Why Pakistan Needs More Entrepreneurs & How to Train Them
Published on April 23, 2025
Out of the 220 million population of Pakistan, the majority is the young population. They are full of energy and ideas but most of them are jobless because the creation of jobs, as compared to people who graduate every year, is less. Here, entrepreneurs can bring a huge change with their creative solutions and create jobs for unemployed people. However, beginning a new business is not easy in Pakistan. Only 10% of the 300 startups launched per year succeed. All this is because there is a lack of training and support for entrepreneurs in Pakistan. To utilize the potential and talent of people, we need to train entrepreneurs with the right skills.
Why Pakistan Needs More Entrepreneurs
Promoting entrepreneurs could help to make the economy strong, even during challenges. The following are the reasons why we need more entrepreneurs in Pakistan:
Controlling Unemployment
In the past 10 years the percentage of unemployment in Pakistan has increased from 1.5% to 7% over the last 10 years. This is because economic growth is slow, due in which enough jobs are not created, especially for women and young people. If we compare with our neighboring countries, such as India or Bangladesh, our unemployment rate is relatively higher than theirs.
With the population growing by 5 million people every year, the country needs to create 1.5 million jobs annually just to keep up. However, traditional job opportunities are limited, and the public sector can’t meet this demand. Here, entrepreneurs can help generate jobs either by setting up a new business or expanding an existing one. Here we can take the example of Careem and Bykea. Under these two, many jobless people found a way to earn by providing transportation and delivery services to people. Similarly, through the platform of Daraz, many women and young people get a chance to earn by selling products.
The Planning Commission has also highlighted the need to reduce youth unemployment by 6% and women’s unemployment by 17%. Entrepreneurs can play a key role here by starting businesses that employ women and youth, offering flexible work options, and providing training.
Boost Economic Growth
Entrepreneurship is a powerful engine for economic growth. With the introduction of new businesses, jobs are created, which boost productivity and also attract investors. The e-commerce, fintech, and Agritech sectors in Pakistan are working well to bring a positive change in the economy. We can take the example of Daraz, an online marketplace that has generated numerous jobs. It developed a connection between millions of buyers and sellers around Pakistan. Moreover, the Easypaisa service provided by Telenor Microfinance Bank makes it easy for millions of Pakistanis to access digital payments and loans.
Solving Local Problems
Entrepreneurs can solve local problems through creative solutions. Let’s take the example of Food Panda, it started to provide food delivery to your door from your favorite restaurant. It helped people by:
- Providing convenience to order anytime from the comfort of home.
- It saves time as people don’t need to stick in traffic to fetch food.
Moreover, during the COVID-19 pandemic, when there were lockdowns, people were asked to stay home for their safety. Food Panda, under these circumstances, also added medicine and grocery delivery to the customer’s door in its services. This proved beneficial for buyers and sellers who were struggling to survive during that period, as there were no walk-in clients.
Empowering Women
According to a survey, it is concluded that if women in Pakistan are employed in work, $60 billion can be added to Pakistan’s GDP. Most of the women in Pakistan have limited access to education, jobs, and have no financial independence. Entrepreneurs can develop work opportunities for women just like Daraz and Etsy are doing. They provided a platform for women to work from home by selling online. Similarly, institutes like WomenX and The Hunar Foundation are providing training in skills like tailoring, embroidery, and tech, so they can start their businesses. Therefore, entrepreneurs should be encouraged in Pakistan to empower women and bring positive change in society.
Building a Resilient Economy
Countries where there is a strong ecosystem of entrepreneurs can fight back against challenges in the case of economic or global crises and natural disasters. During COVID-19, it was entrepreneurs who came up with creative and useful solutions. Online grocery platforms like Cheetay and Krave Mart are examples whose services were in demand because people relied on home delivery. During that time when hospitals were crowded with patients, telehealth services like Sehat Kahani made it easier for people to get medical help from home.
Challenges Facing Pakistani Entrepreneurs
While there is a lot of potential in people here but still entrepreneurs in Pakistan still face several challenges:
Limited Access to Funding
One of the biggest challenges for entrepreneurs in Pakistan is funding. Many struggle to secure loans or attract investors because of:
- High interest rates,
- Lack of collateral,
- and limited options for venture capital.
No matter how good and creative your idea is, if you do not have enough funding, it won’t work. This makes it harder for startups to grow and create jobs.
Lack of Mentorship and Training
Most of the people in Pakistan who want to start their business are not well trained like they start:
- Without learning proper skills,
- have little knowledge of the market,
- and lack of mentorship.
Regulatory Barriers
Lots of paperwork, complicated rules, and inconsistent policies make it tough for entrepreneurs to start a new business in Pakistan.
Infrastructure Gaps
Electricity issues, inadequate transportation, and limited access to the internet affect business operations badly.
Cultural Stigma
Many people in Pakistan still think entrepreneurship is too risky. This fear stops them from becoming entrepreneurs, even if they have good ideas.
How to Train and Support Entrepreneurs in Pakistan
The following steps should be taken to train and support entrepreneurship in Pakistan:
Teach entrepreneurship in schools and colleges
Students in schools, colleges, and universities should be taught entrepreneurship as a subject. Teach them:
- How to plan a business,
- Ways to manage money,
- and solve problems.
Such practices will prepare them for the practical life they step into in the future and make them think creatively, bringing new ideas forward. The LUMS Center for Entrepreneurship offers courses and programs to help students learn business skills.
Offer practical training programs
Organize workshops and training programs that teach real-world skills, such as:
- How to create a business plan.
- How to manage money.
- How to market products.
These programs help entrepreneurs turn their ideas into successful businesses. Plan9, a startup incubator, offers training and resources to help entrepreneurs grow their businesses.
Mentorship and Networking
Entrepreneurs should be provided a platform to collaborate with industry mentors to learn from their experiences. Startup Grind Karachi hosts events where entrepreneurs can network and learn from each other. Also, steps taken by Ginkgo Retail and Deployers.pk in the shape of Global awards events and many other tech events can help provide opportunities to new startups. Moreover, platforms like The Nest I/O and Plan9 offer mentorship, networking, and incubation programs to help startups grow.
Encourage learning from failures
Failures are expected in the journey of entrepreneurship. It’s important to teach entrepreneurs that setbacks are not the end but a chance to learn and grow. Sharing stories of successful entrepreneurs who failed before succeeding can inspire and motivate them to keep going.
Here, Careem is the best example to quote, the ride-hailing giant, faced many challenges in its early days. From funding issues to operational hurdles, the founders struggled to keep the business afloat. However, they learned from their mistakes, adapted their strategies, and eventually built one of the most successful startups in the region.
Focus on digital skills
Knowledge of technology is necessary to grow. So, entrepreneurs should learn the use of technology and must stay updated on every new invention in the field of technology that could help them in their businesses. They should also be provided training in skills like:
- Social media marketing,
- selling products online,
- and managing finances digitally.
Daraz, Pakistan’s leading e-commerce platform, offers training programs to sellers. They teach entrepreneurs how to set up online stores, manage orders, and use digital tools to reach more customers. This helps small businesses grow and compete in the online marketplace.
The world is getting digital so quickly; therefore, entrepreneurs who focus on digital skills can run their business more efficiently by saving time and expanding their reach.
Provide financial training
One of the biggest challenges for entrepreneurs is getting the money they need to start or grow their businesses. Teaching them how to access funding can make a huge difference. Here’s how to guide entrepreneurs:
- Help entrepreneurs learn how to present their ideas clearly and confidently to investors. This includes creating a strong business plan and explaining how their business will make money.
- Show them different ways to get money, such as:
- Loans from banks or microfinance institutions.
- Grants from government programs or NGOs.
- Investors like venture capitalists
Also, it’s necessary to teach them how to manage money, create budgets, and track expenses. This helps them use funds wisely and build trust with investors. Karandaaz is an organization that provides funding and financial training to small businesses. They help entrepreneurs understand how to apply for loans, manage finances, and grow their businesses.
Provide ongoing support
Entrepreneurs need continuous support to grow and succeed. Offering ongoing help through online resources, follow-up sessions, and access to experts can make a big difference.
- Provide tools, guides, and videos that entrepreneurs can access anytime. These resources can cover topics like marketing, financial management, and scaling businesses.
- Organize regular check-ins or workshops to address new challenges and track progress. This helps entrepreneurs stay on track and adapt to changes.
- Connect entrepreneurs with industry experts who can offer advice and solutions to specific problems.
Google for Startups offers online tools, training programs, and mentorship to help entrepreneurs grow their businesses. Their resources are available to anyone, making it easier for startups to learn and improve.
The Role of E-Commerce in Empowering Entrepreneurs
Well, e-commerce is progressing speedily in Pakistan, providing numerous opportunities to startups and entrepreneurs. Platforms like Daraz, Shopify, and Ginkgo Retail make it easy to start and grow businesses online. Here’s how e-commerce is helping:
- Entrepreneurs can start online businesses with little money.
- They can sell to customers across Pakistan and even globally.
- Digital payment services like JazzCash and EasyPaisa make payments simple and secure.
- Companies like TCS and Leopards Courier handle deliveries, making it easy to ship products.
Building a brighter future through entrepreneurship
Entrepreneurs can bring great change, especially in stabilizing the economy of Pakistan. Get inspiration from the success stories of many big names such as Sidra Qasim and Waqas Ali from Sapphire, and Muhammad Owais Qureshi from Food Panda. With their creative thinking, they not only developed their businesses from scratch but also played a role in reducing the unemployment rate in Pakistan by generating jobs for many.
Obaid Arshad
CEO & Co-Founder