Socio-Cultural Barriers to Entrepreneurial Development in Pashtun Society: Evidence from District Mardan, Khyber Pakhtunkhwa, Pakistan

Abstract

Entrepreneurship is widely recognized as a key driver of economic growth, employment generation, and social development. However, entrepreneurial development in many developing societies remains constrained by socio-cultural factors that influence individuals' entrepreneurial intentions and business activities. This study explores the socio-cultural barriers to entrepreneurial development in Pashtun society, focusing on District Mardan, Khyber Pakhtunkhwa, Pakistan. A qualitative research design was employed to gain an in-depth understanding of entrepreneurs' experiences. Data were collected through semi-structured interviews with 40 entrepreneurs selected using purposive sampling and analyzed using thematic analysis. The findings identified five major themes influencing entrepreneurial development: social barriers, financial barriers, psychological barriers, cultural barriers, and family support. Social discouragement, lack of family support, poverty, limited access to finance, fear of failure, low self-confidence, cultural preference for government employment, social stigma, and weak entrepreneurial culture were found to be the major barriers to business initiation and growth. Conversely, family support emerged as a significant enabling factor by providing financial assistance, emotional encouragement, social trust, and business networks. The findings are consistent with Institutional Theory and Embeddedness Theory, which emphasize that entrepreneurial behaviour is shaped by both formal institutional structures and informal socio-cultural relationships. The study concludes that promoting entrepreneurship in Pashtun society requires integrated interventions that strengthen entrepreneurship education, improve access to finance, simplify institutional support mechanisms, and encourage positive cultural attitudes toward business ownership. The findings offer practical implications for policymakers, educational institutions, financial organizations, and entrepreneurship support agencies aiming to foster inclusive and sustainable entrepreneurial development in Khyber Pakhtunkhwa and similar socio-cultural contexts.