Tayyaba Latif

Pakistan: A Story of Technology, Entrepreneurs and Global Networks

Summary:

Abstract:

In 2007, Asad Jamal, a Pakistani-born entrepreneur and founder of ePlanet Ventures, a

technology-based totally fund, puzzled whether his company should be one of the first entrants
inside the in large part untapped marketplace of Pakistan. The United States of America's
political, monetary, and social situation posed a number of possibilities and risks that Jamal
needed to weigh very carefully. To spotlight Pakistan’s explosive boom during the tenure of
General Pervez Musharraf from 1999 to 2007, and have a look at the energy of diaspora in
facilitating entrepreneurship.

Problem Statement:

“The decision had to be made on whether ePlanet should invest in Pakistan and risk its
money”

ePlanet Ventures had to choose whether to put money into Pakistan. Pakistan changed into a
nascent, largely untapped marketplace with an expertise pool that became normally 30-40%
inexpensive than its friends in India and China, the big problem is being able to recruit a top
quality management. Because, in pakistan the common perception was that relied on
management become difficult to come back by way of in Pakistan, and consequently the
subculture becomes still certainly one of the own family-owned agencies with confined
professional management. It could be not possible to scale new ventures without addressing this
difficulty. The empowerment of a growing center class and a fashion for overseas Pakistanis to
go back home led Asad to consider that this problem. The main difficulty in Pakistan was the
unreliable supply of electricity, water, and other utilities, which intended companies, had to
construct redundant systems into their infrastructure, which costly in dollars.
Tayyaba Latif

Overall Assessment:

Asad Jamal visualize that The U.S. venture capital community changed into realizing that many
technologies that labored successfully within the West can be replicated in markets like Pakistan.
Right here had been logical enterprise considerations for making an investment in Pakistan,
consisting of a large market, fee-base and expertise, similarly to reasons based on cultural or own
family connections. Since 2002, Pakistan had visible robust GDP increase, averaging around 7%
according to year. Pakistan’s enterprise surroundings and funding weather become flourishing
Pakistan turned into ranked #1 in South Asia for its "Ease of Doing Business" and #seventy six
globally (India was #120). Pakistan became becoming attractive now not best because of its
talent pool, but because this talent pool became typically 30-40% less expensive than its friends
in India and China. In Pakistan, advent of the Private Equity and Venture Capital Funds Act of
2007 additionally supplied permitting regulatory surroundings for the capital markets, making it
simpler for finances out of doors of Pakistan to make investments within the country with
complete safety in addition to providing full tax exemption until 2014. Today, world became
now an international village and, particularly in the customer Internet/net 2.0 space, this distance
issue became now nearly moot. By selling its product via YouTube, Scrybe verified that it did
now not rely on that it changed into located in a leafy suburb of Islamabad and Lahore had
masses of thousands of customers as well. United States have been tough to obtain for Pakistani
residents, the previous "mind-drain" became fast becoming a "brain-gain" for Pakistan. In fact,
within the generation area on my own, Pakistani universities had been generating upwards of
20,000 English-talking graduates in step with year. Scrybe recently attracted funding from
Adobe Systems and LMKR and was currently in beta testing. The software was referred to as
"the most anticipated software" at the Museum of Modern Betas, a Web site that tracked
emerging Web 2.0 projects. Scrybe's success was not unique. Fuelled by a new breed of well-
educated Pakistani entrepreneurs, there were numerous other home-grown IT start-ups in
Pakistan making their mark on the global markets. Moreover, in Entrepreneurship Center, has
been taking a lively function in teaching Pakistani-based marketers. Workshops, seminars, and a
currently concluded Business Acceleration Plan (BAP) opposition, organized with the aid of the
MIT Enterprise Forum of Pakistan.
Tayyaba Latif

Conclusion:

So, it is concluded that Pakistan is great vicinity to operate an enterprise because of its cheap
labor, excellent economic system, good relations with neighboring countries, and favorable tax
rules. As groups grow, are a success in their neighborhood restriction of operations, managers
and entrepreneur tend to are trying to find similarly challenges and determine how far they could
take their employer’s fulfillment, remain competitive and profitable

Alternate Solutions:

 The first strategic need of ePlanet Ventures fund Company was to expand overseas into
Pakistan. Pakistan was a good preference because at the time, there was a whole lot of
government rebuilding happening and commercial enterprise was most welcomed into
the country. This meant that a company could set up a project and anticipate it to do
nicely. This was ordinary desirable but, it additionally had a few drawbacks.
 The 2nd strategic preference or alternative was greater of a gamble than something. The
records of Pakistan turned into that 2nd stage depended on management could not be had
because of most agencies being mom and dad kind own family businesses wherein 2nd
tier management became now not part of the culture. This provided an undertaking and
that needed to be addressed. With the growing middle the class now taking a stable
foothold, Asad turned into able to see that this problem may be addressed through wage
and equity offerings.
 The third method hired the use of beginning an employer with a direct the attention of
that enterprise being obtained by means of Google. This strategy changed to be with 10
corporations and have every acquired. This became something that gave Asad speculation
in his thinking which leads him to think about profitability equivalence to the west. The
biggest speculation that the concept of becoming the doubt that his partners might invest
in Pakistan, due to the fact that USA turned into only 60 years antique on the time.