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Contents
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Entrepreneurship..................................................................................................................................... 1 Khaadi...................................................................................................................................................... 2 LO1.......................................................................................................................................................... 4 Entrepreneurship Growth, and Development opportunities in Pakistan............................................. 4 Private and Public Sector Entrepreneurships....................................................................................... 6 Public and Private Sectors Differences................................................................................................. 8 LO3-LO4................................................................................................................................................... 9 Traits and Skills of successful entrepreneurs....................................................................................... 9 Are Leaders born or made?................................................................................................................... 12 The influence of background and experience on entrepreneurs........................................................... 13 LO2........................................................................................................................................................ 14 Importance of small businesses to the economy............................................................................... 14 The different Impact small, medium and large businesses have on an economy.............................. 15 References............................................................................................................................................. 17
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Entrepreneurship
Entrepreneurship is defined as an individual's willingness and aptitude to search out investment possibilities, develop, and successfully operate a business. Entrepreneurship is the process of effectively starting and running a firm. This procedure appears to be extremely simple at first glance, however formulating a concept and turning that idea into a profitable business might be a very tough and a frustrating process. Being a successful entrepreneur involves a lot of effort, hard work, and several distinct qualities, features, and talents. The notion of entrepreneurship has been connected with a variety of actions related to the formation and operation of business - enterprises. Stevenson (1985) describes entrepreneurship as the process of producing value by assembling a one-of-a-kind bundle of resources to capitalize on an opportunity. Entrepreneurship is defined as the capacity to develop and construct something from virtually nothing. It is the process of starting, doing, attaining, experimenting or taking a risk, and developing a business. Entrepreneurship is the process of establishing new organizations or renewing existing ones, notably new enterprises, in response to identified possibilities. Entrepreneurship is frequently a challenging endeavor, with the great majority of new enterprises
failing. Entrepreneurial activities vary greatly based on the sort of organization that is being established. (Ogbe, 2018)
Khaadi
Khaadi Corporation Pvt. Limited, is a private multinational apparel symbol in beauty, fashion and lifestyle brand located in Pakistan that was founded in December 1998. Shamoon Sultan, the company's CEO and Founder, founded the first Khaadi branch in Zamzama two decades ago in a modest store. It operates 52 outlets in 17 locations across Pakistan. Khaadi has a total of about 900 employees across the globe in all of its locations. Aside from that, internationally, it has twenty-two stores in the United Kingdom and various other locations throughout the globe, such as the megastore outside of Pakistan at City Center Midriff in Dubai. The business has over forty branches in Pakistan, as well as retailers in Dubai and the United Kingdom, and is a profit based and driven company and brings in about a $ Million per annum Khaadi being a large enterprise as it is, is both service oriented and product based. Khaadi produces a variety of items and in different categories as well, such as unstitched clothes, Kids, Men and Women clothing, Footwear, Shawls other than this Khaadi also provides their customers with accessories such as Handbags, Jewelry, Scarves, Notebooks, Perfumes. In recent years Khaadi has also started making a name in home textile products by manufacturing items like, blankets, duvets, comforters, table textiles, floor coverings, towels and curtains. Khaadi is gradually also making an entrance in the furniture market by making limited items such as sofas and benches. The service orientation that Khaadi provides is, the brand has hired various talented and skillful tailors, mainly from Pakistan but as well as some individuals from various other countries, Khaadi provides their clients with these tailoring services such as, designing, cutting, fitting, altering and stitching based on their customers preferences. Khaadi is primarily aimed at clients who like ready-to-wear clothing. These customers are almost always women who are employed full-time and are of the female gender. Through the presentation of their unstitched collection, they are targeting both working women and housewives as potential customers. Additionally, they offer collections geared for both boys and girls, allowing them to cater to a diverse variety of clients. Every year, Khaadi unveils a fresh line of men's clothing and accessories. Khaadi is aimed at both men and women who desire unstitched garments, who want ready-to-wear items, and children. Other than this Khaadi’s product line is as such which targets all types of consumers, because the products at Khaadi such as perfumes, footwear, sunglasses, home textile products and other daily used items are used by all types of consumers. Khaadi in recent years especially after the pandemic, has
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Entrepreneurship Growth, and Development opportunities in Pakistan
Almost 140 million residents under the age of 30, Pakistan is among the globe's youngest nations and one of Asia's speediest economies. An extra 2.1 million middle-income families are predicted to be produced by 2025 as the nation continues to advance. As a result of online consumption and an unusual amount of young people joining the labor field, the opportunity for entrepreneurialism is great. The private sector is equally important in the start-up ecosystem. Overall, the ecosystem encourages the expansion of Pakistan's start-up scene, but the country's entrepreneurial potential remains untapped, with fewer start-ups and less investment than similar nations. Pakistan being the developing country it is, has been starting to produce many successful entrepreneurs and entrepreneurships and there can be a huge switch seen in Pakistan, where entrepreneurships have greatly risen in number and are expanding rapidly, after the Covid-19 pandemic, there has been a drastic transition where the country and the government has started encouraging entrepreneurships and in recent years, the government has started to propose various different programs which show support and encouragement to entrepreneurships and also has started giving out loans for entrepreneurships. Pakistan is a great country or some may even say perfect, the country is developing and has just discovered the entrepreneurialism industry, and people both, entrepreneurs and consumers are growing quite fond. Pakistan has one of the best manpower and in great numbers as well, there is a lot of skilled labor in every industry, and they’re a lot of individuals with high skillsets who are seeking employment but due to less opportunities they’re not able to, which adds to one of the reasons why the country’s unemployment rates are high. Another reasoning which would add to the supportive factors, for the entrepreneurial growth and opportunity in Pakistan, would be the raw materials, materials in Pakistan are very cheap and easily found, and one of the advantages in Pakistan is that the country is amongst the richest nations across the globe in terms of natural resources, both non-renewable and renewable, filled with minerals such as coal, gold and copper. Most of the businesses face material costs to be the second largest expense and then labor, the cheap materials cause less expensive manufacturing and thus brings in high returns to the business.
Pakistan is an overpopulated country, especially in the major cities such Islamabad, Karachi and Lahore, these places are crowded with the ongoing traffic, both foot and vehicle. The individuals if taken a close look upon, always prefer to try new things, whether it be anything clothes, food, etc. Initially after the Covid-19 Pandemic, there have been a lot of new entrepreneurships, mainly in the food industry, such as there were a lot of Japanese food restaurants and many western dessert shops being opened in the major cities and they have took the market by storm, the individuals in Pakistan love to enjoy new things. This is also an indication that the entrepreneurialism sector is getting the attention it deserves and with that will come many successful opportunities. The country is a great place for entrepreneurialism opportunities, as Pakistan is an undiscovered developing country with a great deal of opportunities but despite that there are many factors on the negative side as well which portray how the country lacks growth in entrepreneurship. One of the major reasons being poverty, an issue the country has struggled with a lot. If the poverty is high in a country, there will be less buying power which would ultimately affect entrepreneurialism activity, a penurious person will barely buy something from a regular business let alone from an entrepreneurship. But this factor can also bring an advantage to the business, in a country where poverty is high, the entrepreneurship businesses can hire individuals for cheap wages. Another disadvantage for entrepreneurialism in the country is due to Pakistan’s high rate of inflation, Inflation decreases the buying influence of money by requiring more funds to purchase the same products. Consumers are worse off if income does not grow at the same rate as inflation. This leads to reduced levels of consumer buying and a drop in corporate sales. Inflation frequently begins with a scarcity of a service or product, which causes businesses to raise their prices and total expenses of the commodity. This upward price adjustment sets off a cycle of growing expenses, making it more difficult for enterprises to achieve their margins and profitability over time. So the high rate of inflation in Pakistan will not let the middle class or the lower middle class, purchase from any product from an entrepreneurship business. Pakistan is still a developing country, things such as roads and infrastructure is still not perfect, firstly the storing of product is very hard, there is no proper warehousing secondly which makes transportation much harder, for example the transportation of raw materials from one place to another, this is a lot more costly and time consuming due to the bad conditions of the roads in Pakistan. Some businesses in Pakistan have separated facilities in various major cities to have the transportation prices and cost low.
The private sector is the component of the economy that is operated for profit by individuals and businesses rather than the government or the state. As a result, it includes all for-profit enterprises that are not owned or run by the government. Companies and enterprises operated by the government are classified as part of the public sector, whereas charities and other nonprofit organizations are classified as part of the voluntary sector. Private-sector companies might also participate with government operated entities through public-private partnerships. The private sector is made up of all privately owned, for-profit enterprises in the economy, and it also tends to account for a bigger part of the economy in free market, capitalist-based societies. The private sector is the portion of a country's economy that is owned, controlled, and managed by people or businesses. The private sector has a profit motive and employs more people than the governmental sector. A private sector organization is formed by establishing a new business or privatizing an existing public sector agency. A significant private sector firm can be traded privately or publicly. Private-sector businesses compete for consumers' money by driving down costs for products and services; in theory, people do not want to pay more for something when they can get the same item elsewhere at a cheaper cost. The private sector is a diversified sector that accounts for a significant portion of many economies. It is built on a diverse set of persons, partnerships, and groups. The private sector is made up of the following entities: Sole Proprietorship Partnerships Small and mid-sized businesses Large corporations and multinationals Professional and trade associations Trade unions Public Sector Whereas the Public Sector is made up of firms that are owned and managed by a country's government. The national or state governments have both entire, partial ownership and management of these
organizations. However, it retains a controlling ownership in the company and determines all operational decisions. Government agencies, state-owned companies, municipalities, local government authorities, and other public service institutions are among these organizations. Some of them may be non-profit organizations, while others may also engage in commercial activity. Its primary goal is to provide goods and services to the general public at lower prices than private firms. Its primary goal is to ensure the general welfare of a country's citizens, some of the public entities consist of: Education (Schools, Libraries) Electricity Emergency Services Fire Service Gas and Oil Healthcare Infrastructure Law Enforcement Police Services Postal Service Public Transit Social Services Waste Management
Public and Private Sectors Differences
Individual company owners, companies, and other non-government organizations employ people in the private sector. Manufacturing, financial services, professions, hospitality, and other non-government employment are examples of jobs. Workers are compensated with a portion of the company's revenues. Private sector employees having bigger wage raises, more career options, more prospects for advancement, less job stability, and less comprehensive benefit plans than public sector employees. Working in a more competitive market frequently entails working longer hours in a more demanding setting than working for the government. Workers in the public sector are employed by the federal, state, or municipal governments. Healthcare, teaching, emergency services, the military forces, and different regulatory and administrative agencies are examples of typical civil service employment. Workers are compensated with a share of the government's tax revenues. Public sector employees have more extensive benefit schemes and more job security than private sector employees; after a probationary period, many government posts become permanent hires. Moving between public sector jobs while keeping the same benefits, holiday rights, and sick pay is relatively simple, but gaining wage raises and promotions is more complex.
belief that a happy/satisfactory ending is both desirable and achievable. True optimism does not imply a lack of awareness of issues or challenges; rather, it entails actively seeking out the good aspects of a situation. Seeing the bright side of adversity provides optimists the confidence and capacity to persevere and try again. They can learn from their errors and use what they've learned afterwards. Pessimists, on the other hand, either avoid similar situations in the future or make the same fatalistic mistakes. Shamoon Sultan when asked in an interview,” The biggest difficulty he had when starting out?” he stated that not succeeding was the biggest fear factor for him, that he would fail because his idea was very new for the industry, he also said to overcome this fear his wife, Saira Shamoon really helped and supported him and gave him an optimistic point of view, which really helped him and made him focus more on the positive and Shamoon Sultan believes that being optimistic is one of the major factors which aided him and Khaadi to be successful. Creativity: The journey to becoming an entrepreneur begins with an idea. Seeing possibilities, coming up with new ways to accomplish things, and bringing answers to the public. Develop practices that promote the creative system to boost creativity. Consider what inspires an individual to be creative, such as music, meeting new people, reading, or some other activity. Dedicating a portion of a day to brainstorming innovative solutions. During this time of day, begin by doing something that inspires, then letting thoughts to wander. The mind may generate a list of ideas and choose a few to pursue. Shamoon Sultan has always been the person that has emphasized a lot on innovations and what positive change can be brought to further better the business and provide better services, he is constantly innovating the brand and always keeps Khaadi relevant by constantly trying out new things. Passion: Entrepreneurs are motivated by their passion. They frequently like what they do, which allows them to devote more time to their initiatives. Focus on the significance of the work to be a more enthusiastic entrepreneur. An entrepreneur should realize that they are helping to develop answers that will benefit many people. Knowing that your devotion has an impact may provide you with the motivation you require to keep going when uncertainty or fear crawls in or the business becomes challenging. Your enthusiasm, desire and hunger is what maintains us all focused on the goal. Shamoon Sultan previously talked about how he at an early age developed an eye for detail, finesse, detailing and aesthetics and that at a very young age he developed this interest of fabrics, weaving and designing, and after graduating decided to pursue the passion. (Sultan, 2019)
Good Decision Making: Entrepreneurism is a very difficult and tense at times, thus entrepreneurs should have a strong and a good decision making skill, business requires quick and fast decisions and actions, a strong decision making skill greatly helps. Shamoon stated “The most difficult and stressful process of entrepreneurism and business is the decision making, and that comes with entrepreneurism”, Shamoon himself initially struggled with decision making process and even throughout until this very day, but he also says his team, wife and management kept him focused and advised him with his every decision and made his planning better, according to Shamoon good decision making makes a successful entrepreneur and has a major role in the business. (Sultan, 2019) Adaptability: In today’s era everything seems to be changing and in entrepreneurism to be successful an individual needs to follow trends to stay leading, trends usually change or die down after some time and due to the changing technology it gets really difficult to not change or advance your business or preneur that’s not profitable, to conquer this an entrepreneur should have strong flexibility and adaptability, having these skills always keeps the business advancing and stay in touch with the trends. Adaptability helps make a business better and brings the business to its full potential. After the successful initiation and launching of Khaadi, Shamoon realized to keep the business on the top and succeeding he has to bring changes and keep up with the trends, to stay dominating and conquer the fear of the business decline, Khaadi launched entirely new product lines, these categories consisted of home furniture and furnishings, new innovative jewellery and other basic accessories such as glasses, hand bags, perfumes, tie’s and belts. In the recent years Khaadi has also started their own line of bathroom accessories like, towels, towel rings, brush and soap holders, etc. After immensely succeeding in the fabric industry Khaadi was centered around women clothing, but now the brand has also started producing and manufacturing men fabric and Khaadi comes out with an entire new clothing line and designs every year for men, Shamoon’s vision for the brand was centered and disciplined around women clothing and accessories but due to the growth in the men’s fashion industry, made Shamoon realize the potential in the industry. Therefore to short it down, Khaadi’s vision and aim was limited to traditional Pakistani women clothing and accessories but in the last decade the company has greatly adapted and explored new industries, which has made the business even better, now in the upcoming future Shamoon plans to make Khaadi go international, in fact the business has started operating in countries such as USA, UK, Canada and the UAE, Shamoon plans to introduce new western wear product lines and traditional middle eastern clothing in UAE. The goal is to bring the brand to international markets and be
The influence of background and experience on entrepreneurs
Personal history and experience may have a significant impact on a firm, either fostering or hindering entrepreneurship. Support from friends and family, motivation, experience, education, financial background, and other factors comprise the personal background. In this technique, if a person has adequate support from their friends and family, they will be driven to start a business. To be a successful entrepreneur, one must have a good educational foundation and at least some experience, and the knowledge may take many forms, including self-experience, earned knowledge, and so on (Jenkins, et al. 2014). The entrepreneur's background has a significant impact on the success of the firm in both positive and bad ways. Factors such as family history, previous job experience, and degree of education may all have an impact on how a business operates. Support may boost motivation and risk-taking capacity, which can develop business. A person's financial history might also impact his or her capacity to take risks and establish a business. However, without the support of family and friends, many people lose interest in entrepreneurship (Schaper et al. 2014). Personal experience may also have an impact on business. If the experience is positive, one might remain with their business for a longer period of time and get encouraged to start one. However, if one's experience is poor, he or she may be hesitant to start a business. A tougher background or experiences in life for a person, could be a very effective motivating factors for some, while individuals who had an easier life may be a little laid back but it still centers down to the person, thus various experiences and situations play a major factor on an individual and a their professional life if such elements are utilized properly, but again these experiences, different backgrounds can either be used properly and be an important motivating and hardworking factor or they could lead to nothing, it all emphasizes on how an individual perceives and utilizes the circumstances.
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Importance of small businesses to the economy
Small businesses are of very important significance, small businesses maybe small by size or scale but their significance to developing economies is quite huge. Small or medium sized businesses make up for over 90% of the business community, about 55% GDP in developing economies and a very large percent of employment which is about 65%. There’s little attention paid to small start-ups or small businesses in comparison to larger businesses, but smaller businesses or start-ups have a very significant impact when it comes to affecting an economy, some other major factors that describe how important small business are: Small businesses consist 98% of organizations with paid employment, from 2000 to 2009 almost 10. million net employment opportunities were created through small businesses whereas the bigger organizations only produced 5.6 million according to the Bureau of Economic Development. These businesses create a lot of employment opportunities, especially for the local communities. Small businesses frequently work hard to keep as much of their business local. This entails partnering with and supporting other small companies, as well as employing as many locally made things as possible. This emphasis contributes to the promotion of local economies. It also has a positive impact on the entire community. Local business success equals more local tax money, which helps improve schools and other local services. While money spent at larger businesses hardly stays in the neighborhood, local businesses keep a significant amount of their profits and reinvest them in other community initiatives. Small companies are more flexible to shifting economic conditions due to its direct link to the population. As consumer needs vary, small businesses find themselves on the front lines of making changes to keep their customers happy in ways that larger corporations cannot. As a result, client loyalty is substantially higher. In times of economic hardship, many customers prefer to support their local favorites over larger corporations. Small businesses add a lot of creativity to any industry. Small firms typically have more direct touch with customers and the wider public. This implies they are more aware of what products and services might benefit the public good. Small firms are also more receptive to testing out new ideas in a shorter time frame since they have fewer levels of hierarchy to navigate. Because businesses originate from home, all
these larger corporations typically pay their employees 20% more in compensation than smaller businesses. Large corporations that engage in high-value industries outperform others in terms of productivity. Specialty manufacturing companies, consultancy firms, and software corporations are examples of these sectors. Companies like this tend to generate money from areas other than the cities in which they operate, increasing the size of the local economy. In addition, they tend to produce more knowledge-intensive professions. Small and medium-sized firms, or SMEs in popular parlance, have long been recognized as the engines of economic growth and development. The influence of SMEs on the global economy plays a critical role in the development of a poverty-free society. The reason for this is that they not only give sufficient work possibilities to the many strata of society, but they also assure the flow of money across the various levels of society. Small and medium-sized enterprises (SMEs) play an important role in the global economy by contributing to the employment situation in addition to input and output. There are a few things to keep in mind here. According to a 2015 research, nearly 600 million jobs would be required globally over the next 15 years. Small and medium-sized enterprises (SMEs) produce the majority of formal jobs in developing economies. That equates to nearly four out of every five potential jobs on the market. Despite playing an important role in economic growth, it has been discovered that around 50% of SMEs lack access to credit or capital investment. At any given moment, formal SMEs provide around 33% of national GDP and 45% of total employment in developing nations. Small and medium-sized enterprises (SMEs) have a unique capacity to drive economic growth. They generate a large number of new job possibilities, propel the innovation train, and broaden the tax base. This constant battle for domination brings out the best in a company. This results in a win-win situation for both the supplier and the customer. The primary benefit of the SME sector is its ability to produce jobs while requiring little capital investment. Furthermore, this boosts collective productivity as well as overall economic efficiency. New entrepreneurs bring new ideas, technologies, and talents to the table. In recent years, SMEs have outpaced the global industrial sector in terms of growth. SMEs account for a considerable share of all enterprises in practically every country. Over 90% of SMEs in most emerging and developed economies increase employment. In fact, even when large industries shrink and lay off workers, SMEs continue to grow and create new employment.
All in all small, medium and large sized organizations, all of these different businesses contribute highly towards the economy, the larger businesses may drive in more revenue whereas SME’s may contribute in providing more jobs, but all play a very essential role
References
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