What is entrepreneurship in general and why is it important in a country’s economy?

• In simple words, it means setting up, developing and being in charge of (or running) a business enterprise for the purpose of gaining profit by taking a handful of risks in the corporate world. Basically, entrepreneurs have ideas and they work to come up with a product or service that people are likely to buy, through creating an organization to assist those sales; while an entrepreneur has to face several riskier plays along their business venture, he also benefits from the rewards (profits) afterwards.
• Entrepreneurship is crucial to economy of a particular country in today’s world – it holds the power to enhance and refine the standards of living for people and bring about opulence in the economy (develop wealth). Entrepreneurs play the orchestra in bringing change in the economy through innovation where latest products allow new markets to take place, especially in developing countries.

Entrepreneurship in Pakistan

In Pakistan, the key components of entrepreneurship (i.e. risk-play and innovation) are severely hindered by the intrusive position of government in the market. Before political disturbance in the market, protection and subsidy policies decided the hero/winner in the marketplace but now, entrepreneurship in Pakistan has been diverged to favor the government.

How does entrepreneurship in Pakistan favor the Government?

• The current Government economic policy seeks to promote growth through a more mercantilism type of approach where domestic commerce is forsaken due to heavy regulations.
• Basically, the domestic commerce sector is forgotten in Pakistan. It either employs or has the potential to employ most of the poor population of Pakistan.
• If the Government deregulates this sector, it can be revived and hence be a strong anti-poverty strategy, providing job opportunities for the poor.

How to promote entrepreneurship in Pakistan?

• First and foremost, to build an entrepreneurship culture in our country, the system of incentives (laws and policies) that further enhance rent seeking will have to be demolished.
• As a matter of fact, city zoning management and land distribution have also evolved to further strengthen the prevalent rent seeking path to success – the outcome is that cities are by default unable to become bundles of commerce that will be entrepreneur-friendly. These bundles of urban commerce are focal-points of employment and opportunity for the poor population. Therefore, these factors should be taken into account and things must be shaped to provide an entrepreneurship-friendly environment in the country.
• Pakistan is said to have majority of a youthful population. Hence, standard creation of job opportunities would not be sufficient to take in the growth in the labor-force. There is a dire-need of step by step change from the current model to the new one in which we should focus on entrepreneurship, innovation, bright ideas, and creativity.