Page 81 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes
which is favorable for entrepreneurs. The entrepreneurs in turn create jobs and give back
to the government the much needed tax revenue for improving infrastructure and creating
an attractive investment environment.

Where have we gone wrong? Three issues stand out, which are short-term thinking and
planning, lack of focus on teaching ‘Entrepreneurship’ in our educational institutions and
third, the lack of government incentives for promising new entrepreneurs. Let us elaborate
a bit on these.
Short-term Thinking and Planning

Unfortunately today, discussion and debates are centred on challenges facing existing
businesses and their sustainability. No time is spent in identifying opportunities and in
finding ways to encourage grassroots investment as an engine for job creation and
sustainable GDP growth. A proper vision and detailed planning needs to be carried out
and institutionalized.
Lack of Entrepreneurship Focused Education
We need to develop a culture of entrepreneurial thinking and integrate it into our
educational system. Entrepreneurship courses need to be designed and introduced at all
levels and made mandatory at graduate level. Let’s take ‘Engineering’ curriculum as a case
in point. Entire focus in these programs is on acquiring technical knowledge but no
entrepreneurial skills.
Lack of Government Incentives

Taxing a business that barely exists does not add much to the government exchequer.
Many businesses are booming in other nations dominated by an educated middle class
but they have not taken root in Pakistan. One case in point is the still infant Information
Technology (IT) industry especially as it relates to back-office outsourcing services of
major corporations and software/application design and support.
Remember that every new business will not only benefit the owner, but the city, region
and country as a whole. We must encourage entrepreneurship and work towards creating
specialised government agencies, business incubators, science parks and lay down a strong
foundation for young entrepreneur education and simple access to business capital.

Source: http://tribune.com.pk/story/358328/grassroot-entrepreneurship-vanguard-of-growth/
Grassroots entrepreneurs are:
1. Ambitious: Grassroots entrepreneurs tackle major social issues, from increasing the college
enrollment rate of low-income students to fighting poverty in developing countries.

Notes These entrepreneurial leaders operate in all kinds of organizations: innovative
nonprofits, social purpose ventures such as for-profit community development banks,
and hybrid organizations that mix elements of nonprofit and for-profit organizations.

2. Mission driven: Generating social value – not wealth – is the central criterion of a successful
grassroots entrepreneur. While wealth creation may be part of the process, it is not an end
in itself. Promoting systemic social change is the real objective.
3. Strategic: Like business entrepreneurs, grassroots entrepreneurs see and act upon what
others miss: opportunities to improve system, create solutions and invent new approaches

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