BS (Social Sciences & Liberal Arts)

Faculty / School

School of Economics and Social Sciences (SESS)


Department of Social Sciences & Liberal Arts

Date of Award

Spring 2023

Date of Submission



Dr. Aadil Nakhoda, Assistant Professor, Research Fellow at CBER

Project Type

SSLA Culminating Experience

Access Type

Restricted Access


The present thesis explores the significant issue of financial constraints encountered by startups in Pakistan's burgeoning entrepreneurial landscape. As the country witnesses a surge in entrepreneurial activities, startup enterprises play a pivotal role in fostering innovation, economic growth, and job creation. However, limited access to financial resources has emerged as a formidable challenge hindering their sustainable growth and survival.

This research adopts a mixed-method approach, combining qualitative and quantitative analyses to comprehensively investigate the multifaceted nature of financial constraints. Firstly, an extensive literature review sheds light on the theoretical underpinnings and global experiences of startup financing, enabling a contextual understanding of the phenomenon. Subsequently, qualitative interviews with startup founders, investors, and financial experts provide insightful perspectives on the ground realities faced by Pakistani startups.

The findings reveal several key factors contributing to financial constraints, including a lack of formalized financial systems, risk-averse investors, bureaucratic hurdles, and limited entrepreneurial experience. Moreover, the research identifies potential solutions to alleviate these constraints, such as government support, improved financial literacy, and strategic networking opportunities.

This study contributes to the growing body of literature on startup financing challenges, particularly in the context of Pakistan, and offers valuable insights to policymakers, investors, and entrepreneurs seeking to enhance the ecosystem for sustainable startup growth. By addressing these financial constraints, Pakistan can unlock its entrepreneurial potential, fostering a thriving startup ecosystem in the country.



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