Problem
The message "Provider cannot be found. It may not be properly installed." implies that the required driver is missing. You can double-check this in the ODBC Data Source app.
Cause
You attempt to create a database without the Microsoft SQL Server Native Client provider, which is required for connection to the MS SQL database server.
Solution
Please make sure that the Native SQL provider has been installed. During the installation, mark the SDK item, as it is disabled by default.
You can use the following links to download and install the Microsoft SQL Server Native Client:
Download Microsoft® SQL Server® 2012 Native Client - QFE from Official Microsoft Download Center