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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 status
Sole owner: He works with his own hands combines the entrepreneur function of
business making investments, taking decisions and
initiating the
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 Level
Majority 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 Pakistan
in variety of fields

5/20/2015
EXPORTS

Exports$30.9 billion (2011 est.)


Main export partners
US 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.
IMPORTS

Imports $39.9 billion (2011 est.)


Main import partners
China 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 .
LABOUR FORCE OF PAKISTAN

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 occupation
agriculture: 43%,
industry: 20.3%,
services: 36.6%
Unemployment 6.2% (2011 )
Main industries
textiles and apparel, food processing, pharmaceuticals, construction materials, paper
products, fertilizer, shrimp
SALT RICH PAKISTAN

Second Largest
Salt mine in
the 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 DAM
ONE OF THE LARGEST IN THE WORLD

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
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 • Under this agreement,


is designed to produce MCC would generate for
15,810 tonnes copper, 2.8 Pakistan 500,000 dollars
tonnes silver, 1.5 tonnes per month for over 10
gold, and 30,000 tonnes iron years plus 50 percent of
annually. the total revenue from
• Ore bodies of more than 350 mineral sale.
million tonnes deposits. • Similarly, Balochistan
• Pakistan's first metallurgical would receive 0.7 million
copper-gold project went dollars as annual royalty.
into commercial to save Rs
2.5 billion annually.
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 MW
13 june 2000
•CHASNUPP 2-325 MW
14 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
Islamabad
M2= Islamabad to
Lahore
M3= Pindi Bhattian to
Faisalabad
M8= Gwadar to Ratto dero
The 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 tons
Pakistan 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 tons
2- India-8,178,300 tons
3- USA-3,349,170 tons
4-Pakistan-2,015,200 tons
Domestic 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 MT
3- Saudia 10,52,000 MT
4- 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 tons
3- Thailand 2.5 Million tons
6- India 1.8 Million tons
WORLD: 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 OF PAKISTAN IN THE WORLD BY POPULATION

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%


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 Bln


2-India = $ 751.173 Bln.
3-USA= $ 161.236 Bln
4-Indonesia= $ 157.572 Bln
5-Brazil = $ 147.700 Bln
6-Nigeria =$ 113.385 Bln
7-Pakistan = $ 101.348 Bln
8-Turkey = $ 92.209 Bln
9-Iran = $ 90.052 Bln
10-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

Small arms ammunition


PROPELLANTS AND EXPLOSIVES
• 7.62X51mm Ball (NATO)
• Artillery ammunition propellant
• 7.62x 51mm Tracer
• Mortar and rocket ammunition
propellant • 7.62x 51mm Link Belted
• Small bust • 7.62 x 51mm Blank (Star
Crimped)
• ammunition propellant
• 7.62 x 39mm
• Demolition explosives
• 9 x19 mm Ball
PYROTECHNICS AND DEMOLITION STORES • 5.56 x 45mm M-855
• Flare (trip-wire) Mk 2/2 • 5.56 x 45mm M-193
• Shooting (pencil type) Smoke grenades
• Demolition charge #16
IN.BeeHive MK
• Demolition 1 OZ CE PRIMER
9th largest COMMERCIAL VEHICLE
MANUFACTURER in the World

CAR MANUFACTURE2010-11
1300-1600 CC (2000 cc Diesel)
Honda Civic- 6408
Honda City- 9294
Suzuki Liana- 614
Suzuki Swift- 4376
Toyota Corolla- 41,419
Suzuki Baleno- 0
Nissan Sunny- 0
Kia- 0
Total= 62,111
MOTOR CYCLE PRODUCTION PAKISTAN

Honda= 5,70,777
Yamaha= 1,14,845
Suzuki= 20,259
Sohrab= 3607
Sohrab Triwheel= 1560
Qing Chi= 21,290
Hero= 41,972
Ravi= 8,38,26,882
Sazgar= 15,699
Habib= 21,659
Total= 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 2009
Mobile 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 ae
rospace 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 • There is no drug control
disclosed authority in Pakistan
• Medicines registered in • Pakistan only issues
USA 5000 drug licence but donot
• Medicines registered in have any renewal
India 5000 authority
• Medicines registered in • WORLD RECORD BY
Pakistan 55,000 PAKISTAN…….4000
• Medicines registered in medicines registered in
Pakistan from 2008-2012 just one
are 27,000 in just 4 years day…………….wow
EDUCATION

PRIMARY SCHOOLS 1,56,592


MIDDLE SCHOOLS 3,20,611
HIGH SCHOOLS 23,964
DEGREE COLLEGES 1202
TTC’s & VTC’s 3125
UNIVERSATIES 132
ARTS & SCIENCE COLLEGES 3213
Population 10 Yrs/above 60 %
Male Literacy = 69 %
Female = 45 %
POPULATION OF PAKISTAN
18,73,43,000
Growth rate: 1.6% Age Structure:
Birth rate 31/1000 0-14 Yrs: 36.7 %
Death rate 8/1000 Male = 3,30,37,943
Life: 63.39 Yrs. Female = 3,10,92,572
Male: 62.40 Yrs. 15-64 Yrs. 59.1 %
Female: 64.44 Yrs. Male =5,36,58,173
Fertility: 3.58 Children/woman Female = 4,95,00,786
65 Yrs. & above 4.2 %
Male =34,95,350
Female = 37,93,734
RICHEST PAKISTANI’s
1-Mian Mansha $ 5 Bln. 8- Rafiq Habib $ 900 Mln (HBL)
(MCB) 9- Tariq Saigol $ 850 mln
2- Asif Zardari $ 1.8 bln. (sehgal Group)
(Politics) 10- Dewan Mushtaq $ 800 Mln
3- Anwar Pervez $ 1.5 bln. (Dewan Group)
(Cash & Carry) 11- Sultan Lakhani $ 800 Mln
4- Nawaz sharif $ 1.4 bln. (Lakson Group)
(Ittefaq Foundry) 12- Malik Riaz $ 800 Mln
5- S. Hashwani $ 1.1bln. (Bahria Town)
(PC & marriott) 13- Seth Abid $ 780 Mln
6- Nasir Schon $ 1.0 bln (Greenfort)
(Schon Group) 14- Mian Latif $ 700 Mln
7- A.R.Yaqoob $ 1.0 Billion (Chen one)
(ARY) 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


• 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
Deciding to become an entrepreneur by leaving
present activity
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!