Assignment#5

Saifullah(uw-17-ee-bsc-059)
Explain employment creation and training reference to Entrepreneurship &
EconomicDevelopment in Pakistan in current scenario.
Entrepreneurship plays an influential role in the economic growth and standard of living of the country. As
a startup founder or small business owner, you may think that you are simply working hard to build your
own business and provide for yourself and your family. But you are actually doing a whole lot more for
your local community, state, region, and the country as a whole. 
Entrepreneurship education has been defined as “a collection of formalized teachings that informs, trains,
and educates anyone interested in participating in socioeconomic development through a project to
promote entrepreneurship awareness, business creation, or small business development”.
Enterprise education (also called entrepreneurial education on the other hand, is usually conceived more
broadly, seeking to foster self-esteem and confidence by drawing on the individual’s talents and creativity,
while building the relevant skills and values that will assist students in expanding their perspectives on
schooling and opportunities beyond. Methodologies are based on the use of personal, behavioural,
motivational, attitudinal and career planning activities.
Pakistan’s economy suffered in 2020. The GDP growth rate for fiscal year 2019–20 was –0.4 per cent —
the first time it fell negative in seven decades. Per capita income fell from US$1625 to US$1325. COVID-
19 closures and lockdowns to limit the spread of the virus are also contributing to growing unemployment
and poverty. But GDP growth was only 1.9 per cent in fiscal year 2018–19, falling from a decade-high 5.8
per cent the previous year when the Pakistan Tehreek-e-Insaaf (PTI) government came to power. While
the  pandemic is playing a major role in slowing Pakistan’s economy, a downward trend was evident as
early as mid-2018.
The Pakistan Muslim League-Nawaz’s (PML-N) high fiscal and balance of payments deficits were always
going to be a challenge for any successive government coming into power after the elections of July
2018. Ten months after its election, the PTI government was back at the IMF’s doorstep for Pakistan’s
13th loan program since the 1980s. The 39-month US$6 billion Extended Fund Facility was suspended
when COVID-19 hit in March 2020.
As the economy contracted, one supposedly positive consequence was the decrease in Pakistan’s
balance of payments and trade deficit. Not only did economic activity slow down, but the marked fall in oil
prices meant that less was being imported at even lower prices. And the current account was in surplus
for the first four months — July to October — of the current fiscal year, an unusual occurrence given
Pakistan’s import dependence and export stagnation.

Entrepreneurship is viewed by economists to be a combination of innovation and risk taking. When such
activity thrives, high growth rates are achieved as well as opportunities offered to all segments of society,
including the poor. The latter benefit form growth and employment as well as through opportunities for
entrepreneurship. In Pakistan innovation and risk taking is severely inhibited by the intrusive role of
government in the marketplace. From the early days of planning when protection and subsidy polic ies
determined winners in the market place, entrepreneurship has been diverted to seeking government
favours. Government economic policy also seeks to promote growth through a basically ‘mercantilist’
approach where domestic commerce through seriously neglect is heavily regulated. This sector either
employs most of the poor or offers them entrepreneurial opportunities. Hence deregulating this sector
could be a priority in and anti-poor strategy. The paper also argues that land distribution and city zoning
and management have also evolved to further reinforce the prevalent rent seeking path to success. The
result is that cities are by design not allowed to become clusters of commerce that will be entrepreneur
friendly. These clusters of dense urban commerce are magnets of employment and opportunity for the
poor. To develop an entrepreneurship culture in the country, the system of incentives (laws and policies)
that promote rent seeking will have to be dismantled. This paper presents an analysis of the state of
entrepreneurship/rent seeking prevailing in Pakistan. This analysis allows us to obtain and understanding
of the kinds of reforms (including legislative changes) that are required to develop entrepreneurship.
Entrepreneurs are by nature and definition job creators, as opposed to job seekers. The simple translation
is that when you become an entrepreneur, there is one less job seeker in the economy, and then you
provide employment for multiple other job seekers. This kind of job creation by new and existing
businesses is again is one of the basic goals of economic development. Entrepreneurs setting up new
businesses and industrial units help with regional development by locating in less developed and
backward areas. The growth of industries and business in these areas leads to infrastructure
improvements like better roads and rail links, airports, stable electricity and water supply, schools,
hospitals, shopping malls and other public and private services that would not otherwise be available.
Every new business that locates in a less developed area will create both direct and indirect jobs, helping
lift regional economies in many different ways. The combined spending by all the new employees of the
new businesses and the supporting jobs in other businesses adds to the local and regional economic
output. Both central and state governments promote this kind of regional development by providing
registered MSME businesses various benefits and concessions.
Economic development doesn’t always translate into community development. Community development
requires infrastructure for education and training, healthcare, and other public services. For example, you
need highly educated and skilled workers in a community to attract new businesses. If there are
educational institutions, technical training schools and internship opportunities, that will help build the pool
of educated and skilled workers.

Case study 7.1

Jack Peterson and Sarah Jones are planning to start a
business. Their plan is to locate and operate 10 kiosks
in malls and other high-traffic areas to sell accessories
for Apple iPhones, iPads, and iPods. To complement
their accessory sales, the two have created a series of
short videos that help users learn how to make better
use of their iPhones, iPads, and iPods. The videos will

be available on Jack and Sarah’s website for a one-

time fee of $5.99 or on an app they are developing for

a $5.99 one-time download fee. Both the website and

the mobile app will include promotions to buy additional
iPhone, iPad, and iPod accessories via Jack and Sarah’s
kiosks or through their online store. Their senior year, they refined
the plan
by working on it during a business planning class.
They took first place in a university-wide business plan
competition just before graduation. The win netted
them $10,000 in cash and $10,000 in “in-kind” services
for the business. Their plan was to use the money to
establish a relationship with an accountant affiliated
with the university. As part of their business plan, Jack and Sarah
completed a product feasibility analysis for iUser
Accessories. They first developed a concept statement

and distributed it to a total of 20 people, including pro-

fessors; electronic store owners; iPhone, iPad, and iPod

users; and the parents of young iPhone, iPad, and iPod

users. The responses were both positive and instructive.

The idea to distribute videos dealing with how to bet-

ter use your iPhone, iPad, and iPod via streaming video

over the Internet or via the mobile app came directly

 from one of the concept-statement participants. Jack
and Sarah’s original idea was to distribute this material
in a more conventional manner. The
results affirmed Jack and Sarah’s notion that the vast
majority of people in their target market don’t realize
the number of iPhone, iPad, and iPod accessories that
exist, let alone know where to get them. They also were
pleased with the high degree of interest expressed by
the survey participants in learning more about many of
the accessories. As part of their business plan, Jack and Sarah
com-
pleted one- and three-year pro forma financial state-
ments, which demonstrate the potential viability of

their business. They have commitments for $66,000

of funding from friends and family. Another takeaway that Jack
and Sarah gleaned
from the SBDC class was to plan carefully the time you
spend with an attorney, in order to make best use of
your time and minimize expenses. As a result, prior to
the meeting, Jack and Sarah planned to spend several
evenings at a local Barnes & nobel bookstore, looking at
books that deal with forms of business ownership and
other legal issues and making a concise list of issues to
discuss with the attorney. They had also gone over this
material in preparing their business plan. The day for the meeting
arrived, and Jack and Sarah

met at the attorney’s office at 2:15 p.m. They had e-

mailed the attorney their list of issues along with their

recommendations a week prior to the meeting. The at-

torney greeted them with a firm handshake and opened

a file labeled “iUser Accessories, Jack Peterson and

Sarah Jones.” Seeing their names like that, on an attor-

ney’s file, made it seem like their company was already

real. The attorney looked at both of them and placed a

copy of the list they had e-mailed in front of her. The list
already had a number of handwritten notes on it. The
attorney smiled and said to Jack and Sarah, “Let’s get
started.”

Case study 7.2

Credibility is a vital part of any start-up’s persona.
Whether a prospective customer in a for-profit context

or a prospective donor in a nonprofit context, it’s im-

portant that the company or organization presents itself
in a manner that builds credibility and trust during first
encounters. Both consumers and donors have multiple

options for allocating their money. As a result, it’s es-

sential that a start-up make a favorable first impression

and give its patrons reasons to trust it. Launched in 2012,

CoachUp is a service that con-
nects athletes with private coaches. The company

believes strongly that private coaching is the secret

to reaching the next level in sports and life. CoachUp
was founded by Jordan Fliegel. Fliegel was an average
high school basketball player until has father hired a
private coach for him, Greg Kristof, who had been the
captain of the Brandeis University team. The sessions
with Kristof helped Fliegel make his own high school
basketball team, and he went on to play in college and
in a professional league overseas. CoachUp prominently features
this information on

its website. It’s tastefully done, provides useful informa-

tion, conveys the company’s values, and provides mul-
tiple opportunities (i.e., FAQ, blog, Twitter, Facebook) for

prospective customers to get to know the company be-

fore trying it out. While these techniques serve multiple

purposes, they’re essential in helping CoachUp build

credibility and trust with its target market. Charity: Water is a
nonprofit organization bringing safe

and clean drinking water to people in developing coun-

tries. Founded in 2006, it has helped fund over 11,700

water projects in 22 countries.

Charity: Water was started by Scott Harrison.
Harrison developed a passion for helping alleviate the
plight of the 1-plus billion people in the world who do
not have access to clean water. The company started
when Harrison asked a large group of family, friends,
and acquaintances to attend his 31st birthday party.
Instead of giving him a gift, he asked each invitee to
pledge $31 to help him start a nonprofit to focus on
clean water. A total of 700 people attended, and the
money was used to fund the drilling of six wells in a
refugee camp in Uganda. Charity: Water has grown and
is now active across the world. It has done many things
to bring the urgency of its cause to the attention of the
public, including setting up an outdoor exhibition in new
York City in which it displayed tanks of water that were
similar in appearance and quality to the poor-quality
water consumed daily in many parts of the world. In
2012 alone, Charity: Water raised $33 million and funded
more than 2,000 water projects. Its projects vary from
country to country depending on water sources, the na-
ture of the terrain, and the local population. Its solutions

range from drilled wells to rainwater catchments (gutters

on rooftops that catch rain water and place it in sanitary
holding tanks) to spring protections (a system captures
and safely stores pure water from a natural spring).

That’s what Charity: Water is about. Like any char-

ity, it relies on the trust and support of its donors. Here’s

how Charity: Water covers the eight techniques shown

previously for building credibility and support.