WHY DO ENTREPRENEURS QUIT ENTREPRENEURSHIP? ANEMPIRICAL ANALYSIS FROM DISTRICT SHEIKHUPURA

Abstract

Entrepreneurship plays a crucial role in economic development, yet many
entrepreneurs exit their businesses, leading to questions about the underlying
causes. This study explores the reasons why entrepreneurs quit
entrepreneurship in Pakistan. Using an empirical approach, the research
collected data from former entrepreneurs through structured surveys and
interviews to identify key factors influencing their decision to exit. The
findings reveal that financial difficulties, lack of access to capital, market
competition, and regulatory burdens are primary reasons for entrepreneurial
exit. Many entrepreneurs struggle with inconsistent cash flow, high
operational costs, and limited access to credit, which forces them to shut
down their businesses. Additionally, economic instability and inflationary
pressures make it difficult for small business owners to sustain profitability.
This study provides valuable insights for policymakers, financial
institutions, and business support organizations. It highlights the need for
improved financial support, entrepreneurship training programs, and policy
reforms to create a more sustainable entrepreneurial ecosystem in Pakistan.
By addressing these challenges, the region can promote long-term
entrepreneurial success and economic growth