A young and committed entrepreneur from Lahore has successfully secured clients from US market at such early stage in his business venture.
In a while, one of his employees left the parent organization to set up a direct connection with US clients. Hard work of this young entrepreneur started to fade when his ex-employee stepped in offering same services at relatively low rates to the same client. There is no platform to resolve his grievance that puts him in disillusion. The platform that is there either ineffective or inefficient.
Ashton Kutcher is among investors in Pakistani startup Cowlar.A weak system for contract implementation in Pakistan is deterring young companies and start-ups’ progress. This is the cause of stress and discouragement for ambitious entrepreneurs.
But it is important to note that young entrepreneurs and start-ups are not facing only such problems. Limited access to finance/capital, inadequate public-sector funding for research and development, unavailability of the competent and trained workforce and issues relating to the protection of intellectual property is included in some of the other major obstacles.
The business also faces challenges in terms of timely payments due to the ineffective contract implementation and unhealthy credit ratings. Few constraints are coming from the weak institutional environment and an emerging entrepreneurial culture that are faced by entrepreneurs. Still, it is likewise to discuss the issues like lack of soft training of entrepreneurs and employees in educational institutions.
Furthermore, strengthening the soft skills of the students are rarely focused on educational institutions that deter with their business abilities and professional development.
Regardless of these odds recently some startups from Pakistan has picked up in both foreign and domestic market.
Entrepreneurial ecosystem of Lahore and business agglomeration and talent of Karachi rising the startup culture in Pakistan. Federal government offered tax exemption for IT start-ups for first 3 years soft business.
The young talent has been encouraged and mentored to start their entrepreneurial ventures by the Punjab Information Technology Board, Pakistan Software Houses Association and few private incubators.
In a competition of startups in Islamabad ‘Fitbit for cows’ won the competition. Some startups have left the noticeable effect at an international level but the progress in this field is lower than the potential.
Although Pakistani startup is winning any competition at the international, there is a huge gap between the progress comparison with neighboring.
The entrepreneurial ecosystem in India is mature as a few entrepreneurial ecosystems in India engaged with Airbus, a leading aircraft manufacturer relatively for a longer period.
Pakistan needs commercial courts to stream out the judicial system for commercial disputes and secondly alternate mechanism for resolution of the dispute by collaborating with international but reputable forums.
Thirdly, there is a need for improved efficiency and funding for research and development in universities and the private sector.
There is a relatively small market for accelerators and venture funds that need a regulatory framework and incentive structure to facilitate the market.
Universities and incubators should further prepare the entrepreneurs to cope with the failures and stress that is inevitable for start-ups and young firms on their way to development.
Last but not least cities should ensure a conducive environment to exchange ideas and growth of young firms.