Developing Entrepreneurial Model for Pakistani SMEs: A Case Study PM Commercial Fast-food SMEs
This thesis has endeavored to develop an entrepreneurial model for Pakistani SMEs. While developing the model, the author has benefited from the experiences of successful entrepreneurs engaged in commercial fast-food sector. The research was conducted through a survey instrument, adopted from the validated questionnaires of the previous research. The instrument included 29 items. This study had a sample size of 257 and these individuals were successful commercial fast-food entrepreneurs. Data collected through survey was statistically analyzed and linear and stepwise regressions were used to test the research hypotheses. The results show that essentially four factors namely culture and environment, resources, innovation and opportunity are main factors of the profitability and business success in this sector. Therefore, favorable synergies ensuring availability of these determinants are required for the promotion and growth of the SMEs which will in turn induce economic growth in economy. It is further argued that seeking economic growth through the growth of SMEs sector is most appropriate strategy given the labor-abundant and capital scarce nature of the economy. The proposed model is analyzed through statistical and econometric techniques. The results so obtained validates theoretical model. The innovation factor turns out to be the most important factor, hence, the study concludes that entrepreneurial success is highly influenced by innovative behavior of the entrepreneurs but being opportunistic, a suitable culture and environment and sufficient resources are also needed for the success of a commercial fast-food SMEs. Extending this result, to the whole SMEs sector, it is maintained that entire entrepreneurial sector could be activated for the benefit of the economy. The results of the thesis are in general in conformity of the other similar studies undertaken in the western countries. It is recommended to conduct similar studies on other Pakistani SMEs sectors by benchmarking this study and the findings of this study must be incorporated in the SMEs policies and guidelines.