Naveed Akhtar Cheema
A business is an organization or enterprising entity engaged in commercial, industrial, or professional activities. The purpose of a business is to organize some economic production of goods or services. Businesses can be for-profit entities or non-profit organizations fulfilling a charitable mission or furthering a social cause.
A functional business culture is critical for a functional economy because culture influences the values, preferences, and behaviours of individuals and organizations. Culture can affect how people perceive and respond to opportunities, risks, and incentives in the market. Culture can also shape the norms and institutions that govern economic activity, such as trust, cooperation, innovation, and regulation. A functional business culture is one that fosters creativity, productivity, competitiveness, and social responsibility among economic agents. A functional business culture can help businesses adapt to changing environments, meet customer needs, and generate value for society.
Therefore, Pakistan needs to develop a business culture. It will not only improve the growth and development of industry, agriculture and other sectors of the economy but also provide employment to the youth in Pakistan. However, business in Pakistan faces multiple obstructions to development and growth.
Many small businesses in Pakistan need more capital to sustain their operations and growth, especially in the initial years. They may need help accessing loans, grants, or investors, or they may mismanage their finances and cash flow. According to a study, more than half of the new business ventures in Pakistan close down after five years of commencement due to insufficient funds.
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Another challenge for entrepreneurs in Pakistan is the need for more experience and expertise in their chosen field of business. Entrepreneurs may not have the necessary skills, knowledge, or networks to develop a profitable product or service, market it effectively, or deal with the competition. They may also lack the management skills to handle various aspects of their business, such as inventory, location, staff, and customers.
Pakistan’s economy has been facing a lot of problems in recent years, such as high inflation, low growth, trade deficit, debt burden, currency devaluation, and fiscal imbalance. These factors have adversely affected the business environment and consumer confidence in the country. Many businesses have struggled to cope with the rising costs, lower demand, and uncertain policies. According to one source, Pakistan’s economic crisis was triggered by its inability to repay its foreign debt and its reliance on external aid.
Another reason for the failure of businesses in Pakistan is the poor governance and institutional quality in the country. Pakistan ranks low on various indicators of governance, such as corruption, rule of law, political stability, regulatory quality, and accountability. These issues have hampered the development of a conducive and transparent business climate and have created barriers to entry, innovation, and competition. They have also increased the risks and costs of doing business in Pakistan.
Finally, some aspects of Pakistan’s business culture also contribute to businesses’ failure. For instance, some entrepreneurs may not think big enough or have a clear vision for their business. They may not pursue international expansion, new markets, or major problems that can be scaled up. They may also face difficulties in finding or retaining talent, mentors, or partners who can support their growth. Additionally, some entrepreneurs may fall prey to the funding curse and give up too much equity or control over their business to investors who do not share their vision or values.
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Therefore, the Pakistani government and private sector must adopt modern techniques and methods for doing business. The over-burdening of regulation needs to ease down. The government should not be a strict regulator but rather a facilitator. Policies and laws regarding doing business need to be made simple with all tax and other objectives. Pakistan’s business culture can grow with simple and fellow reforms in all sectors of business.
