Examining Determinants of Entrepreneurial Success: The Case of Small & Medium Entrepreneurs in KP, Pakistan

Abstract

This study examines the underlying determinants that can lead to entrepreneurial success in relatively troublesome and unfavorable conditions in Khyber Pakhtunkhwa (KP), Pakistan. Identification of these elements can aid policymakers and institutions in promoting entrepreneurial and economic activity. Factors emerged from the literature include government policies, business plans, defensive motivation, availability of capital, and entrepreneurial traits and background. Data were collected from a sample of 190 participants operating small and medium enterprises in the provincial capital, Peshawar through close-ended questionnaires, and analyzed using descriptive statistics and multiple regression analysis. Interestingly, the results revealed that only business plans and government policies significantly impact the entrepreneurial success. These findings highlight the importance of business plans even in the contexts where most businesses are not formally registered. This study can contribute to practice and policy by paving new paths and avenues for those not well bestowed with enterprising personality and thus lacking entrepreneurial characteristics. The study bears both policy and academic implications such that entrepreneurial success can be instigated through governmental policies and assisting in business plans, as opposed to prior research focusing merely on traits, motivation and/or means of capital. This research, therefore, promotes the pool of potential successful entrepreneurs in the region.