An Analysis of the issues and Constraints faced by Entrepreneurs in Pakistan

Abstract

The study focuses on “An analysis of the issues and constraints faced by entrepreneurs in Pakistan.” It is aimed at identifying the roots of entrepreneurship in Pakistan. This analysis then proceeds to uncover the opportunities that exist for new entrants trying to setup their own businesses. The research instrument used in this study is a questionnaire. Two groups of respondents were used; first the fresh graduates aspiring to become entrepreneurs and second the graduates who were already in this line of action. The result indicated that most of the respondents were reluctant to start their business because of multiple factors like risk involvement, financial problem, good salary, lack of experience and good job prospective in the future etc. Most of the respondents think that Pakistani environment is good for the business but government does not extend support for the entrepreneurial activities in the country. Current entrepreneurs are also facing a numbers of problems such as financial problem, regulations, oppressive role of regulatory authorities, lack of information and corruption etc. Among the various problems, corruption is the biggest. It is the main hurdle in the establishment of entrepreneurial culture in the country. People have lack of belief on the government role. Hence, to develop an entrepreneurship culture in the country, the system of incentives (laws and policies) that promote rent seeking will have to be dismantled. This thesis presents an understanding of the state of entrepreneurship prevailing in Pakistan and provides an understanding of the kinds of reforms that are required to develop entrepreneurship.