rashid final thesis
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Military Rule in pakistanTRANSCRIPT
TABLE OF CONTENTS
INTRODUCTION........................................................................................................................4
1.1 Background of the Study.................................................................................................4
1.2 Statement of Problem....................................................................................................5
1.3 Significance of the Study.................................................................................................6
1.4 Limitations of the Study..................................................................................................7
1.5 Importance of the Study.................................................................................................7
Chapter 2..................................................................................................................................8
Literature Review.....................................................................................................................8
2.1 Schools of Entrepreneurship Thought............................................................................8
2.2 Entrepreneurial Trait School of Thought........................................................................8
2.3 Environmental School of Thought..................................................................................9
2.4 Entrepreneurial Events approach...................................................................................9
2.5 SME contribution............................................................................................................9
2.6 The United States of America.........................................................................................9
2.7 The United Kingdom and the European Community....................................................10
2.8 The Republic of South Africa.........................................................................................10
2.9 People’s Republic of China............................................................................................10
2.10 Islamic Republic of Pakistan........................................................................................11
SUMMARY OF THE LITERATURE REVIEW................................................................................13
Chapter 3................................................................................................................................14
Research Methodology...........................................................................................................14
3.1 Types of Research Employed........................................................................................14
3.1.1 Qualitative Research..............................................................................................14
3.1.2 Quantitative Research...........................................................................................14
3.2 The Research Method: Survey......................................................................................14
3.3 Sampling Strategy.........................................................................................................15
3.4 Interviews from Different Entrepreneurs.....................................................................15
3.5 Data Collection Procedures...........................................................................................15
3.6 Data Documentation and Storage................................................................................15
3.7 Questionnaire Distribution...........................................................................................16
3.7.1 Personal Characteristics of the Owner (1 item).....................................................16
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3.7.2Availability of Outside Assistance (6 items)............................................................16
3.7.3Motivation (4 items)...............................................................................................17
3.7.4Strategic Management (3 items)............................................................................17
3.7.5Marketing Policy (1 item)........................................................................................18
3.7.6 Financial Management (1 item).............................................................................18
3.7.7Market Characteristics (5 items).............................................................................18
3.8 Data Analysis Procedure...............................................................................................18
Chapter 4................................................................................................................................19
Data Analysis and Findings.....................................................................................................19
4.1 Descriptive Statistics.....................................................................................................20
4.1.1Age..........................................................................................................................20
4.1.2Gender....................................................................................................................21
4.1.3 Education...............................................................................................................21
4.1.4 Business Age..........................................................................................................21
4.1.5 Monthly Income.....................................................................................................22
4.1.6 Personal Characteristics of Owner.........................................................................22
4.1.7 Availability of Outside Assistance..........................................................................23
4.1.8 Motivation.............................................................................................................23
4.1.9 Strategic Management..........................................................................................23
4.1.10 Marketing Policy..................................................................................................23
4.1.11 Financial Management........................................................................................24
4.1.12 Market Characteristics.........................................................................................24
4.2 Pie Charts:.....................................................................................................................25
4.3Correlations...................................................................................................................26
4.4 Discussion of Correlations Found Between Different Variables....................................30
Chapter 5................................................................................................................................33
Conclusion and Recommendations........................................................................................33
5.1 Conclusion....................................................................................................................33
References and Citations........................................................................................................36
Web References.....................................................................................................................39
Appendix A.............................................................................................................................40
Final Questionnaire................................................................................................................40
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CHAPTER 1
INTRODUCTION
1.1 Background of the Study
It is quite evident from the world economy overview that it continues to shift toward
increased integration because of advances in communications technology, growth in
developing countries, and reductions in trade barriers, some of the greatest
opportunities for small businesses will derive from their ability to participate in the
global marketplace. Within the developed and developing countries of the world, it is
now generally accepted by policy-makers at local, regional and national level, that
small-to- medium sized enterprises (SMEs) are becoming increasingly important in
terms of employment (Nieman, Hough and Nieuwenhuizen, 2003; Vesper, Boden,
and Roman in Carland, Carland and Ciptono, 1999).
On the other hand, there are considerable doubts about the quality of management in
this sector, with policy-makers suggesting that there are particular weaknesses in
innovation, marketing, entrepreneurial flair, practical knowledge, and human resource
management (Hodgetts and Kuratko, 1995). As a result, many firms do not reach their
full potential and fail to grow, resulting in lost jobs and wealth for their region in
which they are based.
A closer look at the organizational life cycle theory models reveals that there are
between three to five stages that most organizations will go through. The Model
proposed by Churchill and Lewis (Timmons, 1990) suggests that four critical stages
exist in the life of a Small Entrepreneur where the stages are determined by the length
of time the firm has been operative. Stage 1 is the start-up phase and is 0-3 years in
duration; Stage 2 is the growth phase and is 4-6 years in duration; Stage 3 is the
maturity phase and is 6-9 years in duration; and Stage 4 being the stability phase is
approximately 10+ years in duration. Coupled to each of these stages is a different set
of business characteristics, challenges, managerial abilities and entrepreneurial needs
that small businesses will have to face (Kuratko and Hodgetts, 1995).
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On the other hand in context of Gilgit city the external environment and internal
environment are also directly connected with the Small entrepreneurs especially the
external environment. Author aims to comprehend as to; how these shifts will impact
upon their organizations, and position their organizations accordingly. Research
informs us that the major reason for small firm failure is poor management of the
business as well as the political and sectarian issues in Gilgit city which leads to fails
in growth of business.
The early stages are of particular importance to the small business since
Stage 1 has a very high failure rate
Stage 2 (the growth stage). It is during this growth phase that a small business
usually needs to make critical decisions that affect its future and it is for this
reason that this study seeks to investigate the growth phase in the life of a
SME. In this regard,
Hall (1995) has identified certain factors which he regards may support future success
in this stage. These factors include personal characteristics of the owner; availability
of outside assistance; motivation; strategic management; marketing policy; financial
management; market characteristics.
This research project will seek to investigate the extent to which small firms engage in
management practice to ensure its future survival from the introductory phase to the
growth phase. By identifying firms who find themselves in the growth phase having
defied the high failure rate of the introductory phase, we may examine the various
functional areas of management (Megginson, Byrd and Megginson, 2003) and the
extent to which these small firms engage in these areas will be examined together
with other areas highlighted.
1.2 Statement of Problem
The main problem which author endeavored to address in this research paper is to
explore the main issues that small entrepreneurs face in Gilgit city. There are some
soul issues in Gilgit city that hindered the small entrepreneurs to run their business
smoothly.
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1.3 Significance of the Study
From a Pakistani perspective, the importance of small-to-medium sized enterprises in
contributing to national wealth is critical. At the time of conducting this research, the
Pakistani economy was growing at a rate of 3.56% per annum (2012) whilst the
population was growing at a rate of 1.80% per annum (2012). For Pakistan to
maintain its existing level of wealth, it is generally accepted by economists that the
economy needs to grow at twice the rate of its population growth rate per annum.
Various strategies can be formulated by government and business aimed at achieving
this growth rate but the need to stimulate the growth of small-to-medium sized
enterprises is widely acknowledged as having the best potential to achieve the
required growth (DTI, 1995). For this reason, policy-makers need to seriously look at
the growth potential of Small entrepreneurs. With this in mind, there is a need to:
Undertake a detailed examination of the management of small firms with
respect to the linkages between the owner-manager; their competencies
(experience and expertise); the resources available to the firm and the
management of these internal and external resources; and the effect of the
external environment and how the entrepreneurs manage change;
Understand the regional context of the development of small firms in a minor
region and the problems specific to such firms;
Examine how policies could be improved to make small businesses more
efficient and effective in their management techniques, to address their
weaknesses and build on their strengths.
Despite many studies in this area of Gilgit-Baltistan, there is still a lack of
understanding regarding the processes of management of small firms within the
Pakistani context. In particular, there is little published data on those firms with
growth potential and on which the future development of many of the regions within
Pakistan will be based. In particular, no specific region by region study has been
undertaken in the Pakistan context of the problems faced by SMEs. Given the need to
conduct such research, the purpose of this study is to explore the difficulties SMEs
face when starting up. This research focuses on the firms who have survived their first
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two years and who have moved into the growth phase of their organizational life cycle
in Gilgit city. E.g. (Akbar group of Traders)
1.4 Limitations of the Study
Although the research has reaches its aim, there were some unavoidable limitations.
First because of the time limit, this research was conducted only on a small size
population who were small business entrepreneurs. Therefore, to generalize result for
larger groups, the study should have involved more participants at massive levels.
1.5 Importance of the Study
The main goal of the research is to establish the factors that are consistent in the
success of Small entrepreneur. In particular, the research will focus on the internal
factors as well as the external factors, as the internal factors are directly controllable
by the owner of a Small Enterprise so we will discuss it in detail (Churchill and
Lewis, 1983; Timmons, 1990).
The additional goals are:
To see the success stories of Small Entrepreneurs who are now in the
growth phase
To clarify imbalances/problem areas with respect to the growth phase of
SMEs so that Managers will rectify their problems
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Chapter 2
Literature Review
2.1 Schools of Entrepreneurship Thought
Entrepreneurship is seen as being interdisciplinary and, given its nature, various
approaches or schools of thought can be used to gain a better understanding of this
concept (Kuratko and Hodgetts, 1995). The various schools of thought provide a
means of examining the diversity of viewpoints about entrepreneurship (Kuratko and
Hodgetts, 1995 and Deakins and Freel, 2003).
It is not the intention of this study to investigate the details and motivations of the
multitude of approaches to understanding entrepreneurship. The approaches have
been included to illustrate that numerous perspective/approaches/paradigms exist
attempting to contextualize or define entrepreneurship. These are as follows:
2.2 Entrepreneurial Trait School of Thought
Researchers and writers from this school of thought have been interested in
identifying those traits that are common to successful entrepreneurs in order to
develop a profile of a successful entrepreneur. According to Kuratko and Hodgetts
(1995) this approach is grounded in the study of successful entrepreneurs who tend to
exhibit similar behavior patterns and if emulated will lead to success. For example,
achievement, creativity, determination, and technical knowledge are factors common
to successful entrepreneurs (Kuratko and Hodgetts, 1995).
Deakins and Freel (2003) acknowledge there being some dispute over whether
entrepreneurial characteristics can indeed be identified. If it is claimed that these traits
are natural then it becomes pointless to encourage new entrepreneurs to start new
ventures. Deakins and Freel (2003) mention the various criticisms of this approach.
Firstly, it is inappropriate to search for a significant single trait; secondly, it ignores
environmental factors that may be more important than personality. The other reasons
include that the approach comprises an essentially static analysis approach to the more
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dynamic process of entrepreneurship; and it ignores the role of learning, preparation
and serendipity in the process of entrepreneurship.
2.3 Environmental School of Thought
According to Kuratko and Hodgetts (1995), this approach deals with the positive and
negative external factors that affect a potential entrepreneur’s lifestyle in terms of
molding of entrepreneurial desires. Both the social environment and work
environment can influence the desire to become an entrepreneur. For example, the
support and encouragement of friends and family might very well influence an
individual’s desire to become an entrepreneur.
2.4 Entrepreneurial Events approach
Bygrave (in Kuratko and Hodgetts, 1995) views entrepreneurship as a series of
continuous processes not isolated activities. This approach is primarily concerned
with the processes the entrepreneur would undertake in terms of planning,
implementing, and controlling of their entrepreneurial activities.
2.5 SME contribution
There has been a tremendous increase in the number of small firms operating in most
of the advanced countries around the globe since the late 1960’s (Burns, 2001) with
North America, Asia and Western Europe “undergoing an entrepreneurial
renaissance” (Calvin, 2002: 1). These small firms are considered, by many
governments, as critical for the creation of employment and ultimately for the creation
of wealth.
2.6 The United States of America
Longeneckeret al (2003), Elmuti and Kathawala (1999) and Alvarez (1998) provide
statistics indicating that the USA’s 23 million small businesses continue to be a strong
driving force in their economy. The small businesses absorb 52% of the private work
force and contribute 51% to GDP in the USA (Longeneckeret al, 2003; Calvin, 2002;
Burns, 2001).
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Elmuti and Kathawala (1999) also suggest that a study conducted by the Small
Business Administration in the USA reveal that small business accounted for half of
all new innovations in the USA.
2.7 The United Kingdom and the European Community
According to Burns (2001) and Day (2000) small firms in the United Kingdom
employs 62% of the labor force and contribute 25% to GDP. In the European
Community as a whole, small firms employ 66% of the work force. Burns emphasizes
the major role small firms’ play in the European Community, by citing the
employment generated by small firms in various European countries. He suggests that
small businesses contribute 79%, 63% and 60% to employment creation in Italy,
France and Germany respectively. According to SENET (2004) over 99% of the 3.2
million businesses in the UK are small medium sized enterprises (SMEs) and they
account for more than two thirds of the business turnover.
2.8 The Republic of South Africa
The Department of Trade and Industry (1995) of South Africa suggest that there are
more than 800 000 SMEs, absorbing approximately a quarter of the labor force of 15
million people. This is in addition to approximately 3.5 million people who are
involved in some type of survivalist venture. The DTI (1998) believe that small
businesses in South Africa account for 60% of all employment and for 40% of GDP.
Commonwealth Resources (1998) indicate that agriculture contributes 5% towards
South Africa’s GDP and employees 10% of total labor, manufacturing contributes
25% towards GDP and employees 28% of total labor, and mining contributes 7.7%
towards GDP.
2.9 People’s Republic of China
According to the US Embassy (2002) the growing significance of SMEs in China's
economy is worth noting. Chinese and foreign experts estimate that SMEs are now
responsible for approximately 60% of China's industrial output, and employ around
75% of the workforce in China's cities and towns. It is believed that SMEs are
responsible for creating most new urban jobs, and have created opportunities for
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workers laid-off from state-owned enterprises that re-enter the workforce. The brief
overview of the contribution that small businesses make towards the economies of the
abovementioned countries emphasizes the importance of the small business sector.
Governments around the world have realized just how important this sector of the
economy is for the future growth of their respective countries. For the South African
government, the growth and development of the small business sector is also playing
a major role in addressing the imbalances of the past (DTI, 1995) as it is seen as a
vehicle to create much needed employment and wealth. The strong interest in
entrepreneurship is largely due to finding that new business enterprises are the
primary source of new employment opportunities (Boshoff, Theron and Schutte,
1998; Lunsche, 1997), and this is vindicated by Ndwandwe (1998) who reported that
SMEs account for 60% of all employed people in South Africa. McClelland (1987)
and Harper (1991) (both cited in Boshoffet al, 1998) suggest that entrepreneurship has
a critical role to play in the economic development of especially poorer nations of the
world. This view is supported by Sweeney (1981: 32) who suggests that “the ability
of an economy to adapt to change and to continue economic progress would seem to
be weakened if there is not a continuing infusion into the total economic system, at a
numerically high level, of new products, new markets and new jobs generated by
small firms. In addition, a strong small firm sector provides for the widespread and
rapid diffusion of technical change and innovation on which economic growth is
ultimately based.”
In summary, recent evidence (Hill and McGowan, 1999) does indicate that small
firms and entrepreneurship do indeed play a major role in the world economy
(Timmons, 1994) and that they do constitute the bulk of enterprises in most
economies around the globe (Storey, 1994).
2.10 Islamic Republic of Pakistan
GDP growth for 2011-12 has been estimated 3.7 percent as compared to 3.0 percent in
the previous fiscal year 2011. The SMEs exhibited a growth of 3.1 percent against 2.4
percent last year. The Large Scale Manufacturing (LSM) growth is 1.1 percent during
July-March 2011-12 against 1.0 percent last year. Overall, the commodity producing
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sectors and especially the SMEs have performed better. The Services sector recorded
growth of 4.0 percent in 2011-12 (Economic Survey of Pakistan, 2011-12).
CPI (Consumer Price Index) was 10.8 percent during July-April, 2012 from a high of
25 percent in October 2008. It was in single digit in December 2012. This has been
achieved despite sharp increase in international oil prices, effect of upward adjustment
in the administered prices of electricity and gas, supply disruptions due to devastating
floods of 2010 and heavy rains of 2011 and bank borrowings. Food and non-food
inflation averaged 11.1 percent and 10.7 percent respectively against 18.8 percent and
10.8 percent in the same period of last year (Economic Survey of Pakistan, 2011-12).
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SUMMARY OF THE LITERATURE REVIEW
There are various schools of thoughts as we studied above, there are many prospective
to discuss firstly, it is inappropriate to search for a significant single trait; secondly, it
ignores environmental factors that may be more important than personality. The other
reasons include that the approach comprises an essentially static analysis approach to
the more dynamic process of entrepreneurship. It shows the creativity and this
approaches deals with the positive and negative external factors that affect a potential
entrepreneur’s also these approaches is primarily concerned with the processes the
entrepreneur would undertake in terms of planning, implementing, and controlling of
their entrepreneurial activities.
In USA we have studied that majority portion of the small scale businesses
contributes to the GDP of the economy same case in united kingdom that the major
role small firms’ play in the European Community, and they contributes two third to
the economy as compare to the large scale business the reason behind it is there are
very few number of large scale businesses are existing while the small scale
businesses and entrepreneurs are more in number thus ultimately they contributes to
the economy where as in Pakistan there are 800000 number of SMEs which
contributes to the economy 7.74% to the GDP.
The growing significance of SMEs in China's economy is worth noting. Chinese and
foreign experts estimate that SMEs are now responsible for approximately 60% of
China's industrial output. The SMEs exhibited a growth of 3.1 percent against 2.4
percent last year. The Large Scale Manufacturing (LSM) growth is 1.1 percent during
July-March 2011-12 against 1.0 percent last year.
Thus all these school and thoughts and case studies of different countries show us that
majority portion of the economy is directly connected with the Small Entrepreneurs
sustainability, innovation and Growth. In every country we have come to know that
SMEs contributes to the economy very fast as compare to the large scale businesses.
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Chapter 3
Research Methodology
The research methods which author used for my research thesis are both quantitative
as well as qualitative. The questionnaire used for thesis is close ended. This research
includes references from books, journals and interviews of local entrepreneurs to
bring a complete picture about the hurdles they face.
3.1 Types of Research Employed
3.1.1 Qualitative Research
The definition of qualitative research is “any kind of research that produces findings
not arrived at by means of statistical procedures or other means of quantification"
(Strauss & Corbin, 1990).” Usually qualitative data does not come with numbers.
Hence, it is intricate to analyze such data using different statistical applications or any
other method to quantify it (Strauss & Corbin, 1990).
3.1.2 Quantitative Research
Whereas about the quantitative research, Creswell (1994) states that this is a method
which involves “explaining phenomena by collecting numerical data that are analyzed
using mathematically based methods (in particular statistics).” In this method data is
collected in numerical form and result can be drawn using different statistical model
and tools. This research is cross sectional in nature where the data was collected at
one particular time frame. Keeping in mind the nature of this research, the author has
adopted the quantitative.
3.2 The Research Method: Survey
In conducting explorative and descriptive research, the survey design can be used to
collect information from several units of analysis. Although some information was
known about the management of small businesses, the study was still exploratory in
that it was being conducted in a different context (the Gilgit city context) and more
information was needed before developing a theoretical framework. In addition, the
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study was descriptive in that the study was conducted to determine and describe “the
characteristics of the variables of interest” in terms of small business management. I
selected the survey design to conduct the study as an existing instrument was being
used in the study although the instrument was modified to suit the Gilgit.
3.3 Sampling Strategy
Although the study was conducted within the quantitative and qualitative pattern both,
and hence probability sampling techniques would normally be used, no probability
sampling techniques were used as the study was relatively small and the
generalization of results was not the goal. I selected samples which was collected
from retailers through questionnaire and then get our findings.
3.4 Interviews from Different Entrepreneurs
We conducted interviews from different entrepreneurs in Gilgit city and came to
know what kind of benefits and barriers they are facing to enhance their business.
Few of the entrepreneurs who started their business in back 1996 and after a long time
period of 17 years they are now in growing phase, according to the word of mouth of
Mr. Zulfiqar Rana Owner of “Akber group of traders” said, he has started his business
with a very minimum investment and after continues effort of 17 years the business
has been passed through early stage and even then it’s in growing phase.
3.5 Data Collection Procedures
This section discusses the data collection procedures and begins with a description of
the participants, the units of analysis. This is followed by a discussion of the sampling
strategy, the data collection methods, the research instrument, ethical considerations
for the study, and
Finally, small entrepreneurs issues in Gilgit.
3.6 Data Documentation and Storage
A spreadsheet was used to store the data collected from the questionnaires. As
descriptive statistics where being used, the use of a spreadsheet was appropriate. The
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information gathered from each questionnaire was entered onto the spreadsheet after
the interview all the data fields were complete.
3.7 Questionnaire Distribution
This study is based on Halls success factor analysis which includes several factors
such as;
Personal Characteristics of the Owner
Availability of Outside Assistance
Motivation
Strategic Management
Marketing Policy
Financial Management
Market Characteristics
The questionnaire was adopted from a study based on Hall (1995). Hall (1995) has
identified certain factors which he regards may support future success in this stage.
These factors are further divided into questions specifically targeting the problems
found in pilot study because of lack of proper literature available. Questions are
scaled on Lickert Scale which requires respondents to Strongly Disagree (1), Disagree
(2), Neutral (3), Agree (4) and Strongly Agree (5). The questions are distributed
according to the factors above mentioned, which include;
3.7.1 Personal Characteristics of the Owner (1 item)
Q3 Small scale entrepreneurs use modern technologies in Gilgit to perform their
business.
3.7.2Availability of Outside Assistance (6 items)
Q7 Small scale of business entrepreneur face high rent, high transportation costs
and taxes problem while sale volume in Gilgit is very low.
Q9 Government of Gilgit-Baltistan provides effective policies of rent, bank loans,
insurance for small scale business entrepreneurs.
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Q14 In Gilgit majority of small business enterprises rely on bank loan to operate
their business.
Q15 In Gilgit majority of small business enterprises rely on credit from suppliers to
operate their business.
Q16 The role of banks to give loan for small business entrepreneur to operate their
business very limited.
Q18 Government of Gilgit should compensate the small entrepreneur for any loss
due to any natural disaster.
3.7.3Motivation (4 items)
Q11 Starting a small scale business is risky venture in Gilgit because of many
reasons like sectarianism, low awareness about technology, lot of competitors and low
demand.
Q6 Small scale businesses give employment to people and its good instrument for
growth and decrease unemployment.
Q10 Small scale business is driving force for economic growth, job creation and
poverty reduction in Gilgit.
Q19 Stability and friendly environment affect the small and medium scale
businesses and increase their business turnover.
3.7.4Strategic Management (3 items)
Q4 Small scale businesses are keeping their record manually.
Q5 Small scale business entrepreneur use technology to keeping record and
performing their businesses which enhance their profit save time and decrease
manpower.
Q12 Failure of small scale entrepreneur in Gilgit is more because of obstacle
affecting business performance which include lack of financial recourses, lack of
management experience, poor location Laws and regulation.
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3.7.5Marketing Policy (1 item)
Q2 Small scale entrepreneur have the capabilities and talent to understand the
market demand.
3.7.6 Financial Management (1 item)
Q13 In Gilgit majority of small business enterprises rely on personal finance to
operate their business.
3.7.7Market Characteristics (5 items)
Q1. Small scale business entrepreneurs play a good role in Gilgit.
Q8 Due to tourist small scale business get lot of profit in Gilgit.
Q17 Prices in Gilgit are higher as compared to the other cities of Pakistan.
Q20 Sectarianism in Gilgit is the main problem which spoils businesses
environment and small and medium entrepreneur affected largely.
Q21 Entrepreneurs do not invest in small businesses in Gilgit due to sectarian
violence.
3.8 Data Analysis Procedure
Descriptive statistics were used to analyze the data and were appropriate given the
relatively small sample size. Cross tabulations were done on some of the variables in
the study and these enabled me to explain the meaning of the data better.
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Chapter 4
Data Analysis and Findings
When discussing the nature of the small firms in Gilgit we need to ask the question as
to what makes small firms different from large firms. “Small firms are not just scaled
down versions of large ones” small firms go about their business in fundamentally
different ways. Like;
1. Small firms are always short of cash which limits their strategic options;
2. Their approach to risk and uncertainty is not rational;
3. The owner-manager’s characteristics fundamentally influence the firm;
4. The small firm is seen as a social entity and often revolves around personal
relationships;
5. The majority of their decisions are short term decisions;
6. Small firms generally operate in a single market offering a limited range of
products and services;
7. Because of point 6, they become over-reliant on a few customers; this makes them
weak and eventually may lead to failure should the key customers discontinue
doing business with the small firm.
8. Decisions are more judgmental, involving fewer people and therefore made much
quicker;
Small businesses in Gilgit city can be seen as the simple running of a firm for a living,
such as shopkeepers, professional people, and franchisees. However, if the small
firms’ engage in the introduction of new products and processes that change the
industry; these firms are identified as entrepreneurial in nature. Not all small firms are
entrepreneurial, despite making a significant contribution to the economy.
This study is based on Halls (1995) success factor analysis which includes several
factors such as;
Personal Characteristics of the Owner (1 item)
Availability of Outside Assistance (6 items)
Motivation (4 items)
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Strategic Management (3 items)
Marketing Policy (1 item)
Financial Management (1 item)
Market Characteristics (5 items)
The demographics in the questionnaire include questions inquiring respondents about
their Age, Gender, Education, Business Age and Monthly Income.
4.1 Descriptive Statistics
Mean Mean Real Value Std. Dev. N
Age 3.05 26 1.108 40
Education 2.95 Intermediate 1.260 40
Business Age 2.18 3-6 Years 1.083 40
Monthly Income 1.68 PKR 30,000-50,000 .694 40
Personal Characteristics Of Owner (1 Q) 3.10 Neutral 1.446 40
Availability Of Outside Assistance (6 Q) 17.82 Neutral 4.477 40
Motivation (4 Q) 13.80 Agree 4.096 40
Strategic Management (3 Q) 9.82 Neutral 3.234 40
Marketing Policy (1 Q) 3.90 Agree 1.392 40
Financial Management (1 Q) 3.65 Agree 1.231 40
Market Characteristics (5 Q) 16.28 Neutral 4.563 40
4.1.1Age
Of the total 40 participants, average age the participants; was found to be 26 years of
old and standard deviation was 1.108. This shows a stable as well as energetic trend in
Gilgit and interprets that young population of Gilgit is very much inclined and
motivated to excel themselves in the area of small and medium scale
entrepreneurship. This also emphasizes that this age group is more likely to introduce
more of technology and able to take risks on the basis of their observations and
interactions with the social circle around them. They are more likely also to influence
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their clients on the basis of their better usage of the personal capabilities and
characteristics.
4.1.2Gender
The gender of all the participants was male except 2 female respondents. This does
not proceed to an encouraging gender based competition in Gilgit city. This implies
that women are not either interested or not allowed to participate in business
activities.
4.1.3 Education
Average education of the participants in Gilgit City was found to be intermediate i.e.
12 years of education in Pakistan. Standard deviation was about 1.260 among total 40
participants. This study level is sufficient for common business know-how but not
appropriate to run a business operation based on applied theoretical approach. This
has to do with proper strategy enhancement and application by following stage to
stage and thus establishing an appropriate foundation for their venture.
4.1.4 Business Age
Average business age was observed to be 3-6 years which implies that most of the
businesses are in their medium life cycle stage. Standard deviation was found to be at
1.083. This emphasizes essentially that observed businesses in Gilgit City are rather
new in their venture and are not established up to the stage they can be assured of
success. The business in this stage can be categorized as in their growing phase and
thus they are going through strategy implementation and monitory hardships as well.
This also implies that businesses in Gilgit City will be well established in one or two
years and this will give birth to a crucial competition in Gilgit City after which the
environment will also get tougher for new venture setters as their will be big sharks
already enjoying huge market share of the City. The competitive environment thus
arisen will also give way for the well educated entrepreneurs and will result in fall of
less competitive shareholders of the market, who at the moment are not facing many
problems in terms of policy development and implementation.
21
4.1.5 Monthly Income
Monthly Income of respondents has been established at an average of PKR 30,000 to
PKR 50,000, with a standard deviation of 0.694. This means that participants are
having a relatively above normal amount of income as compared to other parts of the
country. In Pakistan Small entrepreneurs have a significant contribution in the total
GDP of Pakistan, according to SMEDA and Economic survey reports of 2012, the
share in the annual GDP is 40% likewise Small entrepreneurs generating significant
employment opportunities for skilled workers and entrepreneurs. Small and medium
scale firms represent nearly 90% of all the enterprises in Pakistan and employ 80% of
the non-agricultural laborer force (Business Recorder, 2011). These figures indicate
the potential and further growth in this sector when particularly speaking about Gilgit
City. Small entrepreneurs are contributing a lot in this regard to Gilgit City because
this is understood fact that an entrepreneur keeps most monitory value of his earnings
within the local economic system only as he spends for himself and significant others.
Small entrepreneurs are also helpful to Gilgit City as they do not leave a significant
environmental footprint and thus encourage green atmosphere development in the
city. Small entrepreneurs are always spending and donating for humanistic causes;
because they belong to the society they operate in and thus are bound to social,
cultural and psychological obligations. That eventually gives rise to healthy CSR
practices against their profit making and balances the distribution of wealth.
4.1.6 Personal Characteristics of Owner
This factor was dealt with one question on the questionnaire. From the total of 40
entrepreneurs, agreement on personal characteristics of owner was found to be
‘Neutral’ which means that entrepreneurs in Gilgit do consider the personal
characteristics essential for the growth and good operation of a small entrepreneur
operation, but are not inspired by the idea to the extent that they consider it vital for
smooth running and establishment of strong foundations for a business venture as
Small entrepreneurs. Standard deviation was recorder at 3.10.
22
4.1.7 Availability of Outside Assistance
Availability of Outside Assistance was outlined by a total of 6 questions. Respondents
were neutral, which depicts that respondents are again not very sure about the impact
and significance of this success factor for Small entrepreneurs in particular. Standard
Deviation for this factor was 4.477.
4.1.8 Motivation
Motivation factor which is agreed on by entrepreneurs of Gilgit City is sub-divided
into 4 further questions with a standard deviation sum of 4.096. Hence they believe
that small scale business is driving force for economic growth, job creation and
poverty reduction in Gilgit. And this gives them a sense of responsibility to contribute
to stability and sustainable economic development of Gilgit City and leads them to
feel to be a part of the solution rather than the problem. Small scale businesses also
give employment to people and it is considered good instrument for localized
economic growth and decreasing the unemployment. Stability and friendly
environment affects the small and medium scale businesses and allows them to
increase their business turnover.
4.1.9 Strategic Management
3 questions were particularly constructed to enquire about strategic management.
Neutral responses were recorded for this factor. A standard deviation of 3.234 was in
effect. This depicts that many, not all, small scale businesses are keeping their record
manually. Some small scale business entrepreneurs in Gilgit City are also making use
of technology to keep record and performing their businesses, which enhances their
profits, saves time and decreases manpower. Respondents were not entirely sure to the
statement that ‘failure of small scale entrepreneur in Gilgit is more because of
obstacles affecting business performance’ which include lack of financial recourses,
lack of management experience, poor location laws and regulation.
4.1.10 Marketing Policy
All of the 40 entrepreneurs of Gilgit City agreed on 1 question regarding marketing
policy. Standard deviation of 1.392 was recorded for this indicative factor of success.
23
Small scale entrepreneur are quite confident that they have all the capabilities and
talent compulsory to understand and meet the market demands and challenges of their
times.
4.1.11 Financial Management
Financial Management had one question only and entrepreneurs agree that financial
management is one of the major factors playing its role in the successful operation of
a business venture with a standard deviation of 1.231. In Gilgit majority of small
business enterprises rely on personal finance to operate their business, and very less or
no financial assistance received from the state institutions and have to manage on
their own resources, such as family or friends and credit from their financers.
4.1.12 Market Characteristics
Respondents were not sure of whether the market characteristics are very essential for
SME growth, and they responded mainly in neutral responses. Standard deviation for
this factor is 4.563 among a total of 40 participants for 5 questioned purposely
designed for analyzing and measuring know-how of the participants about their
opinion about small scale business entrepreneurs play a good role in Gilgit.
Participants also agree that due to tourist small scale business get lot of profit in
Gilgit. Prices in Gilgit are higher as compared to the other cities of Pakistan.
Sectarianism in Gilgit is the main problem which spoils businesses environment and
small and medium entrepreneur affected largely. Entrepreneurs do not invest in small
businesses in Gilgit due to sectarian violence.
24
4.2 Pie Charts:
Q: 1 Age Group Q: 4Business Age
Q:2 Gender Q: 5 Monthly Income
Q:3 Education
25
26
4.3Correlations
Age Edu BA MI PCO AOA Mot SM MP FM MC
Age Pearson
Correlation1 -.145
.63
3**.288* .253 .209
.42
6**
.41
0**
.40
2**.201
.36
7**
Sig. (1-tailed) .186 .000 .036 .058 .098 .003 .004 .005 .107 .010
Sum of Squares
and Cross-
products
47.9
00
-
7.90
0
29.6
50
8.65
0
15.8
00
40.3
50
75.4
00
57.3
50
24.2
00
10.7
00
72.4
50
Covariance 1.22
8-.203 .760 .222 .405
1.03
5
1.93
3
1.47
1.621 .274
1.85
8
N 40 40 40 40 40 40 40 40 40 40 40
Edu Pearson
Correlation-.145 1
-.29
4*-.107 .059 -.065 -.111 .117 -.105 -.028 -.100
Sig. (1-tailed) .186 .033 .255 .359 .345 .247 .235 .259 .432 .269
Sum of Squares
and Cross-
products
-
7.90
0
61.9
00
-
15.6
50
-
3.65
0
4.20
0
-
14.3
50
-
22.4
00
18.6
50
-
7.20
0
-
1.70
0
-
22.4
50
Covariance-.203
1.58
7-.401 -.094 .108 -.368 -.574 .478 -.185 -.044 -.576
N 40 40 40 40 40 40 40 40 40 40 40
BA Pearson
Correlation
.63
3**
-.29
4*1
.55
5**.201 .334*
.54
5**
.45
5**
.45
4**.259
.47
8**
Sig. (1-tailed) .000 .033 .000 .107 .018 .000 .002 .002 .054 .001
Sum of Squares
and Cross-
products
29.6
50
-
15.6
50
45.7
75
16.2
75
12.3
00
63.2
25
94.4
00
62.2
25
26.7
00
13.4
50
92.0
75
Covariance.760 -.401
1.17
4.417 .315
1.62
1
2.42
1
1.59
6.685 .345
2.36
1
N 40 40 40 40 40 40 40 40 40 40 40
MI Pearson
Correlation
.288* -.107 .55
5**
1 -.018 .36
9**
.45
5**
.225 .284* .314* .48
3**
27
Sig. (1-tailed) .036 .255 .000 .456 .010 .002 .081 .038 .024 .001
Sum of Squares
an Cross-
products
8.65
0
-
3.65
0
16.2
75
18.7
75-.700
44.7
25
50.4
00
19.7
25
10.7
00
10.4
50
59.5
75
Covariance.222 -.094 .417 .481 -.018
1.14
7
1.29
2.506 .274 .268
1.52
8
N 40 40 40 40 40 40 40 40 40 40 40
PCO Pearson
Correlation.253 .059 .201 -.018 1 -.156 .168 .305* .272* .150 .174
Sig. (1-tailed) .058 .359 .107 .456 .169 .150 .028 .044 .178 .141
Sum of Squares
and Cross-
products
15.8
00
4.20
0
12.3
00-.700
81.6
00
-
39.3
00
38.8
00
55.7
00
21.4
00
10.4
00
44.9
00
Covariance
.405 .108 .315 -.0182.09
2
-
1.00
8
.9951.42
8.549 .267
1.15
1
N 40 40 40 40 40 40 40 40 40 40 40
AO
A
Pearson
Correlation.209 -.065 .334*
.36
9**-.156 1
.54
3**
.57
9**
.46
6**
.48
2**
.52
0**
Sig. (1-tailed) .098 .345 .018 .010 .169 .000 .000 .001 .001 .000
Sum of Squares
and Cross-
products
40.3
50
-
14.3
50
63.2
25
44.7
25
-
39.3
00
781.
775
388.
600
326.
775
113.
300
103.
550
413.
925
Covariance1.03
5-.368
1.62
1
1.14
7
-
1.00
8
20.0
46
9.96
4
8.37
9
2.90
5
2.65
5
10.6
13
N 40 40 40 40 40 40 40 40 40 40 40
Mot Pearson
Correlation
.42
6**-.111
.54
5**
.45
5**.168
.54
3**1
.67
5**
.81
5**
.71
8**
.88
0**
Sig. (1-tailed) .003 .247 .000 .002 .150 .000 .000 .000 .000 .000
28
Sum of Squares
an Cross-
products
75.4
00
-
22.4
00
94.4
00
50.4
00
38.8
00
388.
600
654.
400
348.
600
181.
200
141.
200
641.
200
Covariance 1.93
3-.574
2.42
1
1.29
2.995
9.96
4
16.7
79
8.93
8
4.64
6
3.62
1
16.4
41
N 40 40 40 40 40 40 40 40 40 40 40
SM Pearson
Correlation
.41
0**.117
.45
5**.225 .305*
.57
9**
.67
5**1
.66
2**
.55
8**
.63
8**
Sig. (1-tailed) .004 .235 .002 .081 .028 .000 .000 .000 .000 .000
Sum of Squares
and Cross-
products
57.3
50
18.6
50
62.2
25
19.7
25
55.7
00
326.
775
348.
600
407.
775
116.
300
86.5
50
366.
925
Covariance 1.47
1.478
1.59
6.506
1.42
8
8.37
9
8.93
8
10.4
56
2.98
2
2.21
9
9.40
8
N 40 40 40 40 40 40 40 40 40 40 40
MP Pearson
Correlation
.40
2**-.105
.45
4**.284* .272*
.46
6**
.81
5**
.66
2**1
.56
3**
.73
5**
Sig. (1-tailed) .005 .259 .002 .038 .044 .001 .000 .000 .000 .000
Sum of Squares
and Cross-
products
24.2
00
-
7.20
0
26.7
00
10.7
00
21.4
00
113.
300
181.
200
116.
300
75.6
00
37.6
00
182.
100
Covariance.621 -.185 .685 .274 .549
2.90
5
4.64
6
2.98
2
1.93
8.964
4.66
9
N 40 40 40 40 40 40 40 40 40 40 40
FM Pearson
Correlation.201 -.028 .259 .314* .150
.48
2**
.71
8**
.55
8**
.56
3**1
.64
8**
Sig. (1-tailed) .107 .432 .054 .024 .178 .001 .000 .000 .000 .000
Sum of Squares
and Cross-
products
10.7
00
-
1.70
0
13.4
50
10.4
50
10.4
00
103.
550
141.
200
86.5
50
37.6
00
59.1
00
141.
850
Covariance .274 -.044 .345 .268 .267 2.65
5
3.62
1
2.21
9
.964 1.51
5
3.63
7
29
N 40 40 40 40 40 40 40 40 40 40 40
MC Pearson
Correlation
.36
7**-.100
.47
8**
.48
3**.174
.52
0**
.88
0**
.63
8**
.73
5**
.64
8**1
Sig. (1-tailed) .010 .269 .001 .001 .141 .000 .000 .000 .000 .000
Sum of Squares
and Cross-
products
72.4
50
-
22.4
50
92.0
75
59.5
75
44.9
00
413.
925
641.
200
366.
925
182.
100
141.
850
811.
975
Covariance 1.85
8-.576
2.36
1
1.52
8
1.15
1
10.6
13
16.4
41
9.40
8
4.66
9
3.63
7
20.8
20
N 40 40 40 40 40 40 40 40 40 40 40
*. Correlation is significant at
the 0.05 level (1-tailed).
30
4.4 Discussion of Correlations Found Between Different Variables
Author observed very high level of understanding developed by the Small
entrepreneurs of Gilgit City n terms of success factors and their comprehension by the
entrepreneurs. This is not strange as the entrepreneurs in Gilgit find very little
assistance from outside organizations, and the obstacles faced by them demand a
higher level of insight into business strategy and how to improve it with time. Author
is delighted to have found also that entrepreneurs in Gilgit City are now shifting
towards much more organized and sophisticated running of businesses by use of
technology, setting goals and maintaining records, according to the findings of the
study. Their frame of reference in terms of business matrixes and concentration on
minute details is very much the effect which will definitely yield good fruits in
coming times. It will be more evident from the lines below what author wants to point
out towards;
Age and motivation were found to be related which implies that entrepreneurs with
less age are less motivated to run an entrepreneurial operation. Respondents also
reported that Small entrepreneurs run by younger people have a low tendency to
implement proper strategic management in their venture. Availability of outside
assistance is highly correlated to the financial management, which implies that
entrepreneurial operations that get outside assistance from the governmental or no-
governmental organization are more likely to have a better financial management in
terms of record keeping and regular evaluations of their earnings as well as
expenditures. Business age is also highly correlated to the strategic management,
meaning that if Small entrepreneurs are older it is more likely to have enhanced a
good strategy to employ in its day to day practices. Motivation is also highly
correlated to monthly income, which implies that a business yielding high monthly
income feel more motivated to do business than the ones who have low monthly
squashing. Older entrepreneurs are likely to run businesses much longer than the
younger ones as there is strong correlation between age of entrepreneurs and business
age.
Motivation in running Small entrepreneurs is also reported to be highly correlated
with business age, so if an owner is more motivated, he/she is much more likely to run
31
a business longer and be successful. If monthly income of a business is high then it
will run longer i.e. business age is correlated with monthly income. Marketing policy
is more furnished with growing age of the entrepreneur and thus these two factors are
also found to be interrelated. Marketing Policy is also observed to be more balanced,
culturally and socially sensitive and well prepared according to the demands and
challenges of the market place if the entrepreneurs are exceedingly motivated.
Motivation also enables the entrepreneurs to understand and comprehend the market
characteristics.
Availability of outside assistance is correlated with advertising policies of an
entrepreneurial operation which elaborates the importance of different organizations
working hand in hand with SMEs in Gilgit City and encourages them to extend their
areas of support for Gilgit’s entrepreneurs. Market characteristics in Gilgit City are
such that entrepreneurs are demanding outside assistance as these two factors were
found highly correlated and author observed that this will have to on top of list for
government and NGO sector if they want to achieve higher levels of economic and
social reform to be achieved in this blessed region.
If a SME is making and applying good marketing policy then it is also likely that
he/she is essentially also assisting him/herself in building up a strong strategy that is
sufficient to meet the demands existing in Gilgit City. Strategic management is also
reported by the Small entrepreneurs of Gilgit City to be highly correlated with market
characteristics. This describes the importance of proper educational and theoretical
background of an entrepreneur in understanding and realizing the true potentials of
his/her market and then make a good strategic management. An owner of Small
entrepreneurs in Gilgit City will have less difficulty managing financials if he/she is
making a proper advertising policy in appropriate time period and will enable them to
get earnings in hard times and also prosper in times of seasonal and social events in
comparison to those who do not have a strong advertising policy.
Market characteristics are correlated to financial management. Market characteristics
in Gilgit city are connected to social, cultural, ethnic, religious and regional factors
which implies that if an entrepreneur want to operate properly he/she will have to be
sensitive to these issues and react and respond in a timely way, because otherwise
32
such factors can often become the death sentence for the business venture. The reason
given by entrepreneurs in this study for this phenomenon is that there is very little
level of investment given by proper organizations. So they have to rely heavily on
informal sources of finances such as friends, relatives and family. Marketing Policy is
such that it develops with time (business age) after completely absorbing and
incorporating oneself into the details of market nature and then applying it to the
advertising planning. This leads us to the next observation i.e. business age is
correlated with market characteristics comprehension.
If monthly income of a business is better it will contribute to the market
characteristics of Gilgit City, as they are correlated. Marketing Policy is highly
correlated with Market characteristics. This means that respondents believe that an
entrepreneur will only be able to make an advertisement policy successful if they are
aware and sensitive to cultural and social norms and otherwise they will fail in their
venture and may even face societal extinction of that whole venture.
Concluding the discussion, we find that sectarian, religious and ethnic threats (market
characteristics) are more prominent than any other success factor in Gilgit City. This
shows the level of insecurity in Gilgit City for small business operators in their own
words and also means that if resolved their will be no other obstacle as hard as this to
abstain them from success and prosperity.
33
Chapter 5
Conclusion and Recommendations
5.1 Conclusion
According to the research and it has been came to know that many of the
entrepreneurs started their business from a very minimum capital in Gilgit city,
mostly the age group 22 to 26 are indulge to start new business; the young blood in
Gilgit city is more enthusiastic to start new businesses. As shown in above results in
thesis, few of the female entrepreneurs also became respondent of our research that
means that in 2013 gradually females are also trying to become an entrepreneur in
Gilgit city.
It has been observed that the environment, political scenario, economic conditions and
sectarian issues are playing vital role as a barrier for the growth of business. On the
other hand however the literacy rate is satisfactory in Gilgit Baltistan but even then
majority of the intermediate and matriculates are concern with the business in Gilgit.
The educated professional in Gilgit prefers to go with the Jobs. Although in 2012
roughly estimated 5% of the young professionals are trying to penetrate in market to
be an entrepreneur. Moreover, the business age of majority businesses are 1 to 3 years
in Gilgit and their monthly income is 10,000 to 15,000 per month which represents
that per month income is quite enough for any individual.
The financial institute however provides loan facility to the small scale businesses but
on the other hand they are charging maximum number of interest rate which will
create trouble to stable their business. Mostly it has been observed that the national
banks do not prefer to provide loan facility to the SMEs but the local bank Karakorum
Cooperative Bank provide loan facility at 17% interest rate thus the main barrier
which any entrepreneur face is loan facility.
Secondly, one of the other root problem is that majority of the business do have
manual recording system they are unaware about the computerized system, MIS has
not yet been introduced due to which they lacks in accuracy and accountability. Most
of the Small entrepreneurs are uneducated and they don’t know how to introduce
34
information system for businesses. Even those businesses who are now in a growing
phase still don’t have any information system for their business that’s what the reason
they lacks in efficiency. On the other hand labor charges in Gilgit city is
comparatively high as well as the fright cost is high for trading business the logistic
cost from Gilgit city to the nearer districts are currently Rs3/kg which represents that
it is 50% of the logistic cost from federal to Gilgit. Although the distance is not that
much far to the districts but even then the logistic cost creates a vital role as barrier
for Small entrepreneurs especially small scale trading businesses in Gilgit city. One of
the other problem in market research is that the owner or managers have very rigid
and rude attitude with their sub-ordinates (workers) they do not cooperate with their
employees which ultimately leads to the inefficiency of the workers because as we
studied in HRM that when the employer do not cooperate with their employees which
ultimately leads to the inefficacy of the employees.
5.2 Recommendations
There are few recommendations through which we can boost up our entrepreneurs in
Gilgit city as well as to enhance the Small entrepreneurs to the growing businesses
Most of the important factor is that the market is unstable so we have to work
mutually for the stability of the market and this comes only if the sectarian
issues will resolves. However this is the mutually responsibility of all the
Government, Public, Corporate Sector and as well as Small entrepreneurs.
The management information system MIS should be introduced.
Logistic issues from federal to Gilgit and from Gilgit to districts should be
efficient.
Workers should be more skilled.
Employers should have to be very polite with their employees
Financial institution should be more active to support entrepreneurs so that
they will start business and creates jobs in the society.
The rate of interest of financial institution for the Small entrepreneurs should
be kept at minimum.
For trade concern businesses Modern trade should be introduced.
35
It’s the responsibility of Government to provide a very constant piece
environment to the city where everyone will fight for healthy competition.
Monopolistic trend barrier should be eliminated.
36
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http://www.awovi.com/the-best-growth-strategy-for-smes/
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Appendix A
Final Questionnaire
Developing World Class Small Entrepreneurs for Gilgit
Objective of the questionnaire
is to
identify problems faced
by
Small Entrepreneurs
in
the management of SMEs
in
Gilgit City
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SMALL AND MEDIUM ENTREPRENEUR SURVEY
Dear Respondent,
To start, I would like to thank you for taking 15 minutes to participate in this research, organized by me student of BBA Hons (Karakoram International University Gilgit Baltistan). Your participation in the Small Business Survey will help us to understand the issues and challenges you face in your business and give you a chance to make an input to future researches and strategic development in Gilgit-Baltistan. You are kindly asked to express your opinion and feel free to skip those statements that do not interest you.
Thank you for your cooperation.
..::: THIS QUESTIONNAIRE ONLY CAN BE FILLED BY SMALL SCALE BUSINESSMAN:::..
Name
Age (Years) 18-22 22-26 26-30 30-34 34 or above
Gender
Nature of Business
Male Female
…………………………………………………………………………………………………………………
Education Middle Metric Intermediate Graduate Post-graduate
Business Age 1-3 years 3-6 years 7-10 years
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more than 10 years
Monthly income 10,000-30,000 30,000-50,000 Above 50,000
STRO
NGL
Y DI
SAGR
EE
DISA
GREE
NEU
TRAL
AG
REEE
STRO
NGL
Y AG
REEE
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Q1. Small scale business entrepreneurs play a good role in Gilgit. 1 2 3 4 5
Q2 Small scale entrepreneur having capabilities and talent to understand the market demand. 1 2 3 4 5
Q3 Small scale entrepreneur use modern technologies in Gilgit to perform their business. 1 2 3 4 5
Q4 Small scale businesses keeping their record manually. 1 2 3 4 5
Q5 Small scale business entrepreneur use technology to keeping record and performing their businesses which enhance their profit save time and decrease manpower.
1 2 3 4 5
Q6 Small scale businesses give employment to people and its good instrument for growth and decrease unemployment.
1 2 3 4 5
Q7 Small scale of business entrepreneur face high rent and high transportation cost , taxes problem while sale volume in Gilgit is very low.
1 2 3 4 5
Q8 Due to tourist small scale business get lot of profit in Gilgit. 1 2 3 4 5
Q9 Government of Gilgit-Baltistan provides effective policies of rent, bank loans, insurance for small scale business entrepreneurs.
1 2 3 4 5
Q10 Small scale business is driving force for economic growth, job creation and poverty reduction in Gilgit.
1 2 3 4 5
Q11 Starting a small scale business is risky venture in Gilgit because of many reasons like sectarianism, low awareness about technology, lot of competitors and low demand.
1 2 3 4 5
Q12 Failure of small scale entrepreneur in Gilgit is more because of obstacle affecting business performance which include lack of financial recourses, lack of management experience, poor location Laws and regulation.
1 2 3 4 5
Q13 In Gilgit majority of small business enterprises relies on personal finance to operate their business.
1 2 3 4 5
Q14 In Gilgit majority of small business enterprises relies on bank loan to operate their business.
1 2 3 4 5
Q15 In Gilgit majority of small business enterprises relies on credit from suppliers to operate their business.
1 2 3 4 5
Q16 The role of banks to give loan for small business entrepreneur to operate their business very limited.
1 2 3 4 5
Q17 Prices in Gilgit are higher as compared to the other cities of Pakistan. 1 2 3 4 5
Q18 Government of Gilgit should compensate the small entrepreneur for any loss due to any natural disaster.
1 2 3 4 5
Q19 Stability and friendly environment affect the small and medium scale businesses and increase their business turnover.
1 2 3 4 5
Q20 Sectarianism in Gilgit is the main problem which spoils businesses environment and small and medium entrepreneur affected largely.
1 2 3 4 5
Q21 Entrepreneurs not invest in small businesses in Gilgit due to sectarianism violence. 1 2 3 4 5
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