The focus of this thesis is in the area of social entrepreneurship and societal development. The purpose of this thesis was to develop a theoretical model of social entrepreneurship that will be sustainable and create a self-sufficient socioeconomic environment in the developing countries. Another aim of this thesis was to find out the effects of non-governmental organizations (NGO’s) and foreign financial aid given to developing countries. Finally the socioeconomic environment of Pakistan and the foreign financial aid given by U.S. Agency for International Development (USAID) was critically analyzed. The research approach adopted in this thesis was deductive approach which relied mostly on secondary but scholarly information, and organizational reports and statistics. The findings of this thesis provide evidence that there is no connection between foreign financial support and long term strategic growth of an economy. The main conclusion drawn from this thesis is that governments should not rely on financial aid, and that the major actors of a society; Government, Business firms, and the general public, should all work towards societal development. This thesis recommends that, in order to have a sustainable socioeconomic environment, societies must come together and work towards the societal development from a micro level, as their cumulative effort can make a big change in the country’s economy. Another suggestion this thesis recommends is that enterprise education should be given the deserved emphasis by the policy makers of developing country.
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