Problems of Small Entrepreneurs

Abstract

This thesis is designed to discover the problems faced by entrepreneurs of micro (5-9 employees), small (10-35 employees) and medium sized (36-99 employees) firms in Pakistan. Efforts were made to determine the problems resisting new entrants and difficulties of present entrepreneurs which are resisting them to grow and expand their enterprises. The research was based on a survey of 100 small entrepreneurs in Pakistan, and covered the four major cities of Islamabad, Lahore, Rawalpindi and Karachi. The sample comprised of entrepreneurs from a variety of sectors. The research was conducted by distributing questionnaires and at the same time conducting short informal interviews. The research revealed that Finance and access to finance was the biggest problem. Law and order situation, Infrastructure problems, Tough regulations and corruption are also negatively affecting small businesses. The recommendations of the research are to reform regulations, strengthen rule of law, engaging private sector in policy making, assisting skill and knowledge development and linking large and small firms.