Week 3

ECONOMIC DEVELOPMENT
AND ENTREPRENEURSHIP IN
PAKISTAN

ECONOMIC DEVELOPMENT AND

ENTREPREUNERSHIP

INCREASE
PRODUCTTIVI
TY

INCREASE PER CAPITA

INCOME

GEM Groups of Economies

1 2 3

FACTORDRIVEN

EFFICIENCY
-DRIVEN

INNOVATIO
N-DRIVEN

GEM: Global Entrepreneurship Monitor

PAKISTAN

ENTREPRENEURSHI
P IN PAKISTAN

Entrepreneurship in Pakistan
Small And Medium Enterprises
(SMEs) with less than 100
employees constitute nearly 90%
of all 3.5 million private firms
that `employ 80% of the nonagricultural labor force; and their
share in the annual GDP is 40%.

Firm structure is dominated

by sole proprietorship and
most
are
family
run
businesses with no culture of
taking it to the pubic (IPOs).

Entrepreneurship in Pakistan Challenges

A review of the past 6 decades

of Pakistans development
priorities reveals that
entrepreneurship has never
been the focus of economic
development planners

The historical evidence clearly

indicates that, in the context of
Pakistan, when one talks about
industrialization, for most people
it implies large plants and
factories run by machines and
employing a large number of
workers.

Entrepreneurship in Pakistan
Opportunities

Majority of the youth entering the labor force over the next two decades will
have little education and skills catering to market demand. Moreover,
continuous shocks to the economy such as energy crisis, international
commodity price shocks, security issues, and floods
have left little resilience in the economy and absorption capacity for growing
youth labor force.
This required a rethinking about the sources of growth in Pakistans
context and entrepreneurship has the greatest potential to fill this
gap.

Entrepreneurship in Pakistan Opportunities

In eight years, between 1999 and 2007, Pakistan had increased R&D
investment by 600% .
Number of researchers in Pakistan has grown from 187 per million in 2005
to 310 in 2007. Though Pakistan suffered significant economic challenges,
there is still considerable R&D capacity in the nations universities and
institutions, particularly in the science and technology focused programs

This new capacity can be converted into new innovative entrepreneurship

opportunities, economic growth and wealth creation by linking it with
better trained young entrepreneurial minds.

 presentation