Correlation between Business Environment and Entrepreneurial Development: A Study of Entrepreneurship in Emergin Capitalistic Market of Balochistan

Dostain k Jamaldini


This paper studies the correlationsa between business environment and entrepreneurial orientation in an emerging capitalistic market. The city of Quetta in Pakistan was chosen for the study, which as an emerging individualistic market and is in its transition from traditional tribal and deudalistic socio-economic relations. Interview with the owners of 62 micro-firms of the district on predetermined questionnaire has been used as medium of collecting survey data. Five factors/ characteristics with entrepreneurial  orientation/development were identified which are Risk-taking, Pro-activeness, Innovativeness, Autonomy, and Aggressive economy of Quetta. These are Hostility, Dynamism, and Uncertainty. Three hypotheses were developed and tested by using canonixcal correlation model. It is considered  that entrepreneurial orientation is shaped by the environmental factors and this is true particularly in an emerging transition economy. Thus, it is emphasized that interrelationship exist between business  environmental forces and the entrepreneurial development of micro-entrepreneurs. The study finds that the factor of uncertainty which is induced by external factors as well as perceived by the entrepreneurs themselves as a main characteristic, is focus of entreneurial research and policy-making. Thus, all SME institutions and donors, including Non Government Organizations, should formulate policies that target improvement of business environment and creation of stimulating and predictable condition for the small business during the transition.

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