Entrepreneurship is aptly considered the backbone of the market economy due to its considerable share in the GDP and a remarkable capacity of generating employment opportunities. According to International Labour Organization (ILO), small and medium enterprises (SMEs) constitute more than 50% of the world GDP with a capacity of creating a staggering 70% of the world employment. While the statistics of the contribution of this lucrative sector in the developed economies are soaring beyond 90%, the SME sector in the developing regions is still struggling, according to IFC (2005). A qualitative research study (Qamar, 2021) was conducted in Pakistan to investigate the factors responsible for stunted performance of SMEs in the context of a developing economy, where several schemes launched by the government for promoting the idea of entrepreneurship among the educated youth and attaining the economic benefits failed to achieve the purpose. As per literature, the entrepreneurial ventures having limited resources in terms of finance, human capital and networks require a congenial and enabling ecosystem (Isenberg, 2011) to survive and flourish. The study attempted to map the ecosystem of Pakistan for identifying the challenges and opportunities associated with each of the six dimensions of the entrepreneurship ecosystem (EE) framework, through semi-structured interviews of the primary stakeholders, the entrepreneurs. The present chapter is a section of the larger study with a specific focus on the factors responsible for the modest performance of the self-employment schemes. Thematic analysis of the primary data of this study revealed a trust deficit among the entrepreneurs for the merit and continuity of government schemes culminating into poor response to these initiatives. In terms of EE, the data alluded to ineffectual Policy, Finance and Support dimensions, manifested in complicated regulatory framework, difficult access to finance, deficient infrastructure or logistics (both physical and digital) and unassisted market out-reach. Culture of the country, having a strong partiality for jobs as opposed to owning small businesses, also played a role in impeding the progress of entrepreneurial activity.