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Entrepreneurship in Pakistan

Author

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  • Nadeem Ul Haque

    (Formerly Vice-Chancellor Pakistan Institute of Development Economics, Islamabad.)

Abstract

Entrepreneurship is viewed by economists to be a combination of innovation and risk taking. When such activity thrives, high growth rates are achieved as well as opportunities offered to all segments of society, including the poor. The latter benefit form growth and employment as well as through opportunities for entrepreneurship. In Pakistan innovation and risk taking is severely inhibited by the intrusive role of government in the marketplace. From the early days of planning when protection and subsidy polic ies determined winners in the market place, entrepreneurship has been diverted to seeking government favours. Government economic policy also seeks to promote growth through a basically ‘mercantilist’ approach where domestic commerce through seriously neglect is heavily regulated. This sector either employs most of the poor or offers them entrepreneurial opportunities. Hence deregulating this sector could be a priority in and anti-poor strategy. The paper also argues that land distribution and city zoning and management have also evolved to further reinforce the prevalent rent seeking path to success. The result is that cities are by design not allowed to become clusters of commerce that will be entrepreneur friendly. These clusters of dense urban commerce are magnets of employment and opportunity for the poor. To develop an entrepreneurship culture in the country, the system of incentives (laws and policies) that promote rent seeking will have to be dismantled. This paper presents an analysis of the state of entrepreneurship/rent seeking prevailing in Pakistan. This analysis allows us to obtain and understanding of the kinds of reforms (including legislative changes) that are required to develop entrepreneurship.

Suggested Citation

  • Nadeem Ul Haque, 2007. "Entrepreneurship in Pakistan," PIDE-Working Papers 2007:29, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:wpaper:2007:29
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Can Entrepreneurship Save Pakistan?
      by Dane Stangler in Growthology on 2011-01-13 23:37:08

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    Cited by:

    1. Irfan ul Haque, 2016. "The Productivity Growth–Technology–Entrepreneurship Nexus: Implications for Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 15-31, September.
    2. Idrees Khawaja & Sajawal Khan, 2016. "Growth Diagnostics: Pakistan," PIDE-Working Papers 2016:143, Pakistan Institute of Development Economics.
    3. Abdul Qayyum & Idrees Khawaja & Asma Hyder, 2008. "Growth Diagnostics in Pakistan," PIDE-Working Papers 2008:47, Pakistan Institute of Development Economics.
    4. Idrees Khawaja & Nasir Iqbal, 2019. "Determinants of Expansion of Micro and Small Firms and State of Entrepreneurship in Pakistan," PIDE-Working Papers 2019:160, Pakistan Institute of Development Economics.
    5. Fahmeed Idrees & Hamid Hassan, 2019. "Entrepreneurships Role in Enhancing the Productivity and Sustainability of Pakistan," Global Regional Review, Humanity Only, vol. 4(1), pages 376-383, March.
    6. Mohammad Salman Shabbir & Mohd Noor Mohd Shariff & Arfan Shahzad, 2016. "Determinants of Entrepreneurial Skills set in Pakistan: A Pilot Study," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 76-86, April.
    7. Mohammed Nishat & Talha Nadeem, 2016. "Factors Explaining the Risk Attitude towards Entrepreneurship in Pakistan: An Exploratory Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 715-723.
    8. David Lingelbach, 2015. "Developing venture capital when institutions change," Venture Capital, Taylor & Francis Journals, vol. 17(4), pages 327-363, October.
    9. Nazima Ellahi & Muhammad Awais & Asif Raza, 2018. "Islamic Microfinance Credit for Women Entrepreneurship Development and its Obstacles in Pakistan," Global Economics Review, Humanity Only, vol. 3(2), pages 76-84, December.
    10. Ahsan Abbas & Eatzaz Ahmed & Fazal Husain, 2019. "Political and Economic Uncertainty and Investment Behaviour in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(3), pages 307-331.

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    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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