The Ecosystem of Web Entrepreneurship in Pakistan
Entrepreneur
I am now, about a decade into my career. I started in marketing and switched to information systems in USA. After years of developing software, managing projects and programs, and teaching graduate students, I have come to understand my mission. My mission is to:
help develop and promote an ecosystem of web entrepreneurship in Pakistan
I believe that web entrepreneurship can do for Pakistani youth, what Grameen Bank has done for the poor women of Bangladesh. Now some might mention, very rightly so, that this is an apples to oranges comparison. I agree and would like to explain. No doubt, there is a cultural difference between both countries and the demographic is different too.
In my interaction with the youth, I see despair and uncertainity. I was priviliged enough to be in touch with the web and how it has opened up hoards of opportunities with very little cost factor. I started a “Web Marketing & Analytics” course for graduate students. I see a different group of students in my classes. They do not seem to have despair. They are uncertain but willing to take up a challenge.
Pakistani youth is educated and sharp. They have broad horizons and speak the English language well. The web is an opportunity begging to be taken. I see some IT graduates becoming entrepreneurs but the scene is empty of business students. As part of my mission, I am also trying to bring together business and IT students to brainstorm ideas.
The Ecosystem
Who is involved in the ecosystem?
An ecosystem is a completely independent unit of interdependent organisms which share the same habitat (wikipedia)
By definition, the ecosystem of entrepreneurship is home to any person or organization which has a stake in business and the web. Teachers, entrepreneurs, customers, technology venders, hardware / software providers, ISPs, government, legal fraternity, established businesses, banks and many more play an interdependant role.
The Problems
Some that readily come to mind:
- Awareness
- Education
- Political will
- Lack of trust in technology
- Narrow horizons
- Strategic ineptitude
- Lack of payment mechanism
- Controversial and/or missing legal cover
- more…
So, come forward. Dare to share the dream. This can be the way out of unemployment and economic impasse.How can we move forward? What should we focus on right now? Who is already doing something in this regard? I intend to answer all these questions in this blog.
Please join me as I need your guidance and valuable input. I have taken a step and put out my mission statement. Will you please walk with me?
The startup landscape may initially look bleak, but that can change by overcoming three barriers described below.
The first barrier startups face relates to the mindset that what is Western oriented is automatically better.
During the colonial period, economic activities were focused on exporting to Western markets.
Today when someone thinks of starting a technology-enabled business, too often it is directed at immediately serving customers overseas. This creates risks because not only does a business have to go though the effort to set up, but also to understand and penetrate an unfamiliar, remote market where there are strong established competitors and where marketing can be expensive.
Customer service can be difficult and expensive to provide internationally. There can also be legal barriers to market entry that entrepreneurs are not aware of when they begin operations.
Press coverage of startups, expectations of peers, and established cultural patterns perpetuate the popularity of startup strategies in Pakistan that are high risk and often impractical.
Government support is weighed in favour of export-oriented businesses. This can be counterproductive because if a startup can first gain traction and experience locally, then it will be in a better position to expand internationally when the time is right.
PTA’s announcement of a contest in Pakistan to nurture local technologies is a brilliant step in the right direction and one that needs to be followed by other public and private sector organizations.
A second barrier to startups is the lack of access to capital. One of the best places in the world to invest in early stage startups right now is in Pakistan.
A young company in Pakistan can hone its product and services lines domestically, and then expand globally, creating tremendous revenue opportunities. Revenue opportunities at home are strong because of pent up demand for technology-enabled services (such as mobile banking), demand for more efficient retail distribution systems, and the high penetration of mobile devices. Risks of starting up in Pakistan are lowered by the presence of a highly skilled labour force at extremely low costs.
Every other country in the world would like to have the advantages available in Pakistan for IT/ITeS companies.
But without access to capital, opportunities will be wasted.
The cost of launching an IT/ITeS startup have dropped dramatically in just the last two years, thanks to cloud computing, free online services and other spinoffs from the global technology revolution.
A startup venture fund of from $25-50 million dollars per year in Pakistan would, if properly managed, contribute vastly greater amounts back into the local economy. The venture fund can and should be government supported, perhaps with foreign aid funds earmarked towards capacity building in the private sector.
The venture fund could be accompanied by an incubation system to provide marketing and legal advice to small companies. Technology inputs could also be made available at no or low cost. Cohort training by specialists can help IT/ITeS companies build capacity for marketing and technical tasks.
The third barrier to startups is the lack of access to transparent role models. I recently sanitized my NDAs and contracts and sent them to an IT industry association in Pakistan, to distribute to their members. Young companies need to see how established businesses operate and be able to access those business practices on-demand.
Startup opportunities are better in Pakistan than anywhere else in the world now. These opportunities can and should be realized with the help of a pro-Pakistan orientation, access to capital and startup role-models.
Anthony,
Great commentary. This is what I was hoping for when I wrote this piece. We can see the opportunity for startups and web entrepreneurship in Pakistan and you have done a good job of highlighting both opportunities and hurdles.
I would like to slowly and gradually raise awareness of both and come up with practical solutions.
There are a few role-models to follow and capital can be raised as you have mentioned. I think the pro-Pakistan orientation and general awareness of what can be achieved are the missing links.
Thanks again for taking time out to comment.
Adnan
great work big bro… I hope you will wright more about emerging enterpreneures or who want to step in this world esp for paki students.
Best wishes and salam.
Well the concept is really interesting and it might not be prevailing in its true sense. However, still we see so many Pakistani individuals specially in IT field who are using web for entrepreneurship. These include freelancers, web designers, web developers, graphic designers and programmers.
However, there is no serious business plans or model that is being followed. So i think awareness is there, the thing lacking is the direction and proper mentoring besides others mentioned above.