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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

[Insert Figure 35 about here.]<br />

JUNE 2011<br />

VOL 3, NO 2<br />

5.7.3 Market Saturation<br />

3% entrepreneurs perceived that market is ‘highly saturated’, 23% ‘moderately<br />

saturated’, 49% ‘saturated’ and 25% ‘not saturated’. Ten years before there were very<br />

few software developing firms in the market. The untapped profit margin has attracted<br />

investors and in last five years, many new firms entered the market that has led to<br />

moderate saturation.<br />

[Insert Figure 36 about here.]<br />

5.7.4 Startup Condition of the Firms<br />

Software industry being a relatively new industry has had much capacity for investors.<br />

2% of entrepreneur perceive that there were very bad condition in the beginning of firm,<br />

10% bad, 35% normal, 37% good, 13% very good and 3% excellent.<br />

[Insert Figure 37 about here.]<br />

5.8 Growth Variables<br />

5.8.1 Profit, Output and Customer trend<br />

Firm growth is a multi-faceted phenomenon as found through empirical literature, see for<br />

example (Davidsson and Wiklund, 2000; Delmar, 1997; Delmar et al, 2003; Weinzimmer<br />

et al, 1998). Similar holds for software industry. Considering the existing literature a<br />

combinations of variables are analyzed (No. of customers, output, employment and profit<br />

trends). Collected data reveals that there is an increase in no. of customers of 74% firms,<br />

output of 66% firms and profit of 61% firms. It shows the strength and investment<br />

worthiness of the software firms. Few firms can find that there are two or three firms who<br />

lost their customer, output and profit but there employment generation capacity is<br />

increasing.<br />

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[Insert Figure 39 about here.]<br />

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7. Conclusion<br />

The trait variables are clustered into ‘6’ main categories; i.e. entrepreneurial, firm,<br />

strategic, exogenous, market condition, growth variables. Over analysis verifies the<br />

expect conclusion that high level of skills in software industry in Pakistan.<br />

Most of the entrepreneurs in software industry have relevant experience before starting<br />

their own firm. It shows that major concentration in the industry is of experienced<br />

entrepreneurs. Majority in sample entrepreneurs agree that education has strong impact<br />

on growth. Most of entrepreneurs are willing to grow although they are in a stiff<br />

competition. Many entrepreneurs are satisfied with current business state but market<br />

barriers limit firm growth.<br />

Most of the software firms are subsidiary to international firms and are formed under the<br />

company’s ordinance 1984. There are many firms that were formed from 2000 to 2010.<br />

Attractive aspects of entry are market profit and independence in control. Product line<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 2032

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