Which should be more important, a job or a small-scale business in Pakistan?

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Zafar Iqbal CEO Republic Policy

There is no definitive solution to this question, as both options have pros and cons, and the best choice depends on your personal preferences, goals, skills and resources. However, here are some general factors to consider when comparing a job and a small-scale business:

Income: A job typically provides a steady and predictable income, while a small-scale business can have variable and uncertain earnings. A job may also offer benefits such as health insurance, pension and bonuses, while a small-scale business owner must cover these expenses independently. However, a small-scale business has the potential to generate more income than a job in the long run, especially if the business grows and becomes successful. Then, small-scale businesses can grow to the next level to generate jobs.
Risk: A job involves less risk than a small-scale business, as you are not liable for the debts or losses of your public organization or company. You also have more job security and protection from labour laws and regulations. A small-scale business involves more risk, as you are responsible for the success or failure of your venture. You also have to deal with competition, market fluctuations, legal issues and other challenges that may affect your business.
Control: A job gives you less control over your work, as you have to follow your employer’s instructions, policies and deadlines. You also have limited autonomy and flexibility in choosing your projects, tasks, hours and location. A small-scale business gives you more control over your work, as you are your boss. You can decide what to do, how to do it, when, and where to do it. You also have more creative freedom and independence in pursuing your vision and goals.
Growth: A job offers more opportunities for growth and development, as you can learn from your colleagues, managers and mentors. You can also access training programs, courses and workshops to enhance your skills and knowledge. A small-scale business may limit your growth and development, as you may need access to the same resources or networks as a larger company or public organization. You may also need help expanding your business or reaching new markets or customers.
Satisfaction: A job may provide more satisfaction if you enjoy what you do, share the values and vision of your employer, and feel appreciated and rewarded for your work. A job also gives you a sense of belonging and identity within a team or organization. A small-scale business may provide more satisfaction if you are passionate about your product or service, have a strong sense of purpose and mission, and feel proud and fulfilled by your achievements. A small-scale business gives you a sense of ownership and empowerment over your work.

Why should youth take up small businesses in place of doing jobs?

There are many reasons why youth should consider taking up small businesses instead of doing jobs. Some of these reasons are:

To pursue their passion: Youth may have interests or hobbies that they are passionate about but cannot pursue in a conventional job. Starting a small business can allow them to turn their passion into a profession and make money doing what they love.
To solve a problem: Youth may have ideas or solutions that can address a problem or need in their community or society. Starting a small business can enable them to implement their ideas or solutions and make a positive impact on the world.
To challenge themselves: Youth may have skills or talents that they want to develop or showcase. Starting a small business can challenge them to learn new things, overcome obstacles, take risks and grow as individuals.
To create opportunities: Youth may face difficulties or barriers in finding or keeping a job due to factors such as education, experience, location or discrimination. Starting a small business can create opportunities for them to earn income, gain recognition, build networks and achieve their goals.

Why is job obsession in Pakistan?

There are many possible reasons why job obsession is prevalent in Pakistan. Rather, people have more obsession with public sector jobs, especially those in Police, civil service and other lucrative organizations. Some of these reasons are:

Cultural norms: In Pakistan, a cultural norm values education, qualifications and credentials as indicators of success and status. A job in a reputable public organization or profession is seen as a sign of achievement and respectability. Therefore, many aspire to get a job rather than start a business.
Economic conditions: In Pakistan, there is a high unemployment rate among youth (24.8% in 2020), which makes finding a job very competitive and challenging. Therefore, many people prefer to secure a job rather than take the risk of starting a business that may fail or need more income.
Lack of support: In Pakistan, there needs to be more support for entrepreneurs and small businesses from the government, financial institutions, educational institutions and society at large. There are many challenges, such as bureaucracy, corruption, taxation, and regulation, to start a business and subsequently establish it.

There are many possible strategies that Pakistani youth can take up to pursue more business and farming opportunities than jobs. Some of these strategies are:

Leverage the digital economy: The digital economy offers many opportunities for youth to start or grow their businesses online, using platforms such as e-commerce, social media, online education, digital marketing, etc. The digital economy also enables youth to access information, resources, networks and markets that can help them in their entrepreneurial or agricultural ventures. For example, youth can use online platforms to learn new skills, sell their products or services, connect with mentors or investors, or access market information or trends.
Seek support from the ecosystem: The ecosystem refers to the various actors and institutions that support entrepreneurship and agriculture in Pakistan, such as the government, financial institutions, educational institutions, incubators, accelerators, mentors, investors, etc. The ecosystem can support youth, such as funding, training, mentoring, networking, policy advocacy, etc. For example, youth can seek support from the ecosystem to access loans or grants, enrol in entrepreneurship or agriculture courses or programs, join incubators or accelerators, find mentors or investors, or influence policies or regulations that affect their businesses or farms.
Innovate and diversify: Innovation and diversification are key strategies for youth to create value and competitive advantage in their businesses or farms. Innovation refers to creating new or improved products, services, processes or models that meet the needs or wants of customers or markets. Diversification refers to expanding into new or different products, services, markets or segments that offer more opportunities or reduce risks. For example, youth can innovate and diversify by developing new or improved solutions for social or environmental problems, tapping into new or emerging markets or segments such as women or youth, or adding value to their products or services by branding, packaging or processing them.
Collaborate and cooperate: Collaboration and cooperation are important strategies for youth to leverage the strengths and resources of others and overcome the challenges and limitations of working alone. Collaboration refers to working with others who have complementary skills, knowledge or capabilities to achieve a common goal or benefit. Cooperation refers to working with others who have similar interests or objectives to share information, resources or opportunities. For example, youth can collaborate and cooperate by forming partnerships or alliances with other entrepreneurs or farmers who have complementary products, services or markets, joining or forming producer organizations such as cooperatives or self-help groups that can provide collective bargaining power.

Lastly, there is a need to develop the culture of business and farming. It is also critical for the economy of Pakistan. A conducive business environment will encourage more youth to join business and agriculture.