Factors Responsible for Low Inclination towards Entrepreneurship in the Public Sector Institutions of Pakistan

Abstract

Entrepreneurship is of great deal of importance and interest all over the world. For developed countries, this new venture formation results in revitalizing the economy, catalyst of technological innovation and change, means of employment and incubator of market and product innovation. For developing countries, it can be taken as means of job creation, engine for economic progress wealth creation and reducing the social differences. Hence, small business enterprises and entrepreneurship is widely encouraged by the governments who make such policies so as to ensure economic growth and entrepreneurship encouragement. This article presents research on factors which influence the inclination of taking entrepreneurship as a career choice among the business graduates in Pakistan. Entrepreneurship can be taken as means to overcome unemployment and improving social status. This study is conducted from business graduates in the three cities of Pakistan; Islamabad, Lahore and Bahawalpur from HEC recognized institutes which were taken as a sample. The information to be collected on  variables ranges from determining simply the presence or absence of a variable to ranking the variables on a given scale depending upon the nature of the variable. Our study is Descriptive and Exploratory nature and Z-test Analysis was carried out in order to unearth the relationship between hypothesized Factors i.e., lack of innovation and creativity, lack of risk tolerance, lack of resources, unsupportive social environment, lack of support from self – employed people, the lack of promotion of self – employment from teachers, lack of entrepreneurship education, low number of self – employed parents, lack of required human skills, long working hours  and will discuss how these variables affect to the low inclination towards entrepreneurship in business students of Pakistan. The present youth of Pakistan is showing a very low inclination towards entrepreneurship and hence, the trend is declining rather than to augment. There is only a small proportion of current business students which are interested in doing their own business. A vast majority is still planning their career to become employees in organizations.