[01] Toqeer Ashraf, Institute of Administrative Science, University of the Punjab, Lahore, Pakistan. [02] Mehmood Ul Hassan, Institute of Administrative Science, University of the Punjab, Lahore, Pakistan. [03] Saad Ghafoor, Institute of Administrative Science, University of the Punjab, Lahore, Pakistan. [04] Nauman Aslam, Institute of Administrative Science, University of the Punjab, Lahore, Pakistan.

About 75% of the small businesses in the world fail within first five years of commencement. Research has revealed that poor management rarely causes failure of small business especially in developing countries. Small enterprises play a key role in alleviating poverty through generating employment in country. The role of decision-making has traditionally been attributed to executive managers in large firm but all of the decisions of small firm are taken by the entrepreneur of the business. This paper develops an argument on the basis of theories from developed literature, and results of previous researches, to help understanding entrepreneurial decision-making in small firms. Results of this study will help in understanding entrepreneurial decision-making process and will help in identifying some of the most important factors that affect the process of entrepreneurial decision-making.

Entrepreneur, Environment, Small Firms, Strategic Decision Making

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