Research Work

For the purpose of this assignment I have chosen “Multigrain”, a local business that has it’s
Head Office at Aghaz Plaza, F-8 Markaz, Islamabad and its Processing and Packing Unit at Fateh
Jhang Road, Islamabad. The business was established in 2017 by Raja Sohaib Sarwar who is
basically an academician by profession but has ventured upon this small business that
processes Multigrain Four made out of five different grains. The product, (multigrain flour) is
sold through large stores located at comparatively posh locations and comes in three different
packs of 3, 4 and 5 kg’s.

This Entrepreneurial venture was started with the need identification of a daily consumption
cereal that could fulfill both the filling and nutritional requirement of our middle age white
collared working class who is nowadays very less physically active due to the advancement in
technology and nature of jobs leaving them physically inactive but mentally exhausted after
long working hours having a direct impact upon their tummies to start protruding more and
their bodies to feel exhausted. This phenomenon is because of the fact that brain consumes
blood sugar and brainwork drains the body of essential nutrients so the hunger pangs leading
to overeating and then remaining in-active.

Multigrain flour is rich in nutrients and fibre. Where people eat 2-3 chappatees they can have a
single chappattee of multigrain flour and feel satisfied while the qualities and goodness of
wheat, barley, oats, white millets and maize fulfill as much of the nutritional requirements as
wheat flour. Secondly, the processing of wheat flour strips the grains of their basic nutritional
value in order to make it look good as the bran is removed and the germ and endosperm are
bleached to make flour look white and increase its shelf life. There are no other Multigrain
flours available in the market and with the growing health consciousness in our people the idea
looks enterprising so I have selected it for my research work and as a part of this assignment for
Unit-9 Entrepreneurship and Small Business Management I will be quoting my personal primary
research finding alongside other information to express my learning out come.

LO-1.1 Examine different types of entrepreneurial ventures and explain how they relate to the
typology of entrepreneurship.

Entrepreneurs come in so many sizes and shape that in order to cover every type of existing
and emerging entrepreneurial venture there can be dozens of different categories into which
we may try to fit examples but as generally accepted in the world we can classify three or four
main types of enterprises. These are Micro, Small (and) Medium, Large scale Enterprises as per
their generally agreed upon descriptions varying from place to place and Country to Country
and there are four or five main types of Entrepreneurs that can paint a fair picture of the
person we are first of all going to talk about. For the purpose of my Assignment Raja Sohaib
Sarwar is the Entrepreneur. So let first describe what an Entrepreneur is.

Definition/s of Entrepreneur

1.

2.

3.

I would personally wish to define an entrepreneur as a person who can come up with an idea
for a unique solution to a problem and could then translate that idea into a practical solution of
the same problem in a financially viable manner. Although Entrepreneurs are not just business
minded people and sometimes the solutions they can come up with are just meant or aimed at
resolving social issues but even resolving social issues must be sustainable or financially viable
in order to be able to do more good at a large scale whether in terms of profits or intended
social benefits.

LO-1.2 Explore the similarities and differences between entrepreneurial ventures.

There are different types of Entrepreneurs including Serial Entrepreneurs, Owner Managers,
Intrapreneurs, Corporate and Public Sector Entrepreneurs, just to name a few. It would be good
to highlight the difference between these types of Entrepreneurs to show what these terms
mainly refer to so I give below the brief descriptions of each type.

1. Serial Entrepreneur.
2. Owner Manager.
3. Intrapreneur.
4. Corporate Entrepreneur.
5. Public Entrepreneur.

In my opinion Raja Sohaib in the Multigrain entrepreneurial venture appears to be the “Owner
Manager” type and that’s why he is looking after every detail of his enterprise including product
development, legal aspects, procurement, processing, operations, marketing, sales,
distribution, accounting, etc.

He has been able to build up a team of 8 people by now including himself and his annual
turnover is reportedly around Rs.36 million per annum on the basis of sale of 250 bags per day
through 50 outlets. There are two people working as mill operator and helper, two people
doing the packing and loading work, one driver and one salesman while he himself oversees all
the other matters as well as supervision of these people. The size of this enterprise makes it fall
under the Category of Small Business if we look at it in light of the SBP or SMEDA definitions of
small businesses in Pakistan which are as under.

1. Small Business Definitions.

2. Micro Businesses
3. Medium/Large Scale Businesses

Entrepreneurial ventures whether micro, small or large have several things in common and
differ only in their scale and objectives. The similarities can be noted in terms of the value
addition and utilization of the factors of production and the element of risk as well as their
contribution to the socio-economic uplift of a place, region or Country and nevertheless of the
entrepreneurs themselves. Difference of the activities can be categorized in terms of the
products (tangibles) and services (intangibles) or the business or social objectives too.
Moreover, whether social oriented or business oriented the element of creativity and
innovation is another similarity that the enterprises of all sizes can share if they have to make
new grounds and succeed. A difference can also be demonstrated in terms of the economic
activities they work upon related to primary, the natural resources, secondary, the
manufacturing or processing types and the tertiary which are the service oriented enterprises
whichever size they may belong to.

LO-1.3- Investigate a diverse range of entrepreneurial ventures to demonstrate an

understanding of entrepreneurship in both the public and corporate sector.

I started looking at options available in the local market for my primary research purposes and
noticed that I could look at almost each and every type of enterprise or entrepreneurial venture
in the City of Islamabad and for that purpose the options available could include the following
businesses.

Serial Business Name Enterprise Size/Type Entrepreneur Type

01 Mobilink Large Corporate
02 PIA Large Public
03 Bahria Town Large Owner Manager
04 Nishat Group Large Serial
05 Roots Millennium Large Social
06 Metro Cash and Carry Medium Corporate
07 Shifa International Medium Social
08 Khiva Medium Serial
09 Khaadi Medium Owner Manager
10 Islamabad Club Medium Public
11 Monal Medium Corporate/Public ??
12 Nayatel Medium Owner Manager
12 Tandoori Small Owner Manager
13 Aero Cycling Small Owner Manager
14 Chai Khana Small Owner Manager
15 Chikka Chino Small Owner Manager
16 Vostro World Gym Small Owner Manager
17 Japan Motors Small Owner Manager
18 Mazhar Cycle Works Micro Entrepreneur
19 Afghan Burger Micro Entrepreneur
20 Zaffar Tailor Micro Entrepreneur
21 Bahawalpur Welding Works Micro Entrepreneur
22 Etc.

Public and Corporate Entrepreneurs examined.

Public Entrepreneurs:

While “social entrepreneurs” are people outside government, public entrepreneurs act within
government and, at their heart, are a blend of two different roles: that of a public servant, and
that of an entrepreneur. The underlying premise is that these roles are usually distinct but the
skill sets they require need not be. Constrained budgets and high public demands put pressure
on public entrepreneurs to come up with the most novel and new ideas to deliver and achieve
the objectives of a welfare state.

If e just a take a look at the state of affairs of any public sector Organization in our Country we
tend to start cribbing about their inefficiencies and lack of entrepreneurial abilities to deliver
the intended benefits and services to the public, what to talk about their efficiencies and
financial viabilities. Pakistan Railways, Airlines, Telecommunication, Education, Medical
Services, Water and Power, Natural Gas, Vehicle Registration Authorities, Transport Systems,
Postal Services, etc, etc all present the picture of a poor entrepreneurial venture and certainly
need people who have the spark for innovation and creativity as well as dedication and hard
work that we see in private enterprises or the Corporate Sector Enterprises.

Corporate Entrepreneurs:

Corporate Entrepreneurship is a process used to develop new businesses, products, services or

processes inside of an existing organization to create value and generate new revenue growth
through entrepreneurial thought and action. Corporate entrepreneurship sets the context for
innovation and growth. Although the concept of Intrapreneurship is very close to the Corporate
Entrepreneurship but they can be differentiated. Whereas intrapreneur is an employee who
proposes and manages a project within the company in which he works. He bears a moral risk
but non a financial risk while Corporate entrepreneur: is an entrepreneurial organization that
innovates and develops a new business idea that does not yet exist. It creates a new venture as
a strategy of its growth. corporate entrepreneur bears financial risk.

Several Corporate Sector Entrepreneurs or Ventures can be examined here but I will like to
discuss a very popular household name first. Hamdard. All of us have at least tried or known
Rooh Afza, if not thw other wide range of products that Hamdard Laboratories have been
manufacturing since decades now and the man behind this huge success of an Entrepreneurial
venture was Hakim Muhammad Saeed.

Hakim Saeed, as he was popularly known established Hamdard Dawakhana, from the institution
his father created in India before partition. His organization which was mainly focused on
traditional medicine later went on to diversify in fields of higher education, publishing and social
work. Hamdard is one of the largest production facilities of traditional or herbal medicines in
Pakistan. Hakim Saeed's work in reviving traditional medicine is considered to be pioneering in
contemporary times because he established on modern footings and got it recognized by
established bodies like World Health Organization (WHO).

Here is a list of some other amazing Corporate Sector Entrepreneurs our Country has seen:

 Sir Adamjee Dawood | Adamjee Group

 M A Habib | Habib Group
 Hussain Dawood | Dawood Group
 Agha Hassan Abedi | An enterprising banker and philanthropist
 Sadruddin Hashwani | Hashoo Group
 Iqbal Qarshi | Qarshi Laboratories
 Mian Muhammad Sharif | Ittefaq Group
 Shaukat Tarin | different banking organizations
 Seema Aziz | CARE Foundation & Sefam
 Shaukat Raza Mirza | Engro & PSO
 Hanif Rajput | HR Group
 Mian Muhammad Mansha | Nishat Group
 Syed Babar Ali | Packages, LUMS, Nestle
 Izhar Ahmed Qureshi | Izhar Concrete
 Yusuf Haroon | Dawn Group of Newspapers
 Saeed, Ashiq & Bros | Sabro
 Mian Aamir Mehmood | Punjab Group of Colleges
 Salim Ghauri | NetSol
 Mian Muhammad Din | Super Asia
 Taher A Khan | Interflow Group
 Majeed Nizami | Nawa-i-Waqt Group
 S H Hashmi | Orient Advertising
 Mian Muhammad Fazal | Orient Group of Companies
 Aftab Tapal | Tapal Tea
  Byram D. Avari | Avari Hotels
 Asad Ali Khan | Abacus Consulting
 Khalid Awan | TCS Couriers
 Farhan Masood | Solotech

1.4- Critically examine the scope, development and growth of entrepreneurial ventures.

Every good solution to a problem has scope for acceptance and adoption by the people who
need solutions and Entrepreneurs come up with unique ideas that once accepted in the market
or by the public have scope for development into global phenomenon’s thanks to the power of
media, especially social media. The development and growth of entrepreneurs in the last
couple of decades has seen exemplary growth in terms of rapid expansion and even very
ordinary small scale outlets who did anything offering value to the customers or beneficiaries
have been able to multiply their growth figures.

Just to quote a few local examples first we can look around and see grocery stores, restaurants,
clothing brands, educational institutions, media houses, cellular networks, etc, etc. opening
large chains by offering franchises and subsidiaries. Globally, people like Jeff Bezoff who started
their home based online entrepreneurial venture of selling old books have come forward to
become richest people on the planet and such enterprises are not just a few. Howsoever,
technically speaking the development and growth of small businesses growing global or
remaining local but successful may be described as a process that passes through different
stages. Given hereunder are these stages.

Stage I: Existence

In this stage the main problems of the business are obtaining customers and delivering the
product or service contracted for. Among the key questions are the following:

Can we get enough customers, deliver our products, and provide services well enough to
become a viable business? Can we expand from that one key customer or pilot production
process to a much broader sales base? Do we have enough money to cover the considerable
cash demands of this start-up phase? The organization is a simple one—the owner does
everything and directly supervises subordinates, who should be of at least average
competence. Systems and formal planning are minimal to nonexistent. The company’s strategy
is simply to remain alive. The owner is the business, performs all the important tasks, and is the
major supplier of energy, direction, and, with relatives and friends, capital.

Companies in the Existence Stage range from newly started restaurants and retail stores to
high-technology manufacturers that have yet to stabilize either production or product quality.
Many such companies never gain sufficient customer acceptance or product capability to
become viable. In these cases, the owners close the business when the start-up capital runs out
and, if they’re lucky, sell the business for its asset value. In some cases, the owners cannot
accept the demands the business places on their time, finances, and energy, and they quit.
Multigrain entrepreneurial venture couldn’t cross this stage.

Those companies that remain in business become Stage II enterprises.

Stage II: Survival

In reaching this stage, the business has demonstrated that it is a workable business entity. It
has enough customers and satisfies them sufficiently with its products or services to keep them.
The key problem thus shifts from mere existence to the relationship between revenues and
expenses. The main issues are as follows:

 In the short run, can we generate enough cash to break even and to cover the repair or
replacement of our capital assets as they wear out?
 Can we, at a minimum, generate enough cash flow to stay in business and to finance
growth to a size that is sufficiently large, given our industry and market niche, to earn an
economic return on our assets and labor?

The organization is still simple. The company may have a limited number of employees
supervised by a sales manager or a general foreman. Neither of them makes major decisions
independently, but instead carries out the rather well-defined orders of the owner. Systems
development is minimal. Formal planning is, at best, cash forecasting. The major goal is still
survival, and the owner is still synonymous with the business. In the Survival Stage, the
enterprise may grow in size and profitability and move on to Stage III. Or it may, as many
companies do, remain at the Survival Stage for some time, earning marginal returns on invested
time and capital, and eventually go out of business when the owner gives up or retires. The
“mom and pop” stores are in this category, as are manufacturing businesses that cannot get
their product or process sold as planned. Some of these marginal businesses have developed
enough economic viability to ultimately be sold, usually at a slight loss. Or they may fail
completely and drop from sight.

Stage III: Success

In the Success stage the company has attained true economic health, has sufficient size and
product-market penetration to ensure economic success, and earns average or above-average
profits. The company can stay at this stage indefinitely, provided environmental change does
not destroy its market niche or ineffective management reduce its competitive abilities.
Organizationally, the company has grown large enough to, in many cases, require functional
managers to take over certain duties performed by the owner. The managers should be
competent but need not be of the highest caliber, since their upward potential is limited by the
corporate goals. Cash is plentiful and the main concern is to avoid a cash drain in prosperous
periods to the detriment of the company’s ability to withstand the inevitable rough times.

In addition, the first professional staff members come on board, usually a controller in the
office and perhaps a production scheduler in the plant. Basic financial, marketing, and
production systems are in place. Planning in the form of operational budgets supports
functional delegation. The owner and, to a lesser extent, the company’s managers, should be
monitoring a strategy to, essentially, maintain the status quo. As the business matures, it and
the owner increasingly move apart, to some extent because of the owner’s activities elsewhere
and to some extent because of the presence of other managers. Many companies continue for
long periods in the Success stage. The product-market niche of some does not permit growth;
this is the case for many service businesses in small or medium-sized, slowly growing
communities and for franchise holders with limited territories. Other owners actually choose
this route; if the company can continue to adapt to environmental changes, it can continue as
is, be sold or merged at a profit, or subsequently be stimulated into growth through franchises.

Stage IV: Take-off

In this stage the key problems are how to grow rapidly and how to finance that growth. The
most important questions, then, are in the following areas:

Delegation. Can the owner delegate responsibility to others to improve the managerial
effectiveness of a fast growing and increasingly complex enterprise? Further, will the action be
true delegation with controls on performance and a willingness to see mistakes made, or will it
be abdication, as is so often the case?

Cash. Will there be enough to satisfy the great demands growth brings (often requiring a
willingness on the owner’s part to tolerate a high debt-equity ratio) and a cash flow that is not
eroded by inadequate expense controls or ill-advised investments brought about by owner
impatience? The organization is decentralized and, at least in part, divisionalized—usually in
either sales or production.

The key managers must be very competent to handle a growing and complex business
environment. This is a pivotal period in a company’s life. If the owner rises to the challenges of
a growing company, both financially and managerially, it can become a big business. If not, it
can usually be sold—at a profit—provided the owner recognizes his or her limitations soon
enough. Too often, those who bring the business to the Success Stage are unsuccessful in Stage
IV, either because they try to grow too fast and run out of cash. If the company fails to make
the big time, it may be able to retrench and continue as a successful and substantial company
at a state of equilibrium.

Stage V: Resource Maturity

The greatest concerns of a company entering this stage are, first, to consolidate and control the
financial gains brought on by rapid growth and, second, to retain the advantages of small size,
including flexibility of response and the entrepreneurial spirit. The corporation must expand the
management force fast enough to eliminate the inefficiencies that growth can produce and
professionalize the company by use of such tools as budgets, strategic planning, management
by objectives, and standard cost systems—and do this without stifling its entrepreneurial
qualities. A company in Stage V has the staff and financial resources to engage in detailed
operational and strategic planning. The management is decentralized, adequately staffed, and
experienced. And systems are extensive and well developed. The owner and the business are
quite separate, both financially and operationally. The company has now arrived. It has the
advantages of size, financial resources, and managerial talent. If it can preserve its
entrepreneurial spirit, it will be a formidable force in the market.

Case Study: Monal Example for Scope, Development and Growth of Entrepreneurial
Ventures:

Luqman Afzal is a graduate from the BSc class of 2002. He graduated with a major in
Economics and minor in Social Sciences. During his time at

LUMS, his entrepreneurial spirit was nurtured and to date he has continued to cultivate his
zest for entrepreneurship. He is fast paving his way up the hospitality industry in Islamabad.
Here he talks about his journey, from managing a cafe at LUMS to establishing a fine dining
restaurant.

“It still seems like yesterday, though it has been 14 years, when I asked my father for money
to buy the LUMS Khokha Inc shares. Buying shares of this facility and operating it for 18
months provided me with my first practical exposure to the real world of business, very early
in life.”

Afzal recalls going to the LUMS GM Administration’s office every day, to get a telephone
extension sanctioned for the Khokha in order to start free-delivery to hostels. He is very
proud of his achievements during his first venture because he transformed a plain snack bar
into an elaborate café, offering both ready-to-serve and gourmet meals, with the price of its
shares having increased more than five-fold by the time he graduated in 2002.
“After completing my BSc, I continued my business career by developing, on lease from the
Government of the Punjab, a family recreational area at Saint Mary’s Park, Gulberg, Lahore in
October 2002. I wanted to offer entertainment opportunities for families; something more
than just dining out. F-1 Traxx offered recreational facilities catering to all ages: remote
control cars on tracks, battery-operated cars for children to drive, E-scooters and petrol quad
bikes for teenagers to ride, a snooker/pool lounge, and many other others,” said Afzal.
Along with these facilities, he also set up a restaurant, based on the traditional village theme,
which offered a complete range of barbeque, Pakistani gourmet cuisine, fast food, and pizza,
along with a large variety of drinks. The meals were served on the best quality clay crockery,
provided immaculate service and most importantly the hygiene and sanitation of the kitchens
were ensured to maintain the food quality.

In August 2004, Afzal leased another project within the premises of the same park. This was a
skeletal cement structure, which, in conformity with the country theme, he transformed into
a tree house by decorating it with wooden logs, timber planks, rope and by letting Jacarandas
and Gold Mores grow all around it. Within this tree house, he placed chimes that tinkled with
the breeze and subtle lights that created an ethereal ambience. A unique concept in Lahore,
the tree house turned out to be a huge success.

In June 2005, Afzal decided to bid for a project in Islamabad which changed the course of his
life.

“The Capital Development Authority published an advertisement in leading national

newspapers in June 2005 inviting expressions of interest from parties with relevant
experience to lease and operate a restaurant at Pir Sohawa. This was a great opportunity for
me, not merely in terms of business, but to achieve my dream of establishing a world-
class, fine dining restaurant. I was apprehensive that not many people would want to travel
so far, on a perilous climb, just to eat out. I reconsidered my plans but there was something
about the verdant serenity of the silent Margallas that allured me and I took the plunge, and
sent in my bid. Twelve parties submitted their proposals and after detailed evaluations and
various presentations, three parties were short listed and I won the bid.
My first task after getting the official possession of the restaurant was to equip the
designated kitchen areas with the best and the most modern kitchen machineries so that it
could serve a menu which would suit the cosmopolitan city of Islamabad and the people who
would visit it from within and outside Pakistan. The kitchens comprised different food
sections and were made to serve Pakistani dishes as well as International cuisine.”

Afzal recalls the various issues he had to resolve while setting up the restaurant.

“The first task was acquiring water for the restaurant. We used mineral water for cooking,
but tap water was required for dishwashing, for washrooms and for the cleaning of the huge
outdoor area. Cleanliness and hygiene, especially of the washrooms, is one of critical
importance in the hospitality industry. However, water was not available anywhere near the
premises, so he had to procure it from the Gokina Village, which is situated four kilometres
downhill.”

Since the restaurant was required to meet international culinary standards, the next most
crucial requirement was Sui Gas for the kitchens. A multinational company was taken on
board to provide bulk cylinders of liquid LPG. To date, liquid gas comes in tankers to The
Monal and costs six times as much as the commonly used Sui Gas. The pressure declines in
the winters as liquid LPG freezes, owing to which, extra commercial cylinders have to be used
in winters to maintain the pressure.
Initially, approximately 150 people were hired from the surrounding villages. The intention
behind hiring local staff was to integrate the local people with The Monal in such a way that
the social and economic benefits that the restaurant would generate could flow down
directly to the local populace and contribute towards its socioeconomic uplift. Apart from
direct recruitment, the locals were also involved in indirect ways. For instance, the contract
for managing laundry (clean linen and uniforms for the staff on a daily basis) was given to
them along with contracts for other supplies of local produce such as milk, seasonal
vegetables etc.
The experienced restaurant managers trained and groomed the raw, and sometimes uncouth,
staff that was not even aware of the basic norms of the hospitality industry. An eight-hour
course was designed for them on personal hygiene, proper wearing of uniforms, professional
body language, posture discipline, table layout, service manners etcetera. They were trained
not just through instruction, but also through practicals.

The Monal had only just started gaining popularity amongst the residents and diplomats of
Islamabad, when the Marriot Attack took place in September 2008. With this tragic event, the
scenario of Islamabad’s social life changed altogether. A police check post was created on
every major road, as the terrorists continuously threatened to target important public spots
and official buildings. During this period, the restaurant incurred heavy losses – both in
financial terms as well as in terms of morale. However, the situation eventually improved and
The Monal once again started taking flight towards the mid of 2010.
“The Monal emerged as an ambassador of Pakistan. Any foreign delegation visiting Pakistan
on the invitation of the Foreign Office, Board of Investment and many other ministries, was
brought here to experience the positive side of Pakistan. Any foreigner, who came with the
impression of Pakistanis being terrorists, witnessed a perfect civic society, which could live in
harmony and coherence, and tolerate each other’s different religious beliefs and
backgrounds. The restaurant displayed the human face of Pakistan – people from different
parts of the country, speaking different languages, sitting together with families and enjoying
the environment in the most civilised manner.”
Afzal shared that a significant reason underlying The Monal’s attraction and success is its
affordability. This factor was, in fact, kept in mind while pricing the menu. The restaurant has
expanded to catering events as well, with its two marquee halls. Apart from that, the
company is also involved with an amusement project at Lake View Park under the name of F-
1 Traxx, Islamabad.
“The company presently employs 900 people, which I consider my biggest achievement. The
most interesting fact is that The Monal’s team of 450 people is being headed by the
same person who used to warm pizza slices at the Khokha and F-1 Traxx. Islamabad’s
team, which comprises 150 people, is being headed by the person who used to be the cashier
at the Khokha at LUMS. I am proud to have groomed people to hold higher positions.”

Talking about entrepreneurship, Afzal said that it is ‘all about consistency’. He advised
aspiring entrepreneurs to not get disappointed if the business does not start paying back
from the first day as no business starts paying back immediately.
“Take initiatives, work hard with clear intentions, and then leave the rest to God. A strong
belief in your ideas and then a continuous struggle to make other people believe in them,
coupled with the ability to fearlessly execute these ideas in a professional manner is perhaps
what turns your dreams into reality. Your success is not just the amount of money you are
making at the end of the day but also the social contributions you are making and the job
opportunities your business is creating,” said Afzal.