To start a business, or making any other investment in Pakistan, is a complex process that requires careful consideration and planning. Despite this, many individuals, including recent graduates and mid-career professionals, aspire to become entrepreneurs and create their own small-scale businesses.
They identify market demand or problems and develop business models to address them. Some entrepreneurs emulate successful business models, while others come up with original ideas.
While entrepreneurship can be a pathway to a successful future, it demands extensive planning, resources, infrastructure, and resilience.
Unfortunately, Pakistan lacks sufficient support in these areas, resulting in a low success rate of startups, around 10%.
Each year, approximately 300 startups are launched in Pakistan, but only 10% of them manage to sustain in the market.
Entrepreneurship and Innovation in Pakistan
Scope of Entrepreneurship and innovation in Pakistan
Becoming a successful entrepreneur requires a persistent effort to achieve goals and the determination to rise again after failures.
The scope of entrepreneurship and innovation in Pakistan has grown significantly over years, thanks in part to government initiatives to encourage entrepreneurship and innovation. A population of over 220 million, Pakistan offers a large and growing market for entrepreneurs to tap into.
Some factors that contribute to the scope of rising the entrepreneurial culture and the need for innovation in Pakistan:
- Growing middle class: Pakistan’s middle class is expanding rapidly, with an estimated 25-30% of the population. There is a huge market for consumer goods and services, and entrepreneurs who can cater to this market stand to benefit.
- Young population: Pakistan has a young population, with a median age of 23 years. There is a large pool of young, educated and tech-savvy people who are eager to start their own businesses and make a difference.
- Research and Development: Pakistan has a strong research and development sector, with several universities and research institutions working on cutting-edge technologies and innovations.
- Government support: The Pakistani government has launched several initiatives to encourage entrepreneurship and innovation, including the establishment of startup incubators and accelerators, and the provision of funding and other resources for young entrepreneurs.
- Access to capital: While access to capital is still a challenge in Pakistan, there are several sources of funding available to entrepreneurs, including venture capital firms, angel investors, and crowdfunding platforms.
- Technology adoption: Pakistan has a rapidly growing technology sector, with a high rate of internet and mobile phone adoption. This has created opportunities for entrepreneurs to develop new digital products and services.
- Strategic location: Pakistan is strategically located in the mid of South Asia, Central Asia, and the Middle East, making it an ideal hub for entrepreneurs looking to tap into these markets.
- Networking Opportunities: Urban cities, especially Islamabad Blue Area, offers various networking opportunities for startups and entrepreneurs. Individual cities host various events, conferences, and seminars related to entrepreneurship and innovation, which provide individuals with the opportunity to meet investors, mentors, and other entrepreneurs and learn from their experiences.
Overall, the scope of entrepreneurship and innovation in the country is quite promising, with a growing market, government support, and a young and educated population. However, challenges to overcome, such as access to capital and a difficult business environment.
With the right mindset and support, however, entrepreneurs in Pakistan can succeed and make a positive impact on the country’s economy and society.
Successful Entrepreneurs in Pakistan
- Salim Ghauri
- Wahaj ur Siraj
- Sunil Sarfaraz Munj & Raza Saeed
- Maria Umar
- Roshaneh Zafar
Succesful Innovative Projects in Pakistan
There have been several successful innovative projects in Pakistan in recent years, some notable ones are;
- Tameer Microfinance Bank: This is a microfinance institution that provides financial services to low-income individuals. The bank uses innovative technology to reach underserved communities, including mobile banking services that allow customers to access their accounts using their mobile phones.
- Peekaboo Guru: It is a Pakistani startup that has developed an app that provides information on local events, promotions, and discounts. The app uses location-based technology to provide users with personalized recommendations, and has become popular among young, tech-savvy consumers.
- Plan9: Plan9 is a startup incubator and accelerator, which provides funding, mentorship, and other resources to early-stage startups, and has helped launch several successful companies, including online grocery store GrocerApp and healthcare platform Marham.
- ProPakistani: This is a news website that covers technology and innovation in Pakistan. The website is source of information on technology startups and innovation in the country.
- PharmEvo: PharmEvo is a Pakistani pharmaceutical company that has developed several innovative drugs and treatments. The company has focused on developing affordable treatments for diseases that are common in Pakistan, such as hepatitis and tuberculosis.
A few examples of successful innovative projects in Pakistan. The country has a growing ecosystem of startups, incubators, and accelerators that are working to drive innovation and entrepreneurship forward.
Funding & Credit Facilities for Entrepreneurship and Innovation in Pakistan
Access to funding challenge for startups and entrepreneurs in Pakistan. However, the country offers various financial institutions, venture capitalists, and angel investors that provide startups and entrepreneurs with access to funding.
The private sector has role in promoting entrepreneurship and innovation in the country. Urban cities are home to various multinational corporations, startups, and SMEs that provide support and mentorship to startups and entrepreneurs.
These companies offer various services, such as mentorship, networking opportunities, access to funding, and training programs.
In Pakistan, there are various credit facilities available to support entrepreneurs in their respective endeavors. Here are some of the most common ones:
- National Financial Inclusion Strategy: One of the State Bank’s various initiatives – to increase financial access and literacy in the country.
- Small and Medium Enterprise (SME) Bank: SME Bank provides financing to small and medium enterprises in Pakistan through various loan schemes, such as the Prime Minister’s Youth Business Loan Scheme and the Women Entrepreneurship Program.
- National Bank of Pakistan (NBP): NBP offers financing to startups and small businesses under the NBP Advance Salary Scheme, NBP Karobar Loan Scheme, and NBP Kisan Dost Agriculture Financing Scheme.
- First Women Bank: First Women Bank offers a range of loan schemes to women entrepreneurs, including the Small Business Loan Scheme and the Prime Minister’s Youth Business Loan Scheme.
- Punjab Small Industries Corporation (PSIC): PSIC provides credit facilities to small and medium enterprises in Punjab province through various loan schemes, such as the Punjab Rozgar Scheme and the Punjab Business Loan Scheme.
- Islamic Development Bank (IDB): IDB offers financing to entrepreneurs in various sectors, including agriculture, industry, and trade.
- TiE (The Indus Entrepreneurs): a global nonprofit organization that aims to foster entrepreneurship. TiE Islamabad offers various programs and initiatives, including mentoring sessions, workshops, and networking events, which help entrepreneurs to grow and scale their businesses.
- Women’s Entrepreneurial Network (WEN): The platform provides support and mentorship to women entrepreneurs. The network offers various programs and initiatives, including mentorship sessions, training programs, and networking events, which help women entrepreneurs to start and grow their businesses.
- Crowdfunding platforms: There’s Patari, SeedOut, Invest2Innovate, and many others, which provide alternative funding opportunities for startups and entrepreneurs in Pakistan.
These credit facilities offer entrepreneurs access to financial resources that can help them start or expand their businesses. However, it is important to note that each credit facility may have specific eligibility criteria and terms and conditions that must be met before being approved for financing.
Educational support for Innovation and Entrepreneurship in Pakistan
Pakistan has made efforts to improve educational support and awareness for innovation in recent years. The country’s has launched various initiatives and programs to promote innovation and entrepreneurship in the country’s education system.
For example, the Higher Education Commission (HEC) of Pakistan has established several centers of excellence in universities across the country to promote research and innovation.
Universities like Quaid-e-Azam University, National University of Sciences and Technology, and COMSATS University, provide quality education in various fields, including entrepreneurship and innovation.
These universities offer degree programs and courses in entrepreneurship, innovation, and business management, which help to create a pool of talented and skilled individuals who can contribute to the growth of the startup ecosystem in Islamabad and the rest of the country.
In addition to formal education, urban cities also host various training programs and workshops that provide entrepreneurs with the necessary skills and knowledge to start and grow their businesses.
These programs are often offered by incubation centers, innovation hubs, and private sector organizations and cover various topics such as business development, marketing, and technology.
Furthermore, various private and public organizations, such as the National Incubation Center and Plan9, provide training programs and workshops to improve the innovation skills of young people.
However, despite these efforts, there is still a need for more investments in Pakistan’s educational sector, especially in areas like entrepreneurship and innovation.
There is also a need to increase public awareness of the importance of innovation and entrepreneurship in driving economic growth and development.
Conclusion
Entrepreneurship and innovation are vital to drive economic growth and development in growing countries like Pakistan.
The government has launched various policies and initiatives to support and foster a culture of entrepreneurship and innovation, via incubation centers, innovation hubs; also, private sector organizations are there to provide startups and entrepreneurs with access to funding, mentorship, and networking opportunities.
With the right support and resources, Pakistan has the potential to become a hub of innovation and entrepreneurship in the region.
