Introduction

Entrepreneurship is becoming of vital importance in the economies like Pakistan. Entrepreneurship is strongly related to small medium enterprise (SME), which is considered to be the main developing force of the developing economies market.

Previously many economists believed that it is the large firm which contributes in the developing of economies and attracts foreign exchange in the country. But there point of view changed when countries like Taiwan, Japan, and Korea established their economies on the bases of SMEs. These economies build up from grass root level to the heights of success.

According to Schapper (2006), in developing nations more than 90% of the firms fall under the category of SMEs and he also above than 90% of these firms are microenterprises. Pakistan is also one of the countries focusing on the development of SMEs. Almost 13 years ago Govt. of Pakistan established institution named SMEDA; small and medium enterprise authority, responsible for the guidance and the promotion of SMEs.

SMEs are very heterogeneous business operating in many different sectors such as trade, agri- business and manufacturing (Hussain et al, 2009). Pakistan is a very potential market for SMEs. Before very less or no importance is given on the business research which could attract many foreign investments. There are certain issues regarding the success and failures of SMEs which need to explore out and address.

What is Entrepreneur?
The term entrepreneur was first introduced by the early 18th century French economist, Richard Cantillon. Later on, Adam Smith, David Ricardo, and John Stuart Mill briefly touched on the concept, under the term of “business management”.

Mill highlighted the significance of entrepreneurship in economic growth, and believed it to be “no ordinary skill”.

Alfred Marshall however, was the first to recognize the