Attraction of rent seeking in Entreprenurship

In a qualitative research a discussion is made between a group of businessmen who have perception or belief that government must provide them with such incentives and conditions that would result in the boom of their businesses. In other words the businessmen expected from the government that it provides them with situations and benefits that would result in very favorable conditions for their businesses so that they would result in profits for them. And demanded from the government that it gives protection to their businesses from other businesses that would be challenging for them. For example businessmen from small towns of Sargodha and Gujranwala demanded from government to provide them protection from Chinese goods that are a source of great challenge for them. Moreover businessmen of Sargodha wanted relief on account of customer loss to Lahore due to the construction of motorway. According to Schumpeterian “creative destruction” process the businesses, who lost their customers due to any reason like less effective or low quality of products and services, to other country or city should be closed down or replaced by new businesses that are more efficient and have better quality of products and services and have better customer satisfaction. Nowadays businessmen pay less attention towards innovation and creativity rather they focus on aid from the government and expect from the government to help them establish them. For instance, most of the businessmen were always seeking for a tax or a financial assistance from government. Consequently, they were not comfortable with free trade in all products. Moreover they insist for low-priced acknowledgment regardless of the cost to the tax payer. However, when pushed they admitted that credit constraint was not major factor constraining their growth. There was also a serious lack of knowledge of other financial instruments and an excessive focus on bank financing.