Entrepreneurship is simply
“starting a business.” It is a process through which individuals identify
opportunities, allocate resources, and create value. This creation of value is
often through the identification of unmet needs or through the identification of
opportunities for change. A well explained definition of entrepreneurship in the
words of Wennekers and Thurik (1999) that successfully makes the functional
roles of entrepreneurs is:
"...the manifest ability and willingness of individuals, on their own, in teams
within and outside existing organizations, to perceive and create new economic
opportunities (new products, new production methods, new organizational schemes
and new product-market combinations) and to introduce their ideas in the market,
in the face of uncertainty and other obstacles, by making decisions on location,
form and the use of resources and institutions." (46–47)
The need for entrepreneurs for economic development has always been crucial in
the
history because they are the leaders who invent innovative ideas that give spark
to economic activities. They are responsible for the combination of factors of
production by capital formation, creating employment opportunities, wealth
distribution that facilitates development and growth. High and sustained
economic growth is the fundamental objective of every developed or developing
country’s governmental policy. Economic growth is a long term expansion of the
productive potential of the economy. It generates employment in the economy and
raises the living standards of the nation. Economic growth promotes business
activities in private sector, increases company profits and enhances investor
confidence .
In Pakistan we have rarely witnessed entrepreneurs leading from the front in
order to fuel the economy, nor government ever focused on the importance of the
matter. We always focus on obtaining degree for developing competency and
enhancing skills. A passive approach of being ruled rather to rule is embedded
in our youth by default. Our purpose of education is just to get a good job and
keep serving the others for the rest of life. No norm of building an empire and
asking others to serve you is established here. Educational structure revolves
merely around literary work for practical skill development. We need to change
our educational structure by making it more pragmatic and skill oriented.
Vocational training institutions have to be strengthened and established in each
and every village of the country. We should provide skilled human resource to
entrepreneurs in order to facilitate them in saving training costs and encourage
them to expand their businesses.
Due to entirely theoretical educational system and limited autonomy, human
prudence
has been muffled in this part of the world. People having no independent thought
process are short of innovative ideas to go beyond imagination. A matter asking
for deeper attention is to develop a liberal thought process in order to enhance
groundbreaking ideas. Even if some one carries an idea of developing an
independent business, he should have to seek permission from various levels
controlling the decisions of his life. This muffles discretion of individuals
and makes it very difficult to make a decision, as people generally discourage
risk and experiments when danger of sinking cost is involved, and hence ones
ideas just go in vain.
Risk of failure is a very important factor playing a critical role in
discouraging
entrepreneurs from initiating business extension plans. Menace of economic
structure and fear of losing assets have made the people acquiescent. They are
pleased with what they have, and do not strive for excellence, as it demands
hard work and time dedication. The exceptional development in the world we are
witnessing today is merely because of human hard work, time dedication, and risk
management. So there is no question of sitting idle and waiting for
opportunities, as they will never knock at your door, you yourself have to
create them.
Scarcity of financial resources and stringent economic conditions in our country
is again a very critical factor denying people to incorporate new businesses.
There is no procedure of government funding/loans in order to encourage the
youth to shape their ideas into reality. Power shortage is another factor
hindering business growth and discouraging entrepreneurship. Government has to
play its role in financing small business enterprises and generating more energy
reservoirs to meet the needs of existing and potential industries.
Heavy income taxes and compliance to the state laws critically affects
entrepreneurs and squeezes their profits, leaving them with insufficient funds
to flourish their business. Threat of criminals and mafia also inflicts the
interests of the newly established businessmen. Government should develop tax
free zones, make business regulatory procedures more convenient, and provide
life security to all in order to encourage investors.
It is abundantly clear that entrepreneurship is important for economic growth,
productivity, innovation and employment, and many countries have made
entrepreneurship an explicit policy priority. So, its the need of hour that
Pakistan should also pay attention to entrepreneurship because no economy would
be able to sustain and survive the global challenges that lie ahead in the 21st
Century.