Founder Characteristics and Small Firm Performance in Pakistan

Ejaz Mian, Osman Mohammad
IBA Karachi Pakistan, Multimedia University Malaysia,

Abstract: Although there is a large body of research on small firms, there is dearth of studies on small firms in developing countries. Developing countries present new sets of challenges which need new approach. Small firm founders in developing countries often lack marketing and general management knowledge, have low levels of literacy, lack training facilities for various types of skills, and have weak government support and infra-structure. Literature suggests founder characteristics have profound effect on the performance of small firms. This study seeks to investigate role of founder characteristics in performance of small firms in Pakistan. Small firms are defined as firms with 6 to 50 employees. A total of 440 firms from the manufacturing and services sector are selected from metropolitan Karachi and data is collected through a questionnaire. Survey instrument was a questionnaire with two parts. The first part included 17 questions related to information about founders and part two consisted of 5 questions related to performance. The questionnaire was personally administered through personal visits. Questionnaire is based on eighteen questions relating the variables of the study. Stratified random sampling is used. Innovation, proactive-ness and motivation are found to be significantly related to performance.

Keywords: Founder characteristics, small firm, performance, Pakistan.
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