Culture and Entrepreneurial Self Efficacy: Comparative Analysis at Provincial Level in Pakistan

Authors

  • Muhammad Mansoor Ali Assistant Professor, Department of Economics, NUML, Islamabad, Pakistan
  • Hajra Ihsan Assistant Professor, Department of Economics, IIUI, Islamabad, Pakistan
  • Afia Mushtaq Assistant Professor, University of Management and Technology, Lahore, Pakistan

DOI:

https://doi.org/10.47067/reads.v7i2.356

Keywords:

Entrepreneurship, Role and Effects of Psychological, Emotional, Social and Cognitive Factors on Decision Making, Public Policy

Abstract

The debate about embeddedness of entrepreneurship in cultural dimensions has not found any conclusive theory but still there is ample evidence that culture has impact on intention of entrepreneurial activity. The culturally legitimate vocational choices affect the efficacy to make an entrepreneurial startup. This is directly linked with not only the economic activity but also for creating businesses with the available local resources. Entrepreneurial self-efficacy reflects the personal beliefs of individuals in their own abilities and regarding opportunity recognition and risk propensity. The study conducted the analysis by comparing entrepreneurs in four provinces of Pakistan (Punjab, Khyber Pakhtunkhwa, Sindh and Balochistan) and found significant differences in factors describing self-efficacy. MGCFA revealed the stability of the research instrument across the provinces thus factor loadings for different provinces can be compared. Entrepreneurs in Punjab have relatively stronger entrepreneurial self-efficacy in contrast with other provinces. The policy intervention should be reflective of the situation of each province, and public policy related to business environment should be more liberal while in other provinces supportive of entrepreneurs through institutional support to new business developers.

References

Bandura, A. (2012). On the functional properties of perceived self-efficacy revisited. Journal of Management, 38(1), 9-44.

Carter, N. M., Gartner, W. B., Shaver, K. G., & Gatewood, E. J. (2003). The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18(1), 13–39.

Chemin, M. (2008). Entrepreneurship in Pakistan: Government policy on SMEs. Environment for entrepreneurship, Internationalisation of Entrepreneurs and SMEs. 18(1): 13–39.

Chen, C. C., P. G. Greene and A. Crick. (1998). Does entrepreneurial self-efficacy distinguish entrepreneurs from managers? Journal of Business Venturing, 97(2): 295–316.

Collins, L., Hannon, P. D., & Smith, A. (2004). Enacting entrepreneurial intent: The gaps between student needs and higher education capability. Education Training, 46(8/9), 454–463.

Elster, J. (1989). Social norms and economic theory. Journal of Economic Perspectives, 3(4), 99–117.

Farah, S. A., & Ali, H. A. (2018). A Study on perception of business students on the future job market: A case study of Umma University. International Journal of Scientific Research and Management, 6(04), 274-281. https://doi.org/10.18535/ijsrm/v6i4.em06

Flora, Cornelia Butler. (2006). Are entrepreneurs born or made? Rural Development News, 4(28): 14-22.

Fritsch, M., & Wyrwich, M. (2018). Regional knowledge, entrepreneurial culture, and innovative start-ups over time and space - an empirical investigation. Small Business and Economics, 2(51), 337–353. doi:10.1007/s11187-018-0016-6.

Fuller, J., Liu, Y., Bajaba, S., Marler, L., & Pratt, J. (2018). Examining how the personality, self-efficacy, and anticipatory cognitions of potential entrepreneurs shape their entrepreneurial intentions. Personality and Individual Differences. 125, 120-125.

Gibson, D. (1991). Technology Companies and Global Markets: Programs, Policies and Strategies to Accelerate Innovation and Entrepreneurship. Rowman & Littlefield Publisher, Inc., Maryland. p. 43-50.

Global Entrepreneurship Monitor. (2011). Report on Pakistan. International Council for Small Business. p. 23-33.

Hair, J. F., Hult, G. T., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). California: Sage.

Hayes, T. and M. S. Malone. (2009). Entrepreneurs can lead us out of the crisis. Wall Street Journal, 8(2): A.15.

Lee, S. H., & Wong. P. K. (2004). An Exploratory Study of technopreneurial intentions: a career anchor perspective. Journal of Business Venturing, 19(1), 7–28.

McGee, J. E., Peterson, M. S., Mueller, L., & Sequeira, J. M. (2009). Entrepreneurial self-efficacy: Refining the measure. Entrepreneurship Theory and Practice, 33, 965–988.

Sarasvathy, S. D. (2002). Entrepreneurship as economics with imagination. Ruffin Series in Business Ethics, 26(3), 95-112.

Schumpeter, J. (1934). The Theory of Economic Development. Cambridge, MA: Harvard University Press.

Shane, S. (2003). A General Theory of Entrepreneurship. Cheltenham: Edward Elgar.

Stewart, W. H., & Roth, P. L. (2004). Data quality affects meta-analytic conclusions: A response to entrepreneurial risk propensity. Journal of Applied Psychology, 89(2), 14–21.

Townsend, D. M., Busenitz, L. W., & Arthurs J. D. (2010). To start or not to start: outcome and ability expectations in the decision to start a new venture. Journal of Business Venturing, 25(2), 192–202.

Turker, D., & Selcuk, S. S. (2009). Which factors affect entrepreneurial intention of university students? Journal of European Industrial Training, 33(2), 142–59.

Downloads

Published

2021-06-20

How to Cite

Ali , M. M. ., Ihsan, H. ., & Mushtaq, A. . (2021). Culture and Entrepreneurial Self Efficacy: Comparative Analysis at Provincial Level in Pakistan . Review of Economics and Development Studies, 7(2), 257-266. https://doi.org/10.47067/reads.v7i2.356