This study endeavours to the factors affecting entrepreneurship in I.T sector of Pakistan. While conducting this study, researcher is benefited from the experience of entrepreneurs in Computer I.T sector. The best source of data is primary data that has been collected through 28 item questionnaire using convenience sampling. The instrument is adopted from similar studies conducted earlier. This study has a sample size of 215 entrepreneurs from Rawalpindi/Islamabad & Lahore. The collected data are analysed by statistical and econometric technique. Among factors of entrepreneurship, innovation is the most significant key factor. Regression analysis is also conducted among factors of factors of entrepreneurship. This study also reveals possible casual linkages (either dir ect or indirect) among factors i.e innovation, opportunity, resource, entrepreneurial mindset is computed by path analysis. Partial mediated impact of Entrepreneurial mindset is significant upon factors. The other factor is resource in this sector then opportunity. Education is key source of opportunity. The implication that emerge from the analysis that to promote innovation culture and to launch programs through entrepreneurs development centers to learn and educate how to share potential and existing business opportunities. Supervisor:- Dr. Attiya Yasmin Javid