Business research can be classified into several different areas among which ‘Entrepreneurship’ has been attracting the greatest level of interest. (Davidsson and Wiklund, 2000; Low, 2001; Shane and Vekataraman, 2000; Venkataraman, 1997). Entrepreneurship has opened up a window of opportunity for economic development, as well as created several job opportunities. The policymakers, academics and researchers are of the view that it definitely leads to economic advancement as a whole for all economies whether developed or developing; (Zelealem et al., 2004). New start ups not only contribute to the overall employment level, but also social and political stability as well as creates a great amount of influence as creates innovativeness on one hand and rivalry on the other. One of the prominent complications faced by the Pakistani economy is Graduate unemployment. Out of 3.21% of the graduate and post graduate students of the Pakistan, 11.24% remained unemployed in 2010-11, source of these facts is Federal Bureau of Statistics, Government of Pakistan. The data is evidence to the fact that economic growth is slow in the country which is making it difficult for the people to compete for jobs. The solution to this graduate unemployment is to create more jobs for them or help them establishing their own businesses thus self-employ themselves. The reason for self-employing themselves is that studies have shown always highlighted the view of it being beneficial. This change in the nature of career outlooks in organizations has resulted graduates becoming more interested in their own start-ups rather than opting for traditional jobs. However, the research tells it is the personality traits that distinguish entrepreneurs from non-entrepreneurs, rather than other identified factors. On the other stream, there are also barriers faced by graduates in order to become an entrepreneur thus in order to devise an effective graduate unemployment controlling policy, these barriers must be understood as well to increase entrepreneurial activities.

BBA