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Week 1 Introduction to Entrepreneurship

The document provides an overview of entrepreneurship, defining it as the act of creating and managing a business while taking financial risks for profit. It highlights the importance of entrepreneurship in Pakistan for economic development, addressing unemployment, and fostering innovation, particularly among youth and women. The entrepreneurial process is outlined in stages, emphasizing the role of small and medium enterprises in driving economic growth and improving living standards.

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ashbanadeem689
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3 views5 pages

Week 1 Introduction to Entrepreneurship

The document provides an overview of entrepreneurship, defining it as the act of creating and managing a business while taking financial risks for profit. It highlights the importance of entrepreneurship in Pakistan for economic development, addressing unemployment, and fostering innovation, particularly among youth and women. The entrepreneurial process is outlined in stages, emphasizing the role of small and medium enterprises in driving economic growth and improving living standards.

Uploaded by

ashbanadeem689
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Introduction to Entrepreneurship

1. Definition and Concept of Entrepreneurship


Entrepreneurship is the act of creating, organizing, and running a new business venture along
with taking financial risks in the hope of making a profit.
It is not just limited to starting a business but also includes:
• Innovating new products and services,
• Solving unmet needs of society,
• Contributing to social progress.
Key Aspects of Entrepreneurship:
• Innovation: Bringing new ideas to life.
• Risk-taking: Accepting uncertainty in pursuit of rewards.
• Proactiveness: Acting on opportunities rather than waiting.
• Resourcefulness: Using limited resources creatively.
• Value Creation: Benefiting customers, society, and the entrepreneur.
In Pakistan's Context:
Pakistan is a developing economy where entrepreneurship is essential for:
• Reducing unemployment (especially among youth),
• Fostering self-reliance,
• Encouraging technology adoption,
• Strengthening small and medium enterprises (SMEs).
Example:
• Careem, founded in the Middle East but operating in Pakistan, showed how innovation
(ride-hailing service) could fill a major gap in transportation.
• Bazaar Technologies — A Pakistani B2B platform that connects retailers with
wholesalers — shows entrepreneurial innovation in traditional markets.
2. Why Become an Entrepreneur?
Motivations Behind Entrepreneurship:
• Desire for Independence: Freedom to make personal business decisions without a boss.
• Financial Potential: Opportunity to earn more compared to fixed salaries.
• Pursuing Passion: Turning hobbies or passions (like cooking, coding, fashion designing)
into profitable businesses.
• Making an Impact: Improving lives, creating jobs, addressing societal issues.
• Flexibility: Managing work-life balance, especially important for women entrepreneurs.
Challenges Faced in Pakistan:
• Limited access to finance,
• Bureaucratic hurdles,
• Unstable political environment,
• Energy shortages (although improving).
However, despite these challenges, many choose entrepreneurship because the opportunities
outweigh the risks.
In Pakistan's Context:
• Youth Bulge: With almost two-thirds of the population under 30, entrepreneurship is
crucial for employment generation.
• Female Entrepreneurship: Organizations like Women Entrepreneurship Program by
Punjab Information Technology Board (PITB) promote women-led startups.
• Government Support:
o Kamiyab Jawan Program provides loans up to 7.5 million PKR to youth
entrepreneurs.
o SMEDA (Small and Medium Enterprises Development Authority) offers training,
advisory, and technical support.
Example:
• Bykea — A bike ride-sharing and delivery service — was founded seeing the need for
affordable transportation and parcel services in cities like Karachi, Lahore, and
Islamabad.
3. Entrepreneurial Process
The entrepreneurial journey is not just about starting — it is about moving step-by-step
strategically.
Steps in the Entrepreneurial Process:

Stage Description Pakistani Example

1. Opportunity Spotting a market gap or E-commerce delivery gaps led to TCS


Recognition unmet need. Yayvo and BlueEx.

2. Feasibility Study Testing if the idea is New food businesses often do taste testing
and Idea Validation profitable and possible. or surveys before launching.

Preparing a structured plan:


NIC (National Incubation Center)
3. Business Planning objectives, marketing,
offers help in writing business plans.
operations, finance.

Many Pakistani startups raise funds


4. Resource Gathering money,
through angel investors and platforms like
Mobilization technology, people.
Invest2Innovate (i2i).

5. Launching the Formally starting the Launch of FoodPanda in Pakistan


Venture business operations. reshaped the food delivery market.

6. Managing Expanding operations and PakWheels.com expanded from car sales


Growth improving services. ads to car services and events.

Important:
• A successful entrepreneur must adapt to market feedback.
• In Pakistan, businesses often start small (like a home kitchen or a small software house)
and expand as they succeed.
4. Role of Entrepreneurship in Economic Development
Entrepreneurship drives economic growth by:
• Generating Employment: Small businesses are the largest employers after agriculture.
• Encouraging Innovation: Solving local problems (e.g., clean drinking water, online
education).
• Increasing Exports: Home-grown brands (e.g., Khaadi, Generation) are expanding
internationally.
• Reducing Poverty: Micro-entrepreneurs (such as those supported by Akhuwat
Foundation) help lift families out of poverty.
• Enhancing Living Standards: New products and services improve quality of life.
In Pakistan’s Economic Development:
• SMEs contribute 30% to Pakistan’s GDP and provide 80% of non-agricultural jobs.
• Startup Ecosystem Growing: Karachi, Lahore, and Islamabad are emerging as startup
hubs with growing venture capital investments.
• Social Entrepreneurship: Initiatives like Rizq (redistributing surplus food to the needy)
show how entrepreneurship can tackle social issues while contributing to economic
betterment.
Examples:
• Sehat Kahani: Online healthcare access for remote areas.
• TelloTalk: Pakistan's own communication app challenging global giants like WhatsApp.
Class Discussion Questions:
1. Identify a local business that successfully solved a community problem. What was the
need they fulfilled?
2. What are some sectors (technology, agriculture, health) where Pakistani entrepreneurs
can still innovate?
3. How do government initiatives (like Kamiyab Jawan Program) motivate young
entrepreneurs?

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