Abstract

The study or entrepreneurs, entrepreneur’s skills, traits, behavior, and other characteristics have resulted
in creating an understanding about the overall personality of an entrepreneur. Also, it gives a bird’s eye
view about how entrepreneurs are different from managers and what are the traits that make
entrepreneurs stand out in the crowd of ordinary people. Apart from it, we have also studied the different
kind of motivational factors that influence an entrepreneur to create a successful venture. We have
evaluated certain examples of different successful entrepreneurs and their background. An Entrepreneur
has a great influence of his family background, education, knowledge and other things on his
personality; which ultimately decided what kind of entrepreneur he would be. We have studied certain
arguments on whether an entrepreneur is born or made? This is one question which can never be
answered directly. Every researcher has given different argument on this topic. Some thinks
entrepreneurs are born with special genes while other thinks that they are made with knowledge, training
and hard work.

This work would show that to become a successful entrepreneur one needs to have dedication,
optimism, vision, passion and most importantly the ability to change an idea into a practical form.
Table of Contents
Abstract ......................................................................................................................................................................1
Chaaye Khana .............................................................................................................................................................4
Report on the café ..................................................................................................................................................4
Which type of entrepreneurial venture is “Chaaye Khaana”?? .............................................................................5
1. Independent Mainstream Venture.............................................................................................................5
2. Social Entrepreneurship: ............................................................................................................................5
3. Managed Growth Ventures or Established Venture: .................................................................................5
4. High Growth Businesses or Large Company Entrepreneurship .................................................................6
Identify other local/international such set-ups in the country with the same product range but belonging to a
different category of entrepreneurial ventures .........................................................................................................6
Typology of Entrepreneurship: ...................................................................................................................................7
Scope, Growth and Development of Start-Ups in Pakistan..................................................................................... 12
Introduction ............................................................................................................................................................. 15
Entrepreneurial Mindset ......................................................................................................................................... 15
Characteristics of a successful Entrepreneur .......................................................................................................... 16
Difference between entrepreneurs and managers ................................................................................................. 17
Entrepreneurial Motivation..................................................................................................................................... 19
Background and Experience ................................................................................................................................ 20
Are Entrepreneurs born or made? .......................................................................................................................... 21
Entrepreneurship Ventures in Pakistan: ................................................................................................................. 22
How do entrepreneurial ventures affect the country’s economy? ..................................................................... 22
 Improvement in the economy: ................................................................................................................ 22
 Making of new leaders: ............................................................................................................................... 23
 Development of Pakistan as a whole ...................................................................................................... 23
 A lot of different fields require youngsters ............................................................................................. 23
How do small business and business start-ups affect the social economy in Pakistan? ........................................ 24
What actually a small business is? ...................................................................................................................... 24
 Economic crisis is not a big deal: ................................................................................................................. 24
 Giving back to the society: .......................................................................................................................... 24
 Small business won’t be small for always: .................................................................................................. 25
 Innovation and new ideas: .......................................................................................................................... 25
 Making of some talented scientists and techies: ........................................................................................ 25
 Learning how to build personal relationships: ............................................................................................ 25
 Keep your money in your own country: ...................................................................................................... 26
 Export your own products to other countries ............................................................................................. 26
 Task-1

Chaaye Khana

Report on the café

“Chaaye” or “chai” is a Hindi-Urdu word for “Tea”. And as the name goes, “Chaaye Khana” is a tea
centric café, based in Pakistan’s capital city of Islamabad. The business, established half a decade ago,
by Ms Issra Wassay and Mr Salman Wassay, has pulled all the right strings and has struck a perfect note
with the local folk in Islamabad. In just 5 years, “Chaaye Khaana” has become something of a
phenomenon and its praises have reached beyond Pakistan. It is a perfect hang-out option for people of
all age, where they can sit around, gossiping about lives, or may be simply find some quiet solo time for
themselves, with a book in hand. The ambience of the place is said to be absolutely pacific.

The speciality of the café is that it provides tea of every kind. On top of it, they have an ever changing
menu with numerous snacks and delights. With some sumptuous food along with tea and an amazing
retro feel, the place ticks all the right boxes.

The first and foremost reason for its astounding success is the idea itself. No one could have imagined
making a business out just from tea. And if you are the first one to implement any kind of ide, it gives
you significant edge over your possible rivals.

Another reason for achieving this feat has been the lack of competition. If you browse the vicinity, then
you would not find any tea stalls or cafes for that matter. It is simply amazing that there were hardly any
tea stalls in the area, when the country literally gazumps tea. Pakistan has the highest tea per capita ratio
than any other country.

Now that the franchise has finally found its feet, plans are underway for its expansion. In fact, there are
three outlets in Islamabad itself, in addition to the two in Lahore and Bahria area of Islamabad.
Which type of entrepreneurial venture is “Chaaye Khaana”??
To come to the conclusion as to which kind of venture, Chaaye Khaana is, we need to get a little
information about the basic types of entrepreneurial ventures.

There are basically four types of entrepreneurial ventures, namely:

1. Independent Mainstream Venture: As the name suggests, these ventures are those which are run by
an individual or a family. Such kind of business look for growth, though their maim goal is to
achieve the bare minimum, i.e. to earn as much profit as they can, Since, they are small scale
businesses, you would not see any huge investments going in it (Altinay, 2008).
Usual investors in such cases are the banks, family members, friends etc. The reason for getting
into such ventures may be family necessities, or may be executing an idea which generated long
ago (Department for Business, Innovation and Skills, 2013). Basic examples of such businesses
are restaurants, grocery stores, make-up boutiques etc.

2. Social Entrepreneurship: This kind of entrepreneurship involves goals which focus on the
betterment of the society. They try to implement creative ideas, which result in minimum
expenditure costs and maximum profits. These profits are then utilised in helping the needy
section of the society (Haltiwanger, J., Jarmin, R.S. and Miranda, 2013).
These firms can impact the society in a healthy way. This kind of venture can be seen in NGOs
and similar health centres etc.

3. Managed Growth Ventures or Established Venture: The title itself explains the know-hows of this
business. These businesses are already established and they channel their assets in to consistent
growth. They keep evolving from time to time and keep making new changes to help it gain a
stronger foothold in the market.
They have high profile investors to put in their money and they look forward to reaping the
benefits of the seeds they sow. Such companies also have subsidiaries which form part of their
capital.
Moreover, they tend to have a high employment rate as they keep striving for the best talent.
 4. High Growth Businesses or Large Company Entrepreneurship : These are the sharks of the sea. They
have the potential to completely transform the market. The main goal of such firms is to earn
huge amount of profits and surplus additions to the bank accounts of the people sitting at the top.
They also have numerous sources for capital, ranging from investors, banks, subsidiaries, angel
investments and what not. These firms too have high growth rate and offer good employment
numbers as well (Haltiwanger, J., Jarmin, R.S. and Miranda, 2013).

 Now, going by the above discussion, we can easily infer that “Chaaye Khaana” is an Independent
Mainstream Venture. It is a business set up by a family and it also has one eye on expansion of the
business, though, with due patience and diligence (Bari, Cheema, and Haq, EhsanUl, 2005).

Identify other local/international such set-ups in the country with the same product range
but belonging to a different category of entrepreneurial ventures
If we are to look for similar kind of product range, but with a different type of entrepreneurial venture,
then, the best example which comes to the fore is Burger King.

Burger King too has reached unprecedented levels of popularity in Pakistan. There are basically two
reasons as to why I chose Burger King.

a. Similar product range: Since both the ventures are running food business, it becomes better to
evaluate.

b. Similar time of launch: Both of these food spots were launched in Pakistan nearly 5 years ago. It
needs to be seen as to which party got the better of another.

Type of entrepreneurship at Burger King: Burger King belongs to the “Established Venture
Entrepreneurship” category. They are already a global food chain with annual revenue of about $ 4
Billion. Though, they are a major player in the food market, but they still are not at the levels of bugger
players, like McDonalds and KFC (Bari, Cheema, and Haq, EhsanUl, 2005).
Since, Burger King is not really ready to take the food world by storm; I chose to put them in the
established venture slot rather than the large company entrepreneurship category.

Typology of Entrepreneurship:
In this section, we shall be discussing in detail, the functioning of the above selected entrepreneurship
ventures.

To further our study, we need to assess both the firms against a standard parameter, and that will give us
a holistic idea about their mechanism and goals. The same would serve as the similarities and
differences between different types of entrepreneurships (Bari, Cheema, and Haq, EhsanUl, 2005).
 Annual Growth Rate: Now Chaaye Khana belongs to the “Independent Mainstream” venture,
while Burger King is a notch higher in the “Established” ventures. Hence, their annual revenues
would obviously be different, which in turn will show the money muscle, Burger King has
(Altinay, 2008).

FIRM ANNUAL REVENUE

CHAAYE KHANA $ 120 Million (Reported figures, not actual)
BURGER KING $ 4 Billion

 Management Goal: The best idea we can get about any venture is by inferring the ideology of
the top hierarchy.
FIRM GOALS
CHAAYE KHANA Earning maximum profit, stable growth, fear
of loss
BURGER KING Incremental strategic growth, not afraid of
loss if it means benefit at the end

 Source of Finance: The wind behind the sail is the capital behind the venture.

FIRM SOURCES
CHAAYE KHANA Bank, family, friends
BURGER KING Banks, shareholder, private investors

FIRM Approach
CHAAYE KHANA Simple shut down, selling or transferring the
property
 BURGER KING Merging, selling few share, transferring, These
firms hardly get shut down. Most of the times, they
are bought by bigger investors, though, keep
carrying the same title.

 Closure Approach: The closure approach tells us as to how the company would wound up in
case of bankruptcy or even a merger
  Use of Technology: It tells us as to how advanced the firm’s operations are. The bigger the
venture, more sophisticated is the technology (Altinay, 2008).

FIRM Technology
CHAAYE KHANA Very limited, confined to bills and simple
audits
BURGER KING High use of technology, tracking of share
market, supply chains etc.

 Economic goals: These are the ultimate goals of any entrepreneurial venture and they define
what the company’s modus operandi will be.

FIRM Economic Goals

CHAAYE KHANA Income Substitution
BURGER KING Wealth creation

 Structure of the firm: The bigger the firm, bigger is the number of employees.

FIRM Structure
CHAAYE KHANA Simple structure, limited number of
employees
BURGER KING Centralised structure with different
responsibilities delegated to different
departments, significant number of employees

Source: (Schaltegger, S. and Wagner, 2011).

Similarities between them:
  Basically, they do not really have a lot of things in common, apart from the fact that they both
are wary of the losses, Moreover, both kinds of entrepreneurships look for some stable growth as
well.
 One thing which is definitely similar among these two venture types is that they have profit
driven and people friendly approaches. Moreover, the bulk of their operations is people centric
(Abrahim, Soufani, Poutziouris, 2014). So, customer engagement remains their priority as the
customers are the make or break factor in this milieu.
 Another factor, which is similar to both, is that they are quality-driven. None of them can
compromise in the quality of their product, lest they would lose their priced customers
(Schaltegger, S. and Wagner, 2011).
Classifying the above discussed entrepreneurship styles into public and private sector

To make an informed decision as to which entrepreneurship style belongs to which sector, we need to
get an overview of the characteristics of both the sectors.

PARAMETERS PUBLIC SECTOR PRIVATE SECTOR

GOALS Welfare of the public,
implementing the public
policies
STRCUTURE Complex structure, with
numerous departments and
numerous delegated
responsibilities
ANSWERABILITY Officers are under continuous
scrutiny from the politicians
PERFORMANCE METRICS Proper execution of the
policies
USERS General public
TIME HORIZON Limited period of time is
Maximisation of profit,
incremental growth and
stability
Centralised, power trickles
down from the top to the
bottom
Management enjoys a large
amount of autonomy
Bigger profits lead to better
rewards
Specific set of customer,
industries
Short term, as pressure to
 available for the completion
of the plans
RESOURCES Vast amount of resources,
basically taxes collected from
the exchequer
perform is very high and they
need quick result
Subsidiaries, shareholder,
trade associations

Source: (Schaltegger, S. and Wagner, 2011).

Prima facie, there is no similarity between the entrepreneurship approaches vis-à-vis the public sector.
The reason for the same is that the public sector is an undertaking of the Government and the freedom to
take independent decisions is somewhat restricted in almost every Governmental department (Abrahim,
Soufani, Poutziouris, 2014).

But, if we take a deeper look, then we would be able to see that the users in the “Independent
Mainstream Ventures” and in the “Public Sector” are the same. The general public. Hence, the small
business ventures too cater for the public, and both of them are under the same pressure to perform, lest
the entrepreneur might lose his customers and the Government may lose in the coming elections
(Haltiwanger, J., Jarmin, R.S. and Miranda, 2013).

Scope, Growth and Development of Start-Ups in Pakistan

Whenever we look forward to start a new business, we tend to check if the conditions are conducive
enough to start a business at that particular place or not. Here also, we shall be doing the same thing.

If you go by the facts, then stats are in favour of Pakistan. Here is Pakistan’s worldwide ranking on
different parameters. These stats have been provided by the World Bank.

PARAMETER PAKISTAN’S RANKING IN

RANKING SOUTH ASIA
Ease of doing business 74 4
 Starting a business 54 1
You can start a
business in just 24
days
Dealing with licenses 89 2
Employing workers 126 6
Due to rules
governing wages and
contracts
Registering Property 68 2
Getting credit 65 1
Protecting Investors 19 2
After Bangladesh
Paying Taxes 140 7
Closing a business 46 2
After Sri Lanka
Enforcing Contracts 163 7
Because Courts are
governed by Code of
Civil procedure, that
is why it takes a lot of
time to enforce
contracts
Trading across borders 98 6
Export costs are high
Source: (Schaltegger, S. and Wagner, 2011).

These factors play an important role when you are doing business offline. With offline, I mean that your
business is very much tangible, and is being conducted on the ground.

Though, the statistics have been favourable, but there are few other conditions which need to be
considered, before having a go at it.
 Economic Conditions: After the fall of Nawaz Sharif government, it is an undisputed fact that
Pakistan has now become a financial mess. The net reserves of State Bank of Pakistan have been
literally evaporated and now stand at a meagre $ 12.5 Billion (Abrahim, Soufani, Poutziouris,
2014). Though, the GDP is still good as compared to the debt from IMF, but it is always prudent
to invest in a stable economy.
 Power Crisis: Military Coup and terrorist attacks are not a new thing in Pakistan. You need to
check thoroughly, the present status regarding peace in the region.

But, if one were to decide an online business in Pakistan, then Pakistan is his oyster, rather, I
should say, that for online business, any place in the world is an oyster.
Moreover, it is always advised to invest smartly and slowly into any business, and once you get
hold of the trend, then only you should decide for taking the business a notch higher
(Schaltegger, S. and Wagner, 2011).

Because, even online businesses are not immune to failure.

Recently, the owner of the website, “SocialChamp”, Sameer, acknowledged that his first three
attempts on making a website and an app were a disaster. Here, it needs to be mentioned that
Sameer, luckily got an investor in Kawasaki. Otherwise, there are hardly any investors looking to
invest in any novice entrepreneur. Hence, entrepreneurship is not going to be a cakewalk at all
(Bosma & Levie, 2010).

In fact, technology start-ups have taken a big hit in such cases. Right from the incubators, to the
tele-companies, every small step is a hindrance in itself. The compliance requirements of
Securities and Exchange Commission of Pakistan, usually recognises the big investors, and
would barely acknowledge the newbies. Moreover, banks only know how to open an account
when it comes to helping a budding entrepreneur. But, there is a ray of hope as well. There are
several start-ups which have taken the game by its horns and found their way through (Bosma &
Levie, 2010). The best examples of such start-ups are Healthwire (online health consultancy),
Dockit (discount coupon app), Meezaj (apparel app) and Payload (payment app, which uses bit
coin technology).
 Task 2
Introduction
Entrepreneur is a term used to describe a person who decides to undertake the activity of
entrepreneurship. Entrepreneurship is the process of starting and developing a business. Hence, in other
words entrepreneur is a businessman; a person who decides to invest his efforts and resources in his own
ideas and firm rather than investing them in someone else’s organization by working as an employee.
Entrepreneurs believe in their vision to see an opportunity and their capabilities to create the maximum
wealth out of it (Schaltegger, S. and Wagner, 2011).

Entrepreneurs are one of the key assets of any economy. A country’s economic growth and development
depends entirely on the competitiveness of its entrepreneurs as they are the main producing units of an
economy. Entrepreneurial ventures not only create wealth for an economy but also prove to be
beneficial for society as whole. It provides employment, required goods and services, improvement in
technology which ultimately leads to the upliftment of society (Bosma & Levie, 2010).

Being an entrepreneur is not everyone’s cup of tea. It has been rightly quoted by Scott Belsky, Behance,
“Its not about ideas. It’s about making ideas happen.” To be an entrepreneur, one needs a certain set of
skills, traits and resources. Entrepreneurs are not born by birth; they are made with hard work and
dedication. We would be discussing all these aspects of entrepreneur’s skills, traits, resources, their
mindsets and many other things in this research paper.

Entrepreneurial Mindset
According to Finanancial Times, lexicon, “Entrepreneurial mindset refers to a specific state of mind
which orientates human conduct towards entrepreneurial activities and outcomes. Individuals with
entrepreneurial mindsets are often drawn to opportunities, innovation and new value creation (Bosma &
Levie, 2010).” Entrepreneur tends to have a particular mindset which helps them to look into the
opportunities which others tend to ignore. Their vision and capabilities to create wealth out of nothing
makes them stand different in the crowd of ordinary people. Not only is this, but ability to take
calculated risk within the dynamic business environment, one of the most aspects of mindset of an
entrepreneur. They know the difference between opportunities which can be encased and which are not
meant worthy to invest time and efforts. Being an entrepreneur a person’s mindset is required to be
calculative enough to assess the risk and reward of every situation (Bosma & Levie, 2010). As being an
entrepreneur is not a 9 to5 job. Infect, it’s a habit a person needs to live with. Just like the owner of
Chayya Khanna, he offered concept which was missing in his whole country. Though at the same time
he assessed the risk and reward ration before deciding to exploit this opportunity. He knew that his idea
would work but with that idea he needs to involve his creative skills as well. Due to which he decided to
offer their tea blends from six different verities. In addition to it, he also paid attention to the décor,
ambience, and quality of services provided in his café. All these things when taken into account, makes
chayya khanna stand out as a successful business venture. After considering all the above factors, it
makes it obvious Mr. Salman Waysay knows the true essence of entrepreneurship. His calculated risk,
experience, passion, motives and everything else has contributed equally to make chayya khanna what it
is today.

Characteristics of a successful Entrepreneur

As said above, an entrepreneur tends to have a certain set of skills, traits and resources which makes
them different from other people. According to a recent Forbes article, every successful entrepreneur
possesses these particular set of skills which are:

Vision: It’s the most important skill for any entrepreneur. The ability to see beyond the things which are
visible to everyone is rare these days. Whereas for an entrepreneur it’s necessary to forecast the
opportunities and threats way before everyone else does. So, that he can prepare for the upcoming events
before it gets too late (Craig and Johnson, 2006).

Focus on ultimate goal: No one can climb a mountain in a single day; it takes daily efforts to reach to
the peak. Similarly, after setting the long-term goals, an entrepreneur needs to accomplish all small goals
with ultimate focus on the long term goal. There are many distractions an entrepreneur has to face
during the routine work but he knows how focus on key result areas (Craig and Johnson, 2006).

Managing people and resources: An attempt to manage everything often leads to a position where
person ends up in not able to manage anything. So, an entrepreneur knows the resources and people who
actually require his time and efforts to prove beneficial for his organization.

Selling: Every entrepreneur is a salesperson whether directly or indirectly; as ultimate aim of every
business is to sell products or services in the market. So, selling is that part of entrepreneurship which
cannot be detached from it.

Continuous Learning: An entrepreneur knows the value of continuous learning, and is always keen to
learn about every new thing he comes across. Learning is a never-ending process, as it is a part of the
process of growth (Weidinger, Fischler, and Schnidper, 2014).

Self-Reliance: In spite of the helping hands available in the society at the end of the day, an
entrepreneur is required to be self-reliant and self-sufficient.

These are few of the traits which every entrepreneur tends to possess. However, there’s a never ending
list of traits and skills which an entrepreneur requires in order to become a successful entrepreneur.

Difference between entrepreneurs and managers

Entrepreneurs are the key founders of a company whereas managers are the people hired by
entrepreneurs as an employee to manage the resources and people in a way directed by the
entrepreneurs. Therefore, there tends to be certain differences between the characteristics of an
entrepreneur and managers (Craig and Johnson, 2006).
According to a recent study at Harvard’s Business School, these are the basic traits which differentiate
founders from non-founders i.e. entrepreneurs from managers (Craig and Johnson, 2006).

If all these traits are compared with the traits we could analyze from the given case study we might find
something relatable:

Identification of opportunity: Analyzing there’s no such tea shop in entire Pakistan where people can
spend some quality time while sharing a cup of tea.

Vision and Influence: Mr. Waysay had the vision that this opportunity would be worth taking the risk of
capital and efforts he invested in this project.

Comfort with uncertainity: There was no guarantee that chayya khanna would be acceptable by the
people especially due to cultural and traditional aspects of Pakistan.

Building Network: He had to build a good network with people to convert an opportunity into a
successful business venture.
Finance and Financial Management: No business starts earning profit from the very first month of its
operations. Due to which it’s really important for an entrepreneur to manage his financial resources
wisely.

The traits mentioned above can easily be found in Mr. Waysay as he is an entrepreneur, whereas if we
compare these traits with the managers hired by Chayya Khanna or another organization we would see
that the traits reflected by managers are different from these. They are employees of an organization
which can leave the organization anytime they found better opportunity in some other organization. No
doubt that they are involved in the decision making process of an enterprise but they can only suggest
the alternatives according to their expertise in their specific fields. Whereas an entrepreneur is required
to take the final decision which would affect its own enterprise, his employees, his customers and
everyone related to his business in any way. Due to which the ultimate risk is of only entrepreneur,
which makes it mandatory for him to consider all aspects of the situation before coming to any final
conclusion (Schaltegger, S. and Wagner, 2011).

Entrepreneurial Motivation
According to Maslow’s Motivation theory of Management, every human drive is based on certain kind
of motivation which he terms as needs or wants which keeps on increasing. To achieve anything in life
one needs a certain kind of motivation, which differs from person to person. Entrepreneurs are no
different in this psychology; their every action is determined by a certain set of motivating factors
(Schaltegger, S. and Wagner, 2011).

Being an entrepreneur is not only about earning profit or creating wealth, it is much beyond that. Of
course, capital is important to run an organization, you pay pills, salaries etc but it is not the only motive
that drives an entrepreneur. For example, in the given case study the owner of Chhayya khanna is not
only interested in earning profit out of his business. Infact his main motive was to create a place unique
place where people can sit and enjoy their tea while chit chatting with their friends, relatives or a place
where people can sit and discuss their business over a cup of tea. As this type, of place was not available
in Pakistan. So, Mr. Salman Wasay, the owner of chaaye Khanna saw this as an opportunity and grabbed
it before anyone else. It’s not like no one else before Mr. Wasay no one would have thought about this
idea. Of course many people would have thought about it but no one of them had the capability to
implement it. This makes Mr. Wasay a successful entrepreneur and others just normal people. It is not
difficult to have an idea, everyone can think of great ideas but where people lacks is the ability to
implement that idea and change it into reality. One who dares to do that is termed as a “successful
entrepreneur”.

Motivational factors differ from person to person. Some people are motivated by money while others are
motivated by fame. Perhaps, how an entrepreneur works to build up his organization entirely depends on
his motivational factors. However, whatever be the motive, his drives would always be directed towards
the growth of his firm (Weidinger, Fischler, and Schnidper, 2014).

Background and Experience

In order to recognize entrepreneurial opportunities, an entrepreneur requires knowledge about different

areas, this knowledge comes from his education, family background, his previous working experience
and of course the knowledge about the industry he is engaged in. An opportunity cannot be transformed
into a business unless an entrepreneur has full-fledged knowledge about it. When we talk about
knowledge in terms of entrepreneurship, it’s not about the knowledge about the books which we mug up
and throw out on our examination papers. It is about the practical knowledge of the industry and market
in which an organization has to operate (Haltiwanger, J., Jarmin, R.S. and Miranda, 2013).

Entrepreneur’s behaviors, ability to take decisions, motives and other personality traits, morals, values,
ethics depends on the family background. Gray (1998) said that "The family has as its main purpose the
transfer of the social values and lifestyles in its members." Which makes it obvious that people coming
from the entrepreneurial background tends to be motivated more towards becoming an entrepreneur
rather than those whose families are engaged in public or private employment. They are less likely to
take the risk of engaging themselves in entrepreneurial activities as there high risk of uncertainty.

For example: Many famous businessmen like Steve Jobs, Jack Dorsey or Mark Zuckerberg, are
university dropouts but they had the in and out knowledge about the fields in which their interests lies
and were passionate about doing something great by using that knowledge . Due to which they turned
out to be such successful entrepreneurs and millionaires (Weidinger, Fischler, and Schnidper, 2014).

Other times people find opportunities through their own personal experience like The Peirre Omidyar, in
1995, he started auctioning stuff online as a personal project, but after seeing the response and traffic, it
became a necessity to upgrade it to business internet account. Then called as Auctionweb is now known
as Ebay (Weidinger, Fischler, and Schnidper, 2014).

Similarly, a young marketer on his trip to Milan found an opportunity for upscale coffee cafes as they
have all over Italy. He use to work for Seattle coffee Bean roaster at that time, he discussed the idea
with his employer; though his employer had no idea in his idea still he got ready to finance his protected
even sold him their brand name i.e. STARBUCKS

On a contrast if we look at the journey of Colonel Sanders, the founder of KFC (Kentucky Fried
Checked), He couldn’t achieve success until his 60’s. He sold the first franchisee of KFC when he was
62. Before, that he use to cook chicken by himself in his home and use to do door to door selling in his
neighbourhood.

Therefore, we can conclude that success doesn’t come overnight. Sometimes it takes whole life and
sometimes just few months. Though, to maintain that success one needs to make sure that dedication and
passion doesn’t fade away.

Are Entrepreneurs born or made?

Are entrepreneurs born with special genes or made with hard work, education and passion? An age-old
question which has been argued a lot but never been concluded. A book, Born Entrepreneurs, Born
Leaders, written by Scott Shane, professor of entrepreneurial studies at Cleveland's Case Western
Reserve University, suggests that genes not only determine whether a person will start a business or not,
infact it also suggests how much money a person would make. If quoted in other words, according to the
study some are born to be alpha wolves’ whiles others are meant to only work in mailroom.

On the other hand, Julian Lange is a senior professor of entrepreneurship at Babson College in
Wellesley, Mass, who has been researching on the topic from past 5 years, suggests that once a person is
exposed to the lessons and ideas of entrepreneurship and trained properly, they can become successful
entrepreneurs even if they are not “natural entrepreneurs” (Haltiwanger, J., Jarmin, R.S. and Miranda,
2013).
 Task 3
Entrepreneurship Ventures in Pakistan:

How do entrepreneurial ventures affect the country’s economy?

Modern economy of any nation is parallel to the status of entrepreneurs in the nation. Entrepreneurs
played a really important role in the success of developed countries like United States. Some of the
leading analysts came to the conclusion that United States is such a wonderful nation due to a number of
business entrepreneurs took their thinking to an altogether different level without worrying about the
involved risk. When entrepreneurs start thinking in a different way, they take some bold decisions and
create a lot of jobs which improves the growth of economy. Pakistan is a developing nation and is still
looking to strengthen its grip in the international market and small businesses can not only provide it the
much needed economy growth at the national level, it will help it rub the shoulders with its developing
counterparts. Young leaders will be making and they are always going to build a strong nation together.
Youngsters should think about starting their own business and Pakistan government should help them
with providing a healthy and safe atmosphere and helping them financially as well. There will be an
automatic increase in jobs and hence there will be the certain rise of the Pakistan as a nation.

 Improvement in the economy: A country like Pakistan is not one of the strongest when it
comes to the economy. It is still a developing country and economy has suffered due to a lot of
reasons like increase in population, decline in foreign investment, and problems like internal
political issues. The biggest issue for the Pakistan is the attitude of its people. They think that
only government has the responsibility for the development of the nation. The lack of quality
leadership on the national level is letting Pakistan down as well. 1500 to 1700 Centuries are
 marked as the proper development of western nations like Europe. According to the great
economic historian Joel Mokyre in his most recent book, ‘A Culture of Growth: The Origins of
the Modern Economy’, “What changed in this age was the culture- the beliefs and attitudes of
educated elite towards, useful knowledge, how to acquire it, how to distribute it, and what it
could to”. He beautifully described why western nations got successful in a very short span of
time.

 Making of new leaders: Pakistan is a developing country and there are a lot of opportunities for
a lot of people especially entrepreneurs. Youngsters are the biggest economy for any nation and
it is no different for world’s 6th most populated country. The Government must provide a lot of
opportunities to the youngsters in the forms of jobs and business. Government must understand
the importance of fresh minds and fresh ideas. Youngsters should think in a different and
innovative way to start their own business. Setting up a business is not easy at all and there are a
lot of risks as well, but it worth to try hard and take some risks. If it will be successful, it is not
only going to serve them a better life, it will certainly improve the economy of Pakistan
(Haltiwanger, J., Jarmin, R.S. and Miranda, 2013).

 Development of Pakistan as a whole: If we talk about opportunities, there can’t be a better

place than Pakistan. There is so much to do when it comes to development. Every popular
businessman was a beginner once and every big business was small in starting. When a new
businessman starts his own business, he is his own boss, he has his own mind and ideas, he can
do whatever he want, he can even create a lot of jobs opportunities with his true determination.
We are using a lot of services like telecom, transport, air conditioning, personal computer and
software related to it. How all these services reached to us? They definitely were introduced by
entrepreneurs.

 A lot of different fields require youngsters: It is not easy at all to convert a developing
country into a developed one. It requires bold leadership, true determination, and some fresh
minds with fresh ideas. Young leadership has always benefitted to the world in a lot of ways. It is
a big truth that Pakistan is still behind a lot of developed and some developing countries and it
means there are always a lot of opportunities waiting for determined and fresh entrepreneurs.
 Different fields like agriculture, pharmacy, infrastructure, health, poultry etc. are waiting for
some fresh entrepreneurs who can improve the status of economy of the nation.

How do small business and business start-ups affect the social economy in Pakistan?

What actually a small business is?

Generally a business with up to 500 employees is known as small business. The biggest
advantage of small businesses in countries like Pakistan is that they can create a lot of awareness
to the society. Entrepreneurs can inspire the youngsters to create their own business instead of
waiting for a job. It can help them to contribute to the society and the economy of the nation as
well. New entrepreneurs not only help him financially, he actually gives a lot of opportunities to
others as well, which reduces the number of jobless people and automatically improves the status
of economy of the nation. Small businesses also affect bigger businesses in a positive way as
many large scale firms require small business functions (Bari, Cheema, and Haq, EhsanUl, 2008)

 Economic crisis is not a big deal: Pakistan is a country where economic status tends to change
on a regular basis due to constant political tension. Small businesses have the ability to respond
to these changes. Once there is a strong base made among the local customers, they are going to
remain loyal to the small business which means these small businesses are going to stay afloat in
the midst of economic crisis or other problems. The other positive fact about the small businesses
is there are very small investments and hence entrepreneurs are not going to counter big losses in
the time of economic crisis (Cressy, 2008).

 Giving back to the society: When these small business get successful, they are definitely going
to pay high amount of taxes to government which will be used in different areas of development
like school, education, hospitals, health, road safety etc. In short, young entrepreneurs are giving
it back to the society (Hamel, 2010).
 Small business won’t be small for always: Starting a new business doesn’t only mean the loss
or failure. Success of small business means these small businesses are not going to remain
smaller for large period. The brands which are now leading the national and international
markets like Nike, Reebok, Mufti, Samsung etc. started on very little scales and became the
leaders with true determination and a never give up attitude. Spreading the business set-ups with
time will spread the opportunities and it is only going to benefit Pakistan (Shah, A., Mehmood,
T., Hashmi, MA., Shah, SM and Shaikh, F M. (2011).

 Innovation and new ideas: In these tiny enterprises, innovation is one of the biggest assets.
Usually workers work with having a close eye on what people actually need. What is required by
the society? Why a certain set of things is not suitable for people of Pakistan? What they can do
differently? All these questions will make young entrepreneurs more and more innovative and
some really amazing ideas will pop-up in their minds (Bari, Cheema, and Haq, EhsanUl, 2005).
Young workers can share their ideas to the managers of the respective companies and help them
to build something really larger.

 Making of some talented scientists and techies: Small business provides a lot of opportunities
to new scientists and techies as well. The fresh minds and bold attitude towards working can
definitely bring some much needed change in the science and technology of the nation. After
gaining experience at shorter levels, these scientists and researchers can work on the bigger
platforms to play important roles in the success of Pakistan on the global level.

 Learning how to build personal relationships: Small business is something where everyone
seems to be equal. A new entrepreneur is not going to talk harsh to his employees because he
himself is trying to build something big. New leaders will be prepared and they will learn how to
build relationships inside the business as well as outside it with customers. A new businessman
works really hard and understands the importance of his customers. He will always respect them
because he needs them more than they do. Pakistan as a nation requires some people with the
quality of building good relationship with people.
  Keep your money in your own country: Increase in small business and new business start-ups
will provide a lot of options to the people. They will not have to rely on the imported items. With
this, the country’s money will revolve around the people of the country. Government will not
have to import a lot of items from international companies. It will definitely produce a lot of
strength to the economy.

 Export your own products to other countries: Smaller business creates a lot of opportunities
for Government as well and helps it to export the country made products to other nations. It will
provide the strength to the image of Pakistan as an exporter on the international stage. It will help
the leaders to build a strong relationship with leaders of other countries (Bari, Cheema, and Haq,
EhsanUl, 2005).

Conclusion: Pakistan is a developing nation and is still looking to strengthen its grip in the international
market and small businesses can not only provide it the much needed economy growth at the national
level, it will help it rub the shoulders with its developing counterparts. Young leaders will be making
and they are always going to build a strong nation together. Youngsters should think about starting their
own business and Pakistan government should help them with providing a healthy and safe atmosphere
and helping them financially as well. There will be an automatic increase in jobs and hence there will be
the certain rise of the Pakistan as a nation.
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