Download - Determinants of Entrepreneurship in Pakistan Oct 2012

Attitudes, Ambitions and Entrepreneurship Potentials of

Youth in Karachi

Mehtab S. Karim &

Ammar A. Malik

School of Public Policy,George Mason University

October 10, 2012

Pakistan’s 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

The City of Karachi

• A microcosm of Pakistan, representation of all ethnicities

• Home to 7.5 - 10 percent of Pakistan’s 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)

The Two Faces of Youth in Karachi

Photos Courtesy Express Tribune & Pakistan Today

Population Growth in Karachi

Year Population(millions)

Average Annual Growth Rate (%)

1941 0.387 3.1

1951 1.070 9.4

1961 1.917 6.0

1972 3.500 5.7

1981 5.210 4.5

1998 9.200 (11.200*)

3.5

2012 18.0 (estimated)Youth 7.2

million

3.5

*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

Population Growth Comparison

between Developing Country

Megacities

1970 1980 1990 2000 20100

2

4

6

8

10

12

14

16

18

CairoBeijingJakartaDelhiKarachi

Source: United Nations

Survey of Youth in Karachi

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)

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

The Results

Religious Practices and Tolerance

Males Females 10th Grade or below College or above

20.3

41.6

18

3730

35.430.3

33.5

70.9 70.2

61.9

77.5

Pray 5 times a day.

Would avoid having neighbours of a different religion.

Would avoid having neighbours associated with a religious extremist group.

Use of Internet and Mobile Phones

Males Females 10th Grade or belowCollege or above0

10

20

30

40

50

60

70

80

90

100

55 52

31

73

89

8075

95

Use Internet Frequently (%) Have Mobile Phone (%)

Marital Status and Marriage Decisions

Males Females 10th Grade or belowCollege or above50

52

54

56

58

60

62

64

62

57

58

62

57

59

54

60

Currently Single (%) Marriage is Parents' Decision (%)

Employment Status by Gender

38.6

29.3

30.8

1.3

Male

Full Time job or Self-employed Full Time StudentUnemployed (looking for job)Unpaid apprentice

16.2

26.8

9.7

0.5

46.8

Female

Full Time job or Self-employed Full Time StudentUnemployed (looking for job)Unpaid apprenticeHousewife/At home

Employment Status by Education

26

25

28.7

1

19.3

10th Grade or below


32.1

30.7

16.6

1

19.6

College or above


Job Preferences by Gender and

Education

Hav

e Pre

fere

nce

for G

over

nmen

t Job

Wel

l Kno

wn

Brand

-Nam

e Com

pany

Wor

k fo

r NGO

Wan

t to

Start

Own

Busin

ess Onc

e0

1020304050607080

68

54

28

47

6558

23

35

68

46

29

42

65 64

23

42

Male Female10th Grade or below College or above

Any Past Entrepreneurship

Training?

Male Female 10th Class or belowCollege or above0

10

20

30

40

50

60

70

80

90

100

85.1

92.287.8

93.5

14.9

7.812.1

6.5

No Yes

Desire for Entrepreneurship

Training

Male Female 10th Class or below College or above0

10

20

30

40

50

60

70

80

90

7780.5

83.8

74

18.512.7 13.3

18.6

Youth’s Concerns by Education10th Grade or below College or above

Corru

ptio

n

Inflat

ion

Viole

nce

Unem

ploy

men

t

Pover

ty

Pollu

tion

Illet

erac

y

Popula

tion

0

10

20

30

40

50

60

70

80

90

100

Highly Somewhat Not at all

Corru

ptio

n

Inflat

ion

Viole

nce

Unem

ploy

men

t

Pover

ty

Pollu

tion

Illet

erac

y

Popula

tion

0

10

20

30

40

50

60

70

80

90

100


Youth’s Concerns by GenderMale Female

Corru

ptio

n

Inflat

ion

Unem

ploy

men

t

Viole

nce

Illet

erac

y

Pover

ty

Pollu

tion

Popula

tion

0

10

20

30

40

50

60

70

80

90

100


Corru

ptio

n

Inflat

ion

Unem

ploy

men

t

Viole

nce

Illet

erac

y

Pover

ty

Pollu

tion

Popula

tion

0

10

20

30

40

50

60

70

80

90

100


Prospects of Improvement in Pakistan’s Overall

Situation

Will Improve Remain the Same Get Worse No Opinion0

5

10

15

20

25

30

35

40

45

50

30.5

15.4

35.9

18.2

28.5

13

36

22.520.8

13

43.8

22.4

37.1

15.6

29.5

17.8

Male (%) Female (%)10th Class or below (%) College or above (%)

Male (%) Female (%) 10th Class or below (%)

College or above (%)0

10

20

30

40

50

60

34 33.9

43.4

26.5

46.5

40.137.1

49.6

10.5 11.7

6.7

14.4

8.9

14.3 12.89.5

Will Always Live in Pakistan Go Abroad for Work Migrate Indefinitely No Opinion

Desire to Move Abroad

Attitudes, Ambitions and Entrepreneurship Potentials of

Youth in Karachi

Mehtab S. Karim &

Ammar A. Malik

School of Public Policy,George Mason University

October 10, 2012