Entrepreneurial finance and its impact on e-business

Entrepreneurial activity is important not just from an economic point of view but it also recognizes the power and value of an individual. In a developing country like Pakistan that ranks high when it comes to ease of doing business but very low in entrepreneurship, alternatives must be devised to empower individuals socially and economically. The Pakistani women being empowered than ever before have to be paid special attention to in case of entrepreneurship. The current study is thus aimed at assessing the e-business related entrepreneurial finance and potential of women doing e-business. E-business helps women overcome many traditional barriers to employment and entrepreneurship. Using Theory of Planned behavior and entrepreneurship models, a framework for assessing e-business and seeking entrepreneurial finance alternatives is developed. Unlike the previous theories which suggested eight variables the current study found that for e-business entrepreneurs only perceived propensity, desirability, feasibility, motherhood, management and meso and macro environment are significant. Besides money, market and management which are important for starting any business, IT knowledge is important. The results based on regression analysis suggest that the model fits well as it predicts value of the entrepreneurial intention at 95% with a 5% significance value. Based on the findings of the study a new model for assessment of e-business entrepreneurial intention is developed which includes all significant variables and IT knowledge as a moderating variable. Based on this assumption, there is a clear implication for the policy makers to stress IT literacy to encourage entrepreneurial activity.