Introduction
1.1 Background of the study
Entrepreneurship
activities are often difficult and complicated, resulting in many new ventures
worsening. The word entrepreneur is often identical with founder. The majority
commonly, the phrase entrepreneur apply to someone who creates value by
offering a product or service, by figure out a niche in the market that may not
be present currently. Entrepreneurs are liable to recognize a marketplace
opportunity and exploit it by organizing their resources successfully to bring
about a conclusion that changes accessible relations contained by a given
sector (Saleem & Abideen, 2011).
“Poverty” is not basically a state of deficiency of certain goods
and services, just as richness is not simply a surfeit of them. Aristotle saw
the richness of life in terms not of commodities (which are merely useful) but
in the sense of activity. He thus argued for human performance as the
object of value. It is in this sense that considerable stratum of our society
by being depressed of the minimum of food and basic necessities are made not
sufficiently expert of actualizing through creative activity their full human
potential, and are by this means impoverished
(Hussain, 2013).
Over
the past two decades in particular, there has been important discuss as to how
best of organizations for poverty alleviation in Gilgit Baltistan contribution
to local economic development in the light of the failure of many financial
institutional models and programmes for poverty alleviation (Siringi E. , 2011). A logical analysis of
poverty reduction efforts in the Gilgit Baltistan shows that the Role of private institutions for
poverty alleviation in Gilgit Baltistan has neither been given attention, nor
examined. Little effort has been made to relate socio-culture and structural
institutions impediments for poverty reduction effort (Anon, 2010).
1.2 Significance of study
This
study helps the people especially the fresh business graduates to understand
how organizational activities play role for a society. And also improve life
standard of the society and employment opportunities created and also to develop
the economy of the city.
1.3 limitation of the study
This
is an in-depth cross-sectional study of a micro finance institution financing
people entrepreneurial activities in the northern region in Pakistan. This
means that the study is a one shot data collection limited strictly to the study
period between2010 and 2014.
1.4 objectives of the study
Poverty alleviation in Gilgit Baltistan
1.5 Specific objectives
I.
To find out the employment opportunities
that the NGO,s has created.
II.
To find out the impact of self
employment and organization activities on the living standard of people.
1.6 Research questions
1
What is the role of NGO,s on creating
employment opportunities?
2
What is the impact of self employment
and organization activities on the living standard of people?
2.0 Literature review
Since
1982, in the Gilgit Baltistan, the Aga khan ruler support Programme (AKRSP) has
had the involved role in inspiring development of participatory and
increasingly, self-sufficient village and women organizations comprised of the
majority of the village people served. This people-centered social development
process emphasizing the creation of village level institutions and supported by
other programme elements, is based upon three practices that follow from AKRSPs
philosophy: helping communities to organize themselves through persistent
dialogue, capital formation through savings and human resource development
through training (amin baig, khawaja and
zulfiqar Ali khan, 2006).
Cover
Since 2008, AKF has been implementing the Mopti Coordinated Area Development Programme,
Benefiting from the multi-input area development advance; the Programme
combines interventions in health, education, rural development, financial
services and civil society intensification to improve the quality of life for
beneficiaries in the Mopti area, one of the poorest in the country (Anon,2013).
The overall goal of the Aga Khan Development
Network (AKDN) is the improvement of Quality of Life (QoL) in the areas where
its member institutions work. AKDN’s vision and strategies include an enhancement
in material standards of living, health and education, as well as a set of
values and norms in the organization of society which include pluralism and
cultural tolerance, gender and social equity, civil society organization and
good governance. AKDN therefore has a holistic view of what constitutes
progress that goes beyond material benefits or only poverty alleviation, and
which encompasses a more rounded view of human experience and aspirations (Anon,2013).
2.1 Poverty
Poverty is defined as human conditions that reflect failure in
many dimensions of human life such as hunger, malnutrition, inadequate shelter,
ill health, lack of education, powerlessness, social exclusion and so on. The
exact definition of poverty has somewhat yielded intense arguments over the
years. Whiles some groups characterize poverty as comprising income and
consumption poverty, others believe that it has to do with helplessness. Yet, a
lot more classifications such as human under-development, social exclusion,
ill-being, lack of capability and functioning, livelihood unsustainability,
lack of basic needs and relative deprivation abound in the literature. “Poverty
is enhanced deprivation in wellbeing”. Unfortunately, to attempt a definition
of wellbeing in itself is no less problematic than poverty itself. (Ofori, 2010)
2.2 Organizational performance and poverty
The link between these two conditions comes in several folds and
depends on who is the entrepreneur
vis-à-vis the rich or the poor. As argued in the literature, entrepreneurship
comprises creativity of the human mind. Fortunately,
creativity is a free gift of nature and therefore there is no limitation to the
extent to which one may be creative. It is also a fact that Entrepreneurship yields profits, so, one way of looking at
the situation is to consider the effects
emanating from both rich and poor entrepreneurs. Also, granted that entrepreneurship has to do with business start-ups, as
commonly known, then obviously, it is the rich
who have the capacity to benefit most from this act. The poor seems to have
little or no place here, save their small and
medium scale activities. This has yielded what is known as Small and Medium-Scale Enterprises (SME’s). However, despite the above channels, policies seem to determine the final consequences of
entrepreneurial activities. Given the above
considerations, the essay will proceed in like manner. (Ofori, 2010)
2.3 Self-Employment
Similar to wage employment, youth
self-employment should strive to achieve youth development, employment creation
and poverty reduction as well as the transformation of the society. For a
majority of those who cannot access wage employment, the alternative to
unemployment is self-employment. However, this seems to be an option chosen by
only a small proportion of youth despite their high unemployment rate. Based on
the Status of Youth Report (2005) less than 10% of the youth were
self-employed, 6% to be precise. The Global Entrepreneurship Monitor (2005)
reiterates the low rate of youth involvement in entrepreneurship, compared to
other developing countries. It further concludes that the low activity rate of
entrepreneurship in South Africa is a result of the low involvement of youth,
compared to other countries where the involvement of the youth is relatively
higher.
2.4 Theoretical frame work
The conceptual framework is supposed to help the reader make
logical sense of the relationships of the variables and factors that have been
deemed relevant to the problem. It provides definition of relationships between
all the variables so the reader can understand the theorized relationships
between them. As far as our research is concerned, we have adopted the
following conceptual framework:
 |
H1: There is a
significant relationship between self employment and poverty
H2L: There is a
significant relationship between Organizational activities and poverty
2.5 Research gap
We propose that our study may not have been comprehensive in
nature since we adopted a cross sectional research design for one region in Gilgit.
However, the new knowledge in this study is serious for designing longitudinal
studies and proportional research studies taking other micro finance
institutions’ activities targeting entrepreneurships for poverty alleviation at
micro and macro level in Gilgit, and other Sub countries in general.
3.0 Research
methodology
This
section of research describes sample, variables, hypothesis development and
statistical Methods to explore or investigate organizational activities for poverty alleviation in
Gilgit Baltistan.
3.1 Sampling Design
This research is conducted by using primary and secondary data; Information
for this research was together through web sources, our study covers time
period of 4 years from 2010 to 2014. We have in use data from different
company’s websites etc. In our study we excluded other elements such as banks
and insurance because of their different life of operations and companies with
missing data were also excluded. The collected data from
the source have been compiled and used with due be concerned as per the
requirements of the study.
3.2 Sample Characteristics
The characteristics of this research sample is that only organizational activities for poverty alleviation are selected as research pertains to enterprises in Gilgit region
and all other regions and sectors are excluded from this study.
3.3 Research Design
The purpose of this research was descriptive study as few
researches are already conducted on this topic. The type of inquiry was
correlation as researcher tries to explore the how to organizational activities
reduce poverty and increase employment opportunities and increase living
standard of particular region. Secondary data and primary was used to conduct
this research so the researcher has minimum interference. The study setting was
non-contrived. Finally, the unit of analysis was industry and time horizon was
cross sectional.
3.4 Data Analysis Methodology
The data together from web sites (digital library of kiu) and of
all private institutions in Gilgit Baltistan. Then, different tools and methods
were applied on the data for the purpose of assessment and statistical analysis
of this research. These methods are Regression etc.
3.5 variables
Dependent variable and independent variable are two types of variable
which are important to go through the whole research. These variables are
explained below:
3.5.1 Dependent variable
Dependent variable is that variable on which changes are brought by
introducing independent variable, (Kumar, 2005). Dependent variable has a
greater influence in the research and it has a vital role throughout the
research process.
Therefore this whole research revolves around the dependent variables. In
this research, profitability is the dependent variable which is influenced by independent variables.
3.5.2 Independent variable
Independent variable is the cause essential to produce changes in
situations, (Kumar, 2005).The term independent refers that these are not
influenced by other variables, so independent variables just impact on dependent
variables not they are influenced by independent variables.
In this research, the independent variables are fixed assets, cost, cost
of goods sold and capital which have an influence on dependent variable.
4.0 Data Analysis
Reliability
Statistics
|
||
Variables
|
Cronbach's Alpha
|
N of Items
|
EM
|
.794
|
3
|
EA
|
.725
|
4
|
PTY
|
.826
|
4
|
4.1
Correlation between the variables
Correlations
|
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AE
|
ME
|
TP
|
||
AE
|
Pearson Correlation
|
1
|
||
ME
|
Pearson Correlation
|
.659**
|
1
|
|
TP
|
Pearson Correlation
|
.861**
|
.775**
|
1
|
**. Correlation is significant at the 0.01 level
(2-tailed).
|
||||
The above table shows that the significance
correlation between variables and also on dependent variable. All variables Entrepreneurship activities, employment affect positively on
dependent variable poverty.
4.1.1
Entrepreneurship Activities and employment
From the analysis it is found that the EA and
EM are positively correlated. It means increase in EA will result to decrease
poverty and vice versa. The result shows 0.01 levels or 99 percent degree of
relationship exists between the variables.
4.2
Estimation
Dependent
Variable: poverty
Model Summary
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||||||||||
Model
|
R
|
R Square
|
Adjusted R Square
|
Std. Error of the Estimate
|
||||||
.910a
|
.827
|
.812
|
.45467
|
|||||||
a. Predictors: (Constant), me, ae
|
||||||||||
ANOVAb
|
||||||||||
Model
|
Sum of Squares
|
Df
|
Mean Square
|
F
|
Sig.
|
|||||
Regression
|
21.812
|
2
|
10.906
|
52.756
|
.000a
|
|||||
Residual
|
4.548
|
22
|
.207
|
|||||||
Total
|
26.360
|
24
|
||||||||
a. Predictors: (Constant), me, ae
|
||||||||||
b. Dependent Variable: yp
|
||||||||||
Coefficientsa
|
||||||
Model
|
Unstandardized Coefficients
|
Standardized Coefficients
|
t
|
Sig.
|
||
B
|
Std. Error
|
Beta
|
||||
(Constant)
|
-.417
|
.401
|
-1.039
|
.310
|
||
Ae
|
.674
|
.125
|
.619
|
5.379
|
.000
|
|
Me
|
.512
|
.155
|
.380
|
3.299
|
.003
|
|
a. Dependent Variable: yp
|
||||||
4.2.1
Entrepreneurship Activities
From the statistical analysis it is found that
there is positive relationship between EA and poverty. Since the coefficient of
EA .619 it means one unit increase in EA leads to
decrease 6190000 in dependent variable (poverty).
4.2.2 Employment
The statistical analysis shows there is a
positive relationship exists between EM and poverty. Since the coefficient of
EM is .380 means one unit increase in EM leads to increase 380000000 in
dependent variable (poverty).
4.2.3 R2
From the statistical analysis we found the
goodness of fit in our model is 81%. Since the value of R2 is 0.81
it shows the total variation in explained variable due to explanatory variables
is 81 and the remaining is due to exogenous variables.
Conclusion and recommendations
5.0 Conclusion and recommendations
This study evaluates the perceived relationship between poverty,
employment, and organizational activities of factors that contribute significantly
to the reduce poverty in Gilgit Baltistan. The results for the 16 factors
tested statistically through the questionnaire suggest that organization give
significant weight to these factors.
Ø It is recommended a similar study with broader
scope be carried out to formally document these suggestions, which could become
valuable information for the policy makers.
Ø Construction of Bhasha Dam, widening of
Karakorum highway, potential trade routes with Central Asia, high level of
unexplored minerals, very high potential for a structure tourism industry and
its culture and heritage are few of the potential areas.
Ø Improving business environment and attract
foreign as well as domestic investment opportunity.
Ø The NGO sector as well as the private investor
(for profit or not for profit) can also consider these factors as an avenue of
investment for long-term development.
Ø Government could focus on these factors while
allocating its development budget.
Ø Government needs to develop a plan to increase
the usage of Information Technology in the region.
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