Role Of Youth Entrepreneurship In Addressing Violent Extremism: Evidence From The Selected Merged Districts Of Khyber Pakhtunkhwa, Pakistan

Abstract

This study examines the role of youth entrepreneurship as a catalyst for socio-economic stability and peace building in the selected merged districts of Khyber Pakhtunkhwa, Pakistan. Drawing on the Resilience Framework, Bandura’s Self-Efficacy Theory, and Maslow’s Hierarchy of Needs, the research explores how entrepreneurial engagement enhances young individuals’ capacities to resist violent extremism by strengthening self-belief, adaptive skills and social integration. A qualitative research design was adopted with data collected through semi-structured interviews from a purposive sample comprising youth entrepreneurs, community representatives, political actors, government officials and a banking sector representative from the Bank of Khyber in District Mohmand and District Khyber. Thematic analysis was employed to identify key patterns and relationships across participant perspectives. The findings reveal that youth entrepreneurship extends beyond[1] income generation, contributing significantly to psychological and social transformation. It enhances self-efficacy through experiential learning and social interaction, while fostering resilience by strengthening problem solving abilities, coping mechanisms and support networks. These processes facilitate the fulfillment of both basic and higher order needs, thereby reducing marginalization and vulnerability to extremist ideologies. The study finds that entrepreneurial engagement promotes social cohesion, economic inclusion and a stronger sense of purpose among youth, ultimately supporting peace building outcomes. This research contributes by providing context specific, micro level qualitative evidence from a conflict affected region and by identifying self-efficacy and resilience as key mediating mechanisms linking entrepreneurship with reduced violent extremism and enhanced social equity. The study also offers policy relevant insights for promoting entrepreneurship driven peace building strategies in fragile and conflict-affected settings.