Youth Program
Every child's dream in school is that after graduating from here, I will do something that the world will see. This is the answer to the childhood question, "What will you become when you grow up, son?"
There are millions of young people in Pakistan. Many think he will be the next Bill Gates or Mark Zuckerberg. But then what is the point that business geniuses are not born in Pakistan?
Millions of young people join the Pakistani workforce every year and are mostly looking for jobs for their CVs. Hardly anyone thinks of starting their own business.
So what are the challenges for young people in starting a business in Pakistan? Experts describe three types.
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Information
He says that when a young person thinks of starting a business in Pakistan, he does not have a lot of information such as what is the government rules or policy (related to this business). Or what kind of permission does he need from which department? Where do we get the NOC from? There is no single portal where all this information can be easily found.
- Hassan Raza does business in Rawalpindi and has been associated with a group called The Indus Entrepreneurs.
- He says many laws probably existed before Pakistan was formed.
- "You have to get a license or NOC for a job from three or four departments. A 25-year-old would not even know what license I would get if I had to start a business.
- He says if an idea gets stuck in NOCs and licenses, it will either fail or be delayed.
- The complexity of the laws in their place, the rule of law is also a big issue.
Hassan Raza says that in Pakistan you do business on language. If you enter into an agreement with a vendor or customer and he breaks it, there is no way for you to take legal action to enforce it on time. There is no effective ombudsman. It takes you many, many years in the courts.
- Hassan Raza does business in Rawalpindi and has been associated with a group called The Indus Entrepreneurs.
- He says there are many laws that probably existed before Pakistan was formed.
- "You have to get a license or NOC for a job from three or four departments. A 25-year-old would not even know what license I would get if I had to start a business.
- He says if an idea gets stuck in NOCs and licenses, it will either fail or be delayed.
- The complexity of the laws in their place, the rule of law is also a big issue.
Hassan Raza says that in Pakistan you do business on language. If you enter into an agreement with a vendor or customer and he breaks it, there is no way for you to take legal action to enforce it in a timely manner. There is no effective ombudsman. It takes you many, many years in the courts.
Murtaza Zaidi says that when he started his company, he was once negotiating a deal. "When I insisted that our agreement should be like this, they further told me that whatever you wish to write, if we have any problem, I will not be allowed to appear in court for five years!"
Easy access to investment
Youth Program
Murtaza Zaidi says, “When an investor sits down with you, he says that I will take 70-90% of your business. He does not think that the founder of a business who has an idea if his share is more, he will work harder and harder. And if the business is successful, the small part of the investor will also grow.
Unskilled workforce
- Let's think again. You have a good idea, you understand the rules, and you have saved money. So will you find skilled people to work in Pakistan?
- Shafiq Akbar is the CEO of Grana Group of Companies. He has launched several new companies in Pakistan in the last three years.
- "There is a lot of human resources in this market," he says. But there are no good people. "
- Romer is Pakistan's first car rental app. Mohammad Hadi, CEO of Romer, says culture is a big challenge in starting a business in Pakistan.
- What is the solution to these problems?
- Experts say that three or four basic prescriptions are enough to improve the business culture in Pakistan.
Murtaza Zaidi says the government should make it easier to understand the laws. There should be a portal or office where any young person can go and get legal answers to all the questions regarding his work.
Second, the vision of government schemes should be better. In a scheme like the Successful Youth Program, you are giving small loans to thousands of people. Instead, you would say that on the basis of merit, we would give huge loans to every one thousand people on the basis of innovative ideas.
So that you can create successful companies that are worth billions one day. Right now people are taking loans, taking advantage of low-interest rates, some are buying cars and some are spending on tourism.
Hassan Raza says another important solution is for our universities to have a better relationship with the industry. "Of course we talk about the closeness of the two, but have you ever seen a professor or a student come to the factory, again and again, understanding the nature of the work?"
"Don't teach students in our educational institutions, teach them skills. Ask them to work in factories during the holidays so that by the time they graduate and come to the market, they have some skills that are useful to them and also benefit the entrepreneur.