Entrepreneurship in pakistan

Entrepreneurship in Pakistan

ENTREPRENEURS IN PAKISTAN

Salient Features of Entrepreneurs in Pakistan are:

Age Pattern“The mean age of entrepreneur was found to be 42 years and of their enterprises 12 years. It is comparable to the Korean age pattern (46)”.

Corporate statusSole owner: He works with his own hands combines the entrepreneur function of

initiating the business making investments, taking decisions and performing managerial functions”. Heritage: “Caste played an important role in certain industries and on the other hand heritage is dominant. But overall it is much diversified.”

Educational Level“Differing from industry to industry 60% have school education and 30% have college or better education only 10% have professional or graduation level”.

Skills LevelMajority is skilled in family business Most of training is as a family member. Technically they are very skilled in heredity business. New generation has professional education Sizes and Investment“Majority started in a small way with less than 10 workers and 1/2 to 2/3 of the firms started with less than 50,000 investments”

Growth“The growth was fast in case of small firms than in large firms”. Profitability“Rate of profit is higher in case of small industries in comparison with the large industries.”

Potential of Pakistanin variety of fields

04/15/2023

Exports$30.9 billion (2011 est.)Main export partnersUS 15.8%,UAE 7.9%, China 7.3%, UK 4.3%, Germany 4.2% (2010)Export goods textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods, chemicals, manufactures, carpets and rugs.

EXPORTS

Imports $39.9 billion (2011 est.)Main import partnersChina 17.9%, Saudi Arabia 10.7%, UAE 10.6%, Kuwait 5.5%, US 4.9%, Malaysia 4.8% (2010)Import goods petroleum and petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea .

IMPORTS

Labour force 55.77 million (2010 est.)Pakistan is one of few countries in the World to have 60 % or more Young labour force.Labour force by occupationagriculture: 43%,industry: 20.3%, services: 36.6% Unemployment 6.2% (2011 )Main industriestextiles and apparel, food processing, pharmaceuticals, construction materials, paper products, fertilizer, shrimp

LABOUR FORCE OF PAKISTAN

SALT RICH PAKISTAN

Second Largest Salt mine inthe World Khewra with 3,00,000 ton annual production

CANAL IRRIGATION

Pakistan has the World’s Largest canal Irrigation system in the World with 58,500 Km length

Silk Route & Karakoram Highway

Silk Route was trade link

between the East and the

West around 100 BC and

lasted until the 15th

Century. 

Karakoram Highway Eighth

Wonder of the World and

Highest Paved Road in the

world 1300 km long and

height 15,750 feet

Tarbella is the Second largest dam in The World with 12,20,00,000 Cu.M. capacity.The dam is 485 feet (148 m) high. The dam forms the Tarbela Reservoir, with a surface area of approximately 250-sq.km.Construction cost $ 1,497 Mln.

Length 2743 meters (9000 feet)

Maximum capacity4200 MW

TARBELLA DAM ONE OF THE LARGEST IN THE WORLD

GOLD MINES IN PAKISTAN

5th Largest Gold deposit in the World is in Rekodek,Pakistan with estimation of $ 260 Billion. But Dr. Samar Mubarak mand says deposits are worth $ 1.2 Trillion

COPPER DEPOSITS

• 5th Largest Copper deposits which can produce 15,810 tons annually from Rekodek only.

• 40,000 tons soon production by Australian company Tethyan Copper Company (TCC) Australian BHP Billiton with three times more production than Rekodek with $ 75 Million exports of copper .

REKODEK DEPOSITS SUMMARY

• The first phase of the project is designed to produce 15,810 tonnes copper, 2.8 tonnes silver, 1.5 tonnes gold, and 30,000 tonnes iron annually.

• Ore bodies of more than 350 million tonnes deposits.

• Pakistan's first metallurgical copper-gold project went into commercial to save Rs 2.5 billion annually.

• Under this agreement, MCC would generate for Pakistan 500,000 dollars per month for over 10 years plus 50 percent of the total revenue from mineral sale.

• Similarly, Balochistan would receive 0.7 million dollars as annual royalty.

BLACK GOLD ABUNDANCE

One of the largest Coal deposits in the World at Thar around 10,000 Km and 184,575 metric tons or 850 trillion Cubic feet.

RICE EXPORT PAKISTAN

5th largest Rice exporter in the World with 4.5 million tons of Finest Quality rice.

The country’s domestic consumption of milled rice is about 2.3 million tonnes.

Pakistan had a bumper crop of 6.7 million tonnes of milled rice in 2010/11and exported about 4.5 million tonnes.

TOP WHEAT PRODUCER

8th Largest Wheat producer in the World with 23.5 million metric tons of wheat production Annually. It contributes 14.4 percent to the value added in agriculture and 3.0 percent to GDP.Target 25 + million MT.

COTTON PRODUCTION

4th largest cotton producer with 16 million bales production per annum.

ATOMIC NUCLEAR POWER

•CHASNUPP 1-325 MW13 june 2000•CHASNUPP 2-325 MW14 March 2011•CHASNUPP 3-330 MW 2016•CHASNUPP 4-330 MW 2017•KANNUP 1-137 MW•18 October 1971•KANNUP 2 - 600 MW•Work stoped•KANNUP 3 - 400 MW•Construction awaited

GWADAR THE FUTURE OF PAKISTAN

Gwadar is the Largest Deep sea port in the world with 47 Km wide channel for mother vessels.It’s a Free port city, located neaest to bay of Hurmaz and will be the most modern city in Pakistan with all latest facilities.

GRAND THAR DESERT

• Thar is one of the Largest Deserts in the World with 2,00,000 sq. Km area and Worlds 9th largest desert.

ENGLISH SPEAKING NATION

• Pakistan is the 9th largest English speaking nation in the World

LARGEST GHEE PRODUCER

Pakistan is the Largest Producer of Ghee in the World.The edible oil industry is comprised of about 100 mills producing vegetable ghee / cooking oil. The installed capacity of these units is around 1.8 million metric tons. 24 units are in the public sector under the management and/or ownership of the. Ghee Corporation of Pakistan and approximately 76 companies are in the private sector. The GCP with approximately 37 % of the market is the dominating force in the industry.

CHICKPEAS

Pakistan is the Second Largest Producer of the Chickpeas with 8,42,000 Tonnes And 10 % of the Worlds production in pakistan only.

MOTORWAY OF PAKISTAN

Motorway Pakistan is the safest and Peaceful motorway in All Asia region.M1= Peshawar to

IslamabadM2= Islamabad to

LahoreM3= Pindi Bhattian to

FaisalabadM8= Gwadar to Ratto deroThe most interesting fact is that it can be used by Pakistan Air Force to land or take off many Fighter Jets.

COTTON (60 % of total Export by cotton-textile)

• 4th largest producer of Cotton-Textile with Cotton Production target of 16 million bales for 2012.

• Pakistan’s economy relies heavily on its cotton and textile sectors. Altogether, the cotton-textile sectors account for 11 percent of GDP and 60 percent of export receipts.

APRICOT, Pakistan is No. 3 in the World

• Pakistan Prod. 325,779 Tons• Pakistan No.3 & india No. 38• Grown from 5000 years in

Subcontinent• Cane or Juice 22 %• Dry Apricot 60 %• Freeze 5%• Fresh 13%• Grown in 63 Countries & 1,00,000

acres• 100 types of apricot, 32 types in

Pakistan • $ 700 Million can be earned extra if

cold storage available in Pakistan for Apricot

SUGARCANE

Sugarcane production of the World 1,743,068,525 tonsPakistan is World no. 5 with 50,045,400 tons after brazil, india, china and Thailand. With a world harvest of over 1 billion tonnes of sugar cane stock per year, the global potential is over 100,000 GWh for production of electricity.

PAKISTAN4th largest producer of onion in the World.

PRODUCTION:1- China-20,817,295 tons2- India-8,178,300 tons3- USA-3,349,170 tons4-Pakistan-2,015,200 tonsDomestic Consumption 1,500,000 (1.5 mln.tons)sindh: 30%Balochistan 38%Punjab 22 %KPK 10%

2nd largest MILK PRODUCTION PAKISTAN

•Pakistan is 2nd largest Buffalo milk producer in the World with 2,03,72,000 tones (23.53% of the World) comparing to china 29,00,000 tones at No 3.•World Production 8,65,74,539 tones

PAKISTAN- 4thlargest producer of Date palm in World

1- Egypt- 13,50,000 MT.2- Iran – 10,80,000 MT3- Saudia 10,52,000 MT4- Pakistan 7,35,000 MT.

LARGEST MANGOES PRODUCER in the WORLD is PAKISTAN

largest producer of Mangoes in the World 1- Pakistan 13.6 Million tons (39%)2- China 4.2 Million tons3- Thailand 2.5 Million tons6- India 1.8 Million tonsWORLD: 34.9 Million tons

Pakistani Mango:Chaunsa, Dusehri, Langra, Desi, Anwar Ratoul, Sindhri, Fajri, Saroli, Bagan Pali, Alphonso, Muhammad Wole, Neelum

TANGERINE, ORANGE (Malta)MANDARIN ORANGE(Kinnow)

11th largest producer of tangerines and mandarin orange (kinnow) with 640,000 tones annually and Orange (Malta) 1.7 Million tons apart from Tangerine and Mandarin Orange.

RANKING COUNTRY POPULATION WORLD %

1 CHINA 1,339,724,852 19.16%

2 INDIA 1,210,193,422 17.31%

3 USA 312,962,000 4.48%

4 INDONESIA 237,641,326 3.4%

5 BRAZIL 192,376,496 2.75%

6 PAKISTAN 178,609,000 2.55%

RANKING OF PAKISTAN IN THE WORLD BY POPULATION

GRAND COAST LINE 1046 Km

The coastline of Pakistan extends 1,046 km,

250 km falling in Sind 800 km in Balochistan.Its Exclusive Economic Zone

(EEZ) covers an area of 196,600 sq.km.

The territorial waters cover an area of 24,000 km2.

Well-known beaches in Pakistan include Somniani, Hingol River, Ormara, Pasni, and Gawadar in Balochistan, and Clifton and Hawks Bay in Sindh.

RANK FOR AGRICULTURE OUTPUT

1-China = $ 1,028.742 Bln2-India = $ 751.173 Bln.3-USA = $ 161.236 Bln4-Indonesia= $ 157.572 Bln5-Brazil = $ 147.700 Bln6-Nigeria =$ 113.385 Bln7-Pakistan = $ 101.348 Bln8-Turkey= $ 92.209 Bln9-Iran = $ 90.052 Bln10-Russia = $ 88.918 Bln

SCIENTISTS & ENGINEERS of PAKISTAN (OUR PRIDE)

• 7th largest pool of scientists and engineers in the World.

LARGEST BIRD SANCTUARY IN THE WORLD

• One of the Largest Bird Sanctuary in the world Haleji Lake

EXPLOSIVES & SMALL ARMS AMMUNITION

PROPELLANTS AND EXPLOSIVES

• Artillery ammunition propellant• Mortar and rocket ammunition

propellant• Small bust• ammunition propellant• Demolition explosives

PYROTECHNICS AND DEMOLITION STORES

• Flare (trip-wire) Mk 2/2• Shooting (pencil type)• Demolition charge #16 IN.BeeHive

MK• Demolition 1 OZ CE PRIMER

Small arms ammunition• 7.62X51mm Ball (NATO)• 7.62x 51mm Tracer• 7.62x 51mm Link Belted• 7.62 x 51mm Blank (Star

Crimped)• 7.62 x 39mm• 9 x19 mm Ball• 5.56 x 45mm M-855• 5.56 x 45mm M-193Smoke grenades

9th largest COMMERCIAL VEHICLE MANUFACTURER in the World

CAR MANUFACTURE2010-111300-1600 CC (2000 cc Diesel)Honda Civic- 6408Honda City- 9294Suzuki Liana- 614Suzuki Swift- 4376Toyota Corolla- 41,419Suzuki Baleno- 0Nissan Sunny- 0Kia- 0Total= 62,111

MOTOR CYCLE PRODUCTION PAKISTAN

Honda= 5,70,777Yamaha= 1,14,845Suzuki= 20,259Sohrab= 3607Sohrab Triwheel= 1560Qing Chi= 21,290Hero= 41,972Ravi= 8,38,26,882Sazgar= 15,699Habib= 21,659Total= 8,38,550

INCOME FROM I.T.

• Pakistani reserves from IT industry will reach $ 5 Billion in 2012

• Many American and European companies are planning to start their development centers in Pakistan as IT skilled persons are in abundance in Pakistan

GEM AND JEWELLERY

Pakistan is one of the Largest Gem and Jewellery exporter with exports of $ 0.75 Billion in 2004 and will be $ 1.7 Billion by 2015.

MOBILE PHONES

users in Pakistan 111,126,434 in October 2011, reaching a tele-density of 65.2 percent, Pakistani mobile phone users exchanged 175.4 billion text messages in 2010, up from 151 billion text messages in 2009Mobile phones are growing by about 1.0 million a month, long distance rates are down by two third in five years and 80 % down for data transmission

2 crore net users in Pakistan

Pakistani internet users have been on the rise with accelerated pace, crossing 20 million benchmark with a greater percentage accessing the internet via mobile phones, said Freedom on the Net in it’s 2011 annual report.

FOREIGN EXCHANGE RESERVES

Foreign exchange reserves of Pakistan are 17,790 million US $ on September 2011 at 59th position in the world

PAKISTANI SATELLITE

• Pakistan among 7 top countries in the World to launch their Satellites

• Pakistan’s PAK SAT is one of the largest Domestic satellite systems.

PAKISTAN SPACE PROGRAM• Pakistan is one of rare countries to have

a space program, and all the satellites are build inside Pakistan by Space and Upper Atmosphere Research Commission, best known as SUPARCO is an executive agency of the Govt. of Pakistan, responsible for nation's public and civil space programme and aeronautics and aerospace research.

• Pakistan Remote Sensing Satellite (PRSS), commercially known (RSSS) is an dual purpose Earth Observational and optical satellite which is schedule to launch by the end year of 2012 for the replacement of Badar 2 satellite.

PHARMACEUTICAL

• Very strange facts to be disclosed

• Medicines registered in USA 5000

• Medicines registered in India 5000

• Medicines registered in Pakistan 55,000

• Medicines registered in Pakistan from 2008-2012 are 27,000 in just 4 years

• There is no drug control authority in Pakistan

• Pakistan only issues drug licence but donot have any renewal authority

• WORLD RECORD BY PAKISTAN…….4000 medicines registered in just one day…………….wow

EDUCATION

PRIMARY SCHOOLS 1,56,592MIDDLE SCHOOLS 3,20,611HIGH SCHOOLS 23,964DEGREE COLLEGES 1202TTC’s & VTC’s 3125UNIVERSATIES 132ARTS & SCIENCE COLLEGES 3213Population 10 Yrs/above 60 %Male Literacy = 69 %Female = 45 %

POPULATION OF PAKISTAN 18,73,43,000

Growth rate: 1.6%Birth rate 31/1000Death rate 8/1000Life: 63.39 Yrs.Male: 62.40 Yrs.Female: 64.44 Yrs.Fertility: 3.58 Children/woman

Age Structure:0-14 Yrs: 36.7 %Male = 3,30,37,943Female = 3,10,92,57215-64 Yrs. 59.1 %Male =5,36,58,173Female = 4,95,00,78665 Yrs. & above 4.2 %Male =34,95,350Female = 37,93,734

RICHEST PAKISTANI’s1-Mian Mansha $ 5 Bln.

(MCB)2- Asif Zardari $ 1.8 bln.

(Politics)3- Anwar Pervez $ 1.5 bln.

(Cash & Carry) 4- Nawaz sharif $ 1.4 bln.

(Ittefaq Foundry)5- S. Hashwani $ 1.1bln.

(PC & marriott)6- Nasir Schon$ 1.0 bln

(Schon Group)7- A.R.Yaqoob $ 1.0 Billion

(ARY)

8- Rafiq Habib $ 900 Mln (HBL)9- Tariq Saigol $ 850 mln (sehgal Group)10- Dewan Mushtaq $ 800 Mln

(Dewan Group)11- Sultan Lakhani $ 800 Mln

(Lakson Group)12- Malik Riaz $ 800 Mln

(Bahria Town)13- Seth Abid $ 780 Mln (Greenfort)14- Mian Latif $ 700 Mln

(Chen one)15- Abdul Ghafoor $ 660 Mln.

(Sitara group)

AN INTEGRATED DEFINITION

Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions.

All definitions of entrepreneurship includes

• Newness, organizing, creating, wealth and risk taking

• Entrepreneurs are found in all professions

Architecture

Education

Medicine

Research

• Individuals have difficulty bringing their ideas to the market & creating a new venture

• Yet entrepreneurial decisions have resulted in several new businesses through out the world

• Despite recession- inflation- high interests rate, lack of infrastructure-economic uncertainty & high probability of failure

The Entrepreneurial Decision Process

Deciding to become an entrepreneur by leaving present activity

Form new enterpriseDesirable

1. Cultural2. Subcultural

3. Family4. Teachers

5. Peers

Possible6. Government7. Background8. Marketing9. Financing

10. Role Models

Changing from present life style

Work Environment

Disruption

Types of Start-Ups

• Lifestyle firm-a small venture that supports the owners and usually does not grow

• Foundation Company-is created from research and development that usually does not go public.

• High-potential venture-has high growth potential and receives the greatest investment interest and publicity.

• Gazelles-very high growth ventures.

ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

• More than per capita and income, it involves change in business and society. This change is accompanied by growth and increased output, which allows more wealth to be divided among the various participants

• What facilitates needed change and development?

• One theory of economic growth depicts innovation as the key not only in developing new products but also stimulating investment interest in the new ventures being created. The new capital created expands the capacity for growth

• It is the process through which innovation develops and commercializes through entrepreneurial activity which in turn stimulates economic growth

Economic Impact of Entrepreneurial Firms

• Innovation– Is the process of creating something new, which is central to

the entrepreneurial process.– Small firms are twice as innovative per employee as large

firms.

• Job Creation– In the past two decades, economic activity has moved in the

direction of smaller entrepreneurial firms, which may be due to their unique ability to innovate and focus on specialized tasks.

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Entrepreneurial Firms’ Impact on Society and Larger Firms

• Impact on Society– The innovations of entrepreneurial firms have a dramatic

impact on society.– Think of all the new products and services that make our

lives easier, enhance our productivity at work, improve our health, and entertain us in new ways.

• Impact on Larger Firms– Many entrepreneurial firms have built their entire business

models around producing products and services that help larger firms become more efficient and effective.

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Role of Entrepreneurship in Economic Development

• Product evolution process-process for developing and commercializing an innovation

• Iterative Synthesis-the intersection of knowledge and social need that starts the product development process

• Ordinary innovations-new products with little technological change

• Technological innovations- new products with significant technological innovation

• Breakthrough innovation- extremely unique innovations that sets the basis for further innovation.

The future of Entrepreneurship

• In spite of the difference conceptual perspectives, there are common aspects: risk taking, creativity, independence & rewards

• The future– we are living in the age of entrepreneurship!