Barriers to Entrepreneurship in Pakistan
Entrepreneurship in Reality:
Entrepreneurship is all about €innovation€ and €risk taking€.
By innovation we mean new ideas, creativity etc. It means old is to be washed away by new which is called creative destruction (i.e. after the organization has completed its tenure it should be replaced by new organization for development purposes). It is required because it is proved that the production capacity of new is always higher than the old one. As innovation gives new products, new markets, new sources etc, it ultimately leads to the economic growth of the country.
In entrepreneurship it is required to bring new ideas and its outcome are uncertain; so risk taking is automatically included in entrepreneurship. Risk taking is an element because of which the entrepreneurs have to start the business at smaller level because they are uncertain and afraid of the results of implication of new ideas. Lack of finance is another reason of small size of entrepreneurship. Small businessmen do not get access to easy credit for financing their innovative ideas.
Entrepreneurship in Pakistan:
Entrepreneurship is not as such developed in Pakistan. People mostly join the inherited business of their family or imitate already existing business ideas but they do not think to bring innovation or creativity which inhibits the growth of plant of entrepreneurship in Pakistan.
There is political instability, corruption, exploitation of power etc. everyone is running for money instead of making efforts for being involved in productive activities such as establishing new products, new markets etc. This attitude of people leads towards deteriorated condition of entrepreneurship in Pakistan.
Barriers to Entrepreneurship in Pakistan:
Rent Seeking:
In Pakistan, people try to make money by modifying the rules and laws in their own interest instead of being involved in productive activities. They are just focusing on increasing the size of their own share of pie instead of working for the improvement of overall economy.
Sense of dependence:
Another barrier to the development of entrepreneurship is that there is lack of institutions which provide the quality education to persons regarding the skills of entrepreneurship to foster entrepreneurial activities. It is the sole responsibility of already existing organizations to invest in for the establishment of such institutions but they depend on government for the development of such institutions.
Self-respect:
As for starting an entrepreneurial activity you have to take start from small level; but in Pakistan people feel ashamed starting business at small level. This narrow mind set of population has restricted the growth of entrepreneurship.
No Quality Space:
The cities are circular no one is allowed to enter in the territory of city for small commercial activities. To get permission people have to follow lengthy and expensive procedure because of which they are compelled to start their business at a less developed place which restricts the growth of their business.
Non- availability of Finance:
Easy finance is not available to small businessmen as it is only available to large organization or to those persons who have some political contacts because of this exercise the creative thinkers are discouraged from financial point of view and they have to forget the idea about starting a new business.
Government Interference:
In Pakistan €government is always right€ s policy is used and it use to interfere in every area of economy. It makes market policies which avoid risk because of which innovation of entrepreneurs are crippled as these are free of risk. Also due to the interference of government in market policy making; people take advantage of molding the rules in their own interest. On the other hand government is taking the advantage through corruption. Every businessman is compelled to give a portion of his sales to government officers as bribe to save their business.
No knowledge Sharing:
Due to the lack of trust among the businessmen and between the employees and owner the level of knowledge sharing is small because of their fear that their employees might be involved in imitating their business and become their competitors or share their secrets with competitors. This thing creates lack of technical experience and information which is required to start one's own business.
Entrepreneurship is all about €innovation€ and €risk taking€.
By innovation we mean new ideas, creativity etc. It means old is to be washed away by new which is called creative destruction (i.e. after the organization has completed its tenure it should be replaced by new organization for development purposes). It is required because it is proved that the production capacity of new is always higher than the old one. As innovation gives new products, new markets, new sources etc, it ultimately leads to the economic growth of the country.
In entrepreneurship it is required to bring new ideas and its outcome are uncertain; so risk taking is automatically included in entrepreneurship. Risk taking is an element because of which the entrepreneurs have to start the business at smaller level because they are uncertain and afraid of the results of implication of new ideas. Lack of finance is another reason of small size of entrepreneurship. Small businessmen do not get access to easy credit for financing their innovative ideas.
Entrepreneurship in Pakistan:
Entrepreneurship is not as such developed in Pakistan. People mostly join the inherited business of their family or imitate already existing business ideas but they do not think to bring innovation or creativity which inhibits the growth of plant of entrepreneurship in Pakistan.
There is political instability, corruption, exploitation of power etc. everyone is running for money instead of making efforts for being involved in productive activities such as establishing new products, new markets etc. This attitude of people leads towards deteriorated condition of entrepreneurship in Pakistan.
Barriers to Entrepreneurship in Pakistan:
Rent Seeking:
In Pakistan, people try to make money by modifying the rules and laws in their own interest instead of being involved in productive activities. They are just focusing on increasing the size of their own share of pie instead of working for the improvement of overall economy.
Sense of dependence:
Another barrier to the development of entrepreneurship is that there is lack of institutions which provide the quality education to persons regarding the skills of entrepreneurship to foster entrepreneurial activities. It is the sole responsibility of already existing organizations to invest in for the establishment of such institutions but they depend on government for the development of such institutions.
Self-respect:
As for starting an entrepreneurial activity you have to take start from small level; but in Pakistan people feel ashamed starting business at small level. This narrow mind set of population has restricted the growth of entrepreneurship.
No Quality Space:
The cities are circular no one is allowed to enter in the territory of city for small commercial activities. To get permission people have to follow lengthy and expensive procedure because of which they are compelled to start their business at a less developed place which restricts the growth of their business.
Non- availability of Finance:
Easy finance is not available to small businessmen as it is only available to large organization or to those persons who have some political contacts because of this exercise the creative thinkers are discouraged from financial point of view and they have to forget the idea about starting a new business.
Government Interference:
In Pakistan €government is always right€ s policy is used and it use to interfere in every area of economy. It makes market policies which avoid risk because of which innovation of entrepreneurs are crippled as these are free of risk. Also due to the interference of government in market policy making; people take advantage of molding the rules in their own interest. On the other hand government is taking the advantage through corruption. Every businessman is compelled to give a portion of his sales to government officers as bribe to save their business.
No knowledge Sharing:
Due to the lack of trust among the businessmen and between the employees and owner the level of knowledge sharing is small because of their fear that their employees might be involved in imitating their business and become their competitors or share their secrets with competitors. This thing creates lack of technical experience and information which is required to start one's own business.
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