Entrepreneurship and Lack of Angel Investor in Pakistan
(Muhammad Hamza Shahab, Lahore)
Pakistan is far behind in
Entrepreneurship because of many reasons like corruption, lack of research, Poor
Legal Framework, Lack of Trust and Social Capital, City Administrations
Unfriendly to Small and Trading Businesses and the most important lack of angel
investors.
Angel investors are those who give capital to start the business. They use their
own assets for giving the capital rather than taking loans or other way of
funding. In 1978 Angel investor term came into being.
They are mostly retired executives or entrepreneur who wants to raise their
monetary funds. University of Harvard report: “Business starting from Angel
Investors faces fewer chances to fail“.
Angel Investors are better than “FFF”(friends, family, fools) because “FFF” show
less attention and if they show attention then they give short money than Angel
investors, on the other hand Angel investor can give Million Dollar for a
business. Angel Investor invests because they get 20 to 30 times more than their
investment in only 5 to 7 years.
o In 2008 total 250,000 $ were invested by Angel Investor in USA.
o In 2009, total 42,000 Euro on average were invested on per business by 4000 to
6000 Angel investors in UK.
o Pakistan have no Angel Investor system.
For the betterment of Pakistan we should have proper support to
Entrepreneurship.