An Exploratory Study on the Challenges Faced by Young Male Entrepreneurs in Karachi

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2. Review of literature

The research identified in area is distilled to derive the main reason which becomes the challenges while carrying new businesses by young entrepreneurs.

Mair and Marti (2006) state that “entrepreneurship takes on multiple forms, depending upon the nature of the business they had to carry out as well as, the location” (p.42). Yorke (2011) explores the reality that Asian dynamics is totally different European. The major challenges face by the entrepreneurs would really be not faced by the entrepreneurs in Europe. In Asia the culture and the administrative affairs are totally different from what it is in Europe. Europe offers tax holidays and supports the existence of start-ups while, the case is quite different in Asia. People use to challenge those who initiate an idea and the administrative bureaucracy is on its height which creates hurdles rather than providing support.

Choi and Majumdar (2014) estimate that, the bigger the challenges the better would be the future outlook but, there is a point where young entrepreneurs need guidance and mentorship which directs their business. Research suggests that, this guidance has been given on proper time then these businesses would expand and become able to compete with bigger players whereas, downside of this is that, these businesses would run in isolation. Choi and Majumdar (2014) address guidance and mentorship as the major challenge in young entrepreneurial growth.

Karanda and Toledano (2012) as much as making the choice to become a entrepreneur is ultimately decided upon based on the encouraging factors, a prospective entrepreneur is faced with several challenges present in the social entrepreneurship field when making the decision to become a entrepreneur. This sentiment was supported by all the interviewees. The top challenges of being an entrepreneur were identified by the interviews as the following: Lack of understanding regarding entrepreneurship, Lack of start-up funding for enterprises, Lack of experience and lack of empowerment of doing it however, the qualities of an entrepreneur helps him in combating these challenges.

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3. Research Methodology:

This research paper explores the juncture between development of young entrepreneurship and the challenges that they had to face while setting up their business in Karachi. This exploratory research aims to decipher the potential of young entrepreneur and how they face and combat these issues to obtain their goals.

This research is built on five research objectives which lay the foundation for the research questions, which were answered through the data collection and analysis. The research objectives are listed as follows:

- Understand the background and contributing factors that give rise to young entrepreneurs in Karachi, Pakistan.

- Explore the possible challenges that these young entrepreneurs had to face?

- To investigate that how these challenges effect the business planning and execution?

- To determent he possible ways through which they would be combating these issues in the near future.

- To examine the role of various stakeholders in betterment and encouragement of these entrepreneurship.

3.1 Research Questions

Based on the research objectives and literature review presented, the following research questions will be explored in pursuit of fresh insights to support the argument for this research (Saunders & Lewis):

- Why do youngsters tend to become entrepreneurs?

- What are the problems they face in initial stages?

- What are the factors of success for these young entrepreneurs to combat with these challenges?

3.2 Research Design

Based on the emerging nature of the subject under discussion, this research project was preceded by an exploratory study of the research topic. This was done in an effort to “seek new insights, ask new questions and to assess topics in a new light” (Saunders & Lewis, 2012, p.110). Merriam (2002) refers to a qualitative research design called ‘interpretive qualitative approach’. This research design was an inductive process that was also extremely descriptive in form.

Due to time constraints it was necessary to apply a cross-sectional research methodology. This meant that the data gathering process would occur using a snapshot approach, in which data was collected during a single point in time, as opposed to gathering and observing the data over a period of time (Saunders & Lewis, 2012). This is because of the limited amount of time available for data collection, which prevented a comparative study over time, however this research will be able to be replicated in future, allowing for a longitudinal study to be completed at a later stage (Saunders & Lewis).

3.3 Sample Size

The research targeted a sample size of between eight and ten interviews with entrepreneurs in Pakistan that have started their own businesses.

3.4 Research Instrument

The exploratory research study was guided by the literature review performed above. In the exploratory phase, interviews were held with experts on the subject of challenges faced by young entrepreneurs, as well as, their willingness to combat them through various techniques.

The data collection phase of the research was conducted using a ‘semi -structured interview’ with the participants. This method lent itself to the collation of ‘predetermined questions’, which emerged from the salient themes in the literature, review (Saunders & Lewis, 2012). The salient themes from the literature review were:

- Motivation to become an entrepreneur

- The link between job creation and entrepreneurship

- To identify the challenges that faced during setting up the business.

- Facilitating factors and techniques through which these challenges can be minimized

Long et al. (2000) discuss the common error made in not identifying the disparity that exists between the nature of research method chosen, and