Development Economics

Report File

SUBMITTED By:
SARA-KANEEZ (048)
AMINA-IQBAL (043)
FATIMA-BATOOL (006)
FARAN Bin ZAHID (056)

SUBMITTED TO:
Dr Mamona Sadaf

“RELUCTANT
ENTREPRENEUR”
 “RELUCTANT ENTREPRENEUR”
 Introduction:
Entrepreneurship accounts for economic growth and a large share of total employment.
Entrepreneurs also work hard and invest in developing new ventures despite the overwhelming
obstacles they face. Research indicates that entrepreneurs’ persistence despite the general low
success rate of new ventures can be attributed to personal traits such as optimism, passion, the
need for autonomy, self-confidence, a willingness to take risks and internal locus of control (the
extent to which a person feels that they are in control).
This set of personal characteristics may be rightly attributed to entrepreneurs who deliberately
seek out business opportunities and have opted for entrepreneurship as a way to accomplish their
goals. However, these traits may fail to describe those people who become entrepreneurs only
reluctantly, mainly because they have no other choice. Most of these individuals, whose
numbers are growing, have been unable to find new jobs after having been salaried employees
for years.
“An entrepreneur is defined as “one who creates a new business in the face of risk and
uncertainty for the purpose of achieving profit and growth by identifying opportunities and
assembling the necessary resources to capitalize on them”
One who creates a new business in the face of risk and uncertainty for the purpose of achieving
constant income because he/she does not have a better alternative. The business is created by
identifying opportunities and assembling the necessary resources to capitalize on them.
Reluctant entrepreneurship, a phenomenon explored within the framework of our project, refers
to individuals who embark on entrepreneurial activities not out of a personal desire or choice but
rather due to a lack of viable alternatives for sustaining their livelihoods. These individuals often
face economic hardships, limited access to education, and constrained resources, compelling
them to start businesses as a means of survival. The concept of reluctant entrepreneurs sheds
light on the intersection of socio-economic challenges and entrepreneurship, highlighting the
circumstances that drive individuals to engage in business ventures despite lacking inherent
enthusiasm or aptitude for entrepreneurial pursuits. Our project delves into understanding the
factors influencing reluctant entrepreneurship, its impact on individuals and communities, and
potential strategies to support and empower these entrepreneurs in navigating the complexities of
their entrepreneurial journeys.
In our project, we're diving into the world of reluctant entrepreneurs—people who start
businesses not because they want to, but because they have no other practical choice. These
individuals face challenges like economic hardships and limited job options, pushing them into
entrepreneurship for survival. Our goal is to understand the complex factors driving reluctant
entrepreneurship, highlighting the struggles these individuals face, and exploring ways to support
them in navigating the challenges of starting and running a business.
Reluctant entrepreneurs find themselves at the crossroads of economic hardships, limited access
to education, and a lack of formal employment opportunities. Their entrepreneurial journey is
often marked by the absence of the conventional catalysts that drive many towards starting a
business—passion, vision, and an inherent aptitude for entrepreneurial pursuits. Instead, their
narratives are shaped by circumstances, where the compulsion to fend for oneself and one's
family outweighs the luxury of choice.
The contours of reluctant entrepreneurship lead us to scrutinize the socio-economic landscapes
where individuals face the stark reality of limited opportunities. The absence of stable
employment, coupled with inadequate resources, propels them towards entrepreneurship as a
survival strategy. Within this framework, the entrepreneurial journey becomes a means of
navigating economic uncertainties, overcoming obstacles, and carving a path toward sustenance.
This project endeavors to untangle the multifaceted web surrounding reluctant entrepreneurship.
It seeks to understand the nuances of this phenomenon, exploring the factors that push
individuals into this realm, examining the challenges they face, and unraveling the potential
avenues for support and empowerment. By delving into the narratives of reluctant entrepreneurs,
we aim to contribute to a nuanced understanding of the intersection between socio-economic
challenges and entrepreneurial pursuits, fostering insights that can inform policies, interventions,
and support systems to uplift and empower these individuals in their journey towards sustainable
livelihoods.
In our quest to understand entrepreneurship from a different perspective, we've dived into the
stories of 274 people who aren't starting businesses by choice but because they don't have many
other options - we call them reluctant entrepreneurs.
Think of it like studying different threads in a big story quilt. These 274 individuals come from
various backgrounds – different ages, places, jobs, and educations. Some are from Sialkot, some
from Cantt area, and others from places we might not expect. They studied things like business,
medicine, engineering, and more.
The survey we did helped us see how much money they make, what they studied, and how well
they're doing in school. Now, we're trying to understand what these folks think about starting
their own businesses.
From dreaming about starting a business to how they see mentors and friends affecting their
choices, we're digging into their thoughts. This study is like shining a light on the hidden corners
of entrepreneurship, especially for those who might not have chosen this path if they had other
good options. By looking closely at the details from our survey, we're not just learning about
reluctant entrepreneurs – we're also figuring out how to support and help them better. It's like
putting together a puzzle, and each piece is a story that can teach us something new. So, join us
as we unravel the tales behind reluctant entrepreneurship and find ways to make this journey a
bit smoother for those navigating it.
  Why there was a need to build a questionnaire:
In the context of our project, we have crafted a comprehensive questionnaire to look into the
intricate dimensions of reluctant entrepreneurship. As defined in "Poor Economics," reluctant
entrepreneurs are individuals compelled to engage in entrepreneurial activities not by choice, but
due to the lack of alternative viable options for earning a livelihood. Our questionnaire comprises
twenty insightful queries designed to capture various facets of individuals' perceptions,
experiences, and considerations regarding entrepreneurship.
Commencing with an exploration of personal inclinations, the questionnaire seeks to gauge
respondents' contemplation on initiating their own businesses, emphasizing the spectrum of
likelihood. Moving beyond individual preferences, we delve into broader perspectives,
examining beliefs about entrepreneurship as a viable avenue for improving livelihoods.
Subsequent sections scrutinize the entrepreneurial landscape from multiple angles, encompassing
aspects such as running a business, confidence in entrepreneurial skills, the influence of funding
accessibility, awareness of government support, and the potential alleviation of fears through
mentorship.
Moreover, the questionnaire delves into socio-cultural dimensions by exploring perceptions of
hindrances stemming from the lack of formal education, cultural expectations, and societal
norms. It further investigates the interplay between personal decisions and external influences,
such as peer pressure and family responsibilities, on pursuing entrepreneurial aspirations. The
significance of external factors, including the economic environment and bureaucratic hurdles, is
probed to assess their impact on entrepreneurial ventures.
In the latter segment, the questionnaire explores respondents' likelihood of participating in
entrepreneurial training programs, the observation of successful entrepreneurs within their
community or network, and the importance assigned to market demand in influencing decisions
to start a business. The final inquiry focuses on the proactive seeking of advice or guidance,
providing valuable insights into the level of initiative individuals take in preparing for
entrepreneurial endeavors.
Our questionnaire is like a compass guiding our project, helping us explore the world of reluctant
entrepreneurship. Crafted with care, it seeks to understand the thoughts and experiences of
individuals caught up in the complexity of starting a business out of necessity. With these
questions, we hope to uncover valuable insights that can shape strategies and policies, ultimately
supporting and empowering reluctant entrepreneurs on their distinct paths. This survey is the key
to unraveling their stories and contributing to positive change.
Ultimately, the questionnaire serves as a foundational tool to bridge the knowledge gap, fostering
a deeper understanding of reluctant entrepreneurship. By gaining insights into the lived
experiences of these individuals, we aspire to inform strategies, policies, and initiatives that can
make a positive impact on their unique entrepreneurial journeys.
  Empirical results and discussion:
A group of 274 Pakistani students took part in our research. The survey was filled from students
who belong to different universities. Through survey research we got to know about there
thinking and preferences regarding to “reluctant entrepreneurs”
1. Demographic Overview:
1. Emails: We collected responses from 274 individuals embodying the concept of reluctant
entrepreneurship.
2. Gender Distribution: Among the respondents, 56.9% identified as male, 42.3% as
female, and 0.7% preferred not to disclose their gender.
3. Age Range: The majority fell within the 18-25 age group, constituting 75.2% of the
respondents. There were smaller proportions in the 25-35 (20.1%), 35-50 (2.9%), and 50
and above (1.8%) age brackets.
4. District Representation: The respondents hailed from various districts, with significant
percentages from Sialkot (28.5%), Cantt area (15.7%), Sambrial (2.9%), Daska (5.1%),
and a substantial 47.8% from other districts.
2. Economic Landscape:
Income Levels: Participants represented diverse income levels, with 22.8% earning less than
10,000, 21.6% earning between 10,000-25,000, 22.4% earning between 25,000-50,000, 15.4%
earning between 50,000-100,000, and 17.8% earning above 100,000.
3. Educational Background:
I. Field of Study:
The respondents demonstrated varied academic backgrounds, with the majority having
studied Business Administration (39.1%). Other fields included Engineering (11.3%),
Computer Science/IT (12.1%), Medicine/Health Sciences (16.4%), and a range of other
disciplines.
II. Academic Achievements:
Current CGPA Distribution: The current CGPA distribution indicated a diverse academic
performance, with 2.4% below 2.0, 7.5% between 2.0-2.49, 32.1% between 2.5-2.99, 37.7%
between 3.0-3.49, and 20.2% between 3.5-4.0.
  Project Questionnaire Responses:
1. Entrepreneurial Consideration: 43.4% of respondents have considered starting their
own business, with 3.5% not at all likely.
i. Perception of Entrepreneurship: 46.4% believe entrepreneurship is a very likely
option for improving livelihoods.
ii. Current Business: 27.7% are very likely running a business, and 19.4% are not at all
likely.
iii. Confidence in Skills: 39.3% are very likely confident in their entrepreneurial skills.
iv. Impact of Funding: 37.6% are very likely to start a business if they have access to
funding.
2. Awareness and Support:
• Government Support: 28.7% are somewhat likely aware of government support for
entrepreneurs.
i. Mentorship: 40.7% believe mentorship from successful entrepreneurs would be very
likely to alleviate their fear of failure.
ii. Impact of Education: 36.9% very likely believe that a lack of formal education is a
hindrance to becoming an entrepreneur.
3. Social and Cultural Influences:
• Cultural Impact: 40.2% find it somewhat likely that cultural expectations discourage
entrepreneurial initiatives in their cultural group.
i. Social Network: 38.6% believe their social network is very likely to impact their
entrepreneurship.
ii. Family Responsibilities: 51% find family responsibilities somewhat likely to hinder
their entrepreneurial aspirations.
4. Perceived Success and Challenges:
• Success Perception: 44.2% very likely perceive entrepreneurship as a path to reaching
their career or financial goals.
i. Trust for Financial Support: 41.3% are very likely to be trusted by parents when
provided financial support.
ii. Peer Support: 36.9% find peer support very likely valuable in entrepreneurship.
5. Guidance and Networking:
i. Advice Seeking: 35.5% are very likely to actively seek advice or guidance on starting a
business.
ii. Impact of Established Networks: 38.1% find it very likely that access to established
entrepreneur networks would influence their interest in entrepreneurship.
This in-depth analysis provides a detailed understanding of the demographic, economic, and
attitudinal aspects of reluctant entrepreneurship. These insights will guide our project report,
allowing us to formulate targeted recommendations and interventions to support this unique
segment of entrepreneurs effectively.

 Hypothesis:
The main hypothesis tested in our project is whether:
✓ Entrepreneurial Engagement Hypothesis:
Hypothesis: Individuals expressing a high likelihood of considering entrepreneurship, as
indicated by positive responses in factors such as access to funding, awareness of government
support, and positive perceptions of market demand, are more likely to actively engage in
entrepreneurial activities and pursue the establishment of their own businesses.
✓ Mentorship and Cultural Influence Hypothesis:
Hypothesis: The likelihood of mentorship or guidance from successful entrepreneurs
alleviating the fear of failure, combined with a lower perception of cultural expectations
discouraging entrepreneurial initiatives, will positively influence individuals to overcome
barriers and actively pursue entrepreneurial ventures.