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Developing Entrepreneurship in Pakistan through Higher Education
This research intended to explore deficit and strategies to improve entrepreneurship regarding higher education in Pakistan. The study was descriptive in nature. It would utilize quantitative cum qualitative research techniques. Quantitative data were obtained through questionnaires and qualitative data from interviews. The population was comprised of all teachers and students who are getting entrepreneurship education in Business Incubation Centre's (BIC) supported by Higher Education Commission in public sector universities. The sample of the research were 40 teachers and 200 students selected through random sampling technique. Data were analyzed through descriptive and thematic approach. The findings of the study showed that HEC was not playing an active role regarding entrepreneurship and demanded that special funds, infrastructure, and faculty should be provided to promote entrepreneurship. Institutions may offer useful training programs in colleges and universities for better career prospect and also focused on continuous professional development of teachers to enhance entrepreneurship education.
Entrepreneurship, Higher Education, Business Incubation Centres, Deficits, Strategies
By nature, entrepreneurship is behavioral. The managers are those who participate in the initiative, manage any organization, with considerable initiative and risk, recognize the opportunity, collect important structures, and his ultimate responsibility for the company's results (Clark & Harnish, 2004). Organizational education programs are main entity of entrepreneurial behavior and all aims to become coming businessman (Souitaris et al., 2007). Entrepreneurs play a vital role in provision of the social change that unites the activities of Main Street and high technology. The creation of jobs, the alteration, and development of ideas are the fundamental role played by educational enterprises in an economy. New projects are set by entrepreneur and predict services or economics until solid results are achieved (Kelley & Marram, 2004). To achieve the final results, businessmen await the start of the new product until the actual service and the sale of the first product.
Kailer (2010) proposed the significance of entrepreneurship regarding teamwork and explains that for versatile disciplinary teams few people will only appeared as entrepreneur’s team member of a squad start-up and would not chase a single person’s start-up (Clarysse & Bruneel, 2011). The nascent entrepreneurs go onboard and quickly face the conditions of transformation without keeping the failure in their heads and recognize how to transform their conditions to satisfy their investors. These incipient entrepreneurs foment crests and react impressively not just to live, but thrive in maintaining a new society because entrepreneurship is much more contingent than the surrounding factors than previously anticipated. The skills of entrepreneurs punish him in changing from recent environments, to new times in the form of new goals.
At this time, the entrepreneur is seen more often as an acceptance of risk and corporate business uniqueness. Economic development is a series of new markets, organizations, procedures, and facilities which all are a product of organizational activity (Barreto, 2009). In consequence, with the help of tests and error including retransformation of investment and labor old things can be vanished. The new organization is more batter than the older ones and it has been proved (Haltiwanger, 2000).
The knowledge delivered to organization exhibits knowledge to another business enterprise that makes it profit-oriented (Griliches, 2002). Romer (2006) also agreed upon this hypothetical model that emphasizes the function that knowledge overrun producing increasing returns and thus
economic uplifting. Maintaining a new business mean simply entrepreneurship. Having the determination of giving idea and plan and gaining chances in a specific point of view that penetrates by businessman and which is developed in a person. This point might be visible outside or inside an organization, profitable or unprofitable organizations for showing creative ideas. This is why the entrepreneurial spirit is an absorbed idea that penetrates the entrepreneur in unique way. It is this landscape that has built the way in which activities are carried out at all levels in all countries.
Education is mainly divided into two major areas that are general and technical education. General education imparts knowledge expanding among various sources. Through general education, students will be able to think analytically, recognize beliefs and morals, comprehend civilizations, and gave respect to different philosophies and opinions. Mechanical Education is skill-oriented and it delivers theoretical as well as practical knowledge to promote economic development of the individuals in the society. In the present day of hard struggle and competition general education cannot fulfill the demands of the people. To become a competent and well-versed citizen of the society, it is necessary to equip the learners with technical knowledge to equip them with necessary abilities and skills which are necessary for development in this competitive atmosphere. It is rightly said by the experts that a career in which entrepreneurship has an influence, absolutely present the chances of great progress and economic benefits. It offers greater freedom to earn bigger financial payback and value-added towards the whole economy by contributing toward novelty, jobs enhancement and economic growth &development (Ajzen & Fishbein, 2014).
Technical education has become an important factor in the modern age. It helps us to meet the needs of industrial age. It also opens new avenues for learners and higher education graduates. This education produces engineers, doctors, builders, mechanics and technicians who may be very useful for industrial society. In our country there is lack of education related to vocation & technical. People don’t consider this field or feel ashamed of adopting this field. Young people of Pakistan having tendency of office work/jobs and they do not like to start their own business or be their own boss (ACS & Audretsch, 2013). So it is compulsory that technical/vocational institutes should be developed and dignity of labor should be acknowledged throughout the nation. Technical education is the only way toward progress. It is need of the hour that we should take more interest in seeking technical education. It will help us to make our country developed& strong economically (Audretsch, 2012).
An entrepreneur is a new or existing body that gives new and unique services. To provide services at a minimum cost these entities may originate or develop new methodologies and techniques (William et al., 2007). Entrepreneurship includes a single person’s multi-faceted and vast range of skills to produce new and unique opportunities and involving them into implementations for success in society (Gartner & Shane, 1995). A combination of many experts for successful organization is expected, as they have many affectionate and unique ways of calculating many natural aspects and helping people, this is why entrepreneurship involves a specific mix of skills and competencies that are effective to everyone. To solving economic problems, almost all societies have been realized the entrepreneurship importance in order to apply new techniques and terms.
There are mainly three major ways through which entrepreneurship promotes growth & progress. First of all, is to create awareness and give knowledge that is dynamic instrument for the progress and growth of the economic condition of the country. The organizations must develop the ability to familiarize with new tools and accept notions from diverse groups. The second way of making development in entrepreneurship is that helpful in the financial advancement by growing the competition and enterprises in society. The number of the organization is increasing day by day and this thing also accelerates the development of new ideas and innovative competition. Various organizations may assist the access of the new and innovative methods of running business and getting economic stability (Audretsch & Thurik, 2014). The third way through which can become economically strong is by developing entrepreneurial capital by generating competition among various firms.
In Pakistan, all public contracts in education generally been biased and are improving the elite class, with the exception of the layman. As a result, an incorrect "revenue-seeking" economic system is developed in the sector on a large scale rather than in entrepreneurship, even when the private sector regularly reproduces the entrepreneurial spirit (Nadeem UlHaque, 2007). Taking into account the economic views of entrepreneurship, Pakistan is really trying to help entrepreneurship through schemes of government regulations and promulgations. Pakistan has several energetic young people who have new technical skills and ideas. They are facing a lot of challenges in their business. Policies makers of government must play an important role in creating a corporate culture that verifies and introduces the importance of entrepreneurship throughout social set up. The organizers of business in Pakistan must also begin to discover in the line of education at a general level. Pakistani colonies must learn to introduce their youth to minimum dangers since childhood, except to give them a culture of educating and taking advantage of learning and remembering textbooks to get good grades in their related exams.
Entrepreneurship has a direct link with the economic and social development of the country. That’s why interest in entrepreneurship is increasing rapidly. Its importance has been realized by the Higher Education Commission that for creating awareness about entrepreneurship and developing professionalism among the people for improving their standard of life. Therefore Government's part in empowering entrepreneurship is judgmentally significant but unluckily in past, the role was more negative than positive. Entrepreneurship in Pakistan has suffered a lot because of Government’s policies and legislation. Hence the entrepreneurship never flourished in Pakistan as it was supposed to be. Plentiful pieces of evidence are available that prove the efficiency of entrepreneurship than ordinary businesses. Consequently entrepreneurship should be pursued for economic development.
Statement of the Problem
The status of entrepreneurial education in Pakistan is still not very hopeful and optimizing. People are still unfamiliar with this discipline of education and it is considered an alien subject in Pakistan. Roundabout a decade back the Higher Education Commission (HEC) of Pakistan has understood its significance that’s it very appropriate time to incorporate entrepreneurial education in higher education to cope with the fluctuating international movements and trends. Nevertheless, in Pakistan it is still confined to no more than one or two subjects at undergraduate level and at post-graduate. But realizing this critical situation about entrepreneurship, it can be said that it is not an easy task to make it functional and effective for economic and social development of the country. It demands a stable and consistent attitude as part of personality. Therefore the researcher intended to conduct the study to explore deficits of entrepreneurship in higher education and also put forward some strategies regarding improvement in entrepreneurship in Pakistan.
Objectives of the Study
· To explore the role of institutions of higher education in entrepreneurship in Pakistan.
· To find out major deficits in the field of entrepreneurship in Pakistan through higher education.
· To explore the initiatives taken by the Higher Education Commission for aligning the higher education with entrepreneur’s requirements at institutions of higher education level.
· To explore strategies to improve the deficits in the field of entrepreneurship in Pakistan through higher education.
1. What is the role of institutions of higher education in entrepreneurship in Pakistan?
2. What are the major deficits in entrepreneurship education in Pakistan?
3. What are the strategies to make progress in entrepreneurship education in Pakistan?
4. What are the major steps taken by the institution of higher education commission regarding entrepreneurship in Pakistan?
Methods and Procedure of the Study
The study was descriptive in nature. It would utilize quantitative cum qualitative research techniques. The population was comprised of all the teachers and all the students of 30 Business Incubation Centre's (BIC) supported by HEC in public sector universities providing education on entrepreneurship and engineering degree programs all over Pakistan. Twenty (20) Business Incubation Centre's (BIC) supported by HEC were selected through random sampling technique. From each of 20 centers, two teachers and ten students were selected through random sampling technique. So 40 teachers and 200 students were the samples of the research.
A questionnaire was developed on the five-point Likert scale to collect information from teachers and students. It was designed in five parts; Part one was designed to obtain participants‟ personal data; Part two was about the role of HEC in developing entrepreneurship education in Pakistan; part three was about the characteristics of an entrepreneur and part four was consisted of statements about major deficits in developing entrepreneurship education in Pakistan. Part five was consisted of 4 open-ended questions to get the participants personal views on entrepreneurship in Pakistan through Higher Education.
For accurate and authentic information, the research questionnaire was considered by the four experts, two experts from language and two experts from the entrepreneurship field. It was suggested that functional and easy language may be used for proper communication instead of lengthy and idiomatic expression. The questionnaire was modified according to the feedback of the experts. The reliability of the instruments was achieved through pilot testing for easiness, structure precision and quality of the data collection tools. The pilot testing of the questionnaire was done through 3 teachers and 6 students of the BIC. The pilot testing respondents were taken out of the actual sampling selected for research. Some questionnaire items were found difficult and vague; therefore this aspect was addressed by making statements simple, easy and pertinent. A few statements were found repeating hence they were merged and re-framed with similar statements. Inter-item consistency from all 45 items was calculated by the Cronbach Alpha and it appeared as 0.838 which was satisfactory reliability co-efficient.
The researcher personally collected data from 12 BIC and assistant from 8 BIC. Questionnaires and their covering letters were administered to the participants personally by the researcher and the assistant and when the participant filled the complete questionnaire, it was taken back at the same time and same place. Interview sessions ranged from 30-40 minutes and were semi-structured in nature. The interview was conducted one to one basis. The researcher collected extensive information by asking multiple probing questions from the participants. The researcher personally collected data from 12 BIC and assistant from 8 BIC.
Data Analysis and Interpretation of Data
Data were analyzed through descriptive and interpretive approaches. The questionnaire was analyzed by frequency distribution. Percentages were calculated. Using the thematic approach, qualitative data were analyzed. All the interviews were transcribed from the voice recorder and were studied extensively. The data were coded on the basis of the given categories. The last step in the analysis of the data obtained from interviews was identifying and creating themes.
Findings from Quantitative Analysis of Questionnaires
Perception of Teachers about the Role of Institutions of Higher Education
As far as the perception of the teachers about the role of Institutions of higher education is
concerned the statistics got through this research indicated that HEC is not playing an active role in promoting entrepreneurship education, just a small number of participants are satisfied with HEC performance.
The opinion of Teachers about the Characteristic Entrepreneurship Education Develops in Entrepreneur
Teachers categorize the characteristic of entrepreneurs in the following order: Creativity and innovativeness; Flexibility; Initiative taking ability; Problem facing attitude; Adaptability; Knowledge for commercial aspect of business; Curiosity about achievement; Optimism about success; Strong willpower; Knowledge for legal aspect of business and Problem solving attitude are considered the important characteristics which an entrepreneur should have for success business, whereas Risk-taking ability; Dignity for labor and Time management etc. are not considered as much important as the above-mentioned characteristics for successful entrepreneurship.
The opinion of Teachers about the Major Deficits in the Field of Entrepreneurship in Pakistan
As far as the opinion of the teachers about deficits is concerned; Lack of improved equipment; Shortage of Ph.D. faculty; Lack of proper execution of policies; Higher ratio of students than of faculty; Intrusive role of Govt. and Lack of higher standard of buildings are given much weight age as the major deficits in the field of entrepreneurship in Pakistan. Lack of entrepreneurial culture; In-efficient mentoring systems and Non-valid Pedagogical tools/Traditional pedagogies of teaching are considered of second importance. Overall 83% participant is agreed about the nature of the deficits.
Perception of Students about the Role of Institutions of Higher Education
The opinion of the students about the role of HEC is somewhat different from the teachers because 78% students are agreed that HEC is playing an active role in promoting entrepreneurship education in Pakistan. Just 6% disagree and 4% remained uncertain. So there is a contradiction between the two findings.
The opinion of Students about the Characteristic Entrepreneurship Education Develops in Entrepreneur
78% of students are agreed about the mentioned characteristics that these are rudimentary for entrepreneurship education. 12 % remained uncertain and just 10% students expressed their disagreement. So again student’s opinion is differing from teacher’s opinion.
The opinion of Students about the Major Deficits in the Field of Entrepreneurship in Pakistan
90% of students are agreed about the major deficits in the field of entrepreneurship education in Pakistan. Just 3% remained undecided and 7% showed disagreed position.
Findings from Qualitative Analysis of Interview Questions
The opinion of teachers about background skills, knowledge and experiences entrepreneurship ventures
Majority of the students have the opinion that confidence; Planning; Mindset; Experience
and skills; Interpersonal skills, good communication; Knowledge and techniques; Decision-making skills; Working ability in pressure; Handling difficult situation; Observational skills, intellectual, communication and Basic knowledge of business, etc. are necessary for entrepreneurship ventures
The opinion of Teachers about the Characteristic, Entrepreneurship Education Develops in Entrepreneur
According to the opinion of the teachers, an ordinary businessman starts a business from an existing idea or concept whereas an entrepreneur creates a new product and launches it as a whole new idea. The businessman will make effort to become a tycoon, risk-taker and uses unconventional methods. The businessman has initiative nature, innovative ideas, new skills, and strategies and has the confidence to make possible.
The opinion of Teachers about Initiatives taken by Higher Education Commission for Entrepreneur’s Requirements
Provisions of faculty who are highly qualified and experts in their field. Punjab Govt. has launched e-Rozgar program to train entrepreneurs. Someone said that there is no advancement in faculty. Another participant said that proper buildings have not been constructed so far. Subjects like financial management; marketing plan and human resource and finance have been introduced. One person stated that no economic measures are being taken; only self-help is the major source of capital. Someone said that loans on easy terms are being provided to the entrepreneurs.
The opinion of Teachers about Strategies Institutions of Higher Education are Adopting to Improve Deficit in Entrepreneurship in Pakistan
Different seminars and discussions are being held to promote self-confidence in students for entrepreneurship using active plate form their services can be hired. Institutions are supporting small industry and business with friendly laws. Various sessions with businessmen are also being arranged to improve entrepreneurship. Loans are being provided to start-up business units.
The opinion of Students about Background Skills, Knowledge and Experiences Entrepreneurship Ventures
Majority of the participants are of the view that ordinary businessman starts a business from an existing idea or concept whereas an entrepreneur creates a new product and launches it as a whole new idea. Entrepreneur does not worry about profits and loss and is more satisfied. Other focuses on how to earn more and more profit and creates jobs. Entrepreneur wants to start a venture. So entrepreneur has different skills and strategies.
Opinion of Students about Initiatives taken by HEC for entrepreneur’s requirements
According to the opinion of participants, the initiatives taken by higher education commission are as continuous training, workshops, faculty linkage with market and industry and try to create a balance in the ratio of faculty and students, etc. Incubation centers are being established. Video conference rooms have been provided. Improved equipment has been also purchased. Higher standards of buildings are being constructed etc. Subjects like risk management, financial management, marketing plan, human resource and different computer related Software programs are being taught. Institutions provide loans to start up the business for students SSBC is the form for this purpose
Opinion of Students about Strategies Institutions of Higher Education are Adopting to Improve Deficit in Entrepreneurship in Pakistan
Institutions of higher education are providing more & more events of investments in market. Incubation Centers were being established in different cities of Pakistan. Various business campaigns and policies are also being planned. Institutions are offering useful training programs in colleges and universities.
Discussion and Conclusion
The entrepreneurial education in Pakistan is still an unfamiliar discipline. A few years before, Higher Education Commission (HEC) of Pakistan has felt that the entrepreneurial education would be started in the country, as the world is changing its trends and to fulfill new global requirements and developments Higher Education Commission has started Business Incubation centers in public sector universities to promote Entrepreneurship. However, in most of the colleges and universities business education is still limited to a single or two subjects available in the undergraduate programs and postgraduate Business Administration programs. But to develop entrepreneurship in Pakistan, very serious and deeply rooted efforts are required as it is not an easy task to develop the overall personality of the person.
In Asia, Pakistan is progressing in entrepreneurship. The growing importance of the Asian economy can be easily understood as it relates to growth rate of western countries. As 0.9 of Denmark, Great Britain of 1.6%, the Netherlands of 0.61%, 0.9% for France and 1.7% for the United States (World Bank, 2011). The concept of entrepreneurship is improving in Pakistan. As a result, at university level there is small evidence of education of entrepreneurship in Pakistan; experienced people are running out of their skills. It has usually been observed that a number of organizers start small businesses with their own resources. And why; banks and investors want to invest in the known organization rather than in the unknown. The venture industry of capital requires respectable legal and financial growth to function properly; so it is mainly celebrated in organized lands to introduce entrepreneurs. The organizational framework of developing countries does not allow for progress. Usually, the organizers aim to create a small organization because of the above reasons, including those who take risks, new schemes and difficulties in liquidating business finance (Audretsch and Thurik, 2001).
Entrepreneurship is emerging as an energy field and as an area of research in recent decades. The 20th century supports the period of huge promotion for entrepreneurs (Gartner & Shane, 2005). It is usually thought in terms of business “a dynamic process of vision, change and creation” but it can be related to all dimensions of life, including society, culture and trends in technological advances (Kuratko, 2005).
Entrepreneurship education in Pakistan is also a transpiring step. Research on education has led to advances in teaching and learning over the years. To create an entrepreneurial mindset among young people, there are many trends in private educational organizations to design innovative and stimulating ideas and projects. Pakistan offers a great youth perspective in the area that can be exploited for design through the provision of real-time knowledge and the construction of an entrepreneurship point of view: creativity, uniqueness, initiation, unrealistic management. However, the material of organizational education is still abroad for the faculty and recent curricula of the educational system and is reduced to some subjects in degree courses in business administration (Chen & Crick, 2008).
Teachers are of the opinion that government is not playing its role; just a small number of participants were satisfied with HEC performance whereas students had shown more satisfaction as compared to teachers. Teachers as well as students both were of the view that handling of difficult situation, observational skills, intellectual, communication and basic knowledge of business, innovativeness, risk taking ability and confidence are necessary for entrepreneurship ventures. Some teachers and students expressed their views that government is trying to overcome the shortfalls of faculty, building, capital and moreover many subjects are being introduced by the Govt. at this level. There were some teachers and students who are not satisfied with the working of the HEC. They demand that special funds, infrastructure and faculty should be provided to promote entrepreneurship. As far as initiatives of HEC concerned many participants are agreed that Incubation Centers are being established in different cities of Pakistan. Various business campaigns and policies are also being planned. Institutions are offering useful training programs in colleges and universities for better career prospect. Some are of the more solid steps should be adopted for proper development.