Department of Computer Science

Entrepreneurship
Semester 8 (Spring 2023)

Zubair Mansuri Assignment No. 01

02-134192-068 Marks: 5

Read Carefully:
• This assignment has one question you must answer and submit On LMS.
• Answers must be precise and short.
• The deadline for this assignment is before or on Saturday, March 18th , 2023.
• WARNING: This is an individual assignment; you must solve it by yourself. Any form of plagiarism
will result in receiving a zero on the assignment.
• WARNING: Late submissions will not be accepted. Any assignment submitted after the cutoff time will
receive zero.

Question No. 1: (CLO–1, PLO–2, BT-2)

a. Tell 10 problems faced by entrepreneurs in Pakistan while starting their

business in 2023?
Answer:
10 common challenges faced by entrepreneurs in Pakistan while starting their
businesses:
1. Limited access to capital: One of the most significant challenges for entrepreneurs in Pakistan
is limited access to capital. Most financial institutions are risk-averse and do not provide loans
to startups and small businesses, making it challenging to secure funding.

2. Lack of government support: There is a lack of government support for startups and small
businesses in Pakistan. The government needs to provide incentives, tax breaks, and create
an environment conducive to entrepreneurship.

3. Political instability: Pakistan has experienced political instability, which can create an
uncertain business environment. This instability can lead to a lack of investor confidence
and slow economic growth.

4. Bureaucratic hurdles: Starting a business in Pakistan can be challenging due to bureaucratic

hurdles. The process of obtaining permits and licenses can be time-consuming and frustrating,
leading to delays and increased costs.

5.Limited market opportunities: Pakistan's economy is small, and there are limited market
opportunities for entrepreneurs. This lack of diversity can make it difficult for startups to find
their niche.
6. Lack of skilled labor: There is a shortage of skilled labor in Pakistan, making it difficult for
entrepreneurs to find qualified employees. This issue can slow down the growth of startups
and hinder their success.

7. Infrastructure challenges: Pakistan's infrastructure is underdeveloped, with poor transportation

networks and limited access to electricity and water. These challenges can impact business
operations and increase costs.

8. Corruption: Corruption is prevalent in Pakistan, and it can be a significant hurdle for entrepreneurs.
Entrepreneurs may have to pay bribes or face other forms of corruption to start and run their
businesses.

9. Limited access to technology: Pakistan lags behind in adopting new technologies, which can limit the
growth of startups. This lack of access to technology can impact businesses' competitiveness and
ability to innovate.

10. Cultural barriers: Pakistan is a diverse country with multiple languages and cultural differences.
Entrepreneurs need to navigate these cultural barriers to establish and grow their businesses
successfully.

b. How important are small businesses to local economies?

Small businesses are crucial to local economies as they play a significant role in creating jobs,
generating income, and supporting local communities. Here are some reasons why small businesses
are important to local economies:

Job creation: Small businesses are often the main source of employment in local communities.
They create jobs for local residents, which helps to reduce unemployment and boost the local
economy.

Economic growth: Small businesses contribute to economic growth by creating new products
and services, expanding existing ones, and generating new revenue streams. They also increase
competition in the market, leading to better quality products and services and lower prices.

Innovation: Small businesses are often more innovative and flexible than larger companies.
They can respond quickly to changing market conditions and customer needs, driving innovation
and economic growth.

Community support: Small businesses are more likely to support local causes and charities,
which helps to build strong and vibrant communities. They also contribute to the local tax base,
which supports public services like education, healthcare, and infrastructure.

Entrepreneurship: Small businesses are often started by entrepreneurs who are passionate
about their products or services. They take risks and invest in their communities, creating new
opportunities and driving economic growth.