Determinants of Entrepreneurship in Pakistan Oct 2012

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Presentation delivered at USIP-GMU conference on Pakistan's youth bulge in October 2012.

Transcript of Determinants of Entrepreneurship in Pakistan Oct 2012

  • 1. Attitudes, Ambitions and Entrepreneurship Potentials of Youth in KarachiMehtab S. Karim & Ammar A. Malik School of Public Policy, George Mason University October 10, 2012

2. Pakistans Youth Bulge Proportion of Pakistanis in the 15-29 year age bracket: 33 percent overall & 40 percent in cities National demographic trends and youth migration to cities Over 7 percent annual GDP growth rate needed to absorb growing labor force 3. The City of Karachi A microcosm of Pakistan, representation of all ethnicities Home to 7.5 - 10 percent of Pakistans entire population, 11th largest city in the world (UN 2012) Produces 20% of national GDP, 25% of national revenues, handles 95% of foreign trade, retains 45% of employment in large-scale manufacturing (ADB 2005) 4. The Two Faces of Youth in KarachiPhotos Courtesy Express Tribune & Pakistan Today 5. Population Growth in Karachi YearPopulation (millions)Average Annual Growth Rate (%)19410.3873.119511.0709.419611.9176.019723.5005.719815.2104.519989.200 (11.200*)3.5201218.0 (estimated) Youth 7.2 million3.5*The 1998 Census counted an estimated 2 million additional people, however since they were born in Bangladesh and Afghanistan , they were considered aliens, therefore, were not included in the official figures 6. Population Growth Comparison betweenDeveloping Country Megacities 18 16 14 12Cairo Beijing Jakarta Delhi Karachi10 8 6 4 20 1970 Source: United Nations1980199020002010 7. Survey of Youth in Karachi 8. The Objectives Gathering first-hand information from young adults covering the following key themes: o Present economic conditions and challenges o Religious practices and degrees of tolerance o Perceptions on current conditions and future prospects, both for themselves and for the country o Opinions on key players in the country o Preferences for employment versus entrepreneurship (and its potentials) 9. Sampling Methodology Cross section representative survey of randomly selected young people living in Karachi, aged between 20 and 29 Federal Bureau of Statistics Sampling Frame utilized 90 clusters from a total of 4000 were randomly selected, thus equal chance of selection 12 young adults (both males and females) selected for interview at home or its vicinity 1,000 interviews were conducted in total 10. The Results 11. Religious Practices and Tolerance 77.5 70.970.261.941.63735.430.330 20.333.518MalesFemales10th Grade or belowCollege or abovePray 5 times a day. Would avoid having neighbours of a different religion. Would avoid having neighbours associated with a religious extremist group. 12. Use of Internet and Mobile Phones 10095 89908080757370 60555250 403130 20 10 0 MalesFemalesUse Internet Frequently (%)10th Grade or belowCollege or aboveHave Mobile Phone (%) 13. Marital Status and Marriage Decisions 64 6262626060 5859 58 575756 545452 50 MalesFemalesCurrently Single (%)10th Grade or belowCollege or aboveMarriage is Parents' Decision (%) 14. Employment Status by Gender MaleFemale1.330.816.238.6 46.826.89.729.3 0.5 Full Time job or Self-employed Full Time Student Unemployed (looking for job) Unpaid apprenticeFull Time job or Self-employedFull Time Student Unemployed (looking for job) Unpaid apprentice Housewife/At home 15. Employment Status by Education 10th Grade or below 19.3College or above 19.626132.1116.6 28.7 25 30.7 Full Time job or Self-employed Full Time Student Unemployed (looking for job) Unpaid apprentice Housewife/At homeFull Time job or Self-employed Full Time Student Unemployed (looking for job) Unpaid apprentice Housewife/At home 16. Job Preferences by Gender and Education 80 706865686564 58605450474642 40423529283023232010 0 Have Preference for Government JobMaleWell Known BrandName CompanyFemaleWork for NGO10th Grade or belowWant to Start Own Business OnceCollege or above 17. Any Past Entrepreneurship Training? 100 9093.592.287.885.18070 60 50 4030 2014.912.17.8106.50 MaleFemale No10th Class or below YesCollege or above 18. Desire for Entrepreneurship Training 90 8083.880.5777470 6050 40 30 2018.618.5 13.312.710 0 MaleFemale Negative10th Class or below PositiveCollege or above 19. Youths Concerns by Education 10th Grade or belowCollege or above10010090908080707060605050404030302020101000HighlySomewhatNot at allHighlySomewhatNot at all 20. Youths Concerns by Gender MaleFemale 1001009090 8080707060605050404030302020101000HighlySomewhatNot at allHighlySomewhatNot at all 21. Prospects of Improvement in Pakistans Overall Situation 50 43.845 4037.135.9 3635 30.5 3029.528.52522.5 22.420.818.220 15.615.4 1517.8131310 5 0 Will Improve Male (%)Remain the Same Female (%)Get Worse10th Class or below (%)No Opinion College or above (%) 22. Desire to Move Abroad 60 49.65046.5 43.4 40.14037.1 3433.93026.520 14.3 10.5 1014.412.811.79.58.96.70 Male (%) Will Always Live in PakistanFemale (%)10th Class or below (%)Go Abroad for WorkCollege or above (%)Migrate IndefinitelyNo Opinion 23. Attitudes, Ambitions and Entrepreneurship Potentials of Youth in KarachiMehtab S. Karim & Ammar A. Malik School of Public Policy, George Mason University October 10, 2012