Structural Analysis of Barriers Faced by Entrepreneurships in Pakistan

Abstract

The study aims to expound and analyze the barriers faced by entrepreneurship in Pakistan. The design of the study is a review of the literature, primary data curation, modelling, and analysis of the phenomenon. The methodology is Interpretive Structural Modeling (ISM) and Matriced' Impacts Croise's Multiplication Appliquée a UN Classement (MICMAC). The population understudy is the current and prospective entrepreneurs and all other stakeholders in entrepreneurship. The sampling design of the study is the non-probability-based type of focus group (i.e. a panel of experts purposively selected in the context of the study). Data are collected through a matrix-type questionnaire in the field setting. The literature discourse results show that twenty-five major barriers hamper entrepreneurship in Pakistan. The results of ISM show that the barriers namely low initial profit, lack of formal guidelines, long startup time, lack of good curriculum, lack of self-efficacy, lack of formal learning, lack of structural support, lack of entrepreneurial institutes, lack of awareness, lack of interest, conservative corporate social norms, lack of capital cost, lack of entrepreneurs, lack of government interest, gender biases occupy Level I of the ISM model. High operating costs, corporate culture of the country, operational and market risk, lack of perceived desirability, and lack of public concerns occupy Level II. Lack of innovation, lack of support for start-ups, and lack of resources occupy Level III. Lack of academic courses related to entrepreneurship and lack of support for entrepreneurship occupy Level IV. Whereas, the barrier namely lack of academic courses related to entrepreneurship occupies Level V. Results of MICMAC show that lack of public concerns and gender biases fall in the autonomous cluster. Lack of formal learning, lack of entrepreneurial institutes, lack of awareness, lack of entrepreneurs, conservative corporate social norms, and lack of capital cost fall in the dependent cluster. Lack of innovation, low initial profit, lack of formal guidelines, long startup time, lack of good curriculum, lack of self-efficacy, lack of structural support, lack of interest, lack of support for start-ups, lack of support for entrepreneurship, lack of perceived desirability and lack of government interest fall in the linkage cluster. The lack of academic courses related to entrepreneurship, high operating costs, the corporate culture of the country, operational and market risk, and lack of resources fall in the independent cluster. This is an original study based on realistic primary data. The results of the study provide deep insights to the stakeholders by way of identification, classification, hierarchicalization, and prioritization of the barriers that have profound practical and theoretical implications.

Keywords

Barriers, Entrepreneurship, Pakistan, MICMAC, ISM, Modelling