Bangladesh is a newly graduated developing country that has made significant progress in electrification over the last decade. As a result, almost 99 % of this country's people have access to electricity, which has helped to grow local entrepreneurship by engaging in different socio-economic businesses. This study investigates the role of the electrification process of Bangladesh in promoting entrepreneurship based on time-series data from 1980 to 2020. Using the Autoregressive Distributed Lag (ARDL) method, this study establishes the significant role of the electrification process in developing entrepreneurship proxied by banks' domestic credit to the private sector (% of GDP) in the context of Bangladesh. In addition, foreign direct investment (FDI) and innovation also positively influence entrepreneurship, while the polity factor is not conducive to entrepreneurship development in Bangladesh. Therefore, the optimal level of the electrification process is critical in developing entrepreneurship to continue the spectacular growth rate of Bangladesh.