic data has been collected from a total number of 37 respondents. The respondents'
demographic backgrounds have been identified based on their gender, age group, current
occupation, and living area. The graphical representation of each of this category is shown below:
Gender:
We got a well-balanced ratio of gender from the respondents. 68.5% were male, and 31.5% were
female respondents.
Age Group:
The respondents were segmented based on four categories of age group. Out of the fifty-four
respondents, twenty-five respondents fall within the range of 18-25 years category (46.3%),
twenty-two respondents fall within the 26-30 years range (40.7%), five respondentsfallsunder the

31-40 years age group (9.3%), and finally, two respondent belongs to the 41 and above range
(3.7%) group. The result chart is shown below:
Profession:
Among the fifty-four respondent, twenty was student, seventeen was involved solely on business,
twelve respondent was doing both, and five respondents are unemployed.
Region
According to the survey result, about 81.1% of the respondent are from Dhaka city. Chittagong
ranked the second highest with a score of 13.5%. 2.7% of respondents are from Rajshahi and
Sylhet. No respondent from Khulna, Barishal, and Rangpur.

Data Analysis
Hypotheses
H1= Higher Profitability is related to moving towards eCommerce
H2= Availability of online platforms is positively related to creating a new e-
commerce
H3= Young generation are more inclined towards online business
Testing and Analyzing the Hypotheses
Chi-Square Test
The hypothesis to be proved = H1= Higher Profitability is related to moving towards
eCommerce
Independent Variable, IV = Online business is more profitable compare to offline
Dependent Variable, DV = Day by day online business is increasing
A Chi-square test is carried out to show that if the E-commerce website provides detailed
information regarding the more online platform, then the more online business with a social media
platform. The following result has been generated:

More online platform * Online profitability Crosstabulation
Count
Online profitability
Total
1 2 3 4 5
More online platform 1 1 0 0 0 0 1
2 0 1 2 1 0 4
3 1 3 12 12 3 31
4 0 1 6 5 6 18
Total 2 5 20 18 9 54
Chi-Square Tests
Value df Asymptotic
Significance (2-
sided)
Pearson Chi-Square 33.542a 12 .001
Likelihood Ratio 14.788 12 .253
Linear-by-Linear Association 8.055 1 .005
N of Valid Cases 54
a. 15 cells (75.0%) have an expected count less than 5. The minimum expected
count is .04.
The p-value is less than 0.05, so that our hypothesis is proved. It indicates that if e-commerce is
increasing day by day and therefore, online business is more profitable compare to offline.
Multiple Regression:
✓ To provide more substantial ground to our H2, we have conducted a T-test as well to prove this
hypothesis: Availability of online platforms is positively related to create a new e-commerce
Independent Variable, IV = E-commerce & Social media platforms are flooded with e-
commerce pages gradually.
Dependent Variable, DV = People choose online because it is easy to buy from them.
A Multiple Regression has been carried out to show that if E-commerce is increasing day by day
or not. The following result has been generated

The model summary shows the R (correlation coefficient) and R2
values, indicating what the
Independent Variables can explain the proportion/percentage of the Dependent Variable.
Here the significant value is .125, which is less than the p-value. It proves our hypothesis 2. Due
to having so many online pages, it is more convenient and more accessible.
ANOVA
The hypothesis to be proved = H3 = Young generation are more inclined towards online Business
The ANOVA test shows that the overall significant value of .125 is greater than the p-value.
Suggesting the hypothesis 3 is not proven. It means the online business is not for only the
young generation. Everyone of all ages can start an online business.
ANOVAa
Model Sum of
Squares
df Mean
Square
F Sig.
1 Regression 4.452 2 2.226 2.170 .125b
Residual 52.307 51 1.062
Total 56.759 53
a. Dependent Variable: Easy purchase online
b. Predictors: (Constant), More online Business with Social Media Platforms, More
online platform

Coefficients
a
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
95.0%
Confidence
Interval for B
B
Std.
Error Beta
Lower
Bound
Upper
Bound
1 (Constant) 2.343 .739 3.170 .003 .859 3.827
More
online
platform
.303 .161 .261 1.877 .066 -.021 .626
More
online
Business
with Social
Media
Platforms
.053 .130 .056 .407 .686 -.208 .314
a. Dependent Variable: Easy Purchase Online

Paired Sample T-Test
A Paired Sample T-test has been carried out to show that an online business is more profitable
than offline. The following result has been generated:
Independent Samples Test
Levene's
Test for
Equality of
Variances t-test for Equality of Means
F Sig. t df
Sig.
(2-
taile
d)
Mea
n
Diffe
rence
Std.
Err
or
Diff
ere
nce
95% Confidence
Interval of the
Difference
Lower Upper
Increasin
g Online
Business
Equal
variances
assumed
40.87
3
.000 -
3.55
2
9 .006 -
2.278
.641 -3.728 -.827
Equal
variances
not
assumed
-
1.51
1
1.0
19
.369 -
2.278
1.50
7
-20.593 16.037
As the result shows, the p-value is less than 0.05. Hence, our hypothesis has been proved
which means online business is more profitable compared to offline so that is why higher
profitability is positively related to moving towards e-commerce.

Recommendation and Conclusion
W’ve findout that there’s multiple reason that people are moving towards E-commerce. As we
wanted to know that is there any effect of e-commerce creating young entrepreneurs in our country,
we can’t totally conclude that e-commerce is only creating new young entrepreneurs. Thus it’s
also pushing our last generatinhg through e-commerce. Profitibility, availability and popularity of
e-commerce was the reason for that. As we considered 18-25 as young generation group, we also
see that 26-30 age group is also highly moving through e-commerce.
According to our three hypothesis test, profitability and availability of online platforms are
positively related to create new entrepreneurs. But when we’ve run annova test for age group with
multiple variables, our hypothesis has been rejected. So, we can conclude that e-commerce is not
creating young entrpreneurs in Bangladesh but also older generation is adapting to e-commerce
sector.
In Bangladesh the ratio of young people is nearly 20% of the population("Population trends",
2021). Young people between the ages of 18-25 years old can make up to 80% of total GDP if we
can implement a better strategy with a ecommerce friendly environment.
As survey is giving a good indication that people are adapting to e-commerce business even the
older age group of 26-30 . Government need to focus and invest in this sector. Our entrepreneurs
need to grow not only domestically but also globally and the e-commerce is the most effective way
to do that is E-commerce. A single e-commerce site can generate more than a country’s gdp if the
industry is taken care by experts and policy makers.

References
Company as an economy: Alibaba aims to be No 5 by 2036. (2021). Retrieved 13 January 2021,
from https://www.scmp.com/business/companies/article/2097691/alibaba-aims-become-
fifth-largest-economy-2036
Express, T. (2020). Daraz Seller Moitree Program commits to stand by 30,000 entrepreneurs.
Retrieved 1 December 2020, from https://www.thefinancialexpress.com.bd/trade/daraz-
seller-moitree-program-commits-to-stand-by-30000-entrepreneurs-1589024592
Express, T. (2020). E-commerce in Bangladesh: Where are we headed?. Retrieved 1 December
2020, from https://www.thefinancialexpress.com.bd/views/views/e-commerce-in-
Bangladesh-where-are-we-headed-1578666791
How small businesses use Facebook to promote products and services. (2018). Retrieved 1
December 2020, from https://www.dhakatribune.com/business/2018/01/09/small-
businesses-use-facebook-promote-products-services
Population trends. (2021). Retrieved 13 January 2021, from
https://bangladesh.unfpa.org/en/node/24314
Appendix

Effect of ecommerce generating young entrepreneurs in bangladesh(mkt 470)

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