Effect of Government Support on Entrepreneurial Culture: Moderating Role of Education Institutions Support in Pakistan

Abstract

The significance of an entrepreneurial culture of a country in alleviating its social and economic issues is accepted by policymakers and emphasized by academics. The role of government in shaping entrepreneurial culture is little understood in the literature. This is especially true for emerging economies like Pakistan. Furthermore, the role of educational institutions in supporting such a culture has also not been adequately understood by the extant literature. This raises issues for policymakers in a country like Pakistan when it comes to taking entrepreneurial decisions. This study intends to examine the effect of government support on establishing an entrepreneurial culture along with the role of education institutions support acting as moderator. Data was gathered through a self-structured questionnaire from 1200 final year students of higher education institutions in Khyber Pakhtunkhwa (Pakistan) using the proportional allocation method. Simple regression and Process approach were used for data analysis. The findings reveal that government support has a significant positive effect on the entrepreneurial culture of Pakistan. Moreover, the educational institutions support significantly moderates the relationship between government support and entrepreneurial culture, thereby highlighting one of the underlying mechanisms through which the government may extend its influence for enabling an entrepreneurial culture. This research holds if the government and higher education institutions play their role in promoting an entrepreneurial culture, it will lead students towards a business-oriented approach to become entrepreneurs and job creators rather than job seekers.