Entrepreneurship need not always be wealth-creating and growth-inducing. Tullock (1989), Krueger (1974) have shown that entrepreneurship can be directed towards the accumulation of wealth through unproductive enterprise. For a company to grow or for an economy to boom it is required that management must turn their attitude towards the economy and act entrepreneurially.
In the developing economies, especially with present geo-political situation it has become vital for country, especially the developing economies to look for means and tactics for a sustained market.
For this the role of Entrepreneurship is of key importance. It is on governments and policy makers that how they make a policy and then adjusting it in such a manner with the environment so that it can be adjusted to allow public to be an entrepreneur, and let them to play a greater role in the economy.
As entrepreneurship is basically discovering, evaluating and exploiting the opportunities available in the market, so it is a job of government institutions mainly to create a free and flexible markets that will enable the closing down of business that have run their course and be replaced by more efficient firms, to have a quality educational system (so enabling the sense of entrepreneurship in the younger generation) and especially making the finances available to provide the entrepreneurs with an easy access to capital and last but not least making a rule of law (basically for protection of property rights and contract enforcement)
According to the SMEDA (Small & Medium Enterprise Development Authority of Pakistan) in Pakistan there are almost 40% of the today’s businesses are taking place in the informal sector. By informal and small scale sector we mean those sectors which dominate our lives and which are the breeding ground for innovation but continues to attract little research. Another interesting research by SMEDA indicates that a person could be employed in a small-scale industry at 1/80th investment of what it takes him to be employed in a large-scale industry! Over the years in Pakistan lot of effort has been made on developing SMEs in the country, which to some extent has proven successful but as the major problems like of many developing countries of red-tapism and bureaucracy it has not proven successful.
In context of all the entrepreneurship effort in Pakistan it can be judged that if entrepreneurship is to be develop in the growing market as of Pakistan, deep government reform is needed which limits rent seeking, encourages innovation and fosters enterprise, which means reinventing the role of government and making a new growth strategy for development.
References:
· SMEDA
· SME Bank Pakistan
No comments:
Post a Comment