Entrepreneurship in Pakistan: government policy on SMEs, environment for entrepreneurship, internationalisation of entrepreneurs and SMEs

Abstract

Despite its potential benefits to growth, entrepreneurial activity remains limited in Pakistan. Governmental policy has been placed historically on large-scale manufacturing as opposed to SMEs. This has created a challenging economic and sociocultural environment for entrepreneurship and the state of small business in Pakistan on several dimensions. In particular, contract enforcement is very weak in Pakistan. Thus, analyses this paper a judicial reform implemented in Pakistan in 2002, that substantially increased entrepreneurship.