Master of Science in Economics
Department of Economics
Date of Award
Dr. Mohammad Nishat
Dr. Farooq Pasha
Committee Member 1
Dr. Mohammad Nishat, Institute of Business Administration, Karachi
Entrepreneurial and Small Business Operations
This thesis develops a preliminary profile for entrepreneurs in order to determine which factors inﬂuence the decision to opt for entrepreneurship, and whether they vary across selected countries. The model takes perceptual factors into account, in addition to the traditional demographic variables which dominate the literature. A pooled dataset of 69 countries - surveyed in 2010 and 2011 by the Global Entrepreneurship Monitor (GEM) — is utilized, with similar sets of economies classiﬁed as being either factor-driven, efﬁciency—driven or innovation—driven. The data is analyzed in several stages: first, a probit model is run on the entire dataset, referred to as the “global sample". Then, similar results are estimated on a sample consisting of observations from Pakistani respondents only, referred to as the "Pakistan sub-sample", and Bangladeshi respondents only , referred to as the “Bangladesh sub-sample". The results are also extended to the grouping of factor- driven economies - which are at similar stages of economic development — referred to as the "factor-driven sub-sample“. A comparative table juxtaposes choices concerning entrepreneurship in Pakistan, neighboring Bangladesh, factor-driven economies and the world in general. The results indicate that, globally, there is a quadratic (non-linear) relationship between age and entrepreneurial inclination, women are on average less likely to pursue entrepreneurship than men, and individuals who are already doing paid work are likelier candidates to turn entrepreneur. Among the perceptual variables, three variables — opportunity awareness. personally knowing an entrepreneur, and self-confidence in one‘s own knowledge, skills and abilities — increase the likelihood of a person turning entrepreneur, whereas the fear of failure reduces this probability. By comparison, for Pakistan, factors like age and gender have less importance, whereas perceptual variables like personally knowing an entrepreneur and self-conﬁdence are correlated with the decision to pursue entrepreneurship.
Nadeem, T. (2015). What influences the decision to opt for entrepreneurship? (Unpublished master's thesis). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/etd/51
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