Effect of Environment on Entrepreneurial Culture with mediating role of Opportunity Creation

Abstract

The role of entrepreneurial culture in reducing socio-economic issues of a country is emphasized by policymakers and academics alike, but the effect of the environment to promote entrepreneurial culture is scarcely studied in literature. Furthermore, a focus on the mediating role of opportunities in developing such a culture is missing in entrepreneurship literature. The current study addresses this gap by examining the potential influence of environment on entrepreneurial culture with mediating role of opportunity creation. For this research, data was gathered through questionnaire from 200 micro level enterprises in Peshawar using random sampling. Then the Structural equation modeling (SEM), a statistical technique, was used for analyzing this data. The findings of this analysis reveal a positive effect of the environment on facilitating an entrepreneurial culture. Our findings additionally reveal that opportunity creation also serves as a significant driver in enhancing an entrepreneurial culture. In this vein, environment was found to also have a significant effect on opportunity creation. Finally, as per our findings opportunity creation fully mediates the relationship between environment and entrepreneurial culture. Therefore, this research holds that friendly business environment creates opportunities, which leads to the development of entrepreneurial culture in a society. The researchers also provided future directions and various limitations in this study