Assignment # 1

Farhan Akram
DE-36-ME-B

Submitted to: Sir Haris Awan

Submission Date: 20-Oct-17

Role of Entrepreneurship in Economic Growth:
Employment opportunities

Entrepreneurs employ labour for managing their business activities and provides
employment opportunities to a large number of people. They remove
unemployment problem.

Promotion of Exports

Entrepreneurs reduce the pressure on the countrys balance of payments by

exporting their goods they earn valuable foreign exchange through exports.

Social Advantage

Entrepreneurs help in the development of the society by providing employment to

people and paves for independent living. They encourage democracy and self-
governance. They are adept in distributing national income in more efficient and
equitable manner among the various participants of the society.

Increase per capita income

Entrepreneurs help to increase the per capita income of the country in various ways
and facilitate development of backward areas and weaker sections of the society.

Growth of capital market

Entrepreneurs raise money for running their business through shares and
debentures. Trading of shares and debentures by the public with the help of
financial services sector leads to capital market growth.

Growth of infrastructure

The infrastructure development of any country determines the economic

development of a country, Entrepreneurs by establishing their enterprises in rural
and backward areas influence the government to develop the infrastructure of those
areas.

Development of Trader

Entrepreneurs play an important role in the promotion of domestic trade and

foreign trade. They avail assistance from various financial institutions in the form of
cash credit, trade credit, overdraft, short term loans, secured loans and unsecured
loans and lead to the development of the trade in the country.

Inflow of Foreign Capital

Entrepreneurs help to attract funds from individuals and institutions residing in

foreign countries for their businesses.
Role of Government in creating a Business Environment:
Steps that can be undertaken by government:

Facilitate, Enable, Support and Develop small and medium sized enterprises (SMEs)
Have business-friendly laws and a functional, streamlined court system.
Avoid regulations that entrench special business interests, e.g. licensing
requirements.
Enforce market-corrective laws
Protect intellectual property without it becoming a corporate welfare program.
Make all public records and other non-secret government data available in real time
Train health, fire, building inspectors, people in charge of any kind of permitting and
enforcement.
Hire competent people and keep up morale.
Promote public works, trade.
Fund public education, keep college affordable, encourage public and private
universities and trade schools.

Positive steps of Government of Pakistan in encouraging the

growth of Entrepreneurship:
It is encouraging to note that recognizing the importance of small and medium
size industries and business, creation of self-employment opportunities for the youth in
the economic development of the country and learning from the past bitter experience,
the PML N government took a step in the right direction by launching Prime Ministers
Youth Programme in September 2013; a package comprising Youth Business Loan
Scheme, Youth Skill Development Programme, Youth Training Programme, Programme
for provision of laptops, Interest Free loan Scheme and Fee Re-imbursement Scheme
for Less Developed Areas. These initiatives were designed to create a culture of
entrepreneurship by making available all the required ingredients to the youth for
starting their own business and enhancing their technical know-how and skills for
gainful employment in different sectors of the economy. The defined objective of this
package was enabling youth and poor segments of population to get good opportunities
of employment, economic empowerment, acquiring skills needed for gainful
employment, spreading use of computers and imparting on the job training for young
graduates to improve probability of getting a productive job.

Pakistan truly needs some young entrepreneurs for Pakistans better future.