Ycl-Syee Pakistan-Report 0

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State of Youth Entrepreneurship Ecosystem in Pakistan 1

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DEVELOPMENT BANK COMMONWEALTH
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The Islamic Development Bank ciation of 56 countries working
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socio-economic progress in its Commonwealth Secretariat is the
member countries and Muslim intergovernmental organisation
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ic finance, the IsDB provides work, supported by a network
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pertise, and capacity-building As the main intergovernmental
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able development and improve monwealth Secretariat works
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committed to addressing de- ernment and promotes interna-
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2 State of Youth Entrepreneurship Ecosystem in Pakistan

Abbreviations
and Acronyms
EE Entrepreneurship Ecosystem
G-R Gender-Responsive
GYI Global Youth Index
NAVTCC National Vocational and Technical Training Commission
PBS Pakistan Bureau of Statistics
PKR Pakistani Rupee
SME Small and Medium Enterprise
SMEDA Small and Medium Enterprise Development Authority
TEVTA Technical Education and Vocational Training Authority
SECP Securities and Exchange Commission of Pakistan
AJK Azad and Jammu Kashmir
ICT Islamabad Capital Territory
GB Gilgit Baltistan
USD US Dollar

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imply the expression of any opinion whatsoever
on the part of the United Nations Development
Programme (UNDP) concerning the legal or de-
velopment status of any country, territory, city or
area of its authorities, or concerning the delimi-
tation of its frontiers or boundaries. The views
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thors and do not necessarily reflect the views or
policies of the United Nations including UNDP, or
the United Nations Member States. This publica-
tion may be freely used for non-commercial, fair
use purposes, with proper acknowledgement of
UNDP and its partners, the Islamic Development
Bank (isDB) and the Commonwealth Secretariat.

Acknowledgements
This report was jointly produced by UNDP Research oversight and inputs were pro-
under the Youth Co:Lab initiative co-led vided by UNDP Pakistan, including Je-
by UNDP and the Citi Foundation, in part- hangir Ashraf, Tanya Rzehak and Fatima
nership with the Islamic Development Ahmed. Research oversight and inputs
Bank. The research was conducted and were also provided by UNDP Bangkok
consolidated by Lead Research Consul- Regional Hub, including Devika Iyer and
tant, Dr Mohsen Gul and his research Beniam Gebrezghi, Savinda Ranathun-
team, Dr Roomi Aziz, Ehsan Gul, Fatimah ga, Shamha Naseer, Pauliina Meskus, Su-
Mahmood, Dr Fasiha Safdar and Haseeb vimali Suraweera and the entire Youth
Khan. Co:Lab Team.
UNDP is grateful for the co-leadership and

The research team would like to express
generous support of the Citi Foundation,
their sincere appreciation and gratitude
without whom this research would not
to all the survey respondents, informants
have been possible. Research oversight
of key interviews and participants of fo-
and inputs were provided by Islamic De-
cus group discussions from government
velopment Bank, including Ahmed Dik-
agencies, non-governmental organiza-
en and Ousmane Diaby. Special thanks
tions, entrepreneur support organizations to Commonwealth Secretariat, including
and youth entrepreneur’s communities Sushil Ram and Saima Mjaeed for provid-
that have provided invaluable informa- ing research strategic guidance support.
tion and data. The authors are grateful
to all the research participants who gave The visual content and layout were
their time to share their experiences and designed and produced by Gayathri
knowledge on this topic. Karunaratne.

State of Youth
Entrepreneurship
Ecosystem
in Pakistan
Table of
Content
12 Executive Summary
17 Introduction
20 State of Youth Entrepreneurship in Pakistan
25 Key Definitions
26 Methodology and Data Collection
35 Key Players in the Youth Entrepreneurship Ecosystem in Pakistan
40 Domain 1: Policy and Regulatory Frameworks

41 State of Play
42 Key Findings
50 Domain 2: Human Capital and Entrepreneurship Culture
51 State of Play
55 Key Findings
65 Domain 3: Access to Finance and Incentives
66 State of Play
69 Key Findings
80 Domain 4: Business Development Support and Infrastructure
81 State of Play
83 Key Findings
92 Domain 5: Access to Markets
93 State of Play
94 Key Findings
101 Domain 6: Innovation and Technology
102 State of Play
104 Key Findings
112 Recommendations
112 Domain 1: Policy and Regulatory Frameworks
113 Domain 2: Human Capital and Entrepreneurship Culture
114 Domain 3: Access to Finance and Incentives
115 Domain 4: Business Development Support and Infrastructure
116 Domain 5: Access to Markets
117 Domain 6: Innovation and Technology
118 Monitoring and Evaluation of the Recommendations
125 Annex 1 : Showcase of Contributions to Entrepreneurial Ecosystem in Pakistan (Based on
Research Case Studies)

140 Annex 2 : Identification of Priority Sectors for Youth Entrepreneurship aligned to National
Development Priorities and the Sustainable Development Goals
144 Annex 3 : Best Practices of Integrated and Robust Ecosystem that Support Youth-led
Enterprises and Entrepreneurs
148 Annex 4: Survey Questionnaire – Primary Stakeholder (Young Entrepreneurs) and Key
Informant Interview Guide – Diverse stakeholder groups
Table of
Figures
29 Figure 1. Respondents’ background by province and gender
30 Figure 2. Respondents’ distribution by districts of residence
30 Figure 3. Socioeconomic backgrounds of respondents by province and gender
31 Figure 4. Educational background of respondents
31 Figure 5. Access to internet
32 Figure 6. Age of enterprise
32 Figure 7. Registration types of respondents’ enterprises
43 Figure 8. Source of Information regarding any business, market, finance, tech support
for enterprise
44 Figure 9. Biggest challenges experienced by young entrepreneurs in Pakistan
47 Figure 10. Size of loan received by the 62 respondents from Prime Minister’s Youth
Entrepreneurship Scheme
57 Figure 11. Mentoring or networking opportunities availed
58 Figure 12. Key challenges young people face when embarking upon entrepreneurial
journeys by provinces and gender
61 Figure 13. Respondents who have participated in a business incubationstart-up
competition
63 Figure 14. Difficulty level for youth to become entrepreneurs in Pakistan because of
the different factors
70 Figure 15. Percentage of respondents able to access financing for their enterprises
71 Figure 16. Knowledge of financing options for business in Pakistan
75 Figure 17. Distribution of enterprises by type of registration

Table of
Figures
77 Figure 18. Immediate family member as an entrepreneur
77 Figure 19. Types of funding used for setting up enterprise
79 Figure 20. Importance of access to financing
79 Figure 21. Importance of financial incentives in encouraging entrepreneurship in
Pakistan
85 Figure 22. Interest in seeking incubation support
85 Figure 23. Kind of support sought via incubation
86 Figure 24. Difficulty level for young and upcoming entrepreneurs in seeking business
development support for their business in Pakistan
87 Figure 25. Awareness of young people in Pakistan regarding entrepreneurship as a
career option
87 Figure 26. Formal training or education related to entrepreneurship received
89 Figure 27. Utility of various types of support
90 Figure 28. Access to Mentor
91 Figure 29. Mentoring or networking opportunities availed
95 Figure 30. Challenges faced in accessing local and national markets
95 Figure 31. Entrepreneurs that accessed international markets
96 Figure 32. Challenges faced in accessing International Markets
97 Figure 33. How to improve young entrepreneurs’ access to local, national and
international markets
100 Figure 34. Reaching out to potential clients customers
106 Figure 35. Importance of innovation and technology for entrepreneurs enterprises
107 Figure 36. Access to technological support
108 Figure 37. Sufficiency of opportunities and resources available for young entrepreneurs
in Pakistan
109 Figure 38. Access to the Internet by province and gender
110 Figure 39. Ease of accessing and adopting new technologies and innovation by young
entrepreneurs in Pakistan
List of
Tables
27 Table 1. Key informant interviews and focus groups conducted
48 Table 2. Heat Map of types of support sought by respondents and source of the support
76 Table 3. Difficulty in seeking financial support for businesses by different factors
98 Table 4. Difficulty level for young and upcoming entrepreneurs in seeking access to mar-
ket for their business in Pakistan (in percent)
105 Table 5. Technological tools used by entrepreneurs (in percent)

Executive Summary
The State of Youth Entrepreneurship However, to further enhance the youth
in Pakistan reflects the country’s grow- entrepreneurship ecosystem in Pakistan,
ing momentum in its entrepreneurship it is vital to adopt a youth and gender in-
ecosystem since 2012, marked by an inclusion lenses throughout the analysis
creasing number of startups, funding op- and decision-making process. By under-
portunities, incubation centres, and entre- standing and addressing the specific bar-
preneurship-centric events in both public riers and opportunities faced by young
and private domains. However, despite people, women, and marginalized groups,
these efforts, Pakistan’s global ranking in Pakistan can create a more supportive
terms of entrepreneurial ecosystems re- and inclusive environment for budding
mains low, with significant disparities in entrepreneurs.
gender and youth development indica-
tors. Key stakeholders, including enterprises,
government entities, educational insti-
Pakistan’s youth population, being the tutes, financial institutions, and NGOs,
fifth largest in the world, holds immense play a crucial role in shaping the youth en-
potential for economic growth and de- trepreneurship ecosystem. Collaborative
velopment. However, the country faces efforts among these stakeholders, along
challenges in harnessing this potential with the implementation of targeted pol-
due to high levels of illiteracy and limited icies and programs, can lead to a more
access to education, employment, and vibrant and thriving ecosystem that em-
connectivity. Marginalized communities, powers the country’s youth to realize their
including rural youth and persons with entrepreneurial aspirations.
disabilities, face even greater barriers to
accessing opportunities and support for Pakistan’s youth entrepreneurship eco-
entrepreneurship. system has witnessed significant growth
and potential, but it requires continued
In the realm of youth entrepreneurship, efforts and focused initiatives to overcome
Pakistan has seen significant growth in the challenges and create an inclusive envi-
number of startups and support organiza- ronment for all aspiring entrepreneurs.
tions, but challenges persist, particularly in By nurturing talent, providing access to
terms of talent availability, funding gaps, resources, and addressing gender and in-
and gender parity. Startups founded by clusivity gaps, Pakistan can foster a vibrant
women, for example, receive minimal fund- entrepreneurial landscape that drives
ing compared to men., highlighting the economic growth and social progress.
need for targeted support and initiatives to The research has used a six-domain diag-
promote women’s entrepreneurship. nostic framework to analyze and better
understand the challenges and enablers
The government’s commitment to fos- to creating an inclusive entrepreneurship
tering entrepreneurship, along with a ecosystem.
growing pool of talented individuals and
increased access to funding and resourc- DOMAIN 1: POLICY AND
es, has led to a booming startup ecosys- REGULATORY FRAMEWORK
tem. Notably, the number of registered
Lack of Awareness and Knowledge:
startups has increased significantly, and
Youth entrepreneurs in Pakistan face a
venture capital investments have reached
lack of awareness and knowledge about
record highs.

Executive Summary
policies and regulatory opportunities that done on the policy level to integrate youth
can benefit their startups. The findings and women’s needs and challenges in en-
highlight the need for better communi- trepreneurship into existing development
cation and dissemination of information projects.
so that startups can take full advantage of
incentives and support offered by the gov- Visionary and Entrepreneurial Lead-
ernment. ership: This is considered essential at the
national level for fostering a conducive en-
Policy Support for Green Energy and vironment for entrepreneurship. An entre-
Sustainability: There is a growing em- preneurial executive can drive policies and
phasis on social and green entrepreneur- initiatives that support inclusive entrepre-
ship in Pakistan, with startups addressing neurship.
major societal issues gaining prominence.
Policymakers are urged to promote and Streamlining Policies: Ensuring acces-
support such ventures through targeted sibility and applicability across different
initiatives and programs, such as policies sectors of the entrepreneurial ecosystem
supporting green energy and sustainabil- is crucial for strengthening the entrepre-
ity. neurship ecosystem.
Government as Enablers and Facilita- DOMAIN 2: HUMAN CAPITAL AND

tors: The role of the government as an ENTREPRENEURSHIP CULTURE
enabler and facilitator of entrepreneur-
ship is crucial. Regulators are encouraged Lack of Encouragement for Entrepre-
to move beyond their traditional role and neurship in Formal Education: There is
take on a more proactive stance in guid- little encouragement and motivation for
ing and supporting startups through the entrepreneurship at the school level, as the
regulatory process. emphasis remains on “safe choices” like
employment in government jobs; limiting
Supportive Government Initiatives and the young people’s choices and scopes.
Programs: Programs like the Prime Min-
ister’s Youth Loan Scheme and the Prime Impact of Gender Roles on Entrepre-
Minister’s Youth Skill Development Pro- neurial Activities and Development:
gram provide financial assistance and skill There is a gender disparity prevalent as a
development support to young entrepre- result of socially constructed gender roles
neurs and play a crucial role in promoting that render added responsibilities on wom-
youth entrepreneurship in Pakistan en in the shape of household and caregiv-
ing duties, in addition to the patriarchal
Comprehensive Ecosystem Develop- cultural barriers. Oftentimes this impacts
ment: An integrated approach is needed the participation levels of women in entre-
to nurture entrepreneurship focusing on preneurial initiatives, and their access to fi-
financing opportunities, incubators, men- nance and resources.
toring, skill development, market access,
and providing entrepreneurial education Necessity-driven Entrepreneurial Ac-
from an early age. tivities: Predominantly, entrepreneurial
activities in the country are necessity-driv-
Challenges in Policy Implementation en, and the rate of establishment of en-
and Integration: The need for better in- terprises remains low because of limited
tegration of youth and women perspec- opportunities. However, with time, there is
tives and challenges in policy implemen- an increasing presence of initiatives and ef-
tation are noted. More work needs to be forts to develop human capital in Pakistan,

Executive Summary
which is key to unlocking the potential of to financial institutions, lack of mentorship,

the country’s young population. and gender biases negatively impact wom-
en entrepreneurs. Although some govern-
Importance of Entrepreneurship Edu- ment initiatives like the “Women Entrepre-
cation: Entrepreneurship education as- neurship Program”, “Prime Minister’s Youth
sumes, early exposure to entrepreneurship Loan Scheme” and “Prime Minister’s Youth
through the curriculum and industry-wide Skill Development Program” offer benefits
experiences. This is a critical entry point to to women entrepreneurs, there is a need
promote and enhance entrepreneurship for more targeted support.
among young people in the country.
Seed Funding and Series A Financing:
Breaking Silos and Integrated Efforts: The lack of sufficient Series A funding hin-
Strengthening collaborative efforts among ders their growth after initial seed funding
stakeholders, including academia, govern- rounds. Establishing an entrepreneurship
ment, and industry is vital to creating an fund that can source money offshore may
enabling ecosystem for entrepreneurship. encourage and support talented entrepre-
neurs in their early stages.
DOMAIN 3: ACCESS TO FINANCE AND
INCENTIVES Barriers to Formal Financing: The lack of
Lack of Access to Investments and corporatization and necessary registrations
Funding: Access to investments and fund- restricts access to formal financing from
ing remains a significant challenge for banks and financial institutions. Stream-
entrepreneurs in Pakistan, especially for lining the process of formal financing can
young people pursuing social entrepre- enable more startups to access the funding
neurship. Local venture capitalists are limit- they need to grow and sustain their busi-
ed, and banks have stringent lending rules, ness.
making it difficult for startups to secure
the necessary financial resources to grow. Personal Resources and Family Sup-
To overcome these issues initiatives such port: Many entrepreneurs initially rely on
as establishing an entrepreneurship fund, personal resources and family support to
encouraging venture capital investment, fund their ventures, as external financing
strengthening the banking system and options remain limited. However, this re-
promoting alternative financing options liance can also mean that family expecta-
can be pursued. tions and stigmas about being self-em-
ployed become a key hurdle for young
Role of Incubators and Supportive Or- entrepreneurs.
ganizations: Incubators and supportive
organizations play a vital role in assisting Need for Financial Awareness and In-
entrepreneurs in identifying funding sourc- centives: To encourage entrepreneurship
es and connecting them with investors. Ini- further, financial awareness and incen-
tiatives like Jazz xlr8 are commendable in tives play a crucial role. This can be realized
promoting diversity and inclusivity in the through the incorporation of financial lit-
startup ecosystem by providing access to eracy with formal and informal education
funding and business development sup- curricula, and mentorship and guidance
port for entrepreneurs especially women through immersive engagements with
and persons with disabilities. sector experts. In addition, providing tax
benefits, grants, and subsidized loans can
Challenges for Women Entrepreneurs: alleviate financial burdens and motivate
Gender-specific challenges in accessing fi- more individuals to venture into entrepre-
nance and capital, including limited access neurship.

Executive Summary
DOMAIN 4: BUSINESS of on-ground realities. It also aids in cre-

DEVELOPMENT SUPPORT AND ating self-awareness, amongst individu-
INFRASTRUCTURE als that can then leverage these insights
to make informed decisions, capitalize on
Challenges in Accessing Angel Inves-
strengths, and work on their weaknesses,
tors and Funding: Local entrepreneurs
early on in their entrepreneurial journeys.
face difficulties in finding angel investors
and securing basic funding, hindering the
Challenges in Accessing Proper Debt
growth of startups.
Structuring: Accessing proper debt
structuring remains challenging and lim-
Rethinking the Role of Incubators and
iting financing options for startups. In-
Supportive Organizations: With an ev-
adequate understanding of various debt
er-changing business and entrepreneur-
instruments and terms can lead to weak
ship landscape a shift from traditional
financing arrangements, potentially bur-
resource-provision models to more dy-
dening young entrepreneurs with unsus-
namic ecosystems that foster collabora-
tainable debt or unfavourable terms and
tion, skill-sharing, and adaptive mentor-
conditions, that may hinder their progress.
ship need to be created. Incubators need
to adopt a more hands-on approach, pro-
DOMAIN 5: ACCESS TO MARKETS
viding tailored training and mentorship
for entrepreneurs. Challenges in Accessing International
Markets: Pakistani startups and entrepre-
Addressing the Gap in Business Devel- neurs face difficulties in entering global
opment Skills: There is a gap in business markets due to a lack of exposure, experi-
development skills among graduates and ence, and acceptability. Limited access to
young entrepreneurs, necessitating small buyers, inadequate marketing, and com-
incubation centres to nurture talent. It is petition from established businesses are
crucial to create targeted training pro- some of the main challenges in accessing
grams, mentorship initiatives, and prac- local and national markets. Inadequate
tical experiential learning opportunities, marketing and promotion were the most
that can cater to the business develop- cited challenges in accessing internation-
ment needs of young entrepreneurs. al markets.
Tailoring Support Services for Specific Need for Capacity Building and Men-
Groups: Tailoring services is important to torship: Mentorship and early-stage
create an inclusive ecosystem. This stip- support can foster entrepreneurship and
ulates the need to recognize the unique
needs and barriers faced by diverse en-
trepreneurial stakeholders, such as wom-
en, minorities, or persons with disabilities.
Support services must cater to the specif-
ic needs of women entrepreneurs and un-
derserved communities for inclusivity.
Importance of Mentorship and

Self-Awareness: Mentorship is crucial
for nurturing entrepreneurs and fostering
self-awareness within the entrepreneurial
community. Mentorship provides valuable
guidance, experience, and perspective,
for young people who may be unaware

Executive Summary
provide valuable market insights. Foster- Youth-led Technology Entrepreneur-

ing partnerships and providing market in- ship: Young people are driving innovation
sights, incubators can help startups from in Pakistan, with many technology start-
marginalized communities access mar- ups founded and led by young individu-
kets that might otherwise be out of reach. als. Digital channels and platforms have
facilitated the launch and growth of their
Government’s Role in Market Access: businesses, making technology a signifi-
The government’s role in facilitating mar- cant driver of entrepreneurial growth.
ket access is perceived with mixed views.
While there are grants and programs avail- Focus on Social Entrepreneurship
able, accessing these resources can be and Impact: Social entrepreneurship
challenging due to a lack of trust or prop- has gained traction among Pakistani
er implementation. Some believe that the youth, with startups focused on solving
real-world challenges and making a pos-
government should do more to promote
itive impact on society and the environ-
export opportunities for young entrepre-
ment. Solutions for waste management,
neurs.
recycling, and responsible consumption
are gaining prominence.
Digital Skills and Opportunities: Digital
skills play a crucial role in accessing new
Opportunities and Potential Sectors:
markets and industries. Providing training
The IT sector, e-commerce, renewable
programs and digital skills initiatives can
energy, agribusiness, education, sustain-
equip young entrepreneurs with the nec- able fashion, and health technology are
essary tools to leverage digital opportuni- among the key areas where young entre-
ties and access a broader customer base. preneurs can thrive in Pakistan. Climate
Conducting thorough market research change challenges also provide opportu-
and establishing effective branding and nities for innovative solutions.
marketing strategies are also vital for mar-
ket entry and success. Challenges in the Technology Sector:
Young entrepreneurs in the technology
Sources to Reach Potential Clients and sector face challenges such as internet
Customers: Personal networks, social me- accessibility, international fund transfer is-
dia, and physical stores are the preferred sues, and the need to keep up with tech-
media to reach out to potential clients nical changes. Addressing these obstacles
and customers in all geographical regions is crucial for sustained success.
of Pakistan. Online marketplaces are the
least explored venues for reaching out to Sufficiency of Opportunities and Re-
potential customers. sources: Despite the opportunities,
young entrepreneurs feel that there are
DOMAIN 6: INNOVATION AND insufficient resources and opportunities
TECHNOLOGY available for them in Pakistan. Internet
accessibility and technical infrastructure
Technology as a Catalyst for Entrepre-
are areas that need improvement.
neurship: The increasing penetration of
technology and digitalization has opened Ease of Accessing and Adopting New
new opportunities for young entrepre- Technologies: Most young entrepre-
neurs in Pakistan, especially in the technol- neurs find it easy to access and adopt new
ogy sector. Education technology, health technologies and innovation. However, ef-
technology, and digital platforms have forts are needed to address the challeng-
empowered startups to tap into innovative es faced by those who find it difficult.
solutions.

Introduction
Ever since its independence in 1947, Paki- revenue, and boost the economy in gen-
stan’s economy has been facing challeng- eral. According to the United Nations De-
es due to various factors including political velopment Programme’s (UNDP) National
instability, regional geo-political situations, Human Development Report (NHDR), Pa-
global recessions, and natural disasters. kistan needs to create 1.3 million addition-
Pakistan made significant progress to- al jobs on average every year, as the num-
wards reducing poverty between 2001 and ber of working-age people will grow from
2018 when the expansion of off-farm eco- 4 million per year to 5 million per year till
nomic opportunities and increased inflow 20354. Coupled with the downturn in the
of remittances allowed over 47 million Pa- country’s economic growth, and a shrink-
kistanis to rise out of poverty. However, this ing job market, entrepreneurship can act
rapid poverty reduction has not fully trans- as a critical solution to bridge the current
lated into improved socio-economic con- gap between the supply and demand of
ditions, as human capital outcomes have jobs.
remained poor and stagnant, and long-
term growth of real gross domestic prod-
uct (GDP) per capita has been low, averag- Entrepreneurship is
ing only around 2.2 percent annually over a vital component
2000-221. Historically, Pakistan's economy
has shown periodic 'boom-bust' growth
of economic growth
cycles. The reasons for such volatile growth and development.
cycles include wide-ranging economic
challenges such as shrinking fiscal space,
exchange rate pressure, mounting current The creation of new business entities not
account deficit, inflation, energy sector only generates value-added, fiscal reve-
bottlenecks, and the absence of a support- nues, employment, and innovation but
ive environment for the private sector2. is an essential ingredient for the develop-
ment of a vibrant small and medium-sized
A silver lining to this situation is the huge business sector—the core of most com-
market and human resource potential of petitive economies. It also has the poten-
the country in the form of educated and tial to contribute to specific sustainable
tech-savvy youth. In 2022, Pakistan's econ- development objectives, such as the em-
omy recovered from the COVID pandemic ployment of women, young people, or dis-
(a 0.94 percent drop in 2020) and main- advantaged groups. – UNCTAD (2023)5. The
tained a V-shaped recovery by posting real Pakistan government has signalled its sup-
GDP growth of 5.97 percent in the fiscal port of entrepreneurship through interme-
year 20223. diaries like the federal government's Ignite
(formerly known as the National ICT R&D
In the face of economic challenges, entre- Fund), which is housed under the Ministry
preneurship, particularly youth entrepre- of Information Technology and Telecom-
neurship, can help create jobs, generate munications and has launched the Nation-
1
The World Bank (2023). The World Bank in Pakistan
2
Government of Pakistan (2022). Pakistan Economic Survey (2021-2022)
3
Government of Pakistan (2022). Pakistan Economic Survey (2021-2022)
4
Invest2innovate (2019). Pakistan Startup Ecosystem Report.
5
UNCTAD (2023). Entrepreneurship Policy Framework and Implementation Guidance.

Introduction
al Incubation Centres in Islamabad, Kara-

chi, Lahore, Quetta, and Peshawar since
20176. The overarching focus of the pro-
gram is to create a “knowledge economy”
in Pakistan, through nurturing startups,
providing training, and offering tech-inno-
vation grants to promising deep technol-
ogy projects and startups. Pakistan has a
population of 140 million people under the
age of 307, and there has been a 4x growth
in data-enabled mobile connections in the national research on the youth entrepre-
past three years. The economy is projected neurship ecosystem in Pakistan. The study
to grow at ~6 percent per year until 2026, aims to provide:
giving rise to a promising start-up scene8.
▶ In-depth analysis of the current state
A key initiative by the government of Pa- of youth entrepreneur ecosystems in
kistan is the Prime Minister’s Youth Busi- Pakistan through the incorporation
ness and Agriculture Loan Scheme started
of youth, inclusion, and gender lens
in 2013 and to date has disbursed PKR 105
across the study process.
billion to 115,687 entrepreneurs. Moving
forward a target of disbursing PKR 80 bil- ▶ Identification of existing impedi-
lion during the financial year 2023-2024 ments, allowing for the formulation
has been set with PKR 5 billion dedicated of targeted recommendations for
to IT startups. the amplification of the potential of
youth entrepreneurship.
However, several challenges including
economic stress, low literacy rate, political ▶ Identification of entry points to
instability9 and limited engagement and strengthen the operational context
leadership of women in businesses10 still for different types of businesses and
hinder the development of a healthy en- entrepreneurs from diverse back-
trepreneurship ecosystem in the country. grounds.
To bridge the gap, the United Nations De- ▶ Development of a mechanism to

velopment Programme (UNDP) through support data-driven decision-mak-
the Youth Co:Lab, an initiative co-led by ing and help make the voices of en-
UNDP and Citi Foundation and the Islam- trepreneurs and key stakeholders
ic Development Bank commissioned this heard.
6
7
McKinsey & Company (2019). Starting up: Unlocking Entrepreneurship in Pakistan.
8
McKinsey & Company (2019). Starting up: Unlocking Entrepreneurship in Pakistan.
9
Pervaiz & Khan (2015). Entrepreneurial Relations of Pakistani Entrepreneurs: A Macroeconomic and Cultural Perspective.
10

34.6%
Youth population not in
education, employment
or training (NEET)
(ILO, 2021)
68%
Population is 30 years
61%
Youth population
or younger lives in rural areas
(National Youth Development (Population Census, 2017)
Framework 2020)
120
Global Entrepreneurship
108
Ease of Doing Business
Index Rank (2018) Rank (2019)
(GEDI, 2019) (World Bank, 2023)
87
Global Innovation
145
Global Gender Gap Rank
Index Rank (2022) (2022)
(World Intellectual Property (World Economic Forum, 2022)
Organization, 2022)
USD 361.64 million

Total investment raised by
448,000
Social Enterprises in
startups in Pakistan Pakistan
(Pakistan Startup Ecosystem Report, 2022) (British Council, 2016)
98
Entrepreneurship
11.7%
of Rs. 140 billion loans disbursed to
Support Organisations 161,497 were disbursed to female
in Pakistan entrepreneurs under PMYBALS
(Pakistan Startup Ecosystem (Prime Minister Youth Programme,
Report, 2021) 2013-2024)

State of Youth
Entrepreneurship
in Pakistan
Pakistan’s entrepreneurship ecosystem gathered momentum since 2012, with
an increasing number of startups, funding, incubation centres, and innova-
tion and entrepreneurship-centric events and activities both in the public and
private domains. The Invest2innovate 2019 report11 on Pakistan’s Start-up Eco-
system noted that the federal government launched five National Incubation
Centers in 2016, which through public-private partnerships, have collectively
graduated 234 startups from their programs. Despite these continuing efforts,
the Global Entrepreneurship Index Rank of All Countries (2022)12 which assess-
es countries’ entrepreneurial ecosystems based on three key aspects: attitudes,
abilities, and aspirations, ranks Pakistan at 120 out of 137 countries worldwide.
Similarly, assessing the gender parity aspect, the country ranks extremely low
on women’s entrepreneurship whereby only 1 percent of women are engaged
in entrepreneurship, in comparison to 21 percent of men.
Youth Potential in concerning disparities, indicating that out of

every 100 young people, 29 lack basic liter-
Pakistan acy, and merely 6 percent have received an
education lasting beyond 12 years. The find-
As the sixth most populous country globally, ings of the National Human Development
is home to approximately 200 million people. Report are further validated by the Pakistan
Within this demographic, the country holds Social and Living Standards Measurement
the distinction of possessing the fifth-largest Survey by the Pakistan Bureau of Statistics
youth population worldwide; where roughly (PBS)16, indicating an overall literacy rate in
half of its population is below 25 years old13 the country is 60 percent (70 percent men
while around 64 percent fall below the age and 49 percent women) for the year 2019-20.
of 3014. This burgeoning youth demographic Significant gaps were also found regarding
presents both a pivotal challenge and oppor- the space for social engagement and con-
tunity for Pakistan, its successful manage- nectivity: only 15 percent of youth have access
ment hinging largely on the extent of hu- to the Internet, 52 percent own a cell phone,
man development of its young population. A 94 percent do not have access to a library,
key aspect of this involves empowering the and 93 percent lack access to a sports facility.
youth with the freedom and opportunities These statistics indicate the insufficiency of
to lead meaningful lives15. the provision of facilities required by young
people to contribute impactfully towards
However, a glance at the Pakistan National the progression of the economy and create
Human Development Report (2017) reveals purposeful lives.
11
Invest2innovate (2019). Pakistan Startup Ecosystem Report. 14
UNDP-Pakistan (2017). Pakistan National Human Development
12
Global Entrepreneurship Development Institute (2018). Global Report.
Entrepreneurship Index. 15
UNDP (2015). What is Human Development?
13
McKinsey & Company (2019). Starting up: Unlocking Entrepreneur- 16
Pakistan Bureau of Statistics (2020). Pakistan Social and Living
ship in Pakistan. Standards Measurement.

State of Youth Entrepreneurship
in Pakistan
ing and fishing claiming the largest portion

at 37.4 percent, followed by community, social
and personal services (16.0 percent), manu-
facturing (14.9 percent), wholesale and retail
trade (14.4 percent), construction (9.5 per-
cent), transport storage and communication
(6.2 percent), and other sectors at 1.5 percent.
Notably, a mere 27.5 percent of the workforce
operates within the formal sector, leaving the
remaining 72.5 percent engaged in informal
employment.
All in all, disparities in education, limited ac-

This low level of literacy and lack of access to cess to developmental resources, and inad-
human development facilities is manifest- equate employment prospects hinder the
ed in the rate of employment among youth, realization of youth potential and underscore
where only 39 of 100 youth are employed (32 the pressing need for comprehensive sup-
of them men and 7 women). Strikingly, 57 of port with a focus on accessible education,
100 youth (16 men and 41 women) are neither skill development, and job opportunities.
working nor seeking jobs and only a marginal
4 percent of unemployed are actively look-
ing for work. As per the International Labour Youth Development
Organization’s (ILO) Labour Force Statistics in Marginalized
(2021)17, the share of youth not in education,
employment, or training (NEET) in Pakistan
Communities
is 34.6 percent of the total youth population
(13.6 percent men, and 56.4 percent women). A vital aspect to consider whilst assessing
This highlights higher unemployment rates, the development or provision of opportu-
wasted human potential, increased risk of nities for youth is the nature of inclusivity or
social and economic marginalization, and re- lack thereof. Oftentimes members of certain
duced contributions to societal development. demographic groups remain excluded from
development programs, exacerbating their
Employment-specific indicators published by existing vulnerabilities to economic shocks,
the Pakistan Bureau of Statistics (PBS)18 de- social instability, and conflicts20. These youth
note a total Labour Force Participation (LFP)19 groups can include but are not limited to
for Pakistan in the 15 to 29 years age bracket at women, rural youth, persons with disabilities,
50 percent. The gender-disaggregate data for refugees, ethnic minorities, migrants.
LFP, indicates 76.8 percent for men, where-
as for women the LFP is considerably lower,
ranging between 21 and 24.5 percent as per Rural-Urban Context
PBS and development partner estimates. In The Youth Policy of Pakistan notes that almost
terms of the sector-wise employment land- two third of the youth population resides in
scape. There is evident diversity in rates of rural areas21. Concurrently, it emphasizes that
employment, with agriculture, forestry, hunt- Pakistan’s rural youth remain largely mar-
17
ILO (2021). Data Tools & Labour Statistics.
18
Pakistan Bureau of Statistics (2021). Labour Force Publications.
19
LFP is defined as the proportion of the population ages 15 and older that is economically active World Bank (2022).
20
UN (2014). Overcoming Youth Marginalization.
21
GoP (2008). National Youth Policy of Pakistan.

in Pakistan
ginalized from mainstream development, still active and around 100 successfully rais-
with most opportunities continuing to be ing funding. Some of the biggest funding
confined in urban areas. The report further deals in Pakistan have taken place in recent
notes the intensification of the disparities years, highlighting the vast opportunity for
in terms of prospects for gaining education local startups and increased investor focus
and becoming part of the paid labor force, on a country that is still yet to produce its
across provinces and between urban-rural first high valuation startup.
youth. This gap deepens further, based on
gender. The number of business incubators in Pa-
kistan has also seen a significant increase,
from only 2 in 2012 to 24 in 2019. Despite
Gender this increased activity, Pakistan ranks higher
The UNDP Gender Inequality Index (GII)22, than Bangladesh but falls behind India, Sri
measuring gender inequalities in reproduc- Lanka, Malaysia, and Nigeria on the Global
tive health, empowerment, and the labor Entrepreneurship Index. The country has 98
market, ranks Pakistan 135 out of 170 coun- Entrepreneurship Support Organizations
tries in 2021, with a GII value of 0.534. Sim- (ESOs), 13 Accelerators, 22 Incubators, 24
ilarly, the Global Gender Gap Report 2022, University Incubators, and 18 Co-Working
published by the World Economic Forum Spaces. These ESOs have existed since the
(WEF) ranked Pakistan 145 out of 146 coun- early days of the startup ecosystem in Paki-
tries on the gender parity index. These rank- stan, seeing the most growth from 2014 to
ings reaffirm the disparities identified in the 2018.
preceding sections exploring the progress in
education, employment, and training. However, startups in Pakistan, particularly
those at the growth and expansion stages,
experience a lack of available support ser-
Persons with Disabilities vices, necessitating reliance on networks.
Experienced founders are typically less de-
The LFP23 survey results further indicate an
pendent on tangible services and lean more
overall unemployment rate of 6.3 percent
towards intangible knowledge-intensive
(5.5 percent men and 8.9 percent women).
and high-value-added support services.
The unemployment rate of youth disaggre-
gated by gender, age and persons with a In terms of talent, the World Economic Fo-
disability is specified as 20.7 percent for men rum’s Global Competitiveness Index (GCI)
and 8.9 percent for women. ranks Pakistan as 110/141 (2019). According to
GCI, Pakistan’s talent is severely lacking in
Youth Entrepreneurship skills. The top 20 most in-demand technol-

ogies in the country face a dearth of skilled
in Pakistan resources, which has only been exacerbated
by the growing demand for digital services
The entrepreneurship ecosystem in Paki- across the globe.
stan has been experiencing a significant
rise, reflecting a broader global trend and Women-founded startups account for only
increased digital consumption within the 1.4 percent of the total amount raised in
country. Since 2010, approximately 720 start- 2021. The highest amount raised at the seed
ups have been established, with 67 percent stage by a women is USD 3 million, com-
22
UNDP (2021). Gender Inequality Index – Human Development Reports.
23
Pakistan Bureau of Statistics (2021). Labour Force Publications.

in Pakistan
pared to USD 15 million raised by a man. Of tering a growing sector engaged by young
the currently active growth-oriented En- people.
trepreneurs (GOEs), about 33 percent are
women. The government’s commitment to foster-
ing entrepreneurship, a growing pool of
The government’s Small and Medium talented individuals, and increased access
Enterprise Policy 2021 identifies the de- to funding and resources have fuelled this
velopment of women’s entrepreneurship growth. The number of registered startups
as one of the agenda items and proposes in the country has increased by 70 percent
targeted support to facilitate women-led in the past year. Pakistan produces over
businesses. In addition to that, it currently 20,000 IT graduates each year, providing
offers Women Business Incubation Cen- a steady stream of skilled professionals for
ters, under the umbrella of the Small and the startup ecosystem. Venture capital in-
Medium Enterprise Development Author- vestments in Pakistani startups reached
ity (SMEDA), to provide women entrepre- a record high of $333 million in 2022. The
neurs not only subsidized office space but startup ecosystem is witnessing rapid
also other support services. growth across a diverse range of industries
including e-commerce, fintech, health
The early-stage capital gap for startups technology, agricultural technology, and
continues to persist in Pakistan. The data education technology. The sense of com-
collected for this study shows there is also munity and support within the ecosystem
a significant gap in follow-on financing for is fostering an environment of collabora-
startups; Series A and onwards. This ex- tion, where startups are thriving and learn-
plains why new investment funds invest at ing from each other’s experiences.
different stages and are committed to fol-
low-on financing.
The government’s flagship Youth Devel-

opment Programs have also played a key The government’s
role in supporting youth entrepreneurship
and distributed close to 16,000 loans worth
commitment to fostering
PKR 21 billion at subsidized interest rates. entrepreneurship, a
Another notable government-backed ini- growing pool of talented
tiative is the one-window facilitation centre
by the Punjab Technology and Information individuals, and increased
Board (PITB) which helps business clients access to funding and
to lodge information at a single point of resources have fuelled
contact so their idea can be taken to the
markets quickly and efficiently. this growth. The number
of registered startups in
In Pakistan, around 448,000 social enter-
prises are in operation, with a higher con- the country has increased
tribution to GDP. Pakistani social enterpris- by 70 percent in the past
es have experienced a recent spike in the
number of new start-ups, and most social
year. Pakistan produces over
enterprises are led by people under 35 fos- 20,000 IT graduates each year,
providing a steady stream of
skilled professionals for the
startup ecosystem.

Spotlight:
Tech entrepreneurship ecosystem
in Pakistan
Pakistan’s tech sector has witnessed re- funding rounds in 2021 and the first half
markable growth in recent years, driven of 2022. Pakistani entrepreneurs have also
by a young and digitally native popula- made a mark on the global stage with suc-
tion. The country’s transformation towards cessful unicorns like Daraz.pk, Careem, and
a digital economy is creating numerous Zameen.com.
opportunities for tech entrepreneurs and
startups. The rise of FinTechs, digital fi- GENDER EQUALITY AND THE INTER-
nance, and AI-driven solutions are paving NET AS AN EQUALIZER: The Internet
the way for a prosperous future. However, is acting as an equalizer for women in Pa-
challenges such as gender disparities, bu- kistan, offering new economic opportuni-
reaucratic red tape, and talent gaps pres- ties and e-commerce benefits. As literacy
ent obstacles to fully realizing the sector’s remains a challenge for women, internet
potential. usage among women is lower compared
to men. However, a significant proportion
THE DIGITAL TRANSFORMATION of the study’s survey respondents believe
AND NEXT GENERATION PAKISTAN: that women can benefit from online op-
The patterns of online learning and in- portunities. The internet is being seen as
creasing independence among young beneficial for women’s economic empow-
Pakistanis reflect their tech-driven and erment, and both men and women are
enterprising spirit. With a burgeoning dig- equally supportive of this notion. Bridging
ital economy, the growth potential is im- the gender gap and empowering wom-
mense. AlphaBeta’s report highlights that en to participate fully in the tech sector is
Pakistan’s digital transformation could crucial for a more inclusive and prosperous
unlock up to $60 billion in economic value future.
by 2030. The digital startup ecosystem has
already seen promising progress, with over CHALLENGES AND FUTURE OUT-
$230 million raised and the IT and IT-en- LOOK: Despite the tech sector’s rapid
abled services sector reaching $2.1 billion growth, challenges persist. Bureaucratic
in 2021. However, access and attention re- red tape and inconsistent policies hinder
main critical challenges, with gender dis- business growth and deter foreign invest-
parities and regional variations in ICT skills ment. Bridging the late-stage funding
hindering some segments of the popula- gap and addressing currency exchange
tion from benefiting fully from the oppor- volatility is essential for sustaining investor
tunities. interest. The quality and quantity of tech-
nical talent need improvement, with an
THE RISE OF TECH STARTUPS AND increased focus on critical thinking and
FREELANCE ECONOMY: The advent of product development skills. Enhancing
the gig economy and tech startups in Pa- the education system to produce a larg-
kistan has led to a significant shift in the er pool of skilled graduates is essential to
employment landscape. Young Pakistanis meet the sector’s true potential. By ad-
are increasingly inclined to start their own dressing these challenges and fostering an
businesses rather than opting for tradition- environment that supports innovation and
al employment. The growth of technology entrepreneurship, Pakistan can continue
startups during the COVID-19 pandemic its trajectory as one of the world’s leading
was unprecedented, with record-breaking tech ecosystems.

Key Definitions
Youth
The research adopts the national definition
of youth as a population aged between 15
and 29 years of age (National Youth Devel-
opment Framework, 2019).
Small and Medium

Enterprises
Pakistan’s SME Policy 2021, describes SMEs
as independent, for-profit, privately owned
enterprises. It further breaks down the en-
terprise into Small and Medium based on
the annual sales turnover of up to PKR 150
million, and above PKR 150 million up to
PKR 800 million, respectively.
Startups
The Companies (Amendment) Act 2021
provides a distinct definition of a startup
company as a company that:
a) It has been in existence for not more

than ten years from the date of its in-
corporation.
b) It has a turnover for any of the finan-
cial years since incorporation that is
not greater than five hundred mil-
lion PKR (approximately USD 2.8 mil-
lion).
c) It is working towards the innovation,
development, or improvement of
products processes, or services or
is a scalable business model with a
high potential for employment gen-
eration or wealth creation.
*This definition is used by the Securities

and Exchange Commission of Pakistan
(SECP) and may vary in other jurisdictions.

Methodology
and Data
Collection
For the primary data collection, the study population comprises enterprises
and entrepreneurs, other key actors pivotal to their supply chains, funders,
mentors, enterprise incubators, bankers, micro-financiers, policymakers, gov-
ernment officials relevant to registrations, taxations, and related compliance,
human resources and economic laws, as well as workforce employed in these
enterprises.
Sampling Plan ments with respect to these strata cannot

be ascertained. Due to the targeted and
purposive sampling approach, cluster or
Four stakeholder families were considered stratified approaches were not used to cal-
for the research: culate the sample size. The actual sample
size achieved for the survey questionnaire
with youth entrepreneurs was 419.
Primary Stakeholders:
These included entrepreneurs and enterpris-
es. In addition to focusing on youth-led en- Directly related
trepreneurs, to ensure that the data remains Stakeholders:
inclusive, the sampling approach ensured
These included workforces employed in
that adequate representation of women,
these enterprises, shareholders and inves-
trans-persons, persons with disability, reli-
tors and venture capitalists, bankers and
gious and ethnic minorities, representatives
micro-financiers working directly with the
from rural and remote communities, repre-
enterprises.
sentatives from all sizes of enterprises and key
economic sectors. Potential entrepreneurs
(students enrolled in business administration
Indirectly related
programs for undergraduate and graduate
level i.e. BBA, MBA, MB-Social Enterprise, etc.) Stakeholders:
were also included to ascertain envisaged
These included ecosystem enablers, incuba-
barriers, goals, and entry points.
tors, government ministries and agencies,
parliamentarians, policymakers, legal actors
To make room for statistical analysis, the
and implementers, trade union representa-
sample for entrepreneurs was estimated at
tives, insurers, media managers and higher
400, using one million as the size of busi-
education institutions, sectoral experts, and
nesses in Pakistan (SMEDA), a 95 percent
specialists.
confidence level, a 5 percent margin of error,
and approximately 0.6 as the population pro-
portion of youth for the national population,
Remotely related
finally approportionate to the population
size of the regions. This sample size did not
Stakeholders:
take strata and sub-strata like geography, These included multi-sectoral and
scale of business, gender of entrepreneur, cross-functional experts and development
etc. into account and hence statistical state- partners.

Methodology and
Data Collection
Table 1 shows the breakdown of key informant interviews and focus groups held with these
stakeholder groups:
Table 1 : Key informant interviews and focus groups conducted
Study Population Target
Entrepreneurs- KII 7
Entrepreneurs- Case studies 27
Shareholders 1
Investors/ VCs 2
Bankers/ Microfinanciers 1
Incubator Managers 2
Policy Makers 1
Government Officials 1
Legislators 1
HEI representatives 3
Sector Actors (Insurer/ Supply chain partner, Trade Unions etc.) 1
Development Partner Representatives (Representation from UN and Dev Banks) 3
Total 50
Research Design
Diagnostic Framework
The youth entrepreneurship ecosystem con- ments, academia, educational and finan-
sists of various institutional and structural cial institutes and organizations, business
factors, policies programs, and stakeholders support services, investors, non-govern-
that influence and contribute to the oper- mental organizations, and development
ating environment of young entrepreneurs partners. In this research, the ecosystem
and young aspiring entrepreneurs. The eco- for youth entrepreneurship was analyzed
system stakeholders and ecosystem builders through the Youth Co:Lab's ecosystem di-
include but are not limited to various types agnostic framework24 , which consists of six
of enterprises, national and local govern- domains:
24
The framework is informed by Youth Co:Lab’s work with young entrepreneurs and ecosystem stakeholders, the ‘Government to Com-
munity’ dialogue framework utilized by the Youth Co:Lab project to assess the five ingredients of a thriving start-up ecosystem, as
well as previous research produced by Youth Co:Lab and its partners, such as Islamic Development Bank and Global Entrepreneurship
Monitor. The framework is informed by leading research in the field, such as the framework of Domains of the Entrepreneurship Eco-
system by Daniel Isenberg (2009, 2011).

Methodology and
Data Collection
Policy and
regulatory
framework
Access to Human capital
market and entrepreneur-
ship
culture
Innovation Access to
and finance and
technology incentives
Business
development
support and
infrastructure
Definitions of the Domains

▶ The availability and accessibility of different financing options and incentives for
youth entrepreneurs provided by the government and financing institutions
Access to Finance and
▶ Incentives for investors and funders to support youth-led businesses, and
Incentives
▶ Financial literacy and understanding of different financing options among
young people and young entrepreneurs
▶ Entrepreneurship education in the formal education system and other capaci-
ty-building programmes
Human Capital and ▶ The state of entrepreneurship culture and youth interest in becoming entrepre-
Entrepreneurship neurs
Culture ▶ Programmes and facilities supporting the development of human capital and
entrepreneurship culture
▶ Ease of finding talent in the entrepreneurship sector
▶ Availability and accessibility of business development support programmes and
Business Development structures, such as incubators and accelerators, efforts to develop business de-
Support and velopment support systems and infrastructure for young entrepreneurs
Infrastructure
▶ Accessibility to physical infrastructure
▶ The existence and implementation of policies and regulatory frameworks rele-
vant to and supportive of youth entrepreneurship
Policy and Regulatory
▶ Efforts to develop the policy and regulatory framework
Framework
▶ The extent to which bureaucratic and legal structures and processes related to
business origination and development are youth-friendly
▶ Innovation and technology support available and accessible to young entrepre-
neurs
▶ The use of digital solutions and technology for business development
Innovation and ▶ Efforts to support young (aspiring) entrepreneurs to innovate and use technolo-
Technology gy in business operations
▶ Innovation, technology, and other supporting elements that may further ad-
vance the development of youth entrepreneurship
▶ Development of innovation and technology-based enterprises
▶ Access to local, national, and international markets: barriers and enablers

Access to market
▶ Schemes and programmes that facilitate market access

Methodology and
Data Collection
Research Lenses youth-friendly and enabling or disenabling from

the perspective of young aspiring or existing entre-
Adoption of youth-, gender- and inclusion lenses preneurs.
throughout the analysis and across the domains
was critical in understanding the opportunities GENDER-LENS: Integration of a gender lens
and barriers that young people from diverse back- across the diagnostic ensured that the different
grounds face. These lenses were at the centre of the barriers facing young men and young women on
diagnostic process from the planning phase to the their journey to entrepreneurship are captured. A
operationalization of the recommendations. gender-responsive analysis aimed to identify gen-
der-specific barriers and enablers within the eco-
YOUTH-LENS: Adoption of a youth-lens in the systems and provide recommendations that con-
diagnostic meant assessing the ecosystem for en- sider gender transformative approaches.
trepreneurship specifically from the perspective
of young people. In other words, what are the key INCLUSION-LENS: Segmented analysis was con-
enablers, barriers, and opportunities specifically ducted to map the access to support and oppor-
for young prospective and existing entrepreneurs. tunities among young people from diverse back-
In practice, this meant utilizing age-disaggregat- grounds, including youth in rural and urban areas;
ed quantitative data, analysing the extent to which minority youth, and youth from vulnerable commu-
the policies, services, and other structures are nities.
Snapshot of Survey
Respondents
▶ A total of 419 young entrepreneurs Figure 1. Respondents’ Background by

participated in the survey. Province and Gender25
▶ As shown in Figure 1, over 38 per-

90
cent of the respondents were from
80
Punjab, 23 percent from Sindh, 14.5
70
percent from Khyber Pakhtunkhwa, 60
12.8 percent from Baluchistan, while 50
the remaining participants were 40 83
73
from Azad Jammu and Kashmir, 30
54
46
Gilgit-Baltistan and Islamabad Cap- 20
34
25 28 24 25
ital Territory. The Figure below de- 10 16 2 2 4
picts the proportion of men, wom- 0
AJK, GB & ICT n=41 Balochistan n=52 Khyber Punjab n=154 Sindh n=100
en, and other genders in each of the Pakthunkhwa n=59
regions. Females n=197 Males n=211 Third Gender n=8
▶ The survey included responses from

65 districts across Pakistan, the
highest number of responses were
received from Lahore (48), Karachi
(47), and Quetta (29).
25
Names of provinces may have been abbreviated in figures due to spacing issues. Please note: AJK for Azad
Jammu & Kashmir, Bal for Balochistan, GB for Gilgit Baltistan, ICT for Islamabad Capital Territory, Pun for
Punjab, and Sin for Sindh. Additionally,due to spacing constraints, gender names have been abbreviated in
figures as follows: M for men and W for women

Methodology and
Data Collection
Figure 2. Respondents’ distribution by

districts of residence
Number of Respondents
▶ More than 84 percent of the respon- ▶ The results of 408 men and women
dents were living in urban settings youth entrepreneurs residing in Pakistan
while the remaining lived in rural set- have been presented in this report.
tings.
▶ 83 percent of the survey respondents
▶ 19 respondents identified them- identified as mid-tertile/middle-income
selves as living with a disability. class, followed by top tertile/upper-in-
come class (10 percent), and then bottom
▶ Data for the third gender population
tertile/lower-income (7 percent). Figure
(8 respondents) was insufficient and
3 below shows this breakdown across
thus was excluded from the results
provinces and by gender.
unless specified otherwise.
Figure 3. Socioeconomic Backgrounds of

Respondents by Province and Gender
100% 1
2 2 2 6 9
2 3 4
90% 10
80%
70%
60%
50% 58 66 43
13 21 22 21 30 22 39
40%
30%
20%
10%
1 2 8 7 5
0% 1 1 1 1 2
W M W M W M W M W M
AJK-GB-ICT n=41 BAL n=52 KPK n=59(-1) PUN n=154 (-2) SIN n=100
Bottom tertile/ lower income class Mid tertile/ middle income class Top tertile/ upper income class

Methodology and
Data Collection
▶ 70 percent of the survey respondents have a Bachelor, whereas 20 percent

have a Masters, whilst only 1 percent of the respondents hold a Ph.D. or
Post-graduation, and the remaining 9 percent have the highest education
level between Middle or High School and Intermediate/A levels (Figure 4).
Figure 4. Educational background of respondents
▶ The majority of the respondents have access to the internet, (40 percent with
24 hour access, whilst 35 percent have access sometimes); 25 percent re-
sponded having no internet access (Figure 5).
Figure 5. Access to internet
164
141
103
0 20 40 60 80 100 120 140 160 180
24/7 Access Access Sometimes No Access

Methodology and
Data Collection
▶ Approximately 36 percent of the total respondents have immediate family

members who are entrepreneurs.
▶ Most young entrepreneurs reported the age of their enterprise as 1-2 years
old (40 percent), 3-5 years old (32 percent), less than a year old (15 percent),
and only 13 percent with 3-5-year-old enterprises. As shown in Figure 6 be-
low, the largest proportion of youngest enterprises are being spearheaded
by females in Punjab, and the largest proportion of oldest enterprises are
also being led by respondents from Punjab.
Figure 6. Age of enterprise
40 38
35
30 27
24
25
20 20
20 18 1717 18
15 14
15 12
10 109 11 11
8 8 98 8
10 7 7 7
65 6 5 5
4 4 3 3 4 3
5 2 2
1 0
0
W M W M W M W M W M
AJK-GB-ICT n=41 BAL n=52 KPK n=59 PUN n=154 SIN n=100
Less than a year 1-2 years 3-5 years 5+ years
▶ 45 percent of enterprises are Figure 7. Registration types of

registered as “limited liability respondents’ enterprises
companies”, 19 percent as “sole
proprietorships”, 14 percent as 13 7
12
6
“partnerships”, and 10 percent fall
under the “not-for-profit”, “wel-
fare society”, “trust”, and “limited 47
liability partnerships with SECP”

76
categories. 12 percent of the total
enterprises are “not registered”.
Figure 7 shows the distribution of
the registration types of the en- 53
terprises.
Limited Liability Partnerships with SECP Not for profit entity
Not Registered Partnership
Sole Proprietorship Trust
Welfare Society

Methodology and
Data Collection
▶ 24 percent of respondents reported that their businesses operate in “Retail/E-Com-

merce” followed by 15 percent in “Media, Creative Industries”, 8 percent in “Trans-
port, Logistics,” and 7 percent in “Professional Services”.
Research Limitations
The research was conducted during Feb- other stakeholders in the study through
ruary and July 2023. All data collection was gatekeepers and peer networks. Another
completed virtually given the political and survey with staff members of the youth-
security situation during the research peri- led enterprises was also considered for this
od. Besides the virtual nature of the study, study but was not rolled out after the pilot
efforts were made to access and include ru- stage due to the risk of respondent fatigue
ral and peri-urban youth entrepreneurs and and limited research on workers.
Besides the virtual nature

of the study, efforts
were made to access
and include rural
and peri-urban youth
entrepreneurs and other
stakeholders in the study
through gatekeepers and
peer networks.

Key Players
in the Youth
Entrepreneurship
Ecosystem in
Pakistan
Government Bodies In Pakistan, SMEDA (Small and Medium En-
terprise Development Authority) is an au-
tonomous authority under the Ministry of
Federal and Provincial ministries related to
Industries and Production that supports en-
youth and economy work on making a reg-
trepreneurship through its vision of produc-
ulatory framework for youth entrepreneur-
ing “an SME sector that is globally compet-
ship in Pakistan. The Ministry of Youth Affairs
itive and innovative, creates high-value jobs
was abolished at the federal level after the
to scale up and move towards value-added
18th amendment to the constitution and
exports”.
the subject of youth development shifted
to the provincial governments. Since then,
all provincial governments have had min-
istries or divisions devoted to youth affairs.
Higher Education
However, every political government, under Commission (HEC) and
special initiatives of the Prime Minister can universities
implement schemes and frameworks for
the youth as needed26. One example of this Several universities and institutes have ini-
is the formation of the National Youth De- tiated entrepreneurship centres to comple-
velopment Framework in 2020. ment and promote entrepreneurial skills in
their partner technological departments in
Some authorities established under the the past couple of years. Their objective is
ministries are: to nourish and prepare their graduates for
the entrepreneurial journey. The Institute
▶ Small and Medium Enterprise Devel-
of Business Administration (IBA) Karachi
opment Authority (SMEDA) and the National University of Sciences and
▶ Trade Development Authority of Paki- Technology NUST, Islamabad have already
stan (TDAP) created entrepreneurship centres. This is fol-
lowed by others including the University of
▶ Security and Exchange Commission of Central Punjab (UCP), the University of En-
Pakistan (SECP) gineering and Technology ( UET) Peshawar,
▶ Chambers of commerce and the Institute of Business Administration
(IBA) Sukkur. The entrepreneurial centres at
26
GoP (2023). Ministry of Information & Broadcasting.

Key Players in the Youth Entrepreneurship
Ecosystem in Pakistan
Lahore University of Management Sciences and large companies are also playing a role
(LUMS) and Baluchistan University of Infor- in the entrepreneurial ecosystem, either as
mation, Technology, Management and Sci- partners in some of the national incubator
ences (BUITMS) have followed suit as well. centres, such as Jazz and LMKT, or separate-
ly like Telenor and Shell, which support en-
trepreneurs via programs and small grants.
Private Sector and
Entrepreneurship
Support Organizations International Actors
UNDP, in partnership with the government
Private and philanthropist organizations
of Pakistan, initiated the Youth Empower-
are playing their role in capacity building
ment Programme with the aim that “equal
of youth to enable them to start an earn-
opportunities exist for all youth to partici-
ing from small businesses. One not-for-
pate in Pakistan’s social, political and eco-
profit organization working in this regard
nomic development processes so that all
is Akhuwat, which provides interest-free
youth feel an empowered part of society
loans for small businesses under the pro-
with a stage in its future”28. Through the
gram “Akhuwat Islamic Microfinance”27.
Youth Empowerment Programme, Youth
Aside from government-backed interme- Co:Lab an initiative co-led by UNDP and
diaries, privately led incubators and accel- Citi Foundation currently promotes entre-
erators such as Innovation District 92, The preneurship to equip young people with
Nest i/o, and Invest to Innovate (i2i) are run- the necessary skills to start their own busi-
ning programs throughout the country, nesses and grow enterprises that will create
and supporting the ecosystem. There are more employment while providing oppor-
noteworthy university-level incubators like tunities to otherwise disadvantaged young
the Technology Innovation Center (TIC) at people, directly contributing to SDG 8 - De-
NUST in Islamabad, the Aman Center for cent Work and Economic Growth29.
Entrepreneurial Development at the Insti-
tute of Business Administration (IBA) in Ka- As activity in the entrepreneurial ecosystem
rachi, and the Takhleeq Incubator at UCP in has grown, international donor agencies
Lahore. There are also a growing number and actors have also aligned their agen-
of startup competitions and conferences, da in favor of entrepreneurship. Programs
such as Momentum, 021 Disrupt, and Start- such as the United States Agency for Inter-
up Cup, and coworking spaces like Daft- national Development’s (USAID) Small and
arkhwan, CoLab, and the Hive, and other Medium-sized Enterprise Activity (SMEA)
supporting players and associations like and the UK government and Gates Foun-
Pakistan Software Houses Association for dation-backed entity ‘Karandaaz” provide
IT and ITES (PASHA), Circle, The Indus En- business support, grants, and investment
trepreneurs (TiE), and Organization of Paki- for small businesses, with a particular focus
stani Entrepreneurs (OPEN). Corporations on women-led businesses30.
27
Akhuwat (2023). Akhuwat Islamic Microfinance.
28
UNDP (2022). Youth Empowerment Programme.
29
Youth Co: Lab Pakistan (2023). Pakistan.
30
Women’s Entrepreneurs Finance Initiative (2019). Pakistan Startup Ecosystem Report.

Ecosystem Map
The enablers of a flourishing youth entrepreneurship ecosystem in Pakistan include a
range of stakeholders, with ranging functionalities, including but not limited to aspects
such as capacity building, funding, access to information, network, and other support
services.
Stakeholders Description
Youth leading enterprises, and the workforce working within these enterprises.
It is important to incorporate young people in each step of vitalizing the entire
Enterprises/ Youth ecosystem; and to understand the challenges and opportunities that exist in the
Entrepreneurs country under the six key domains identified, through the perspectives of young
entrepreneurs. These should be inclusive of marginalized youth communities
(women, ethnicity, urban-rural contexts, and young people with disabilities).
Government/ Governments/Policymakers are key in designing and developing policies and pro-
Policymakers/ grams for youth entrepreneurship; creating an enabling environment for young
Regulators people, and ensuring implementation and regulation.
Incubators/ Incubation Center Representatives and accelerators are key in providing a con-
Accelerators/ ducive environment to youth-led start-ups by providing required resources, and
Enablers platforms for launching with a sustained growth trajectory.
Investors and funders play a crucial role in youth entrepreneurship by providing
the necessary capital and resources to enable startups and entrepreneurs to de-
velop, scale, and innovate their initiatives. These include:
▶ Donors/funds
Investors and
Funders ▶ Venture Capital
▶ Angel Investors
Including international donors, international financial institutions, bankers, mi-
cro-financiers, venture capitalists, seed, share-holders, and early-stage funders -
donors, angel investors, and funds.
The private sector including industry, banking and financial institutions, trade
associations, and private organizations can play an important role in providing
Private Sector
and carving out opportunities for young people to engage in entrepreneurship
through corporate-start-up partnerships or mentorships.
Non-governmental Organizations are key enablers in creating a healthy youth en-
(I)NGOs/Not-for-
trepreneurship ecosystem, through the provision of support to young people, for
Profit/ Civil Society example, skills development, and creating spaces for young people in entrepre-
Organizations/ neurial systems. Establishing connections between young people and other key
Community Based stakeholders such as governmental bodies, the private sector, funding agencies,
Organizations/ and incubators at the national, regional, and global levels.
International
They ensure meaningful participation of young people, especially in strengthen-
Development
ing grassroots enterprises, and provide support to youth development programs
Organizations initiated by the government or other relevant stakeholders.
Educational
Academicians, R&D departments, and offices that collaborate with young entre-
Institutes/
preneurs and incubation centres for education, training, and skill development.
Academia
An important measure for advancing youth entrepreneurship culture is the sup-
Cultural Support
port of stakeholders that influence the percentage of young people who take up
and Media the pathway of start-ups and self-owned enterprises.

Pakistan Youth
Entrepreneurship
Ecosystem Map
Government Bodies
(1) Prime Minster’s Youth Program (13) Securities & Exchange
(2) Ministry of Planning, Commission of Pakistan
Development, and Special (SECP)
Initiatives (14) Pakistan Bureau of Statistics
(3) Parliamentary Secretary for Inter- (15) Small Industries Corporations
Provincial Coordination (16) Start-up Punjab (Punjab
(4) Ministry of Information Information Technology
Technology and Telecom Board)
(5) State Bank of Pakistan (17) Directorate of Youth Affairs,
(6) Ministry of Commerce Peshawar
(7) Ministry of Finance and Financial (18) Youth Affairs and Sports
Institutions Department in Punjab and
Balochistan
(8) Small and Medium Enterprises
Development Authority (SMEDA) (19) Youth Internship Program in
Sindh and Provincial Units in
(9) Ministry of Industries and
Gilgit-Baltistan and Kashmir
Production
implementing the Prime-
(10) Federation of Pakistan, Chamber minister’s Youth Policy
of Commerce with regional
(20) Higher Education Commission
offices in Peshawar, Quetta,
(HEC)
Lahore, Karachi, Gilgit, Gwadar
(21) Ministry of Social Welfare and
(11) Ministry of Federal Education
Special Education
and Professional Training
(12) National and Provincial (22) Ministry of Women Development
Vocational and Technical Training (23) Provincial P & D departments
Commission (24) District Administrations
Entrepreneurship Support Organizations

(1) National Incubation Center (10) Takhleeq Incubator (21) Social Enterprise
(Islamabad); NIC (Lahore, (University of Central Academy
Karachi, Peshawar, Quetta) Punjab) (22) DEMO
(2) Offices of Research, (11) Karachi Institute (23) Circle
Innovation; and of Technology &
Commercialization (ORICs) Entrepreneurship (24) She Loves Tech
Initiative by Higher Education (12) Bahria Innovation Center (25) Hashoo Foundation
Commission (26) Climate Launchpad
(13) PLANX
(3) FbStart (Innovation Lab (27) Nest I/O
Platform) (14) invest2innovate
(15) 10xC (pre-seed (28) Take Up (Co-funded by
(4) Tech Valley Erasmus+ Programme
accelerator)
(5) Innovation District 92 of the EU)
(16) JAZZ
(6) Social Innovation Lab (29) Business Incubation
(17) Ventures Lab Centers (under HEC)
(7) PINE Global
(18) SEED Ventures (30 Accelerate Prosperity
(8) IBA CED
(19) UNDP Youth Co:Lab (31) Stimulus-Climate
(9) NUST (Incubation Center)
(20) Cybervision International Launchpad

Investors & Funders

(1) Islamic Development Bank – (8) Karandaaz (Melinda-Gates (17) GOBI Partners
Youth Development Program Foundation) (18) Acumen Pakistan
(2) World Bank (9) GSMA (19) Ashoka Pakistan
(3) USAID (10) Ignite (NIC) (20) Itacha Capital Pvt. Ltd.
(4) Australian High Commission (11) Pakistan Poverty Alleviation (21) TPL e-Ventures
Direct Aid Program Fund (PPAF)
(22) Fatima Ventures
(5) Asian Development Bank (12) The Multi-Donor Trust
Fund (MDTF) for Khyber (23) Lakson
(5) Global Environment Facility –
Small Grants Program Pakhtunkhwa (KP), Newly (24) CresVentures
Merged Areas and Balochistan (25) Indus Valley Connect
(6) United Nations Development
Program (13) Insitor Impact Asia Fund (26) Artistic Ventures;
(7) Department for International (14) Sarmayacar Venturedive
Development (DFID) (15) Invest2Innovate Ventures (27) Inaara Impact Ventures
(16) 47 Ventures (28) Dot Zero Ventures
Civil Society Organizations & Development Partners

(1) UNDP (SheLovesTech, (2) UNICEF (GenU, Youth (4) USAID (Challenge Fund)
SDG Bootcamps, Innovation Challenge) (5) GIZ (E4W, FSD), Empower
YouthCo:Lab) (3) British Council (DICE) Youth for Work
Educational Institutes/ Academia

(1) National University of (8) University of Peshawar (16) University of Management
Science & Technology (KP Impact Challenge) & Technology
(NUST) (9) University of Malakand (17) Sindh Madressatul Islam
(2) COMSATS University (10) University of Balochistan University
(3) Quaid-e-Azam (12) Islamia University of (18) Karachi School of Business
(4) LUMS Bahawalpur Leadership
(5) IBA (Karachi) (13) University of Gujrat (19) Karakoram International
University
(6) Government College (14) UET Lahore and
University Lahore Peshawar (YES Program) (20) The University of Azad and
Jammu Kashmir (AJK)
(7) IQRA University (15) FC College University
Media Private Sector & Networks

(1) MIT Technology (1) Unilever (10) P@SHA
Review Pakistan (2) Nestle needs YOUth; U-bank (11) TiE
(2) Pakwired (3) Engro (12) Islamabad Chamber of
(3) Startupguide.pk (4) Habib Bank Limited (HBL) Commerce and Industry
(4) Techjuice (ICCI)
(5) Standard Chartered Bank
(5) VCast (13) MIT Enterprise Forum
(6) Allied Bank Youth Pakistan
Entrepreneurship Scheme
(14) Pakistan Women
(7) JS Bank Entrepreneurs Network
(8) Telenor Velocity for Trade
(9) Jazz xlr8 (15) Women in TechPK

Domain 1:
POLICY AND
REGULATORY
FRAMEWORKS

Domain 1:
Policy and
Regulatory
Frameworks
State of Play ship is addressed underemployment. The

initiative has now expanded its focus and
includes a “4th E” under Environment.
In Pakistan, the state of the policy and
regulatory frameworks for youth entre-
The initiatives under the NYDF include, but
preneurship presents a mixed picture.
are not limited to:
While the government has taken some
positive initiatives to support young en-
▶ Education: upgradation, capacity
trepreneurs, bureaucratic red tape and
enhancement, and expansion of ex-
inconsistent policies continue to hinder
isting university campuses, scholar-
their growth and development.
ship opportunities for students from
The federal government plays a crucial marginalized backgrounds, overseas
role in setting broad guidelines for provin- scholarship schemes, youth laptop
cial governments, but the subject of youth schemes, and grants to promote Re-
development shifted to the provincial search and development in universi-
level after the Eighteenth Amendment ties.
of the Constitution and the subsequent ▶ Employment and Entrepreneur-
abolition of the Ministry of Youth Affairs
ship: skills development programs,
at the federal level in 2010. Each province
upgradation of TVET institutes, paid
now has its ministry or division devoted
internship and apprenticeship op-
to youth affairs, allowing for targeted pol-
portunities, career counselling and
icies. However, decentralization can also
mentorship networks, enabling en-
lead to inconsistency and fragmentation
vironment for private sector job cre-
in approaches to support youth entrepre-
neurship. ation, interest-free and subsidized
loans to young people, innovation
At the federal level, the National Youth De- funds for young entrepreneurs and
velopment Framework (NYDF) was intro- startups, and strengthening of exist-
duced as a guiding principle for provincial ing incubation centres.
governments to act on youth develop-
▶ Engagement: the creation of youth
ment initiatives. Under the Prime Minis-
councils and networks, “champions
ter's special initiative, a youth affairs wing
of reforms” network, construction of
was established in the Prime Minister's of-
new sports complexes, sports talent
fice, resulting in the creation of the NYDF.
hunt schemes and competitions,
The framework started with the focus on
digital youth hubs, youth leadership
three key principles, the "3Es" - quality ed-
ucation, gainful employment, and mean- awards, and services portal and ac-
ingful engagement, where entrepreneur- cess to information initiatives.

Domain 1: Policy and Regulatory
Frameworks
However, despite these initiatives, the lack of

a comprehensive, cohesive, and long-term
Key Findings
national youth entrepreneurship policy re-
In the domain of policy and regulatory
mains a challenge. Bureaucratic inertia and
framework for entrepreneurship in Paki-
inconsistent policies continue to hamper
stan, several crucial themes emerge, each
the growth of the youth entrepreneurship
backed by insightful quotes from key stake-
ecosystem. The complex and time-consum-
holders in the entrepreneurial ecosystem.
ing process of starting a business, involving
multiple government departments and in-
teractions, discourages many young entre- Lack of Awareness and
preneurs from formalizing their ventures
Knowledge
at an early stage. This delays their access to
external funding and support, limiting their One of the prominent themes revolves
growth potential. around the lack of awareness and knowl-
edge among youth entrepreneurs regard-
Furthermore, policymakers often fail to ing policies and regulatory opportunities
recognize the unique needs of technolo- that can benefit them. During the research
gy-driven startups. Outdated regulations interviews, an incubator manager highlight-
demand physical locations for registration, ed that startups might not be aware of po-
even though many entrepreneurs only re- tential benefits like carbon credits offered
quire laptops and internet connectivity to by government policies. This underscores
start their businesses. Taxation policies re- the need for better access to information, in-
lated to sweat equity also present challeng- clusive communication, and dissemination
es, as they tax equity earned by founders or of information so that all startups can take
employees as income before its liquidation. full advantage of incentives and support of-
fered by the government.
Nevertheless, some positive changes have
been implemented by the State Bank of Survey findings reveal that overall, 90 per-
Pakistan (SBP) to facilitate investment and cent of the total survey respondents (young
cross-border financial services. The removal men and women entrepreneurs) use their
of prior approval requirements for repatri- workplace as the number one source of in-
ation of investment and the regularization formation to learn about businesses, mar-
of convertible debt issuance creates a more kets, finance, and tech support for their
conducive environment for foreign investors enterprises, followed closely by government
and businesses seeking cross-border trans- websites (88 percent) and educational insti-
actions. tutes (88 percent). Whereas, 86 percent of
the young respondents also identified social
To foster a thriving youth entrepreneurship media as a key source of information. Only 11
ecosystem in Pakistan, it is crucial to stream- percent identified newspapers as a source
line and digitize registration processes, align of their information. This pattern slightly
policies with the modern realities of tech differs between the provinces, for example
startups, and simplify tax policies related in Balochistan, entrepreneurs prefer educa-
to equity compensation. The government tional institutes and government websites
should actively engage with the startup above their workplace as sources of infor-
community to understand their needs and mation. Similarly, in Punjab, social media is
create a supportive and responsive policy considered the most popular source of in-
and regulatory framework. By addressing formation, with 90 percent of respondents.
these challenges and creating an enabling Figure 8 shows the sources of information
environment, Pakistan can unlock the full disaggregated by province and gender. Uti-
potential of its entrepreneurial spirit and es- lization of the most relevant platforms can
tablish itself as a leading player in the global be key in the dissemination of information
technology landscape. and creating greater awareness.

Frameworks
Figure 8. Source of information regarding any business,

market, finance, tech support for enterprise31
In addition to the perplexity young people patibility, supply chain issues, poor business
may feel in their entrepreneurial journey due ethics, and corruption. Political instability
to the dearth of information, knowledge, and was another important challenge identified
skills as well as guidance and mentorship. by the respondents. Other challenges high-
There are a multitude of challenges identi- lighted by respondents were inadequate
fied by young entrepreneurs in the current infrastructure, barriers in access to interna-
study (Figure 9) including but not limited to, tional markets and money exchanges, in-
lack of funding and incentives for setting up capable government and non-government
small and medium enterprises, legislative or bodies, networking issues, intellectual prop-
policy hurdles, and lack of conducive regu- erty rights issues, and lack of opportunities in
latory frameworks leading to market incom- small cities.
31
Provincial names have been abbreviated in all the figures, as follows: AJK-GB-ICT:
Azad Jammu & Kashmir-Gilgit Baltistan-Islamabad Capital Territory; BAL:
Balochistan; KPK: Khyber Pakhtunkhwa; PUN: Punjab; SIN: Sindh

Frameworks
Figure 9. Biggest Challenges experienced by

young entrepreneurs in Pakistan
The diversity of challenges faced by young

entrepreneurs, especially in terms of unfa- “
They [regulators] need to
not just act as regulators,
”
vourable policy and regulatory environment but technically as enablers.
requires targeted interventions to foster an
(Incubator Manager)
enabling environment.

Frameworks
Policy Support for Green

Energy and Sustainability
A growing trend in Pakistan’s entrepreneur- investor. Policymakers are urged to pro-
ial landscape is the emphasis on social and mote and support such ventures through
green entrepreneurship. Ventures address- targeted initiatives and programs. This
ing major societal issues, such as climate pertains to the importance of policy sup-
change, food security, diversity and inclusion, port for green energy and sustainability to
gender equality, education, and mental well- foster entrepreneurship.
ness, are gaining prominence, as noted by an
“
What government needs to facilitate is building the grounds for
some of the entrepreneurs in terms of a policy in green energy, a
”
policy of helping entrepreneurs...
(Incubator Manager)
Government as Enablers and

Facilitators
The role of the government as an enabler regulatory frameworks create a facilita-
and facilitator of entrepreneurship emerges tive foundation for entrepreneurs, which
as another prominent theme. For a flour- promotes standardization and formaliza-
ishing entrepreneurial ecosystem, it is criti- tion of the sector, whilst also incentivizing
cal that the government and its policy and businesses.
“
So, tax benefit, energy subsidy, more documentation help in terms
of not kind of intimidating them or harassing some of the businesses
”
but facilitating them.
(Incubator Manager)
Providing tax benefits, energy subsidies, and tionist further emphasizes the need for
streamlining documentation processes can policies that focus on sustainable solu-
significantly support startups in environ- tions, indicating that the government
mentally conscious endeavours, as stressed should prioritize environmentally friendly
by another incubator manager. An educa- ventures.
“
I think the policies should be sustainable policies or should at least
”
focus on sustainable solutions.
(Educationist)

Frameworks
“
Regulators are encouraged to move
beyond their traditional role and take on Request the Government
a more proactive stance as enablers. This to take on board the
entails transitioning from a “top-down” Government bodies,
approach in policymaking to a more iter- academia, and industry, and
ative process that is based on an insight make them sit together in
from stakeholders across the board. the same place and then talk
about what kind of policies
Educationists also emphasised the need
”
are implementable.
for government to engage government
bodies, academia, and industry stake- (Educationist)
holders in collaborative efforts to formu-
late effective policies and ensure their
successful implementation. Additionally, educationist stressed that the problem
the need for policies to be limited but lies with implementation and advised a
effectively implemented, fostering inclu- focus on executing policies rather than
sivity among different entrepreneurship creating new ones. The need for flexibil-
domains was also highlighted. ity in educational systems is also high-
lighted, as it can better equip future
Effective policy implementation and flex- entrepreneurs, with the essential tech-
ibility in the regulatory framework are key nical and non-technical knowledge and
concerns to accommodate the diverse skills for business development, beyond
needs of startups and entrepreneurs. An conventional curricula.
Supportive Government
Initiatives and Programs
Supportive government initiatives and were PKR 500,000 or less. Only 10 respon-
programs play a crucial role in promoting dents were able to receive loans higher
youth entrepreneurship. than PKR 1000,000.
Various programs, such as the Prime The majority of loans, particularly in the
Minister’s Youth Loan Scheme and the categories of less than PKR 100,000 and
Prime Minister’s Youth Skill Develop- PKR 100,000 - PKR 500,000, were distrib-
ment Program, have been introduced uted to 42 youth entrepreneurs across
to provide financial assistance and skill provinces. In the PKR 500,000 to PKR
development support to young entre- 1,000,000 category, notably, loans were
preneurs. Figure 10 illustrates the size of primarily awarded to women in KPK and
loans received from the Prime Ministers’ Punjab, while Sindh saw a balance be-
Youth Entrepreneurship Scheme. As visi- tween men and women receiving loans.
ble, of the total 62 respondents who were Loans exceeding PKR 500,000 were less
able to secure loans for their enterprises, common and largely obtained by 4 male
almost 70 percent of the loans secured entrepreneurs in Sindh and Punjab.

Frameworks
Figure 10. Size of loan received by the 62 respondents from

Prime Minister’s Youth Entrepreneurship Scheme32
“
Additionally, initiatives are in place to pro-
mote and support women entrepreneur- SMEDA has developed feasi-
ship through training, mentorship, and bility studies to start a busi-
financial assistance through initiatives like ness in several sectors. Also,
the Women Entrepreneurship Program. they organize workshops on
how to start a business and
Table 2 provides an overview of the have a facilitation desk to
”
support sought by youth entrepreneurs guide the startups.
with the highest percentage of support (Sector Specialist)
sought in the form of training and net-
working; Small and Medium Enterprise
Development Authority (SMEDA) has
been identified as the biggest support for
young entrepreneurs in this regard, fol- and other privately operated programs
lowed by the UN. Similarly, SMEDA is also garner less attention as per the survey
viewed as a key resource for loans and responses. Interestingly, “mentorship”
seed money with approximately 80 per- is the least sought-after type of support
cent of the respondents verifying these by young entrepreneurs. However, those
figures. The PM Youth Entrepreneurship that recognize its need, largely source it
also seems to create an impact across all from non-conventional sources such as
categories, albeit smaller than SMEDA the youth or education department, or
and the UN. The rural support programs the National Incubation Centers (NICs).
32
BAL n=10/52 means out of 52 respondents from Balochistan province, only 10 received loans
from the Prime Ministers’ Scheme, the breakdown of which is provided in Fig 10.

Frameworks
Table 2 . Heat Map of types of support sought by respondents and source of the support*
*
The colours used in the heatmap refer to strength of number of responses in each category with darker shades refering to higher values.
Entrepreneurship/ Loan
Education Dept, Etc.

Other: Youth Dept,
Balochistan RSP
Aga Khan RSP
Punjab RSP
Sindh RSP
Hashoof F
PM Youth
Scheme
SMEDA
Kashf F
NICs
UN
N = 393
Loan 320 311 48 8 9 2 1 1 2 5
Seed Money 321 32 5 1 1 10
Training 351 344 53 9 9 9 2 1 1 10 10
Mentorship 1 7 14
Networking 351 342 52 9 9 9 2 1 1 8 4
Sector specialists stress, that in order to fos- Challenges in policy implementation and
ter a conducive environment for startups, the need for better integration of youth and
the government must make critical reforms, women’s perspectives and experiences are
added to which there needs to be a greater also noted. The sector specialist highlights
focus on financing opportunities, incuba- that more work needs to be done on the poli-
tors, mentoring, skill development, market cy level, emphasizing the importance of inte-
access, and entrepreneurial education from grating youth and women entrepreneurship
an early age. into existing development projects.
“More work needs to be done on a Policy level. There are

several projects under PSDP, but a proper integration of
”
youth and women entrepreneurship is needed.
(Sector Expert)
Visionary and entrepreneurial leadership different sectors of the entrepreneurial

at the national level is considered essen- ecosystem is of utmost importance.
“
tial for fostering a conducive environment
for entrepreneurship. A serial entrepreneur Forget about policies. I
passionately emphasized that the country would say we need an
needs an entrepreneurial executive to drive entrepreneurial executive
”
policies and initiatives that support entre- to run the country.
preneurship. Lastly, streamlining policies to
ensure accessibility and applicability across
(Serial Entrepreneur)

Frameworks
Case Study:
Innovation
Hub Show
Innovation Hub is the World’s First applicants to pitch their ideas from
Reality Show where inventors, inno- different fields, including agriculture,
vators, and entrepreneurs pitch their education, technology, innovative mo-
project ideas for Government fund- bile apps, and health, and will award
ing, where the power of innovative 60 of them up to Rs20 million in seed
ideas meets the strength of govern- funding to materialize their projects as
ment investment. Innovation Hub is
part of a Rs10 billion program. These
produced by the Ministry of Planning,
grants will be awarded under the Pa-
Development and Special Initiatives,
kistani Planning Ministry’s Pakistan In-
Government of Pakistan, in collab-
novation Fund (PIF) program. The Fund
oration with the Pakistan Television
Corporation (PTV). The show aired in is part of the Federal Government’s 5e
June 2023. framework includes the promotion of
exports, energy, environment, equity,
The Pakistani government has short- and empowerment for the country’s
listed 95 candidates out of 1,000 economic development.

Domain 2:
HUMAN CAPITAL AND
ENTREPRENEURSHIP
CULTURE

Domain 2:
Human Capital and
Entrepreneurship
Culture
State of Play Socially constructed gender roles also play

a role in the entrepreneurship culture of Pa-
kistan. Women who participate in entrepre-
The extent to which social and cultural
norms encourage youth to entrepreneurship neurial activities form only a small piece of
including for example role of families and the pie i.e. 1 percent as opposed to 21 percent
peers, culturally valued career paths, and of men and that too working in the informal
gender-related norms is known as entrepre- sector. Most women who run their business-
neurship culture. Entrepreneurship culture es are operating in conventional business
also represents how much motivation and lines such as textiles, vocational training or
value are present for self-employment and food. Much of the gender disparity in entre-
businesses within a society. The media, gov- preneurial settings might also be present be-
ernment, educational institutions, and social cause women bear the disproportionate bur-
and professional organizations all play an im- den of unpaid care work leading to a large
portant role in shaping perspectives on en- number of women dropping out from the
trepreneurship33. workforce and avoiding long working hours
outside the home that put a strain on their
In Pakistan, there is little encouragement personal life35. Most of the women highlight-
or motivation for entrepreneurship at the ed negligible or no support from their fami-
school level because this discipline still is not lies36. It is challenging for women to operate
considered to be as important as other sub- within the business environment due to pa-
jects taught in school. As a society, parents triarchal values and cultural barriers which
and teachers emphasize the importance discourage women’s independence and
of success and safe career choices like gov- right to earning37.
ernment employment, limiting the youth’s
scope of career choices. Some universities in Most of the entrepreneurial initiatives in the
megacities like Islamabad, Lahore, and Kara- country are necessity-driven38. The rate of
chi have started MS programs in entrepre- establishment of enterprises remains low
neurship in recent years. Despite business because of limited opportunities and large-
plan competitions at the university level, ly self-motivated entrepreneurship. The atti-
business graduates look forward to working tude towards entrepreneurship in Pakistan is
for a multinational instead of starting their generally not that favorable. Only 46 percent of
own business34. adults in Pakistan perceive entrepreneurship
33
Organization for Economic Co-operation and Development 36
The Nation (2022). Pakistan’s Entrepreneurship & Startup Sector
(OECD) (2014). Supporting Youth in Entrepreneurship. Still Has Clear Gender Gap.
34
Seed Ventures (2017). Entrepreneurial Ecosystem of Pakistan. 37
ILO (2003). Women Entrepreneurs in Pakistan.
35
Asian Development Bank (2016). Policy Brief on Female Labor 38
Global Entrepreneurship Monitor (2012). Entrepreneurship in
Force Participation in Pakistan. Pakistan.

Domain 2: Human Capital and
Entrepreneurship Culture
to be a good career choice, and 31 percent tors to implement training for skills devel-
of them are apprehensive about starting opment to enhance social and economic
because they have a severe fear of failure39. profile”. Under its Prime Minister’s Youth
However, aspirations for entrepreneurship Skill Development Program (PMYSDP),
are high, and people residing in metro- NAVTTC aims to equip young people with
politan cities perceive that they have the market-driven conventional and high-tech
skill set and knowledge required to start a skills “at par with international standards”.
venture40. According to the Global Entre- To date, it has 1500+ youth in leading indus-
preneurship Monitor Report 2012, men in tries42.
Pakistan tend to have a more positive en-
trepreneurial attitude than women. The TECHNICAL EDUCATION AND
men respondents are about three times VOCATIONAL TRAINING AUTHORITY
more aware of someone who has started a (TEVTA)
business in the last two years, a proxy mea-
The Skilled Labour Market Information Sys-
sure of networking with entrepreneurial in-
tem (SLMIS) system is implemented by the
dividuals. Low economic participation from
Technical Education and Vocational Train-
women also remains a key contributor to
ing Authority (TEVTA) Punjab in Pakistan;
Pakistan’s low GDP. According to Global
through its 40+ training institutes43.The
Gender Report 2022, Pakistan ranks second
Program has three parts: an online infor-
lowest (145 out of 146) in terms of gender
mation system; an online/offline placement
disparities41.
system to assist graduates of TEVTA and re-
lated institutes; and skill mapping of all the
districts of Punjab. The information system
Efforts to Develop Human
presents basic information regarding the
Capital in the Country labour market of Punjab. It also provides
Various government and private organiza- market tendency, data of job seekers and
tions are working for the promotion and opportunities for related persons in indus-
capacity building of youth in terms of tech- try and skill training prospects44.
nical and vocational training in Pakistan.
Some of the noteworthy incentives and NATIONAL INTERNSHIP PROGRAMS
programs are listed below. National internship plans are regular fea-
tures of youth development and have been
NATIONAL VOCATIONAL AND implemented by different political govern-
TECHNICAL TRAINING COMMISSION ments to impart skills to young graduates
(NAVTTC) in the fields of science and technology by
National Vocational and Technical Training working in government departments.
Commission (NAVTTC) was established in
2005 under the Ministry of Federal Educa- Under the National Youth Development
tion and Professional Training and aims to Framework (2020) the following programs
“provide direction, support and an enabling were started to develop the skills of youth45;
environment to the public and private sec-
39
Global Entrepreneurship Monitor (2019). Entrepreneurship in 43
Technical Education & Vocational Training Authority Punjab
Pakistan. (2023).
40
Seed Ventures (2022). Entrepreneurial Ecosystem of Pakistan. 44
Journal of Development Policy, Research & Practice (2020).
41
World Economic Forum (2022). Global Gender Gap. Youth Development in Pakistan: A Provincial Analysis.
42
NAVTTC (2023b). PM’s Youth Skill Development Program.
45
GoP (2020). National Youth Development Framework

▶ Youth Entrepreneurship Scheme E-ROZGAAR CENTRES

(YES!): the program supports young
Another employment-related initiative is
entrepreneurs in the country by pro-
‘e-Rozgaar’ centres in all districts by the
viding them with financial assistance Punjab Information Technology Board and
and training. Through this scheme, eli- Youth Affairs Department. It is aimed at pro-
gible young individuals could apply for viding training to budding freelancers and
loans to start their businesses. improving their professional capabilities,
▶ Hunarmand Pakistan (Skills for all): through free training programs, mentor-
to enhance the employability of the ship, and guidance to help young people
workforce and reduce unemploy- develop their skills and start earning income
ment, the Hunarmand Pakistan pro- online.
gram targeted both urban and rural
populations, with a particular empha- THE PUNJAB SKILL DEVELOPMENT
sis on reaching marginalized commu-
FUND (PSDF)
nities, through the provision of skill The Punjab Skill Development Fund (PSDF)
development and vocational training aims to provide skills training to poor and
opportunities. 37,000 young people vulnerable youth to equip them for employ-
were trained in traditional and high- ment and livelihood opportunities. The main
tech trades under the first phase, with programs under PSDF include Industrial
an addition of 50,000 more in the sec- Training Programmes, Formal Training Pro-
ond phase46. grammes; Community-Based Programmes,
and Women-Focused Programmes. The
THE PTCL YOUTH PROGRAM: fund supports training for over 80,000 youth
every year in 250+ demand-driven skills. To
Experia –Summer Internship Program by date PSDF has more than 500,000 gradu-
PTCL is a project-based paid internship pro- ates; 43% of them being women48.
gram in which young people work on re-
al-time business problems and provide cre- HIGHER EDUCATION COMMISSION’S
ative and innovative solutions. The program (HEC) DIGITAL LEARNING AND SKILL
provides an immersive experience for young ENRICHMENT INITIATIVE (DLSEI)
people to develop skills and exposure to cor-
porate environments. Digital Learning and Skill Enrichment Initia-
tive is HEC’s initiative in collaboration with
‘SummerSpark’ Internship Program pro- Coursera to provide in-demand courses free
vides hands-on work experience on various of cost to the youth of Pakistan. In the third
business projects under expert mentorship phase of DLSEI in 2023, HEC will sponsor skill
at PTCL and Ufone 4G offices in Islamabad, development opportunities for Pakistan’s
Lahore, and Karachi that will facilitate them youth by offering free access to 5,300 online
to set the stage for the successful com- courses and 3,400 guided projects on Cour-
mencement of their professional careers sera across 11 domains in a view to rapidly
ahead. Up to 30 young people benefited deploy high-quality digital and human skills
from the 2023 cycle47. training at scale across the country49.
46
The Daily Times (2021). Around 37000 youth trained under 48
PSDF (2023). Skills for Success.
‘Hunarmand Pakistan’. 49
HEC (2023). Digital Learning & Skills Enrichment Initiative 2.0.
47
Pakistan Telecommunication Company Limited (2023).
PTCL Group’s SummerSpark Internship Program 2023 is
set to ignite the careers of young graduates.

SKILL DEVELOPMENT INITIATIVES the Youth Empowerment Programme

BY UNIVERSITIES formally concluded in 2022, many of its
activities about youth economic empow-
Several universities and institutes have
erment continue under the Stabilization
initiated entrepreneurship centres to
and Inclusive Development Programme,
complement and promote entrepreneur-
benefiting thousands of young people
ial skills in their partner technological
across the country.
departments in the past couple of years.
Their objective is to nourish and prepare
their graduates for the entrepreneurial IDEAGIST – VIRTUAL INCUBATOR:
journey. IBA Karachi followed by NUST, IdeaGist is supporting PM’s Startup Paki-
Islamabad have already created entrepre- stan program by offering its Practical En-
neurship centres. This is followed by others trepreneur Training program for free to all
including the University of Central Punjab, participants, through its singular platform
UET Peshawar, and IBA Sukkur. The entre- including a growing community of entre-
preneurial centres at Lahore University of preneurs, innovators, mentors, investors,
Management Sciences (LUMS) and Balu- students, researchers, and freelancers.
chistan University of Information, Technol-
ogy, Management and Sciences (BUITMS) Besides these key initiatives, several ac-
have followed suit. tivities promoting young people have
been initiated including the develop-
YOUTH EMPOWERMENT ment of Pakistan’s Youth Development
PROGRAMME BY UNDP Index (2021), National Innovation Awards
(2023)52, and Youth Leadership Awards53
UNDP, in partnership with the govern-
(rolling basis).
ment of Pakistan, initiated the Youth
Empowerment Programme with the While there remain hurdles to overcome,
aim that “equal opportunities exist for the presence of these initiatives and ef-
all youth to participate in Pakistan’s so- forts to develop human capital in Paki-
cial, political and economic development stan is a positive sign for the future of
processes so that all youth feel an em- entrepreneurship in the country. To fos-
powered part of society with a stage in its ter a thriving entrepreneurship culture, it
future”50. Through the Youth Empower- is essential for all stakeholders, including
ment Programme, Youth Co:Lab an initia- the government, educational institutions,
tive co-led by UNDP and Citi Foundation media, and society as a whole, to work
currently promotes entrepreneurship to together in empowering the youth and
equip young people with the necessary breaking down barriers that limit their
skills to start their businesses and grow potential. By fostering a more supportive
enterprises that will create more employ- and encouraging environment for entre-
ment while providing opportunities to preneurship, Pakistan can unlock the un-
otherwise disadvantaged young people, tapped potential of its young population
directly contributing to SDG 8 - Decent and drive economic growth and innova-
Work and Economic Growth51. Although tion in the years to come.
50
UNDP (2022). Youth Empowerment Programme.
51
Youth Co: Lab (2023). Pakistan.
52
GoP (2023). Prime Minister’s Youth Programme.
53
Youth for Pakistan (2023). Youth Leadership Award.

Key Findings
Urgency to Solve Social

Challenges
In the domain of human capital and entre- neurs is deeply aware of the pressing is-
preneurship culture in Pakistan, the urgent sues that afflict society. They are driven by
need to address social challenges emerges a strong desire to make a positive impact
as a prominent theme. The younger gen- and solve these problems.
eration of millennials and Gen Z entrepre-
“
Luckily, what’s been happening in Pakistan and I think globally is
that this younger generation which would be millennials and Gen
Z are quite aware of the social challenges around them... And they
want to solve the problem because truly they don’t have a choice,
they have to solve the problem and - this urgency to fix what is
”
wrong will change the face of youth entrepreneurship.
(Investor/ VC)
Startups are now increasingly focusing on

innovative solutions that tackle issues like
education accessibility in remote areas us-
“
So, for instance, if I am thinking
about education... I would be
looking for somebody who comes
ing low-cost technology, as pointed out by with low-cost technology to make
another investor. basic education scalable to the
”
remotest of areas in Pakistan.
(Serial Investor)
Entrepreneurial Skills and

Experience
Another crucial theme centres around the
significance of entrepreneurial skills and ex-
perience for the success of startups. Practical
experience and hands-on skills are invalu-
able assets for entrepreneurs to navigate
the complex world of business. Managing
finances, taking calculated risks, and per-
severance are integral aspects of entrepre-
neurship. As one investor points out, these
skills are not easily learned from textbooks
or classroom polls. They are honed through
real-world experience, where young en-
trepreneurs learn to manage resources ef-
ficiently and adapt to the ever-changing
business landscape.

“Even if you were to take a solid poll in a university, it still would not
help because this is something you learn from experience. When
you’re given a dollar or ten thousand rupees and how you manage
it is the proof - the proof of it is actually in the eating, you can tell
them a framework, you can give them the do’s and don’ts and the
stuff they’re supposed to be avoiding, and after that, it’s just about
”
how they manage it.
(Venture Capitalist)
Supportive Ecosystem and

Networking “The number of incubators and
accelerators in Pakistan has grown
significantly, providing crucial
The supportive ecosystem and net- support to young entrepreneurs.
working opportunities provided by in- These organizations offer
cubators, accelerators, and mentoring mentorship, training, networking
programs play a vital role in nurturing a opportunities, and access to
”
thriving culture of entrepreneurship. funding.
(Innovation Manager)
Collaborative efforts and networking have preneurs, helping them grow and succeed
gained importance in the youth entre- in their ventures. Incubators and accelera-
preneurship ecosystem. Start-up events, tors, as highlighted by an innovation man-
entrepreneurial competitions, and net- ager, provide mentorship, training, and
working platforms have become more access to funding, which are instrumental
prevalent. These initiatives offer crucial in supporting and empowering aspiring
resources and guidance to young entre- startups.
“Programs like Telenor Youth Forum have been instrumental in

empowering young people from diverse backgrounds to become
entrepreneurs. They provide training and mentorship, helping to
”
nurture a culture of entrepreneurship.

Despite the existence and growth of the cent), respectively. From the sample survey
ecosystem of support for enterprises, data respondents from the Azad Jammu and
collected from the survey of youth entre- Kashmir-Gilgit Baltistan-Islamabad Capital
preneurs indicates that on average; less Territory (AJK-GB-ICT) region, 6 percent of
than 10 percent of the survey respondents the women and less than 5 percent of men
have utilized mentoring or networking op- availed mentoring or networking opportu-
portunities. Figure 11 illustrates that Khyber nities. Alarmingly, none of the young survey
Pakhtunkhwa(KPK) shows the highest per- respondents from the province of Baloch-
centage (men 12 percent and women 9 per- istan indicated seeking such opportunities,
cent) of young entrepreneurs that utilized highlighting a crucial gap. Thus, it is vital to
mentoring or networking, followed by Sindh gauge the reasoning behind this gap be-
(men 11 percent and women 7 percent) and tween the presence of opportunities and
Punjab (men 8 percent and women 4 per- their reception by young entrepreneurs.
Figure 11. Mentoring or Networking

opportunities availed
Mindset and Cultural Challenges

Amidst the growing support, cultural mindsets and societal expectations present
significant challenges for the entrepreneurial ecosystem.
“
There is interest, but the interest is differentiated in different
student groups or young entrepreneurs have different
aspirations, and that often does not translate into the
”
entrepreneurial mindset that is needed.
(Educationist)

Many young individuals face pressure to pursue stable corporate careers, which can dis-
courage them from taking the risk of starting their ventures.
“We still have this mindset that we are going to get a degree, and
we are going to get a very good job, and we are going to get a lot
”
of money, and we are going to work in the corporate sector.
(Educationist)
Overcoming this mindset and embracing the uncertainties of the entrepreneurial jour-
ney is a daunting task for aspiring entrepreneurs.
“This mindset prevailing among the youth... does not let the parents,
as well as the children, move towards the entrepreneurial thinking
”
or the entrepreneurial mindset.
(Sector Specialist)
The study assessed the challenges young ditionally, 68 percent of respondents (66
people in Pakistan face during their entre- percent women and 67 percent men) iden-
preneurial journeys that may impede the tified “marriage” as an additional pressure
sustainability and or scalability of their enter- for entrepreneurs, closely followed by “skill
prises (Figure 12). The majority of the young mismatch” (66 percent). Cultural or societal
entrepreneurs attribute “socioeconomic norms, education and experience, and ca-
background” (92 percent) as the biggest reer path ranked low on the list. Interestingly,
constraint to their entrepreneurial journey, across all the categories, there is a high level
followed by “family expectations” (84 per- of agreement between women and men re-
cent) and “logistics issues” (74 percent). Ad- spondents regarding the challenges faced.
Figure 12. Key challenges young people face when embarking

upon entrepreneurial journeys by provinces and gender

Importance of
Entrepreneurship Education
To foster an entrepreneurial culture among
the youth, entrepreneurship education as-
sumes great importance. Early exposure
“ We have enough faculty, we
have trained human resources,
and we have foreign-qualified
to entrepreneurship in the curriculum and people who are giving their best
industry-wide experiences are essential in to teach the students whatever
”
empowering students to confidently pur- they can.
sue their startup ideas.
(Educationist)
The incorporation of practical insights and industry visits can help students gain confi-
dence in launching their ventures, as suggested by a sector specialist.
“
In the curriculum, the introduction of industrywide exposure is a
must. Universities must take students for business visits not just
to understand the practicality of operations but also to understand
business standard operating procedures. If not universities,
academies could collaborate with businesses to overcome this gap.
This would help young people have confidence in starting their
”
ventures.
(Sector Specialist)

Case Study:
SDG
Bootcamps
by UNDP
and Jazz
Jazz and UNDP Pakistan launched the ▶ Bechlo.pk from Sindh, a multi-ven-
SDG Bootcamp in December 2020 to dor app store created for and by
promote social entrepreneurship and women to sell new and preloved
strengthen the start-up ecosystem in products online
Pakistan. Under this, 20 boot camps
▶ Perwaz from Sindh, a healthcare
were conducted across the county to
train 800 young social entrepreneurs, company that provides drone ser-
including 50 percent women, until De- vices to deliver medical aid
cember 2022. Themes included themes ▶ Crop Care from Sindh, a mobile
of Education, Health, Climate Change, app that helps farmers detect crop
and Digital Transformation. Some suc- diseases and recommends solu-
cessful enterprises emerging from the tions
boot camps include:
▶ Edibles from Punjab, working to
reduce single use plastic cutlery
by introducing sustainable and
eco-friendly alternatives.

Women's Empowerment and Entrepreneurship

Empowering women entrepreneurs is also a critical theme in Pakistan's entrepre-
neurial landscape. Women face unique challenges, including limited access to fi-
nancing and cultural biases. Targeted support is required to address these barriers
and provide resources to empower women entrepreneurs in the ecosystem, as em-
phasized by a shareholder and serial investors.
“
Women largely suffer from limited access to financing.
”
It’s a very misogynistic environment.
(Shareholder/ Serial Investor)
Motivation and
Perseverance of Young
Entrepreneurs
A key theme identified in interviews is self-awareness, and the desire for person-
that the motivation and perseverance dis- al and professional growth motivate these
played by young entrepreneurs are com- individuals to push through challenges
mendable traits that drive them forward and build strong networks of mentors and
in their entrepreneurial journey. Passion, peers.
“
A lot of people who have the innate capability are now
finally asking themselves the tough question: Can we
”
become entrepreneurs?
(Investor)
Figure 13. Respondents who have participated in a

business incubation/start-up competition

Breaking Silos and Integrated Efforts

Collaborative efforts and breaking silos among stakeholders, including
academia, government, and industry, are vital to creating an enabling
ecosystem for entrepreneurship.
“ The need of the day is that all the stakeholders are supposed
to be breaking up their own silos, sitting together, and coming
up with something that is equally applicable and equally
”
designed by all the key stakeholders.
(Development Practitioner)
An integrated approach ensures that all

stakeholders work together toward fos-
tering a conducive environment for start-
“
There’s often a problem of
patchwork solutions and
tokenistic solutions, even if
ups to thrive. By aligning their efforts, they you do start incubation in a
can provide startups with the necessary country, and you don’t bring
support and resources to facilitate growth funding and other resources
and innovation. for them to scale up and
”
grow.
Overcoming Stigma and

Societal Pressures
Carrying forward from the theme of
“mindset and cultural challenges”, over-
“
It’s a landscape that still
doesn’t offer everything
they require, and what I
coming the stigma associated with en-
trepreneurship and societal pressure for mean by that, in particular,
”
immediate financial stability remains is mentality.
challenging for young entrepreneurs. (Shareholder/ Serial Investor)
Societal expectations of stability financially through the acquisition of a stable job

means that, most young people are still waiting to take the route of entrepreneurship.
“ Generally, there is a social expectation associated with young

graduates to start earning right after their degree. Young
entrepreneurs are seen as lazy individuals with a business
idea as an excuse not to join 9-5. This tremendous societal
”
pressure hinders youngsters from executing their ideas.
(Sector Specialist)

In addition to the challenge of societal and er impeding factor for youth in becoming
cultural pressures, there are a myriad of fac- entrepreneurs. Although a minor differ-
tors that may be the source of difficulty for ence, youth from the province of Baloch-
young people to become entrepreneurs. istan ranked the factors of caste, education
The biggest factor the survey respondents level, and disability higher than the “rural
identified is a "rural or remote background" or remote background” in creating difficul-
(96 percent), indicating an urban-rural ty in becoming entrepreneurs. It is worth
disparity. This was closely followed by dis- noting that survey respondents across
ability, education level, and caste, with 95 genders and provinces ranked “gender” (9
percent, 94 percent, and 92 percent agree- percent) and “religion” (6 percent) as the
ment among all survey respondents, re- least responsible for causing difficulties for
spectively. 83 percent of the respondents them as entrepreneurs. Figure 14 provides
identified socio-economic status as anoth- a disaggregation of these factors.
Figure 14. Difficulty level for youth to become entrepreneurs

in Pakistan because of the different factors
Changing the mindset within the en-

trepreneurial community and promot-
ing mentorship are crucial steps to cre-
“ We need more self-awareness
in Pakistan’s entrepreneurial
community. You don’t have to
ating a more supportive environment be a multi-millionaire to be a
”
for startups to pursue their ideas and mentor for someone.
ventures.
(Shareholder/ Serial Investor)

In conclusion, the themes and insights forts, and overcoming stigma. Addressing
uncovered in the realm of human capital these themes can create a more nurtur-
and entrepreneurship culture in Pakistan ing and enabling environment for young
underscore the significance of urgent entrepreneurs, unlocking the potential of
social challenges, entrepreneurial skills, the youth and fostering sustainable eco-
supportive ecosystems, cultural mindsets, nomic growth and social development in
entrepreneurship education, women em- the country.
powerment, motivation, collaborative ef-
Case Study:
Against
all odds
Tanzila Khan is a young activist. Her dis-

ability taught her a lesson that ignited
her passion for ensuring healthcare and
inclusion on all levels. “Being a public
speaker and an entrepreneur, I always products and information in a country
rushed from one meeting to another,
where these are hard to come by. The
creating value and making an impact.
Until one day I started my menstrual cycle app allows fast, anonymous delivery of
on the road while heading to an investor authentic products while also educating
meeting. And that’s how my entrepreneur communities to reduce stigma around
journey began.” menstruation. For her commendable
achievements as a female entrepreneur,
Prompting the launch of GIRLYthings. she won the Amal Clooney Award for
pk as a mobile application platform Women’s Empowerment by the Prince of
that gives access to women’s health Wales in 2022.

Domain 3:
ACCESS TO FINANCE
AND INCENTIVES

Domain 3:
Access to Finance
and Incentives
State of Play SMEs55. The study highlighted that SMEs

are a valuable source for utilizing skills,
entrepreneurship, and capital from ru-
Obtaining financing is a challenge for vir-
ral regions, as they can aid in promoting
tually all entrepreneurs but it is especial-
balanced economic growth, reducing ru-
ly challenging for young people pursuing
ral-to-urban disparity (hence migration),
social entrepreneurship. Financial service
and harnessing untapped potential in
providers generally identify youth as a
rural regions.
high-risk group because the vast majority
lack a credit history, an employment re-
cord, and collateral54. This is a major issue
in Pakistan with its weak economic situ-
Efforts to ease access to
ation and budget constraints. According finance and incentives in
to a study, India is spending $109 million, the country
Korea is spending $3.49 billion, Malaysia
is spending $2.22 billion, and Thailand is LOAN SCHEMES AND SKILL
DEVELOPMENT INITIATIVES BY
spending $122 million, whereas Pakistan
THE FEDERAL AND PROVINCIAL
spent only $1.74 million on facilitating
GOVERNMENTS
The government of Pakistan has taken
various loan schemes and skill develop-
Financial service providers ment initiatives to promote self-employ-
generally identify youth ment and entrepreneurship among the
as a high-risk group youth of the country. These schemes
focus on providing skill development,
because the vast majority
internships and job counseling, microf-
lack a credit history, an inance ventures, and assisting in entre-
employment record, and preneurship. Some of these schemes are
collateral54. This is a major listed below.
issue in Pakistan with its

weak economic situation
and budget constraints.
54
UN (2020). Recommendations for An Enabling Youth Social Entrepreneurship Ecosystem.
55
Ahmad et al. (2022). SME Sector in Pakistan: Mapping the Policy Framework Opportunities & Constraints.

Domain 3: Access to
Finance and Incentives
▶ Youth Business and Agricultural Loans women and girls for their empowerment
Schemes, 2023 and to bridge the digital divide. The policy
proposed58:
▶ Prime Minister’s Youth Program Loan
Scheme, 2021
▶ ‘ICT for Girls’ programs across the
▶ Prime Minister’s National Laptop country for training in computing
Scheme, 2014-2017 skills so that girls can have an oppor-
Prime Minister’s Youth Business Loans tunity to earn.
Scheme, focuses on educated and unem- ▶ Establish computer labs in girls’
ployed youth who are looking forward to schools in underserved mandated ar-
starting their own business and face capital eas of the country to train women and
issues. SMEDA approves these loans, and girls in computing skills (computing,
the borrower can submit the form for a loan
coding, and communication) through
through designated banks. These designat-
collaboration with the private sector.
ed banks then allocate loans to people from
Rs. 100,000 to Rs. 20,000,000 if the applica- ▶ To provide legal protection to women
tion is backed by a solid business plan and is and girls to encourage online partici-
for self and society56. pation.
INCENTIVES FOR IT STARTUPS INCENTIVES BY INTERNATIONAL

ACTORS
Additional incentives particularly for IT start-
ups were awarded in the budget (FY 2017- As initiatives within the entrepreneurial eco-
18) to promote innovation and entrepre- system have grown and expanded, interna-
neurship included57: tional donor agencies and ecosystem actors
have also aligned their agenda towards the
▶ Exemption for a period of three years promotion of entrepreneurship. UNDP, for
from Income Tax, Minimum Tax, and example, has been working on youth devel-
Withholding tax for PSEB registered opment since 2018 under the initiative titled
and certified IT startups that are offer- “Youth Empowerment Programme” with a
ing technology-driven products and focus on innovation and skill development59.
services. UNDP partnered with local organizations
to train over 8000 youth in entrepreneur-
▶ Exemption from sales tax on export of
ship skills in the provinces of Khyber Pakh-
IT services from Islamabad and other
tunkhwa and Sindh in the year 201960.
federal territories
▶ IT Companies allowed to open Foreign Programs such as the United States Agen-
Exchange Accounts in Pakistan cy for International Development’s (USAID)
Small and Medium-sized Enterprise Activity
INFORMATION AND (SMEA) and the UK government and Gates
COMMUNICATION TECHNOLOGY Foundation-backed entity ‘Karandaaz” pro-
(ICT) FOR GIRLS PROGRAMS
vide business support, grants, and invest-
The Digital Pakistan Policy (2018) aims to ment for small businesses, with a particular
promote the use of ICT technology among focus on women-led businesses61.
56
Kalhoro et al. (2022). National-scale Financing Scheme for Self- 59
UNDP (2019). Youth Empowerment Programme & Innovation
employment of Youth: A Case Study of Prime Minister’s Youth Portfolio Journey.
Business Loan Scheme in Karachi, Pakistan. 60
UNDP (2019). UNDP Pakistan and Kashf Foundation Partner to
57
Ministry of Information and Broadcasting (2018). Digital Train and Mentor 8,000 Youth on Entrepreneurship.
Pakistan Policy. 61
Women’s Entrepreneurs Finance Initiative (2019). Pakistan
58
Ministry of Information and Broadcasting (2018). Digital Startup Ecosystem Report.
Pakistan Policy.

Domain 3: Access to
INCENTIVES BY PRIVATE AND NON- small businesses. One not-for-profit orga-

PROFIT ORGANIZATIONS nization working in this regard is Akhuwat,
Private and philanthropist organizations which provides interest-free loans for small
are playing their role in capacity building of businesses under the program “Akhuwat
youth to enable them to start earning from Islamic Microfinance”62.
Case Study:
Gender-
inclusive
Initiatives
Bebo Haider, a trans-activist in Paki- tial challenges with profitability. Howev-
stan, faced discrimination when try- er, with the constant support and advice
ing to find a beauty salon that would from the Sub Rang Society, the business
cut her hair. Tired of being turned has started making some profit, enabling
away, she took matters into her own Haider to contribute to her staff’s travel
hands and founded Trawah, a salon expenses and provide snacks during the
that not only serves transgender cus- day.
tomers but also aims to provide live-
lihood opportunities for transgender Similarly, Sonia Naz became Pakistan’s
people. Supported by the Sub Rang first transgender person to start her own
Society, a Pakistani community or- fashion designing business after getting
ganization promoting equality, and a soft loan of Rs 1 million under the Youth
with funding from Oxfam Pakistan Entrepreneurship Scheme (YES) through
and private donors, Trawah faced ini- the Government of Pakistan.
62
Akhuwat (2023). Akhuwat Islamic Microfinance.

Domain 3: Access to
Key Findings
In the domain of access to finance and in-
centives for entrepreneurs in Pakistan, sev-
eral themes emerge, shedding light on the
“ One of the primary challenges is
the limited availability of funding
for startups. An incubator manager/
challenges faced by startups and the role entrepreneurship development officer
of supportive organizations in bridging the can assist by helping entrepreneurs
funding gap. identify funding sources, connecting
them with investors, and guiding them
”
in preparing strong investment pitches.
Lack of Access to
(Youth Entrepreneur)
Investments and Funding
One key theme that emerges is the lack of
access to investments and funding, which
poses significant hurdles for entrepre-
neurs. The absence of local venture capi-
is illustrated in Figure 15. The highest
talists and the limited availability of loans
percentage was reported from Punjab
make it difficult for new businesses to se-
where 12 percent of women and 13 percent
cure the necessary financial resources to
of men succeeded in obtaining funds for
grow. The stringent lending rules and risk-
their enterprises, followed by Sindh where
averse nature of banks further exacerbate
7 percent of women and 13 percent of men
the funding challenges, particularly for
succeeded in procuring funds. 4 percent
those without a stable employment histo-
of women respondents and 13 percent
ry or women entrepreneurs. The latter may
of men respondents accessed funds in
be attributed to cultural norms that lead
Balochistan, 13 percent of women and 4
to limited asset ownership and a lack of fi-
percent of men succeeded in AJK-GB-ICT,
nancial inclusion. The need for specialized
support for women in accessing capital is whereas only 6 percent of women and 8
evident, as they face higher barriers in the percent of men succeeded in accessing
entrepreneurial space due to social and funds in KPK. Therefore, it is evident from
cultural limitations placed on women in these figures that accessing finances
Pakistani society. for enterprises is difficult, especially in
provinces like Balochistan and KPK. A study
An incubator manager stated that the investigating regional culture’s influence
greatest challenge young entrepreneurs on women entrepreneurs' performance in
face is "the lack of investments. There is a Pakistan concluded that regional cultures
lack of local Venture Capitalists, there's a and business performance are positively
lack of investments in startups or new busi- correlated63. The culture encourages and
nesses." A young entrepreneur responded fosters innovation in the business using
that "one of the significant challenges is creativity and knowledge diffusion, which
the lack of initial investment or access to may have been the driving forces for the
capital to start the business". larger percentage of women seeking
funds for their businesses in AJK-GB-ICT,
The percentage of respondents able to areas that are generally more gender
access financing for their enterprises inclusive.
Shamsheri,et al.(2021). Impact of regional cultures on business performance of women entrepreneurs with reference to small and
63
medium enterprises in Pakistan.

Domain 3: Access to
Figure 15. Percentage of respondents able to access

financing for their enterprises
Since accessing available loans and other businesses by young entrepreneurs in

funding options can be a complicated pro- all regions of Pakistan (30%), followed by
cess, there is a need to create more aware- “Loans” (26%), and “Angel investment” (11%).
ness among youth about the funding op- Whereas information about “Venture cap-
tions available to them and how they can ital”, “Result-based financing”, “Impact in-
access them. vestment” and “bonds” is very low (less than
10% of the respondents) in all regions of the
“
country. Information on “IPOs”, Catalytic
Often there’s no access gap
funding”, “Convertible notes”, “Grants”, and
to investors and funding,
“Blended finance” is little to none. Figure 16
even if they exist out there, depicts the number of survey respondents
youth struggle with the disaggregated by province indicating their
direction, or how to start, or awareness of different financing options.
lack of mentoring and stuff
”
there.
(Sector Specialist)
Knowledge of and access to financing

options for businesses in Pakistan was as-
sessed among youth. “Personal saving”
was selected as the most widely used and
comprehended concept for starting their

Domain 3: Access to
Figure 16. Knowledge of financing options

for business in Pakistan64
Role of Incubators and One educationist provided insights on why

young entrepreneurs cannot make full use
Supportive Organizations
of government loan schemes by stating
The role of incubators and supportive or- that "Pakistan Prime Minister youth pro-
ganizations becomes crucial in addressing gram, is providing entrepreneurship loans,
these funding challenges, as highlighted small scale, and medium scale loans to dif-
by an innovation manager. Incubators and ferent individuals and small companies. But
entrepreneurship development actors play the problem is, again, coming back to the
a vital role in assisting entrepreneurs in problem of trust.”
identifying funding sources and connecting
them with investors. Initiatives like Jazz xlr8 Young entrepreneurs are skeptical about
are commendable in promoting diversity the complications involved with loan
and inclusivity in the startup ecosystem by schemes and any legal problem they might
providing access to funding and business land themselves in, in case their business
development support for entrepreneurs in needs to do better. Banks are very risk-
marginalized areas. averse to youth entrepreneurs. The lending
rules and regulations are very stringent.
64
The N for provinces also provides information on non-response. For example, in Sin N=100 (-4), the “-4” implies no response by 4
respondents from Sindh.

Domain 3: Access to
Appreciating the role of incubators and

supporting organizations in the field,
several interviewees agreed there are a
“ When you have the youth
business loan scheme and, I’m
not entirely sure what the sort of
certain number of those who are very take up for that has been, I don’t
supportive, but highlighted that some of have the data, but I do know
these actors were not willing to connect that it is challenging to get that
with small businesses or student projects.
loan, there is no data available
to help us ascertain how this
loan scheme has helped youth
”
entrepreneurs.
(Investor/ VC)
Case Study:
DeafTawk
DeafTawk, a Pakistani startup found-
ed in 2018 by Abdul Qadeer, Ali Shab-
bar, and Wamiq Hasan, set out to continued its journey, joining other
address the needs of the hearing-im- support programs such as Google-
paired community through its in- ForStartups, BeyondBeta, and Acceler-
novative sign language translation atingAsia from 2019 to 2021. The latter
app. Going beyond the mass market, provided the company with a signif-
DeafTawk focused on serving a niche icant grant of S$100,000 and an op-
and underrepresented audience that portunity to expand its operations to
required daily sign language inter- Singapore. Subsequently, DeafTawk’s
pretation support. After being part of efforts resulted in approximately
the National Incubation Centre (NIC) 94,000 hours of interpretation among
Islamabad cohort in 2018, DeafTawk users in both Pakistan and Singapore.

Domain 3: Access to
Challenges for Women

Entrepreneurs
This theme highlights the specific challeng- Focusing on promoting women entre-
es faced by women entrepreneurs in ac- preneurs, a policy maker stated that "the
cessing finance and capital. Limited access government has allocated various quo-
to financial institutions, lack of mentorship, tas for women inclusion at large, while 25
and gender biases are identified as major percent quota has been fixed for wom-
barriers. A development practitioner stated en entrepreneurs in the Prime Minister's
that Youth Business and Agriculture Loan
(PMYBAL) Scheme. At the university level
“
business incubation centres have been
Most of the women lack a
established however, their access is lim-
basic understanding of how
ited to university students, I believe such
to apply for a loan and are not services should be extended to commu-
able to secure a loan based on nity-level women entrepreneurs, who
very basic mistakes in the loan have less education, as they need aware-
application form and initial ness on access to market and access to
interview stages of the bank. financial institutions."
They are not able to prepare
proper business plans and lack
”
mentorship opportunities.

Domain 3: Access to
Seed Funding and Series A appropriate funding from banks and finan-
Financing cial institutions. Addressing these require-
ments and streamlining the process of for-
Seed funding and Series A financing also mal financing can enable more startups to
present obstacles for startups. access the funding they need to grow. This
theme emphasizes the barriers entrepre-
“
neurs face in accessing formal financing
The absence of sufficient from banks and financial institutions.
Series A funding hinders the
growth of startups after their Responding to a question about challenges
initial seed funding rounds. in formal financing in Pakistan, a serial en-
The establishment of an trepreneur stated that "in Pakistan, if you're
entrepreneurship fund that can not corporatized, if you don't have all of the
source money offshore may registrations, it's a very low probability you
encourage and support talented will get appropriate funding" (Serial Entre-
entrepreneurs in their early preneur). A sector specialist talking about
stages, boosting their chances banking policies stated "I know a lot of peo-
”
of success. ple who are very successful in that domain
but still don't get any support from banks."
The survey analysis reveals that among the

A serial entrepreneur expressed "We need
respondents, "limited company" is the most
an entrepreneurship fund that can source
commonly reported (45 percent) type of reg-
money offshore to encourage small but
istration for their enterprises. percent(the
talented entrepreneurs." The lack of seed
highest number found in Punjab). This was
funding and serial funding can be tackled
followed by the “sole proprietorship” (19 per-
by some interventions by the government
cent) and “partnership” (14 percent). The re-
and supporting organizations. An investor
maining 10 percent fall under the “not-for-
suggested that the government should
profit”, “welfare society”, “trust”, and “limited
"channel the taxpayer money towards the
liability partnerships with SECP” categories.
development of an entrepreneurship fund."
It is pertinent to note that 12 percent of the
total enterprises being studied in the survey
are “not registered”. Figure 17 illustrates the
Barriers to Formal Financing
distribution of enterprises by type of regis-
The barriers to formal financing are an- tration, disaggregated by province and gen-
other significant challenge faced by entre- der. As mentioned previously, enterprises'
preneurs. The lack of corporatization and lack of formalization can manifest as a ma-
necessary registrations restricts access to jor hurdle in accessing finances.

Domain 3: Access to
Figure 17. Distribution of enterprises by type of registration
Besides policy hurdles, there exist so- lowed by men respondents in Sindh
cioeconomic factors barring access to (83 percent). Socioeconomic status was
financial support for businesses in Pa- another important factor contributing
kistan. Responses about the difficulty in to the difficulty in seeking financial
seeking financial support for businesses support for businesses. Both men and
by different factors are expressed in Ta- women respondents reported discrim-
ble 3. The biggest challenges identified ination due to their gender, but it was
by respondents were discrimination more pronounced in women with the
based on disability and rural or remote highest disparity seen in KPK with
location. The highest rate of discrimi- 30 percent of women respondents
nation was reported in the population facing difficulty due to their gender
of Balochistan by men (93 percent) fol- as compared to 8 percent of men.

Domain 3: Access to
Table 3 : Difficulty in seeking financial support for businesses due to different factors*
*
The colours used in the heatmap refer to strength of number of responses in each category with darker shades refering to higher values.
Socio-economic status
Education Level
Rural or remote
background
Disability
Ethnicity
Religion
Gender
Caste
Province Gender
Women=16 25 57 0 0 0 25 70 70
AJK-GB-ICT n=41
Men=25 24 69 0 4 0 16 65 61
Women=28 29 65 7 4 4 22 80 80
BAL n=52
Men= 24 25 51 0 0 0 8 93 93
Women=34 30 60 6 6 3 18 66 63
KPK n=59
Men=25 8 57 4 4 4 12 69 69
Women=73 26 62 8 4 7 15 74 72
PUN n=154
Men=83 18 63 5 7 2 21 76 77
Women=46 24 44 9 4 4 11 79 79
SIN n=100
Men= 54 22 54 6 6 2 28 81 83
Personal Resources and ily member who was also an entrepreneur.

Approximately 50 percent of the women
Family Support
respondents in AJK-GB-ICT reported hav-
Many entrepreneurs initially rely on per- ing an immediate family member as an
sonal resources and family support to fund entrepreneur, while only 36 percent of
their ventures, as external financing options men respondents gave the same response.
remain limited. This reliance on personal Whereas, in Sindh, the percentage is 35
funding poses challenges in coping with percent of women and 31 percent of men
the increasing expenditures of startups. As respondents. Within the sample popula-
per the study’s survey responses, approxi- tion, Balochistan and KPK have the lowest
mately 36 percent of the total respondents percentages of both men ( 21 percent and
have immediate family members who are 20 percent) and women respondents ( 21
entrepreneurs. Figure 18 indicates that ap- percent,25 percent, and 26 percent) and
proximately 45 percent of the men and 47 who have an immediate family member as
percent of the women in Punjab respon- an entrepreneur ( 20 percent and 26 per-
dents reported having an immediate fam- cent).

Domain 3: Access to
Figure 18. Immediate family member as

an entrepreneurregistration
Besides family support, entrepreneurs ini- neurs). There was only 1 case of grant mon-
tially rely on personal resources to fund ey reported among the respondents from
their ventures. The type of funding used KPK. Other funding options for example,
for setting up enterprises was analyzed Angel investment/Catalytic funding/Im-
(Figure 19). Personal saving was by far the pact investment/Venture capital/RBF are
most common type of investment used by scarcely used, with AJK-GB-ICT, Baloch-
young people to start their enterprises in istan, and KPK reporting 1 case each, and 6
all regions of the country (340 young en- enterprises and 3 enterprises each in Pun-
trepreneurs). Loans were utilized in small jab and Sindh.
numbers in all regions (23 young entrepre-
Figure 19. Types of funding used for

setting up enterprise

Domain 3: Access to
The lack of access to external financing entrepreneurship. Such incentives can

makes it challenging for startups to cope contribute to the growth and develop-
with increasing expenditures. A youth ment of startups, as well as the overall
entrepreneur while explaining how they economy.
started their business initially, stated “We
have initially pooled in the funding per- An incubator manager pointed out that
sonally. And it is still a challenge to cope "There can be incubators and other small
with the ever-increasing expenditures and SEDs or other places where there can be
when the cash flows improved, I started in- tax benefits for some of the entrepre-
vesting my profits in Mutual funds/foreign neurs.” :
“
currency to multiply the revenues.” Most of
the respondents in the study stated that
From an investment point
their primary source of funding was either
of view, I believe they are
personal savings or family capital.
a bit risky as they depend
However, this dependency can also mean on the commitment level
that family expectations and stigmas of the entrepreneurs and
about being self-employed also become a the new venture needs to
hurdle in young entrepreneurs’ journeys in stick through the challenges
Pakistan. of early stages to sustain
and continue. They are
“
very important for national
And we didn’t have funding development and sectoral
at the start, so it was very growth as they broaden the
difficult because now you are market size and at times
graduating, parents expect innovations that can revive
”
you to bring money, but you the industry/sector.
have established the startup, (Incubator Manager)
which is not generating
”
revenue.
It is also imperative for youth to un-
(Youth Entrepreneur) derstand the significance of access to
financing for their ventures. Views of
young entrepreneurs about the im-
Need for Financial portance of access to financing were
Awareness and Incentives analyzed (Figure 20). Approximately, 82
percent of all the youth entrepreneurs
To encourage entrepreneurship further, shared a neutral point of view regard-
financial awareness and incentives play a ing access to financing, however, 14
crucial role. Providing tax benefits, grants, percent of the respondents indicated it
and subsidized loans can alleviate the fi- as an important or very important fac-
nancial burdens faced by startups and tor for enterprises. Only 3 percent of the
motivate more individuals to venture into respondents found it unimportant.

Domain 3: Access to
Figure 20. Importance of access to financing
Similarly, views of young entrepreneurs about incentives is very important, with 95 percent
the importance of financial incentives were of the young entrepreneurs labeling it as “im-
observed (Figure 21). There was a strong belief portant” or “very important”.
among respondents that access to financial
Figure 21. Importance of financial incentives

in encouraging entrepreneurship in Pakistan
In conclusion, the themes surrounding access financial awareness and incentives, there is po-
to finance and incentives shed light on the tential to create a more enabling environment
funding challenges faced by entrepreneurs in for startups to thrive. By addressing these
Pakistan. Lack of investments, limited access to challenges and providing adequate funding
loans, stringent lending rules, and gender bias- opportunities, Pakistan can nurture a vibrant
es pose significant hurdles. However, with the entrepreneurial culture and drive economic
support of incubators, entrepreneurship de- growth in the country.
velopment officers, and initiatives promoting

Domain 4:
BUSINESS
DEVELOPMENT
SUPPORT AND
INFRASTRUCTURE

Domain 4:
Business
Development
Support and
Infrastructure
State of Play According to the SME policy (2021), the gov-

ernment has proposed the following mea-
sures for SMEs to improve infrastructure for
Entrepreneurial networking is an important
small and medium businesses:
source of support for all entrepreneurs, even
more so for youth. Entrepreneurial networks
▶ Plug-and-play infrastructure would
have several different roles in supporting
be made available to small and medi-
entrepreneurship including acquiring moti-
um enterprises.
vation, opportunity perception, idea valida-
tion, resource identification, negotiating to ▶ Allocations for SMEs in existing eco-
get into business, and surviving in the busi- nomic zones and special economic
ness65. In addition to this, poor infrastructure zones
hampers the quality and competitiveness of
SMEs in all sectors of the economy. For in- ▶ Considering moving manufacturing
stance, low quality or absence of transport SMEs from commercial tariffs to in-
network and telecommunications nega- dustrial tariffs
tively impacts access to raw materials and ▶ Providing off-grid connections to rural
transport of goods while power shortages and remote SMEs
disrupt production and put a financial bur-
den on small enterprises66. ▶ Support SMEs providing clean energy
solutions.
Efforts to increase business Business Incubation Centers

support and infrastructure
in the country The Pakistan government has signaled its
support of entrepreneurship via intermedi-
Business Development Support in SME Pol- aries like the federal government’s “Ignite”
icy 2021 (formerly known as the National ICT R&D
65
Organization for Economic Co-operation and Development (OECD) (2014). Supporting Youth in Entrepreneurship.
66
Ministry of Information and Broadcasting (2021). Small & Medium Enterprise (SME) Policy.

Domain 4: Business Development
Support and Infrastructure and
Infrastructure
Fund), which is housed under the Ministry Shell, which support entrepreneurs via
of Information Technology and Telecom- programs and small grants.
munications and has launched National
Incubation Centers in Islamabad, Karachi, National Science and Technology Park
Lahore, Quetta, and Peshawar since 2017. (NSTP) at NUST Islamabad is a flagship
The provincial government in Punjab has project by NUST to provide a world-class
been an earlier supporter of technology business environment to emerging start-
entrepreneurship via the Punjab Informa- ups. It is discussed in detail in the “Tech-
tion Technology Board and launched the nology and Innovation” section of the doc-
country’s largest technology incubator, ument.
“Plan9” in 2012.
With the intended shift towards creat-
Aside from government-backed interme- ing an entrepreneurial economy and in-
diaries, privately led incubators and ac-
creased calls for public-private partner-
celerators such as “Innovation District 92”,
ships to achieve this goal, the role of the
“Nest i/o”, and “Invest to Innovate (i2i)” are
government, the private sector, and the
running programs throughout the coun-
academic institutions is to create an eco-
try, and supporting the ecosystem. There
system that favors and creates incentives
are noteworthy university-level incubators
like the Technology Innovation Center (TIC) for promoting entrepreneurial activity. The
at the National University of Science and government’s role must go beyond the tra-
Technology (NUST) in Islamabad, the Aman ditional economic rationale of relying on
Center for Entrepreneurial Development the existence of market failures and distor-
at the Institute of Business Administration tions, but rather, intervening so that these
(IBA) in Karachi, and the Takhleeq Incu- market failures and distortions do not neg-
bator at the University of Central Punjab atively impact an emerging entrepreneur-
(UCP) in Lahore. There are also a growing ial society68.
number of startup competitions and con-
ferences, such as “Momentum”, “021 Dis- START AND IMPROVE YOUR
rupt”, and “Startup Cup”, coworking spaces BUSINESS PROGRAMME (SIYB) BY
like “Daftarkhwan”, “CoLab” and “the Hive”, ILO
and other supporting players and associa-
tions like Pakistan Software Houses Asso- SIYB is one of the largest global business
ciation for IT and ITES (PASHA), Circle, The management training programmes man-
Indus Entrepreneurs (TiE), and Organisa- aged by the International Labour Organ-
tion of Pakistani Entrepreneurs (OPEN)67. isation69. In Pakistan, SIYB is on a mission
Corporations and large companies are also to train and equip youth at different stages
playing a role in the entrepreneurial eco- of their entrepreneurship journeys, from
system, either as partners in some of the developing a business idea to expanding a
national incubator centres, such as Jazz running business to training master train-
and LMKT, or separately like Telenor and ers programs at a very affordable price70.
67
Women’s Entrepreneurs Finance Initiative (2019). Pakistan Startup 69
ILO (2023). Start & Improve Your Business Program.
Ecosystem Report. 70
ILO (2023). Start & Improve Your Business Pakistan
68
Global Entrepreneurship Monitor (2019). Entrepreneurship in
Pakistan.

Infrastructure
IGNITE AND BUSINESS INCUBATION trepreneurs to excel in technological inno-

CENTRES FUNDS vations.
IGNITE is a national technology Fund,

BRITISH COUNCIL’S DEVELOPING
which through its network of business in- INCLUSIVE AND CREATIVE
cubation centres across Pakistan nurtures ECONOMIES (DICE) PROGRAM
startups and engages them with investors
Dice program in Pakistan is enabling so-
and corporations71. Besides powering the
cial and creative enterprise leaders by
BICs, IGNITE has funds namely the “Chal- connecting and training them through
lenge-Driven Innovation Fund”,” Technolo- its online portal. It helps small businesses
gy Transition Fund” and “Final Year Project navigate through challenges like COVID
Fund” targeted at encouraging young en- through its webinars and online courses72.
Key Findings
In the domain of business development
even to find some good angel investors
support and infrastructure in Pakistan,
and basic money to run their enterpris-
several themes emerge, shedding light
es for the next six or eight months.”
on the challenges faced by local entrepre-
neurs and the measures required to foster A youth entrepreneur stated his experi-
a conducive ecosystem for startups. ence of seeking business support as:
Challenges in Accessing
Angel Investors and
Funding
“Access to finance has
been vital to my entrepre-
neurial journey. However,
I encountered difficulties
One prominent theme revolves around in securing funding and
the challenges of accessing angel investors accessing financial re-
and funding. Local entrepreneurs often sources. To address these
struggle to find angel investors and secure challenges, I researched
the basic funding needed to sustain their government programs, ap-
operations. The lack of financial support proached angel investors
can hinder the growth and development and venture capitalists,
of promising startups. and explored crowdfund-
”
ing platforms.
An incubator manager opined that “there’s (Youth Entrepreneur)
a big challenge for local entrepreneurs
71
National Technology Fund (2023). Ignite.
72
British Council Pakistan (2023). DICE: Innovative Digital Learning.

Infrastructure
An incubator manager on business sup-

port initiatives thinks “You need more doc-
umentation of the economy as well, as you
“
They can guide entrepreneurs in market
analysis, understanding customer needs,
and conducting feasibility studies. They
need this to help entrepreneurs in terms can also connect entrepreneurs with
of probably pushing in their energy.” This industry experts and potential customers
”
is an important observation since docu- for valuable insights and feedback.
mentation is linked to investors’ access to
robust data and insights to make informed (Sector Specialist)
decisions and reduce their risks when in-
vesting in enterprises.
Young entrepreneurs’ inclination towards
getting help from incubators has been in-
creasing in the country. Most interviewees
Rethinking the Role of recognized the role of National Incubation
Incubators and Supportive Centres for young entrepreneurs as they
Organizations can help entrepreneurs grow their net-
works, get groomed with several resourc-
The role of incubators and supportive or-
es and tools, and get access to mentors
ganizations becomes crucial in addressing
who help them succeed in their startups.
these funding challenges. Incubators need
However, some questioned the impact in-
to reassess their role and adopt a more
cubation centres have been able to create
hands-on approach, providing entrepre-
to date.
neurship training, workshops, and men-
“
torship programs tailored to the specific
needs of entrepreneurs. Such initiatives The government does have a
can equip entrepreneurs with essential network of incubation centres,
skills in business planning, financial man- however, they’re all operating
agement, marketing, and operations, en- in their silos and capacities with
abling them to build strong and sustain-
no thought process regarding
able ventures. This theme emphasizes the
what we are trying to achieve.
need for incubators to reassess their role
We open these things up, but
and adopt a more hands-on approach,
are we doing a cluster-wise
providing entrepreneurship training, work-
approach, or are we doing a
”
shops, and mentorship programs to cater
to the specific needs of entrepreneurs.
segment-wise approach?
(Investor)
“Incubators need to
rethink their role and
start from more of a
Interest in seeking incubation support
was analyzed among young entrepre-
neurs from all regions of Pakistan (Figure
”
burden hand principle. 22). Overall, 16 percent of the youth entre-
(Incubation Manager) preneurs showed interest in seeking in-
cubation support. It is important to note
that women demonstrate more interest
in seeking incubation support than men
entrepreneurs in Balochistan, KPK, and

Infrastructure
Punjab (11 percent and 8 percent in Balochistan, 14 percent and 12 percent in KPK, 23
percent and 17 percent in Punjab, respectively). Men displayed more interest than wom-
en respondents in seeking incubation support in AJK-GB-ICT (8 percent and 6 percent
respectively) and Sindh (24 percent and 13 percent respectively).
Figure 22. Interest in seeking incubation support
The kind of support via incubation centres and enterprising synergy is also a point of
taken by young entrepreneurs is analysed interest for youth entrepreneurs. Very few
according to regions in Figure 23. Network- youth entrepreneurs engage incubation
ing with investors (11 percent) is identified centres as an option to access mentors (5
as the greatest support sought via incuba- percent), or for competitor awareness (4
tors, this is followed by business acumen percent), technology/media support (2 per-
and marketing (9 percent each), financing, cent), and others.
Figure 23. Kind of support sought via incubation

Infrastructure
The difficulty level for young and upcoming pronounced in the province of KPK), followed
entrepreneurs in seeking business develop- by rural or remote background (34 percent),
ment support for their businesses in Pakistan gender (31 percent), and educational level (30
was investigated (Figure 24). It was observed percent). Ethnicity (17 percent), religion and
that 63 percent of the youth entrepreneurs, caste (6 percent) were ranked as the lowest
both men and women faced the highest discriminatory factors for seeking business
difficulty due to discrimination based on so- development support by young entrepre-
cio-economic status (this impact was more neurs.
Figure 24. Difficulty level for young and upcoming entrepreneurs in

seeking business development support for their business in Pakistan
Addressing the Gap in

Business Development Skills
Another significant theme highlights the Generally, there is a good level of awareness
gap in business development skills among amongst youth entrepreneurs in Pakistan,
graduates and young entrepreneurs. Busi- regarding entrepreneurship as a career op-
ness graduates often aspire to start their tion (Figure 25). The province of Balochistan
ventures but lack the necessary knowledge has the highest percentage of awareness
and support to do so effectively. Creating among its youth (men 88 percent, women
small incubation centres that offer a prop- 71 percent). This is followed by AJK-GB-ICT
er environment for students to learn from (men 80 percent, women 69 percent), KPK
mentors and develop their ideas can be (men 68 percent, women 79 percent), Sindh
instrumental in nurturing entrepreneurial (men 74 percent, women 74 percent)), and
talent. This theme highlights the need to Punjab (men 70 percent, women 70 per-
address the gap in business development cent). However, converting this “awareness”
skills among graduates and young entre- into action is the real issue that needs to be
preneurs. addressed.

Infrastructure
Figure 25. Awareness of young people in Pakistan

regarding entrepreneurship as a career option
Formal education and training related to entrepreneurs can be a critical tool in build-
ing “entrepreneurial competencies” (technical and non-technical skills) amongst
aspiring young entrepreneurs. The survey responses indicted that overall, the per-
centage of young entrepreneurs that received formal training or education is signifi-
cantly low (Figure 26).
Figure 26. Formal training or education

related to entrepreneurship received

Infrastructure
The highest percentage of formal training

or education related to entrepreneurship
received was by women in the province of
“
They don’t know from where
to start, how to start, although
they are business graduates,
Khyber Pakhtunkhwa (KP) at 12 percent they don’t know how to
compared to 4 percent of men. This was develop teams, which idea
followed by the entrepreneurs from the to pursue, or to whom they
province of Punjab, where responses il- should go and network to start
”
lustrate almost a balanced response from their business.
women and men respondents (i.e., 7 and
10 percent, respectively). Similarly, in Sindh, (Mentor)
7 percent of the entrepreneurs received
formal education or training. Within the
AJK-GB-ICT region, only 8 percent of men
and no women received formal education/
Tailoring Support Services
training. While in Balochistan only 4 per- for Specific Groups
cent of men and no women respondents
Tailoring support services and infrastruc-
had received formal education training re-
ture to meet the specific needs of women
lated to entrepreneurship.
entrepreneurs and entrepreneurs from
“
underserved communities is crucial for
At universities and schools, promoting diversity and inclusivity in the
I think we have enough startup ecosystem. Initiatives like PlanX73
resources. We have trained and The Nest I/O Social Innovation Lab74
the human resource, we have are commendable for their efforts in pro-
foreign-qualified people, who viding resources and mentorship to cre-
are giving their best to teach ate an inclusive environment for startups
their students whatever they to thrive. PlanX is a startup accelerator
”
can. set up by the Punjab Information Tech-
(Educationist) nology Board, that aims to “empower
commercially viable, mid-stage technol-
ogy startups through a 6-month equity
Business schools are flourishing in Paki- free acceleration program.” The Nest I/O
stan, and an interest in business studies is a technology incubator set up by P@
has boomed in the last decade or so. These SHA with global partners Google for En-
business graduates are equipped with trepreneurs and Samsung and through a
the necessary skills to enter the market. supporting grant from the US State De-
An educationist responding to a question partment.
about gaps in business development skills
stated: “When it comes to business grad- Incubators and business support orga-
uates... they want to go towards starting a nizations can play a key role by tailoring
business rather than finding a job.” Young their services to meet the needs of under-
graduates do, however, need mentorship served groups like women, ethnic minori-
and guidance at the start. ties, and people with disabilities.
73
GoP (2023). Plan X Technology Accelerator.
74
The Nest I/O a Technology Incubator (2023)

Infrastructure
“
Incubators like PlanX and The Nest I/O Social Innovation Lab are
tailoring their support services to meet the specific needs of
women and entrepreneurs from underserved communities. They
offer resources and mentorship, creating a conducive environment
”
for startups to thrive.
(Incubator Manager)
Youth entrepreneurs across all regions and reported that provision or access to sup-
genders feel they could scale up their busi- port does not help in their entrepreneurial
nesses or start a new business with access journeys. Overall, Figure 27 provides a crit-
to various types of support. In contrast, ical overview of how entrepreneurs across
some of the youth entrepreneurs stated Pakistan view support and underlines the
that with targeted support, they could also fact that many entrepreneurs still require
improve their current business operations. more targeted support to grow their busi-
Less than 5 percent of the respondents nesses.
Figure 27. Utility of various types of support
Importance of Mentorship essential to recognize the significance of

mentorship as a key ingredient in any suc-
and Self-Awareness
cessful entrepreneurial ecosystem.
Mentorship is vital in nurturing young en-
trepreneurs and fostering self-awareness As per the survey responses, 58 percent of
within the entrepreneurial community. the youth entrepreneurs do not have ac-
The availability of mentorship opportuni- cess to mentors (Figure 28). Entrepreneurs
ties remains limited in Pakistan, and it is from the province of Balochistan reported

Infrastructure
having the greatest access to mentors with

men at 58 percent and women at 46 per-
cent. In the province of KPK, women report-
“
Overall, these figures reveal that
most entrepreneurs in Pakistan
lack access to mentoring, which
ed greater access to mentors compared to could limit their growth and
”
their men counterparts. Additionally, men development potential.
stated greater access across all other prov-
inces. AJK-GB-ICT KPK had the lowest per-
centage of men (32 percent) and women
(25 percent) respondents who had access to
mentors.
Figure 28. Access to Mentor
Mentoring or Networking is important for networking, followed by Sindh and Pun-

young entrepreneurs for guidance, sup- jab respectively. From the sample survey
port, and access to opportunities for growth. respondents from the AJK-GB-ICT region,
Figure 29 indicates that less than overall 10 on average less than 5 percent of the total
percent of the survey respondents (except youth entrepreneurs sought mentoring or
men in KPK) have availed themselves of any networking opportunities (men 4 percent,
kind of mentoring or networking opportu- women 6 percent). Alarmingly, none of the
nities. KPK shows the highest percentage young survey respondents from the prov-
(men 12 percent, women 9 percent) of youth ince of Balochistan indicated seeking such
entrepreneurs that sought mentoring or opportunities, highlighting a crucial void.

Infrastructure
Figure 29. Mentoring or Networking

opportunities availed
Challenges in Accessing In conclusion, the themes surrounding

business development support and infra-
Proper Debt Structuring
structure in Pakistan highlight local entre-
Accessing proper debt structuring support preneurs’ challenges in securing funding,
poses challenges for young businesses in accessing skill development opportunities,
Pakistan, making financing costly and lim- and receiving tailored support. Incuba-
iting their growth opportunities. Addressing tors, mentorship programs, and initiatives
this issue can significantly improve access catering to specific groups are crucial in
to capital and encourage more startups to bridging these gaps and fostering a nur-
flourish. turing environment for startups to thrive
“
and contribute to the country's economic
In our country, if you're a young growth. By addressing these challenges
business, you may get some and providing comprehensive support,
grants here and there, but Pakistan can nurture a vibrant and diverse
when I talk about proper debt entrepreneurial culture, driving innovation
”
structuring, it's costly. and progress in various sectors.
(Sector Specialist)

Domain 5:
ACCESS TO
MARKET

Domain 5:
Access to
Markets
State of Play
Market access, both local and international the market for IT sector entrepreneurs, which
is one of the key constraints impeding the include:
growth of SMEs in Pakistan. SMEs locat-
ed in rural and remote areas find access to ▶ Pursue all measures including legislative,
main markets and big cities very costly and policy, administrative, and international
time-consuming. There is a lack of good in- marketing measures, to augment soft-
frastructure, logistics, and information and ware exports, create jobs, and contribute
inadequate marketing means which ham- towards the government’s efforts to in-
per the access of rural and remote SMEs to crease overall IT exports and remittances.
big markets. In addition, barring the main
export clusters like Sialkot, Faisalabad, and ▶ Concentrate on emerging areas of mo-
Karachi, entrepreneurs from other cities bile application development, respon-
cannot access international markets75. The sive web applications, big data analytics,
SME policy outlines the following measures Internet of things (IoT), and cloud com-
to be taken to improve SMEs access to mar- puting to leverage existing competen-
kets: cies in Pakistan’s IT industry and to im-
prove its export potential.
▶ Trade Development Authority (TDAP)
▶ Focus on moving up the global IT value
will support the participation of small
chain through innovative product devel-
enterprises in trade fairs and exhibi-
opment while also exploring new mar-
tions at subsidized rates.
kets where ‘Business Process Outsourc-
▶ Regular trade fairs and exhibitions are ing’ jobs can be created.
to be held in major cities of Pakistan.
▶ Attract global multinational companies
▶ TDAP to specifically target SMEs in to leverage Pakistan’s talent for backend
Baluchistan, Khyber Pakhtunkhwa, services by transparently providing ap-
Gilgit Baltistan, and Azad Jammu and propriate incentives.
Kashmir.
▶ Promote the domestic software market
▶ State banks to expedite approval of through public sector projects.
applications by entrepreneurs to oper-
▶ Utilize the Pakistani Diaspora in the
ate payment gateways.
North American, European, and Middle
Ministry of IT and Telecom, through the Eastern markets to enable the inclusion
Digital Pakistan Policy, has identified focus of young Pakistani IT entrepreneurs into
areas to work on to provide better access to the global IT value chain.
75
Ministry of Information and Broadcasting (2021). Small & Medium Enterprise (SME) Policy.

Domain 5:
Access to Markets
Key Findings
In the context of Access to Markets in Pa- Lack of awareness and discrimination fur-
kistan, several themes emerge, shedding ther hinder the entry of young entrepre-
light on the challenges faced by entrepreneurs into both national and international
neurs and the measures required to ex- markets.
“
pand their businesses both nationally and
internationally. I believe it is tough for young
entrepreneurs to enter national and
international markets, let alone the
Challenges in Accessing marginalized young entrepreneurs.
Angel International There are two dimensions to
Markets this problem: lack of awareness,
exposure, and experience of
One key theme centres around the chal-
young entrepreneurs, and their
lenges of accessing international markets.
”
acceptability and discrimination.
Startups and entrepreneurs from Pakistan
often face difficulties in entering global (Development Practitioner)
markets due to a lack of exposure, expe-
rience, and acceptability. Although some
businesses have found success through The following quantitative data represents
labor arbitrage models, many struggle to the challenges faced by young entrepre-
access markets in countries like the US, neurs in accessing the national and inter-
Canada, or Australia. national markets and further information
“
related to them.
Those businesses that have
Challenges faced in accessing local and na-
targeted themselves and
tional markets were identified by respon-
that have made money by
dents (Figure 30). Inadequate marketing
following a simple model
and promotion (98 percent) were the main
of getting out of that labor
challenges identified by both women and
arbitrage, they get to sell men respondents in the study, closely fol-
into some of the markets in lowed by lack of infrastructure (94 percent)
the US or Canada or Australia and competition from established busi-
or the Western markets and nesses (90 percent). Limited access to buy-
getting money by making ers (76 percent) is also a factor identified by
”
money out in dollars. many respondents while human resource
(Incubator Manager) retention was identified as a problem by 21
percent of the respondents.

Domain 5:
Access to Markets
Figure 30. Challenges faced in accessing

local and national markets
25 percent of women and 12 percent of men percent and 16 percent for KPK, 14 percent
in AJK-GB-ICT accessed the internation- and 12 percent for Punjab, and 13 percent
al market among the respondents in the and 11 percent for Sindh respectively. More
study. The percentage of women and men women than men respondents reported ac-
accessing the international market was 14 cessing international markets in all regions
percent and 4 percent for Balochistan, 15 except KPK (Figure 31).
Figure 31. Entrepreneurs that accessed

international markets

Domain 5:
Access to Markets
Inadequate marketing and promotion (89 32). This was followed by challenges due
percent) were the most cited challeng- to lack of infrastructure (74 percent), com-
es in accessing international markets by petition from established businesses (72
both women and men respondents of the percent), and limited access to buyers (63
study in all regions of the country (Figure percent).
Figure 32. Challenges faced in accessing

International Markets
Need for Capacity Build-

ing and Mentorship “So what government can do or
what capacity building organi-
zations can do is to help build
The role of capacity-building organi- them or mentor them at an ear-
zations and mentors becomes crucial ly stage and at the same time
in supporting young entrepreneurs promote the spirit of entrepre-
”
to enter markets successfully. Mentor- neurship overall...
ship and early-stage support can foster
the spirit of entrepreneurship and pro- (Incubator Manager)
vide valuable market insights. Capaci-
ty-building organizations (i.e. Enterprise
support organizations) can organize By fostering partnerships and provid-
networking events, workshops, and in- ing market insights, incubators can
dustry-specific meetups, connecting support startups from marginalized
entrepreneurs with experienced profes- communities to access markets that
sionals and potential collaborators. might otherwise be out of reach.

Domain 5:
Access to Markets
“
The manager/officer can orga-
nize networking events, work-
shops, and industry-specific
umented in the study (Figure 33). Around
40 percent of all male respondents sug-
gested more collaboration between young
meetups where entrepreneurs entrepreneurs and established businesses
can connect with experienced as a means to improve their access to local,
professionals, successful en- national, and international markets where-
trepreneurs, and potential col- as approximately 50 percent of women
”
responded thought more government
laborators.
support for market access would be more
(Sector Specialist) fruitful in this regard. A small number of re-
spondents also suggested more network-
The opinion of young entrepreneurs about ing opportunities for young entrepreneurs
how to improve their access to local, na- to improve their access to markets.
tional, and international markets was doc-
Figure 33. How to improve young entrepreneurs’ access to

local, national and international markets
Government’s Role in be challenging due to a lack of trust or

proper implementation. Some respon-
Market Access
dents believe that the government should
The government’s role in facilitating mar- do more to promote export opportuni-
ket access is perceived with mixed views. ties for young entrepreneurs, including
While there are grants and programs youth-specific export promotion pro-
available, accessing these resources can grams.

Domain 5:
Access to Markets
“Local and international mar-

kets need to be explored to
support young entrepreneurs
The difficulty level for young and upcom-
ing entrepreneurs in seeking access to
the market for their business in Pakistan
in Pakistan. Unfortunate- is summarized in Table 4. On average, 95
ly, there is limited focus on percent of respondents characterized so-
cioeconomic status, rural or remote back-
exporting the services and
ground, and disability as significant chal-
products that young entre-
lenges in seeking access to the market for
preneurs produce at the mo-
”
their businesses in Pakistan. Interestingly
ment.
education level (23 percent), ethnicity (20
(Sector Specialist) percent), religion (11 percent), gender (9
percent), and caste (4 percent) are ranked
much lower comparatively.
Table 4 .Difficulty level for young and upcoming entrepreneurs in seeking access to the
market for their business in Pakistan (in percent)*
*
The colour spectrum reflects high (darker shade) to low (lighter shade) of percentages.
Socio-economic status
Education Level
Rural or remote
background
Disability
Ethnicity
Religion
Gender
Caste
Province Gender
Women=16 13 95 13 13 6 25 95 95
AJK-GB-ICT n=41
Men=25 4 96 16 16 0 32 96 97
Women=28 7 96 25 11 7 7 97 97
BAL n=52
Men= 24 4 96 8 13 0 21 96 96
Women=34 9 98 9 3 0 27 92 92
KPK n=59
Men=25 12 93 36 8 8 24 97 93
Women=73 13 94 22 14 11 30 93 91
PUN n=154
Men=83 5 95 19 15 1 18 93 96
Women=46 7 90 24 9 2 13 94 95
SIN n=100
Men= 54 15 92 24 6 9 32 95 96

Domain 5:
Access to Markets
Digital Skills and Technical Training Commission, DigiSkills.

Opportunities pk, and E-rozgaar, target audience, poten-
tial competitors, and market trends can
Digital skills play a crucial role in access- help entrepreneurs make informed deci-
ing new markets and industries. Provid- sions. Building a strong brand identity and
ing training programs, scholarships, and effective marketing strategy can attract
digital skills initiatives can equip young customers and foster brand recognition,
entrepreneurs with the necessary tools to opening doors to new market opportuni-
leverage digital opportunities and access a ties.
broader customer base.
“
Digital skills, AI, web de-
velopment, programming,
“
Conducting market re-
search: Before diving in, I
knew conducting thorough
and software engineer-
research on the chosen in-
ing are the high demand
dustry or market was crucial.
trade. These skills can be
This involved understanding
developed by providing
the target audience, poten-
skills scholarships, eve-
tial competitors, and market
ning, and weekend training
”
trends.
programs, and digital skills
programs like DigiSkills.pk, (Youth Entrepreneur)
”
and E-rozgaar .
(Sector Specialist)
Sources to reach out to potential clients
and customers were quantified in the study
Conducting thorough market research and (Figure 34). Personal networks (96 percent),
establishing effective branding and mar- social media (94 percent), and physical
keting strategies are also vital for market stores (65 percent) are the preferred media
entry and success. Understanding the high to reach out to clients in all geographical
demand for skills such as AI, web develop- regions of the country whereas online mar-
ment, programming, and software engi- ketplaces (59 percent) are the least explored
neering and websites that offer digital skills venues to reach out to potential clients/cus-
programs, such as National Vocational and tomers in Pakistan.

Domain 5:
Access to Markets
Figure 34. Reaching out to potential clients/ customers
In conclusion, access to markets in Pakistan and tap into various market opportunities.
presents challenges for young entrepreneurs, By addressing these themes and imple-
both at the national and international levels. menting supportive measures, Pakistan can
Capacity-building, mentorship, government create a thriving ecosystem that empowers
support, digital skills, market research, and entrepreneurs to expand their businesses,
branding are key elements that can enable contribute to economic growth, and com-
entrepreneurs to overcome these challenges pete on the global stage.

Domain 6:
INNOVATION AND
TECHNOLOGY

Domain 6:
Innovation and
Technology
State of Play
Innovation and technology serve as cat- tunity to acquire in-demand skills from
alysts, empowering entrepreneurs to re- international universities.
define industries and scale their ventures
with unprecedented precision. According UNDP Pakistan works with young entre-
to the SME policy of Pakistan, entrepre- preneurs in all sectors at various stages
neurs are distinguished from small busi- of business growth through scouting for
ness owners in the sense that they involve good ideas, turning them into viable busi-
innovation and fresh thinking. Innova- ness solutions, and providing effective
tion which is the key to entrepreneurship mentoring and grants. Currently, Youth
seems to be nearly absent in the Pakistan Co: Lab is an initiative co-led by UNDP
entrepreneurship ecosystem. Most of the and Citi Foundation that aims to empow-
businessmen seem to be involved in in- er young people in Asia and the Pacific to
herited business. A substantial proportion lead social change through entrepreneur-
of the new businesses and enterprises ship and innovation. The initiative provides
are largely replicated from international a platform for young entrepreneurs to
markets. Investment patterns appear to connect, learn, and access resources and
dictate entrepreneurship rather than in- support to start and grow their business-
novation. The majority of investors seem es. National youth social innovation and
to rush into market areas that already ex- entrepreneurship activities have benefit-
ist whereas startups venturing into prob- ted more than 15,000 young people and
lem-solving with creative solutions are created or improved 1,700 youth-led social
very less in number. Furthermore, busi- innovation or entrepreneurship teams77.
nesses are not dynamic in the country as
very few businesses seem to grow to be In Pakistan, it has three key components
large conglomerates and multinationals76. i.e., the National Dialogue, the Movers Pro-
gramme, and Digital Skills Development,
To foster innovation in young entrepre-
which are working to:
neurs, various government and interna-
tional organizations are working to impart ▶ Provide capacity building, mentor-
technological and entrepreneurial skills
ship, and grants to youth-led social
to youth. Higher Education Commission
enterprises
(HEC) Digital Learning and Skill Enrich-
ment Initiative (DLSEI) is one such initia- ▶ Promote policy dialogue for youth
tive to provide educated youth the oppor- innovation and entrepreneurship
76
Kumar (2020). Entrepreneurship Ecosystem and Development of Entrepreneurship in Pakistan.
77
Youth Co:Lab (2023). About Us.

Domain 6:
Innovation and
Technology
for small businesses and the terms of these stan. In most cases, by the time the process
plans are stringent for small business own- is completed, the technology becomes ob-
ers. In Pakistan, the plan called Voluntary solete.
Pension System is regulated by the Securi-
ties and Exchange Commission of Pakistan
(SECP) and is open for all individuals, either Prime Minister’s National
employed or self-employed82. Innovation Award (PMNIA)
Prime Minister’s Youth Programme has an-
Intellectual Property nounced the National Innovation Award for
Rights the youth of Pakistan in 2022. It is an oppor-
tunity for young entrepreneurs (15-30 years)
Protecting intellectual property rights is to present their innovative ideas related to
crucial for start-ups and small businesses to eight thematic areas with a specific focus on
preserve of their unique ideas and services. Eco-Innovation and get a chance to win Rs.
The Intellectual Property Organization of 2 million in grant funding along with tech-
Pakistan is the focal organization for issues nical support and incubation options. Un-
relating to property rights in Pakistan83. They der this program, NUST conducted a 5-day
preserve patents, Integrated Circuits (IC), in- idea pitching training/boot camp at Islam-
dustrial designs, copyrights, and geograph- abad for 70+ participants for Islamabad re-
ic indications, all of which are very useful for gion from 6th February 2023- 10th February
budding new businesses. IP laws are very 202384. Universities in other regions would
weak and take too long to process in Paki- also conduct similar programs.
Key Findings landscape driven by technology and the

challenges faced by young entrepreneurs.
In the context of Innovation and Technology
One key theme revolves around technolo-
in Pakistan, several themes emerge, shed-
gy acting as a catalyst for entrepreneurship.
ding light on the evolving entrepreneurial
The increasing penetration of digitalization
landscape driven by technology and the
and access to technology has opened new
opportunities for young entrepreneurs to
start and grow their ventures, particularly in
the tech sector.
Technology as a Catalyst for
“
Entrepreneurship
The increasing penetration of technology
In the context of Innovation and Technology and digitalization has opened new
”
in Pakistan, several themes emerge, shed- opportunities for young entrepreneurs.
82
Mutual Funds Association of Pakistan (2023). Voluntary Pen- 84
NUST (2023). Prime Minister’s National Innovation Award
sion System (VPS). A Concise Guide for Investors (PMNIA).
83
Intellectual Property Organization of Pakistan (2023)

Domain 6:
Innovation and
Technology
for small businesses and the terms of these stan. In most cases, by the time the process
plans are stringent for small business own- is completed, the technology becomes ob-
ers. In Pakistan, the plan called Voluntary solete.
Pension System is regulated by the Securi-
ties and Exchange Commission of Pakistan
(SECP) and is open for all individuals, either Prime Minister’s National
employed or self-employed82. Innovation Award (PMNIA)
Prime Minister’s Youth Programme has an-
Intellectual Property nounced the National Innovation Award for
Rights the youth of Pakistan in 2022. It is an oppor-
tunity for young entrepreneurs (15-30 years)
Protecting intellectual property rights is to present their innovative ideas related to
crucial for start-ups and small businesses to eight thematic areas with a specific focus on
preserve of their unique ideas and services. Eco-Innovation and get a chance to win Rs.
The Intellectual Property Organization of 2 million in grant funding along with tech-
Pakistan is the focal organization for issues nical support and incubation options. Un-
relating to property rights in Pakistan83. They der this program, NUST conducted a 5-day
preserve patents, Integrated Circuits (IC), in- idea pitching training/boot camp at Islam-
dustrial designs, copyrights, and geograph- abad for 70+ participants for Islamabad re-
ic indications, all of which are very useful for gion from 6th February 2023- 10th February
budding new businesses. IP laws are very 202384. Universities in other regions would
weak and take too long to process in Paki- also conduct similar programs.
Key Findings landscape driven by technology and the

In the context of Innovation and Technology
One key theme revolves around technolo-
in Pakistan, several themes emerge, shed-
gy acting as a catalyst for entrepreneurship.
The increasing penetration of digitalization
landscape driven by technology and the
and access to technology has opened new
opportunities for young entrepreneurs to
start and grow their ventures, particularly in
the tech sector.
Technology as a Catalyst for
“
Entrepreneurship
The increasing penetration of technology
In the context of Innovation and Technology and digitalization has opened new
”
in Pakistan, several themes emerge, shed- opportunities for young entrepreneurs.
82
Mutual Funds Association of Pakistan (2023). 84
NUST (2023). Prime Minister’s National Innovation Award
83
Intellectual Property Organization of Pakistan (2023) (PMNIA).

Domain 6:
Innovation and
Technology
The prevalence of education techs, health percent) use social media and technolog-
techs, and digital platforms has made it ical services, followed by e-commerce (68
easier for young individuals to launch their percent) digital payments (55 percent),
startups and tap into innovative solutions. and website development (48 percent).
“
In comparison, there is less usage of tools
These days, while they are on such as cloud computing, mobile applica-
campus, the access to digital tions, and Google ads. Interestingly, wom-
technology or the process en (89 percent) use social media more
of digitalization has made it than men (77 percent) in entrepreneurial
easier for them to start their activities. Other tools are utilized similarly
small digital ventures and work by both genders, with little variation across
”
the provinces. A statistic that stands out
around.
is the percentage of men (21 percent) in
(Educationist) Balochistan that do not use technology in
their business, compared to all other prov-
Table 5 tabulates the use of technological inces that responded between 0-3 percent,
tools used by the youth entrepreneurs. i.e., an overwhelming majority uses some
The largest percentage of respondents (83 type of technological tool.
Table 5 : Technological tools used by entrepreneurs (in percent)*

*
The colour spectrum reflects high (darker shade) to low (lighter shade) of percentages.
Technological Services
Website development
No technology in my
Mobile applications
Cloud computing
Digital Payments
Business Data
Facebook Ads
E-Commerce
Social media
Google Ads
business
Province Gender
Women=16 63 75 50 44 13 25 25 44 56 31 0
AJK-GB-ICT n=41
Men=25 64 100 60 20 8 16 16 40 68 48 0
Women=28 100 82 39 7 14 21 21 75 71 32 0
BAL n=52
Men= 24 63 96 63 25 0 21 21 42 75 42 21
Women=34 100 68 29 3 24 9 12 74 74 38 3
KPK n=59
Men=25 84 60 56 4 12 32 32 60 52 36 0
Women=73 100 84 40 5 8 18 19 58 66 30 0
PUN n=154
Men=83 95 83 54 13 11 22 24 60 65 33 0
Women=46 85 100 46 22 9 11 13 50 78 39 0
SIN n=100
Men= 54 78 78 48 22 17 17 19 52 70 44 0

Domain 6:
Innovation and
Technology
An overwhelming majority (98 percent) of the survey respondents believe that innova-
tion and technology are important for both entrepreneurs and enterprises (Figure 35),
stipulating a need and willingness for both.
Figure 35. Importance of innovation and technology

for entrepreneurs/ enterprises
“
Youth-led Tech
Entrepreneurship IT Sector - AI and Technology:
The IT sector, including Artifi-
Another prominent theme is the promi- cial Intelligence (AI), offers tre-
nence of youth-led tech entrepreneurship. mendous potential for young
”
The younger generation is at the forefront entrepreneurs.
of driving innovation in Pakistan, with
many tech startups being founded and led
(Youth Entrepreneur)
by young individuals.
“
Figure 36 explores young entrepreneurs’
Most of the tech entrepreneur- access to technological support. As per the
ship or startups are led by com- survey respondents, the entrepreneurs of
panies that are founded by the province of Balochistan demonstrate
”
young individuals. higher levels of inaccessibility to techno-
(Incubator Manager) logical support; with only 7 percent of the
respondents indicating access. In com-
parison, respondents with access in Sindh,
Digital channels and platforms have em- KPK, AJK-GB-CT, and Punjab have been re-
powered these entrepreneurs to launch ported at 20 percent, 16 percent, and 15 per-
and scale their businesses, making tech- cent respectively. Overall, access to tech-
nology a significant driver of entrepreneur- nological support was minutely higher for
ial growth. men (15 percent) than women (13 percent).

Domain 6:
Innovation and
Technology
This disparity was more enhanced in the AJK-GB-ICT and KPK regions, whereas the
pattern was reversed in the provinces of Sindh and Balochistan, where women report-
ed greater access in comparison to their men counterparts.
Figure 36. Access to technological support
Focus on Social Opportunities and

Entrepreneurship and Potential Sectors
Impact
Opportunities and potential sectors in
The growing focus on social entrepre- Pakistan present another significant
neurship and impact is another notewor- theme. The IT sector, e-commerce, re-
thy theme. Many young entrepreneurs newable energy, agribusiness, educa-
are driven by a desire to solve real-world tion, sustainable fashion, and health tech
challenges and make a positive impact on are some of the key areas where young
society and the environment. Social entre- entrepreneurs can thrive. The ever-evolv-
preneurship has gained traction among ing information technology and the ris-
Pakistani youth, with startups focusing on ing focus on climate change challenges
innovative solutions for issues like waste provide ample opportunities for new
management, recycling, and responsible solutions and entrepreneurial ventures.
consumption.
“
Social entrepreneurship has gained traction among
Pakistani youth. Many young entrepreneurs are
focusing on developing innovative solutions to
”
address social and environmental challenges.

Domain 6:
Innovation and
Technology
“The ever-evolving Information

Technology has opened many
avenues for entrepreneurship
More than 80 percent of the survey re-
spondents state that there are insuffi-
cient opportunities in terms of opportu-
in e-commerce, information nities and resources available for young
security, digital marketing entrepreneurs in Pakistan (Figure 37).
On the regional/provincial level, Baloch-
services, etc. Moreover, the
istan quotes the highest level of insuffi-
climate change challenges also
cient opportunities (92 percent), followed
provide opportunities for new
by AJK-GB-ICT (85 percent), and Punjab
solutions and entrepreneurial
(83 percent). Young entrepreneurs in
ventures. Agriculture, food
KPK and Sindh reported 76 percent, and
preservation, and processing are 77 percent insufficient opportunities re-
also promising sectors. Health spectively. Besides the province of Sindh,
Services, Education, and Housing men respondents reported a greater
are also potential sectors given need for opportunities and resources
”
Pakistan's rising population. than women respondents.
Figure 37. Sufficiency of opportunities and resources

available for young entrepreneurs in Pakistan
Despite the opportunities, young en-

trepreneurs face challenges in the tech
sector. Issues like internet accessibility,
“
Young Entrepreneurs are rapidly opting for
freelancing and digital services businesses.
However, they face IT infrastructure, internet
international fund transfer challenges, accessibility, and international fund transfer
and the need to keep up with technical challenges; if some work is done in these areas,
”
changes are some of the obstacles that it will be helpful for entrepreneurs.
need to be addressed for sustained
success.

Domain 6:
Innovation and
Technology
Figure 38 indicates the access to the in- sponded having no internet access. Pun-
ternet among the respondents. The data jab reported having the highest number of
shows that the majority of the respon- respondents having access to the Internet
dents from the sample have access to the at 78 percent, followed by KPK at 75 per-
internet, with 164 respondents indicating cent, Balochistan at 63 percent, AJK-GB-
that they have 24/7 access, whilst 141 have ICT at the highest rate of 83 percent, and
access sometimes. The remaining 103 re- Sindh at 72 percent.
Figure 38. Access to the Internet by province and gender
Despite the numerous amounts of The highest number comes from women
challenges, Figure 39 shows the level of in the AJK-GB-ICT region, where 5 in 16
ease of access and adaptation to new women reported difficulty. In contrast, 100
technologies by young entrepreneurs in percent of the youth entrepreneurs from
Pakistan. the survey hailing from the provinces of
“
Balochistan and KPK responded that it was
Less than 5 technologies easy to access and adopt new technologies
by young entrepreneurs in and innovation.
Pakistan. Less than 5 percent
of the survey respondents
indicate difficulty in accessing
and adopting new technologies
”
and innovation.

Domain 6:
Innovation and
Technology
Figure 39. Ease of accessing and adopting

new technologies and innovation by young
In conclusion, the innovation and technology ship, social impact, and potential sectors,
landscape in Pakistan is evolving rapidly, driv- addressing challenges like infrastructure
en by the growing adoption of digitalization and technical changes will be essential for
and access to technology. Young entrepre- fostering a thriving ecosystem that empow-
neurs play a pivotal role in this transformation, ers young entrepreneurs to make a positive
with technology acting as a catalyst for their impact and drive further innovation in Paki-
ventures. As they focus on tech entrepreneur- stan.

Recommendations
This section compiles the recommendations extracted from
the study results and key findings under each of the six key do-
mains. The recommendations provide targeted interventions for
government and policymakers, entrepreneur support organiza-
tions, investors, education providers, and youth entrepreneurs
within the country's youth entrepreneurship ecosystem. For a
well-functioning entrepreneurial ecosystem, each stakeholder
within the six key domains must play their part effectively.
Domain 1: Policy and Regulatory Frameworks

Government and Policymakers Entrepreneur Support Organizations
▶ Review and amend the Private Fund Regulations ▶ Curate support services specifically tailored to
to make the process of investing in local funds meet the needs of experienced founders. These
more streamlined and investor friendly. This services could include advanced mentorship,
could involve simplifying paperwork, reducing access to specialized resources, and networking
bureaucratic hurdles, and ensuring clear opportunities with seasoned entrepreneurs and
guidelines for local funds and investors industry experts.
▶ Offer tax breaks and incentives to local funds that ▶ Facilitate intentional connections between locally
invest in youth enterprises. This could include tax educated founders and potential investors.
exemptions on capital gains or dividends earned This can be done through networking events,
from youth startup investments. investor pitch sessions, and introductions to angel
investors and venture capitalists.
▶ Ensure a clear and predictable policy on dividends
for investors in youth enterprises. This would
provide clarity and encourage more investors to
support early-stage ventures.
Investors Education Providers
▶ Take advantage of the tax relief policies offered ▶ Incorporate entrepreneurial programs into the
to investors in mutual fund schemes in Pakistan. curriculum, with a focus on industry-specific
By investing in local youth enterprises through mentor matching. For example, if a student
these schemes, prospective investors can benefit is interested in launching a tech startup, the
from tax advantages and be more enticed to fund program should connect them with mentors
early-stage ventures. experienced in the tech industry.
▶ Collaborate with entrepreneur support ▶ Establish partnerships with investor networks and
organizations to identify investment opportunities. entrepreneur support organizations to connect
These organizations can help investors connect students with potential investors. This could
with promising youth enterprises and facilitate involve hosting joint events or workshops that
the due diligence process. bring students and investors together.

Recommendations
Youth Entrepreneurs
▶ Take advantage of SMEDA’s one-window operation for youth enterprises to register businesses and
consolidate compliance requirements. This streamlined process will save time and resources, allowing
young entrepreneurs to focus more on building their ventures.
▶ Engage with support programs offered by organizations like Daftarkhwan’s VC Exchange, Pak Launch,
and Venture for Pakistan. These programs can provide valuable mentorship, training, and funding
opportunities to young entrepreneurs.
▶ Seek investment from local funds benefiting from the government’s tax breaks and incentives. By
aligning their funding needs with the government’s support initiatives, young entrepreneurs can attract
more potential investors.
Domain 2: Human Capital and Entrepreneurship Culture

▶ Integrate entrepreneurship education into the ▶ Offer mentorship programs to connect

school curriculum from an early age. This could experienced founders with younger
involve introducing modules on entrepreneurship, entrepreneurs. Mentorship can provide valuable
organizing startup competitions, and inviting guidance, industry insights, and networking
successful entrepreneurs to share their opportunities for aspiring entrepreneurs.
experiences with students.
▶ Provide skill benchmarking practices to align
▶ Encourage diversity and inclusion initiatives to university curriculums with the needs of startups.
empower women entrepreneurs among key Entrepreneur support organizations can work
stakeholders. The government can support with higher education institutes to ensure that
programs that provide training, funding, and the skills taught are relevant and up to date with
mentorship specifically tailored to support the demands of the startup ecosystem.
women-owned start-ups.
▶ Foster a supportive and inclusive entrepreneurial
▶ Support upskilling initiatives through corporate culture within the ecosystem. Support
and academic interventions to enhance the organizations should create an environment
talent pool. The government can partner with that encourages collaboration, diversity, and
private companies and educational institutions to knowledge-sharing among entrepreneurs
provide skill development programs and training through facilitating the organization of events,
opportunities for aspiring entrepreneurs. networking, and development of platforms to
bring together cross-cultural and cross-sectoral
players.
Investors and Funders Education Providers
▶ Support entrepreneurship education initiatives ▶ Incorporate practical insights and industry visits
that focus on skill-building and practical into the curriculum to empower students to
experiences. Investors can collaborate with pursue startup ideas. By exposing students to
educational institutions to provide guest real-world challenges and opportunities, higher
lectures, workshops, and practical insights education institutes can inspire and prepare
through case studies to students interested in them for entrepreneurial ventures.
entrepreneurship.

Recommendations
▶ Promote diversity and inclusivity within their ▶ Offer skill-based practicums and work task
organizations and in the startups, they invest assignments to prepare students for startup roles.
in. Investors can actively seek out and support These hands-on experiences can help students
startups led by women and underrepresented develop practical skills and gain confidence in
groups. pursuing entrepreneurial endeavours.
Youth Entrepreneurs
▶ Seek out entrepreneurship education programs and mentorship opportunities to develop essential
skills and enhance knowledge and expertise. For example, reaching out to incubators, accelerators,
government organizations, NGOs/CSOs, academic institutions, or corporates within the target sectors.
▶ Embrace diversity and inclusion in their own startups and promote an inclusive workplace culture.
By diverse hiring and fostering an inclusive environment through the development of inclusive and
equitable organizational policies and flexibility in work arrangements and spaces for open discussion,
young entrepreneurs can create a stronger and more innovative entrepreneurship ecosystem.
Domain 3: Access to Finance and Incentives

▶ Create awareness and disseminate information ▶ Assist youth enterprises in identifying funding
about funding options and support available for sources and connecting with investors.
youth enterprises. The government can use digital Entrepreneur support organizations can act
platforms, workshops, and awareness campaigns as intermediaries, helping enterprises prepare
to educate startups about the various funding investment pitches and facilitating meetings with
sources and incentives they can access. potential investors.
▶ Establish an entrepreneurship fund to provide ▶ Offer investment readiness support and
early-stage capital to youth startups. This fund mentorship to prepare youth enterprises for
can be dedicated to supporting innovative and funding opportunities. Support organizations
promising startups that may face challenges can provide training on financial management,
accessing traditional financing. business planning, and pitching skills.
▶ Simplify registration processes to make it easier
for youth enterprises to access formal financing.
The government can streamline the registration
and compliance requirements, reducing the time
and effort needed to access loans or grants.
▶ Develop robust investment proposals leveraging ▶ Support youth startups by providing guidance on
the local context. Investors should understand the navigating the startup landscape and accessing
unique market dynamics and opportunities in investment.
Pakistan to make informed investment decisions.

Recommendations
▶ Invest at scale to support youth startups’ growth. ▶ Higher education institutes can partner with
By providing significant funding, investors can investors and support organizations to organize
help startups scale their operations and reach events and workshops that educate youth
their full potential. enterprises about funding options and traditional/
innovative financing models.
▶ Engage in a programmatic growth mindset to
manage youth enterprise performance. Investors
should take a long-term view and provide ongoing
support and guidance to startups, especially
during challenging times.
Youth Entrepreneurs
▶ Explore non-conventional funding options like blended finance and catalytic funding. Youth enterprises
can look beyond traditional bank loans and venture capital to access alternative sources of funding that
align with their mission and goals.
▶ Prepare strong investment pitches and engage with investors and support organizations for funding
opportunities. Young entrepreneurs should be proactive in seeking funding and presenting their
ventures in a compelling manner to attract investors.
Domain 4: Business Development Support and Infrastructure

▶ Establish incubators as enablers, guiding ▶ Tailor support services specifically to meet the
and supporting youth enterprises through needs of youth enterprises from different sectors
the regulatory process. Incubators can help and demographics. Different youth enterprises
youth enterprises (including social enterprises) have unique challenges and requirements;
navigate legal and regulatory requirements, support organizations should customize their
ensuring compliance and reducing bureaucratic offerings to address these specific needs.
challenges.
▶ Focus on business development skills and
▶ Invest in enabling infrastructure such as payment industry-specific mentor matching. Providing
gateways and modernization of government practical business development training and
organizations. The government can create a connecting youth enterprises with mentors from
conducive environment for youth enterprises by relevant industries can significantly enhance their
providing efficient and modernized infrastructure chances of success.
to support their operations. For example, the
development of a user-friendly online business
registration platform or window operations that
simplifies the process for youth entrepreneurs.

Recommendations
▶ Provide mentorship and support to youth ▶ Collaborate with industry to identify emerging
enterprises beyond just financial investment. trends and best practices for startups. Higher
Investors can leverage their industry experience education institutes can work with established
and networks to help youth enterprises overcome businesses and industry experts to understand
challenges and scale their businesses. current market demands and prepare students
for entrepreneurship.
▶ Connect with incubators and accelerator
programs to identify investment-worthy youth ▶ Support student entrepreneurship by offering
enterprises. Collaborating with incubators allows incubation centres and mentorship. Providing
investors to access a pipeline of promising physical spaces and mentorship support within
youth enterprises that have undergone rigorous the university can encourage students to explore
validation and support. and launch their enterprise ideas.
Youth Entrepreneurs
▶ Engage with incubators and support programs to access mentorship and industry insights by keeping
themselves updated about any developments in incubators or incentives being provided in their
region by government, and private organizations/incubators. This can be accomplished through social
networking and being up to date with newspapers and electronic media. Youth enterprises can benefit
greatly from the guidance and expertise offered by experienced mentors within incubators and support
organizations.
▶ Leverage peer founder networking for guidance and support. Connecting with other founders allows
young entrepreneurs to share experiences, learn from each other’s challenges, and build a supportive
community within the ecosystem.
Domain 5: Access to Markets

▶ Create awareness among youth enterprises ▶ Provide networking events, workshops, and
about national and international market access industry-specific meetups to connect youth
opportunities. The government can organize enterprises with potential collaborators. Support
workshops, seminars, and trade shows to educate organizations can create platforms where
youth enterprises about market opportunities startups can showcase their products or services
and export potential in diverse sectors including to relevant industry players.
green and blue economy sectors.
▶ Offer support and mentorship to youth
▶ Collaborate with industry stakeholders to develop entrepreneurs from marginalized communities
effective policies promoting market access. By to access new markets. Support organizations
working with industry associations and trade should be inclusive and ensure that youth
bodies, the government can address regulatory enterprises from diverse backgrounds have equal
barriers and facilitate market entry for youth opportunities to access markets.
enterprises.

Recommendations
▶ Support youth startups in accessing new markets ▶ Incorporate digital skills training into the
by providing market insights and networking curriculum to equip students with tools to access
opportunities. Investors with expertise in specific new markets. Digital literacy and marketing skills
markets can guide youth enterprises on market are essential for youth enterprises to reach and
entry strategies and facilitate introductions to engage with customers in the digital age.
potential customers or partners.
Youth Entrepreneurs
▶ Engage in dynamic networking events and workshops to establish vital connections and access
untapped markets. To actively enhance participation in these events, young entrepreneurs can take the
lead by joining industry-specific gatherings and online platforms.
Domain 6: Innovation and Technology

▶ Address challenges like internet accessibility and ▶ Offer support and resources specific to tech
international fund transfer for startups in the tech startups, addressing their unique challenges.
sector. The government can invest in improving Support organizations can provide technical
digital infrastructure and facilitate cross-border expertise, mentorship, and access to tech-specific
transactions to support tech startups. funding opportunities.
▶ Create policies that promote innovation and
sustainability-focused startups. The government
can offer incentives and grants to startups that
focus on developing innovative solutions and
contribute to sustainable development.
▶ Support startups in the tech sector by investing ▶ Promote innovation and entrepreneurship within
in innovative and sustainable ventures. Investors the tech sector through university incubation
should actively seek out startups that leverage centres. Higher education institutes can establish
technology to address market needs and specialized incubation centres that focus on
contribute to a more sustainable future. nurturing tech startups and providing them with
the necessary resources and support.
Youth Entrepreneurs
▶ To enhance the success of tech-focused ventures, youth-led startups should prioritize, seeking knowledge,
awareness, and mentorship on both innovation and sustainability from tech-focused incubators and
accelerator programs to developing products or services that address market gaps and promote positive
societal and environmental impact.

Recommendations
Monitoring and Evaluation of the Recommendations

This section provides guidance with examples of monitoring and evaluation (M&E) initia-
tives for government and policymakers, entrepreneur support organizations, investors,
education providers, and youth entrepreneurs, to facilitate the effective monitoring of
the recommendations and evaluation of its impact.
Entrepreneurship
Key stakeholders M&E initiatives
Ecosystem Domain
Assessment to evaluate system improvements, including:
(i) The average time taken for approval of investments into
local funds
Government and (ii) Maintenance of a database to enumerate and evaluate the
Policymakers number of local funds investing in youth enterprises and
the capital invested through tax breaks and incentives.
(iii) Impact of policies and systemic changes on youth enter-
prises.
Continuous monitoring of:
(i) The number of experienced founders accessing advanced
Entrepreneur
mentorship, resource utilization, and networking partici-
Support
pation.
Organizations
(ii) The effectiveness of connections between locally educat-
ed founders and potential investors.
DOMAIN 1: Evaluate, annually:

POLICY AND (i) The number of investors benefiting from tax relief poli-
REGULATORY Investors and cies and investments in youth enterprises through mutual
FRAMEWORKS Funders fund schemes.
(ii) The number of successful investments facilitated through
collaboration with support organizations.
Assessing, annually:
(i) The number of students participating in entrepreneurial
programs and their satisfaction with the recommended
Educational
programs such as mentor matching.
Institutions
(ii) The impact of partnerships with investor networks. For ex-
ample, by tracking the number of joint events and work-
shops.
Regular assessments focusing on:
(i) The time and resources taken for business registration.
Youth
Entrepreneurs (ii) The number of young entrepreneurs accessing support
programs and the alignment of young entrepreneurs’
funding needs with government support initiatives.

Recommendations
Entrepreneurship
Ecosystem Domain
Annually evaluate:
(i) The integration of entrepreneurship education into the
curriculum. For example, tracking the implementation of
modules, startup competitions, and guest lectures by en-
Government and trepreneurs.
Policymakers (ii) Number and quality of inclusion initiatives, including train-
ing, funding, and mentorship specific to women-owned
startups or marginalized communities.
(iii) The effectiveness of upskilling initiatives in partnership
with private sector and educational institutions.
Assessment of:
Entrepreneur (i) Effectiveness, in terms of the alignment of university cur-
DOMAIN 2: Support ricula) startup needs.
HUMAN Organizations
(ii) Event participation and knowledge-sharing activities to
CAPITAL AND
ensure a supportive and inclusive entrepreneurial culture.
ENTREPRENEURSHIP
CULTURE (i) Review the progress of the support provided in the shape
of entrepreneurship education initiatives, guest lectures,
workshops, and practical insights for students interested
Investors and in entrepreneurship.
Funders
(ii) Assess the level and impact of diversity and inclusivity ini-
tiatives integrated within their organizations and in the
start-ups being invested in.
(i) Assess the incorporation of practical insights, industry vis-
Education
its, and skill-based practicums into the curriculum to em-
Providers
power students to pursue startup ideas.
(i) Asses the level of participation in entrepreneurship educa-
Youth tion and mentorship programs and the resulting impact
Entrepreneurs on skill development, knowledge, and diversity within
their startups.

Recommendations
Entrepreneurship
Ecosystem Domain
Evaluate the effectiveness:
(i) The usage of digital platforms for raising awareness re-
garding funding options and incentives among youth en-
terprises, through measuring the workshop attendance,
and campaign reach.
(ii) The extent to which youth enterprises report improved
Government and awareness of funding sources and incentives.
Policymakers
(iii) The number of startups funded, the total amount dis-
bursed, and the progress of the funded startups to assess
its effectiveness in providing early-stage capital to youth
startups.
(iv) Upgraded registration processes. For example, through
monitoring registration times and feedback from youth
enterprises
Monitoring the progress of:
(i) The number of successful investor connections facilitated
by support organizations and document post-connection
Entrepreneur support.
Support (ii) The participation in readiness support programs and the
Organizations financial performance of startups participating in these
programs
(iii) Assess whether readiness support leads to better prepared
DOMAIN 3: ACCESS
startups and increased funding opportunities.
TO FINANCE AND
INCENTIVES Evaluate:
(i) The quality and success rate of investments, ensuring that
they align with local market dynamics.
Investors and (ii) The scale of investments and the growth of funded start-
Funders ups to determine if investments effectively contribute to
scaling startups, as recommended.
(iii) The duration and impact of ongoing support provided to
startups, assessing whether it leads to improved startup
performance.
Regularly track:
(i) The number of youth enterprises engaged, and the quality
of guidance provided.
Education
Providers (ii) The workshop attendance, feedback, and changes in start-
up knowledge to evaluate whether the events and work-
shops enhance startup understanding of financing op-
tions
Assess:
(i) The utilization of non-conventional funding sources and
Youth assess whether youth-led startups can successfully diver-
Entrepreneurs sify their funding sources; identify the roadblocks.
(ii) The quality and success rate of investment pitches to ef-
fectively attract investments.

Recommendations
Entrepreneurship
Ecosystem Domain
Analyse:
(i) The number of enterprises utilizing incubators and their
effectiveness in meeting regulatory requirements, reduc-
Government and ing bureaucratic challenges and ensuring compliance.
Policymakers
(ii) The investments in enabling infrastructure like payments
gateways and effective government services through
feedback collected from youth enterprises regarding the
efficiency and ease of operation.
Monitor:
(i) The alignment of support services based on need and the
satisfaction and progress of youth enterprises benefiting
Entrepreneur
from the tailored support.
Support
Organizations (ii) The success of providing business development training
and mentor matching through feedback from entrepre-
neurs on the improvements in their business skills and re-
sulting impact.
Assess:
DOMAIN 4:
BUSINESS (i) The extent to which investors engage in mentorship and
DEVELOPMENT support through feedback from both investors and youth
SUPPORT AND Investors and entrepreneurs.
INFRASTRUCTURE Funders
(ii) The effectiveness of collaborating with incubators and ac-
celerator programs to identify investment-worthy youth
enterprises through the quantity and quality of enterpris-
es emerging from the programs.
Measure the success of support, through appraising:
(i) The relevance of education with respect to market de-
mands by reviewing the ‘practical application’ of emerg-
Education
ing trends within the curriculum.
Providers
(ii) The number of student enterprises supported within the
institution and the impact, with feedback from the young
entrepreneurs.
Monitor:
(i) The number of youth entrepreneurs participating in these
Youth initiatives, to highlight the value gained from mentorship,
Entrepreneurs industry insights, and peer support.
(ii) The extent to which peer networking contributes to the
needs of young entrepreneurs.

Recommendations
Entrepreneurship
Ecosystem Domain
Guage the effectiveness of:
(i) Awareness initiatives like workshops and trade shows, as-
sessing their impact on youth enterprises’ knowledge of
Government and
market opportunities.
Policymakers
(ii) Collaboration with industry stakeholders to address regu-
latory barriers and facilitate market entry, collecting feed-
back from government and industry experts.
Monitor:
(i) The number and impact of networking events, workshops,
Entrepreneur and meetups that connect youth enterprises with poten-
Support tial collaborators.
Organizations
(ii) The participation of marginalized youth enterprises in the
DOMAIN 5:
events and the impact of the mentorship in helping them
ACCESS TO
access new markets
MARKETS
(i) Evaluate the effectiveness of the guidance provided by the
Investors and investors and facilitation provided to youth enterprises on
Funders market entry strategies, further gauging the number of
youth-led start-ups entering newer horizons.
(i) Monitor the impact of incorporating digital skills training
Education
into the curriculum by assessing the students’ digital liter-
Providers
acy and marketing skills, post-intervention.
Monitor:
(i) The participation of young entrepreneurs in networking
Youth
events and workshops and the connections formed.
Entrepreneurs
(ii) The access to previously untapped markets and partner-
ships, resulting from these networks.

Recommendations
Entrepreneurship
Ecosystem Domain
Monitoring the progress of:
(i) Interventions to address challenges including internet ac-
cessibility and international fund transfer for tech startups.
Government and For example, assessing improvements in digital infrastruc-
Policymakers ture, measuring cross-border transaction facilitation, and
feedback from tech startups.
(ii) The number of startups availing incentives and grants, un-
der innovation and sustainable development.
Entrepreneur (i) Evaluate the effectiveness of resources provided, including
Support technical expertise and mentorship, and the accessibility
DOMAIN 6: Organizations of technology specific funding opportunities.
INNOVATION AND
Investors and (i) Measure the level to which investors actively seek out
TECHNOLOGY
Funders startups in the tech sector.
(i) Analyse the number of startups nurtured and the effec-
Education
tiveness of the specialized incubation centres for technol-
Providers
ogy focused startups.
Assess :
(i) The extent to which startups develop innovative products
Youth or services that contribute to sustainable development
Entrepreneurs needs.
(ii) The number of startups that join incubators or accelerator
programs and the feedback on the support received.

Annex 1
Showcase of Contributions to
Entrepreneurial Ecosystem in Pakistan
(Based on Research Case Studies)
Ailaaj
Founded in: 2017
Headquartered in: Lahore
Founded by: Hyder Mumtaz
Sector: Healthcare
Annual Revenue: $615k
Ailaaj is a B2C (Business-to-consumer) digital healthcare

platform and provides digital pharmacy, teleconsultation,
nursing, physiotherapy, and at-home lab testing services.
Main Business model: It is linked with various specialists in healthcare fields and
connects them with relevant patients online, creating a
swift and easy connection for both the specialist and the
client.
Ailaaj pitched a very innovative idea to the market. Although

various services from time to time were getting digitalized,
Success Story as a
the healthcare sector was unexplored. Ailaaj with its highly
business:
innovative idea was successful in capturing a good share in
the market in a short time period.
Ailaaj, through digitalizing the healthcare sector has made

How are they the sector swifter in response, and more competitive. Also,
contributing to the with its idea, the digitalization of the entrepreneurial eco-
entrepreneurial system of Pakistan has become more directed towards dig-
ecosystem in Pakistan? italization, and other healthcare organizations to compete
would also consider this aspect of facilitation.

Annex 1
Atom Camp
Founded in: 2021
Headquartered in: Islamabad
Founded by: Dr Naveed Iftikhar and Nida Mahmood
Sector: Technology
Annual Revenue: N/A
Atom Camp follows a unique business model that focuses on empowering and
Main Business
nurturing young innovators and entrepreneurs in the field of technology and sci-
model:
ence.
Atom Camp has been able to gauge considerable success with its vision to pro-
Success Story as a
vide engaging science camps for children across the country. Their commitment
business:
to quality has been one of the driving factors behind this success.
How are they

By developing an entrepreneurial mindset among the participants of their sci-
contributing to the
ence camps. By providing a platform for young entrepreneurs to showcase their
entrepreneurial
ideas. By conducting entrepreneurship challenges to allow young minds to create
ecosystem in
innovative solutions. By supporting entrepreneurship initiatives in the country.
Pakistan?
BlueEx
Founded in: 1989
Headquartered in: Karachi
Founded by: Shahzad Nawaz
Sector: Logistics and Transportation
Annual Revenue: PKR 1.1-1.2 billion
BlueEx focuses on providing services such as freight forwarding, express delivery,

e-commerce solutions, warehousing, etc. Providing comprehensive logistics and
Main Business
supply chain solutions. The company focuses on transportation, management,
model:
and meeting the prescribed needs of businesses and individuals, to enhance the
overall logistics experience and provide exceptional service.
Blue Ex Pakistan has been able to develop a reputation for its reliable and effi-
cient logistics services by prioritizing its customer-centric approach and techno-
Success Story as a
logical advancements. The company has established a strong presence in the lo-
business:
gistics industry which allows them to provide comprehensive services and reach
various destinations efficiently.
How are they By providing logistical support to startups and small businesses and offering flex-
contributing to the ible and cost-effective logistics solutions, they help startups focus on their core
entrepreneurial business operations. Apart from collaborations and job development, Blue Ex
ecosystem in plays a crucial role in supporting the growth of the e-commerce sector in Paki-
Pakistan? stan.

Annex 1
Bykea
Founded in: 2016
Founded by: Muneeb Maayr, Abdul Manan and Rafiq Malik
Sector: Transport Tech
Annual Revenue: $50- 80M
Bykea is a B2C (business to consumer) service model where through its app clients book a
ride or send a parcel through a rider who registered himself on the bykea app. In this way,
Main Business the drivers and clients are connected on the app that is skillfully designed to reach a nego-
model: tiated fair, rate the driver and customer, and also select the type of vehicle, whether large
with AC or a motorbike driver is required. The enterprise, on every ride, cuts a fee from the
driver for its services.
In a business environment where Careem and Uber had created a monopoly with similar
Success Story as a services, Bykea made the services more user-friendly and affordable, focusing on providing
business: ride-hailing services on motorbikes. Moreover, through quality investment in marketing,
they were successful in attracting a large portion of the market
How are they With its ability to find a good market share in an already saturated transport tech market,
contributing to the it created a sense of openness for innovation that could lead to stability and gain in the
entrepreneurial market. With its performance and journey of success, few other transport techs with more
ecosystem in innovations are entering the market. This creates more competitiveness, therefore increas-
Pakistan? ing the quality of services.
Dastagyr
Founded in: 2020
Founded by: Zohaib Ali and Muhammmad Owas
Sector: E-commerce marketplace
Annual Revenue: $90M
Dastagyr is a B2B (business-to-business) e-com marketplace for FMCG, construc-

Main Business tion, and chemical products in an emerging marketplace. It uses technology to
model: connect informal retailers with manufacturers and wholesalers. It connects retail-
ers directly to sellers to fix the fragmented supply chain.
Founded in 2020, Dastagyr with its innovative idea was successful in attracting
Success Story as a a large number of retailers, manufacturers, and wholesalers due to its increased
business: profitability to each party and its systemized supply chain, getting stability and
share in the market successfully.
How are they

Dastagyr is successful in improving the ecosystem by systemizing the supply
contributing to the
chain, removing unwanted middlemen, and providing cost efficient products. It,
entrepreneurial
therefore, promotes direct supply chain and technology in the entrepreneurial
ecosystem in
ecosystem of Pakistan.
Pakistan?

Annex 1
Datini Fibres
Founded in: 2019
Founded by: Hasnain Lilani
Sector: Textile
Annual Revenue: $500k- 1M
Datini fibers serve on the B2B (Business to business) model in hitech retail textile.
It provides solutions to transform global post-consumer wool waste into new re-
Main Business
cycled wool ﬁbres. It converts wool and cashmere waste into new materials with
model:
the help of high-quality technology. It then provides recycled wool and other ma-
terials to other businesses in the textile sector.
Datini Fibres, when was founded, had three more competitors in the market. Due
to the high quality of its product, it is awarded regular funding from the National
Success Story as a
Incubation Centre, whereas two of its competitors couldn't find funding and had
business:
to exit the market. Now, with regular funding Datini Fibres is a stable productive
enterprise.
How are they

Datini Fibres, with its complex model involving many segments, such as retail, hi-
contributing to the
tech, chemical and material tech, and environmental tech, has contributed to the
entrepreneurial
competitive environment, also creating ways and ideas for more partnerships of
ecosystem in
segments, and opportunities in the entrepreneurial ecosystem.
Pakistan?
Davaam
Founded in: 2021
Founded by: Salman Tariq
Sector: Supply and retail tech
Annual Revenue: $4.5m
Davaam is a business-to-business and business-to-consumer product supply on-

Main Business line platform. It supplies products such as solar panels, and various water man-
model: agement products. It supplies it from the manufacturers to the consumers and
retailers. It, in its supply chain, removes various middlemen in the process.
Success Story as a With its cost-efficient supply, and high quality due to factory products, Davaam
business: is successful in spreading its name in the market in a very short period of time.
Davaam, with its high-quality original factory products and its smooth cost-effi-
How are they
cient supply chain, is creating great competitiveness in the sector which can all
contributing to the
together contribute to improving the overall quality and services of the sector
entrepreneurial
and ecosystem. Moreover, with its supply chain of removing middlemen, it is con-
ecosystem in
tinuing this new market trend of removing the middlemen for cost efficiency,
Pakistan?
improving the overall market price.

Annex 1
Diwaai
Founded in: 2013
Founded by: Furquan Kidwai
Sector: Online Pharmacy
Annual Revenue: $5- 8m
Dawaai is a B2C (business-to-consumer) business model in which it provides online phar-

Main Business macy services to consumers, delivering medicines to their doorsteps. It is linked with vari-
model: ous pharmacies, therefore, with every order they receive online they deliver the medicines
from the nearest store.
The reason for the success of Dawaai was the important market gap that they recognized
Success Story as a and covered professionally. Pharmacy and healthcare services are essential services and
business: the more they provide facilitation in service provision easier the chances for growth. There-
fore, it grew rapidly in increasing its demand and creating a stable position in the market.
How are they

With the increase in facilitation for consumers through innovation, the ecosystem becomes
contributing to the
highly competitive. Moreover, with the increase in facilitation in essential services, the eco-
entrepreneurial
system trend is shifting towards investments in innovation in essential services too, which
ecosystem in
wasn't considered very important in the ecosystem previously.
Pakistan?
Digi Khata
Founded in: 2020
Headquartered in: Faisalabad
Founded by: Adnan Aslam and Bilal Anjum
Sector: Fintech Company
Annual Revenue: $100k- 5.0M
Digikhata is a B2C (business-to-consumer) business model that provides services to lo-

cal merchants. It was difficult for the local merchants to keep a record of their sales and
Main Business revenue through pen and paper, therefore, it limited their growth and professionality.
model: Digikhata aimed to cover this market gap and provided features in a single app that
enabled merchants with all options to keep record credits, manage daily budgets, and
collect payments.
Digikhata started in 2020 as a solopreneurship, but with its innovative idea and its
high-quality market solutions, it was accompanied by various investors in its journey.
Success Story as a Today, Digikhata with an annual revenue of $100k- 5M shows the quality idea of inno-
business: vation carried. The business is still trying to bring more innovative ideas into the com-
petitive market such as “Digidokan” an online store in just 30 seconds, that is soon to be
launched.
How are they Digikhata brought a very innovative idea to the market that expanded the set of ideas al-
contributing to the ready in the business circuit. With its extraordinary success story, it also created compet-
entrepreneurial itiveness for this idea and directed the market towards a more innovative and digitalized
ecosystem in form, therefore, making the entrepreneurial ecosystem of Pakistan more interesting,
Pakistan? competitive, and innovative.

Annex 1
EasyFresh
Founded in: 2021
Founded by: Muhammad Mustafa
Sector: Technology and Supply chain
Easyfresh is a B2B (business to business) model in which through technology and

a lean supply chain it procures fruit and vegetables directly from the farmer and
Main Business supplies it to shop owners, removing all the middlemen in the supply chain who
model: would cut their profit off in the process. Due to this reason, the farmers get a Higer
share for their product, shopkeepers get fresh, whereas cheap fruit and vegeta-
bles, making it more profitable for both.
The idea behind Easyfresh was to bring down the inflation in fruits and vegeta-
bles, and through this way create a market demand. Due to constant severe infla-
Success Story as a
tion, Easyfresh with time, was successful in attracting more and more farmers and
business:
retailers, therefore targeting a good market demand, easyfresh created a great
story of success.
How are they

Easyfresh is contributing in two ways. Firstly, the use of technology promotes the
contributing to the
technological aspect of the ecosystem, and secondly, redirecting the supply chain
entrepreneurial
and removing middlemen for price reduction, provides an extraordinary idea to
ecosystem in
the ecosystem for price reduction.
Pakistan?
Ejad Labs
Founded in: 2018
Founded by: Arzaish Azam
Sector: Business Development
Annual Revenue: $7.7m
Ejad Labs hosts a series of international summits, and delivers unique development
Main Business
programs in South Asia, North America, and Europe, partnering with governments,
model:
corporations, startups, and entrepreneurs to pioneer a new way of business.
Arzish Azam, the founder of the enterprise always had extraordinary leadership and
business skills, so he merged both to make an enterprise that holds talks with start-
Success Story as a
ups to partner, or hold events. It initially started domestically but gradually with its
business:
success in its journey its events and collaborations have now gone globally to new
continents, creating various new startups and growing interesting businesses.
How are they

contributing to the Ejad labs is playing a pivotal role in interconnecting businesses, growing other busi-
entrepreneurial nesses as well as bringing in new innovative ideas to the ecosystem, creating an en-
ecosystem in abling environment.
Pakistan?

Annex 1
Finja
Founded in: 2016
Founded by: Qasif Shahid
Sector: Financial Technology
Finja is a business-to-consumer financial services platform that provides digital financial

services to micro small and medium enterprises and their stakeholders. Through its con-
Main Business
nection with banks, Fis, and merchants it addresses MSMEs payments, collections, and
model:
credit needs. It uses AI and data-driven methods to deliver financial services to the under-
banked sector of the country.
Founded in 2016, Finja targeted a very important unexplored financial sector covering an
Success Story as a important market gap, that helped in its spread rapidly. It targeted the small micro-level
business: and medium businesses, and local merchants who did not consider banking services. Finja
through its ease and facilitation in service, brought these sectors into its micro banking.
How are they Finja with its use of technology in finances, made digital innovation more important and
contributing to the helped in the digitalization of the finance sector. This covered an important market gap
entrepreneurial and created an opportunity for competitiveness in the digital finance sector, improving
ecosystem in the standard, and quality through the digitalization of the entrepreneurial ecosystem in
Pakistan? Pakistan.
Grocerapp
Founded in: 2016
Founded by: Rai Bilal and Hassan Sadiq
Sector: E-commerce store
Annual Revenue: $15m
Grocerapp is a business-to-consumer online grocery delivery service. Users can choose

Main Business and order groceries, staples, home essentials, baby products, personal care products,
model: etc. It supplies the product through connection with stores and delivers to the location
of the consumer with cash on delivery.
The founders found this gap that it needs an online platform for grocery delivery. With
Success Story as a
its in-demand services and essential products it gradually spread into demand and
business:
captured a large set of consumers.
How are they

contributing to the Grocerapp is contributing to interconnecting various segments of the ecosystem, cre-
entrepreneurial ating a more interdependent and swifter environment. It also, through digitalization is
ecosystem in promoting digitalization in the market.
Pakistan?

Annex 1
Impetus Advisory Group

Founded in: 2019
Founded by: Taimur Adil, Akbar Ali Malik and Awais Qureshi
Sector: Management consultancy
Annual Revenue: $1-5M
Impretus Advisory Group is a B2C (Business to consumer) consultancy that provides

advising facilities to large organizations, private and government projects, and institu-
Main Business
tions in a wide variety of sectors such as education, healthcare, and financing. It has a
model:
group of specialists in various fields that provide clients with all the relevant informa-
tion for their smooth running.
The enterprise was founded by highly qualified individuals who initially used their ex-
Success Story as a pertise in guiding projects and organizations, while later after success and promotion
business: of quality work hired more experts in fields. Therefore, the enterprise has shown con-
stant growth in the increase of clients and expansion of services.
How are they

Impretus Advisory Group, through quality in their consultancy services, and experts in
contributing to the
various fields is increasing the competitive environment of the entrepreneurial eco-
entrepreneurial
system in Pakistan. Moreover, with highly skilled experts it is also improving the meri-
ecosystem in
tocratic environment of the ecosystem.
Pakistan?
ISSM.ai
Founded in: 2020
Headquartered in: Lahore, Pakistan
Founded by: Abu Abdullah Ashar
Sector: Artificial Intelligence and Machine Learning
Annual Revenue: N/A
ISSM.AI revolves around providing innovative solutions and services in the field of
AI and Machine Learning. Their services include AI training, consulting, custom de-
Main Business
velopment, and data science solutions. Their area of expertise is helping businesses
model:
optimize their operations, decision-making processes, and efficiency as a whole by
leveraging AI technologies.
Despite being one of the early birds to step into the world of AI and Machine Learning
in Pakistan, ISSM.AI has made notable successes since 2020. Whether it be a man-
Success Story as a
ufacturing company struggling with quality control on its production line or a retail
business:
business that wants to enhance its customer experience, ISSM has fulfilled its prom-
ise of delivering tangible results to its clients.
How are they By sharing knowledge and training through workshops, seminars, and training pro-
contributing to the grams to help understand how AI can be leveraged to drive innovation and growth.
entrepreneurial By supporting startups by offering AI consulting services and technical guidance. By
ecosystem in collaborating and partnering with different organizations to foster an environment of
Pakistan? collaboration and innovation. By creating job opportunities in the tech sector.

Annex 1
LAMA
Founded in: 2020
Founded by: Mujtaba Khan
Sector: Retail fashion Brand
Annual Revenue: $3-7M
LAMA is a Business-to-consumer B2C high street, multi-fashion brand that combines

Main Business
functional designs with popular fashion. It gets high-quality fabric and garments from
model:
some of the best industries of Pakistan and at times abroad, then branding it.
LAMA through its unique modern plus modest designs and high-quality products within
Success Story as a an affordable price range has been successful in attracting a huge consumer base in a
business: short span. Moreover, from time to time LAMA has invested in marketing for promotion
that has further enhanced its spread.
How are they

In the fashion industry of the entrepreneurial ecosystem, LAMA has made an important
contributing to the
contribution by providing new innovative eastern modern designs. This has given more
entrepreneurial
innovative ideas to the fashion industry. Moreover, with high-quality products at afford-
ecosystem in
able prices, it has created a very competitive environment in the ecosystem.
Pakistan?
LMKT
Founded in: 2011
Founded by: Atif R. Khan
Sector: Technology
Annual Revenue: $25.1 million
Main Business LMKT is a full-service technology company, that offers scalable IT solutions and services
model: to clients across a broad spectrum of industries.
LMKT enjoys a legacy of innovations, achievements, and top talent that have resulted in
the company's rapid growth and significant success during its short span of existence.
Success Story as a Moreover, the company has played an integral role in helping organizations digitize their
business: operations, streamline processes, and leverage technology to boost efficiency and pro-
ductivity. They have made a significant contribution to the digital transformation of Pa-
kistan.
How are they Ever since being officially incubated as a full-service ICT company in 2011, LMKT has man-
contributing to the aged to make huge advancements and contributions. Their multi-million dollar con-
entrepreneurial tracts with energy companies, government engagement, and strategic collaborations
ecosystem in have helped create numerous employment opportunities and set the precedent for the
Pakistan? upcoming lot of entrepreneurs.

Annex 1
MYTM
Founded in: 2018
Founded by: Zain Farooq
Sector: FinTech
Annual Revenue: >$7million
MYTM is a leading e-commerce platform that offers a wide range of products

Main Business and services to customers. Their main business model revolves around connect-
model: ing buyers and sellers, providing a user-friendly online shopping experience,
and ensuring customer satisfaction.
MYTM quickly gained recognition as a prominent e-commerce platform in the

country. It managed to establish a strong market presence by offering a wide
Success Story as a range of products, competitive prices, and a convenient shopping experience.
business: The FinTech company was recently able to gather a staggering $6.9 million in
seed financing to serve the banked, underbanked, and unbanked segments of
Pakistan.
How are they

MYTM connects entrepreneurs with a large customer base, allowing them to
contributing to the
tap into previously inaccessible markets. By leveraging MYTM's platform, en-
entrepreneurial
trepreneurs can reach customers across Pakistan and even internationally, ex-
ecosystem in
panding their business opportunities.
Pakistan?
NDS Technologies
Founded in: 1991
Founded by: Dr. Abe Peled
Sector: Technology
Annual Revenue: $7.6 million
Revolves around providing innovative technology solutions to their clients. The

Main Business
company specializes in offering software development, web design, mobile
model:
app development, and digital marketing services.
Their ability to deliver high quality software development services to clients and
Success Story as a
successful collaborations with local and international clients have helped the
business:
company bring their ideas to life and achieve their business objectives.
How are they By sharing their expertise, offering guidance, and connecting entrepreneurs
contributing to the with relevant resources, NDS Technologies helps startups navigate the chal-
entrepreneurial lenges of building a successful business. Their collaborations and innovation
ecosystem in events with startups help develop the skills and mindset needed to thrive in the
Pakistan? entrepreneurial ecosystem.

Annex 1
PriceOye
Founded in: 2015
Founded by: Adnan Shaffi
Sector: 3- commerce electronic market
Annual Revenue: $2m- $5m
PriceOye in a business to consumer model of e-com electronics. It operates on a "con-

Main Business trolled marketplace", meaning that if it sells mobile phones from Samsung then it sup-
model: plies it directly from Samsung. With this model, it offered cheap prices, and authentic
original products, creating trust among the buyers.
Trust deficit is the main problem in the e-commerce market so its model of providing
Success Story as a goods directly from the company and also providing it at a cheaper price compared to
business: competitors, guided PriceOye to a huge success in a short period of time, in an e-com-
merce industry that was in decline in most of the cases.
How are they

Enterprises like PriceOye provided a boost to E- com, an important sector of revenue
contributing to the
in the rest of the world but that was in decline in Pakistan. Moreover, through its lower
entrepreneurial
prices and high quality it created a very meritocratic environment by providing better
ecosystem in
alternatives to the consumer.
Pakistan?
Rifiako Media
Founded in: 2016
Founded by: Haris Baloch
Sector: Media and Telecommunications
Annual Revenue: N/A
Rifiako Media Pakistan primarily operates as a digital media agency. Their main busi-
Main Business ness model revolves around providing a wide range of digital marketing and advertising
model: services. They specialize in social media management, content creation, search engine
optimization, website development, and online advertising campaigns.
One of the notable success stories of Rifiako Media Pakistan is their collaboration with a
local fashion brand, "Trendy Threads." When Trendy Threads approached Rifiako Media
for assistance with their digital marketing efforts, they were struggling to gain online
Success Story as a visibility and attract customers. Rifiako created engaging content, ran targeted adver-
business: tising campaigns, and leveraged influencer partnerships to showcase Trendy Threads'
products to the right audience. The results were impressive: within a few months, Trendy
Threads experienced a significant increase in brand awareness, website traffic, and on-
line sales.
How are they Rifiako provides valuable support to startups and small businesses by offering digital
contributing to the marketing solutions and expertise. Their online platforms and communities also act as
entrepreneurial sources of promoting entrepreneurship. Moreover, their knowledge-sharing initiatives
ecosystem in help aspiring entrepreneurs gain valuable insights, learn valuable skills, and navigate the
Pakistan? challenges of building and scaling a business.

Annex 1
Salesflo
Founded in: 2015
Founded by: Yasir Suliman Memon
Sector: Sales and distribution
Salesflo is a B2C (Business to customer) model, and is a leading SAAS (software

Main Business as a service) solution enterprise, with a vision to positively impact its customers
model: through effective sales force management. It deals with the sales and distribu-
tion departments of businesses through its high-quality software management.
For companies, determining their sales and distribution and keeping records is
an important task and Salesflo with its quality services has been successful in
Success Story as a
getting a stronghold of this share of companies. Presently, it is responsible for
business:
the software management for sales and distribution of around 500 companies
that show the success and quality of the enterprise.
How are they

Salesflo provides very different services and deals with a certain domain of other
contributing to the
businesses. This is different from the general ecosystem where enterprises usu-
entrepreneurial
ally have departments or individuals, and therefore this is creating more innova-
ecosystem in
tive ideas and opportunities in the ecosystem.
Pakistan?
ScaleX
Founded in: 2021
Founded by: Adnan Faisal
Sector: Financial service
Annual Revenue: $5m
ScaleX provides strategies and services for the growth of startups or businesses
Main Business for expanding and enlarging in scale. It contacts various businesses and start-
model: ups and connects with them as an adviser providing complete growth plans,
market trends, demands, and innovation ideas.
ScaleX started in Dubai and went globally. Adnan Faisal launched it in Pakistan
looking at the demand for it in the country. Initially, it approached businesses
Success Story as a
themselves convincing them about their positive services, and gradually with
business:
recognition in the market they are now approached by quality businesses for
their growth consultation.
How are they ScaleX is a very unique idea compared to the type of business enterprises in the
contributing to the entrepreneurial ecosystem of Pakistan. With its extraordinary performance, it is
entrepreneurial creating a new room of opportunities in the ecosystem whereas also through
ecosystem in its valuable services is contributing to making larger enterprises in the ecosys-
Pakistan? tem.

Annex 1
She-Kab
Founded in: 2015
Founded by: Hira Batool Rizvi and Shahbaz Khan
Sector: Transportation
Annual Revenue: <$5million
Providing a shared ride service for women. The company has created a platform that con-
nects women who need transportation with verified women drivers. Using their mobile
Main Business
app or website, users can book rides for themselves or their women colleagues or family
model:
members. She-Kab focuses on ensuring safety, convenience, and affordability for women,
while also providing income opportunities for women drivers.
This innovative startup has revolutionized the concept of ride-sharing in Pakistan by

Success Story as a
exclusively catering to women passengers and providing them with a safe and reliable
business:
transportation solution.
How are they

By providing a platform that supports women entrepreneurs in the transportation indus-
contributing to the
try. By empowering women to establish their own businesses as drivers and fleet owners.
entrepreneurial
By not only addressing the issue of women's safety but also creating entrepreneurship
ecosystem in
opportunities.
Pakistan?
Stech
Founded in: 2015
Founded by: Adeel Saeed Chaudhry
Sector: AI technology
Annual Revenue: $2M
Stech is an AI software company that functions on B2B (business to business) and B2E
(Business to employee) models. It uses AI to provide solutions related to public safety,
Main Business financial technology, industrial automation, smart ID, Ed- tech, and social impact. With
model: many solutions enterprises already in the market, Stech differs as it provides innovative
modern solutions using AI. This innovative approach made Stech capture a prominent
position in the market in a short time.
Stech after entering the market in 2015, in a short time was quite successful and stable
Success Story as a as businesses and employees that required such services found Stech's main idea of in-
business: novative solutions very appealing. It claimed to provide "intelligent" solutions through AI
that were successful in creating a position in the market.
How are they

Stech is making a very interesting contribution to the market and the market shift. AI
contributing to the
hasn't been very widely spread in the entrepreneurial ecosystem of Pakistan but with
entrepreneurial
companies like Stech, AI is getting swift promotion and turning the ecosystem more
ecosystem in
technological and AI-based.
Pakistan?

Annex 1
Swag Kicks
Founded in: 2019
Founded by: Nofal Khan
Sector: Online footwear pre-used retailer
Annual Revenue: $0.9M
Swag Kicks is a B2C (business to consumer) space in the retail market service.
Main Business It imports quality pre-used sneakers and various types of branded trendy foot-
model: wear from the developed world at a very low price and supplies it in Pakistan to
the consumers.
The trend of supplying pre-used wardrobe and footwear in Pakistan has been
followed for a long but Swag Kicks introduced a trendier product in a very pro-
Success Story as a
fessional online setup, staging its market countrywide. Due to its responsive
business:
quality online setup and quality, Swag kicked in a quick time and got great rec-
ognition.
How are they

Swag kicks have professionalized as well as digitalized an already existing trend
contributing to the
in the market to get share and recognition. This is an important contribution to
entrepreneurial
the entrepreneurial ecosystem of Pakistan by propagating professionalism and
ecosystem in
digitalization in the setups.
Pakistan?
National Incubation
Center
Founded in: 2016
Location: Islamabad, Pakistan
Ministry of Information Technology and Telecommunications, Ignite (National
Operated by:
Technology Fund), Jazz xlr8, and Teamup
How are they
contributing to the The incubator focuses on providing state-of-the-art co-working spaces, tech-
entrepreneurial nology labs, mentorship programs, and access to industry networks for start-
ecosystem in ups working in various technological domains.
Pakistan?

Annex 1
SEED Ventures
Founded in: 2009
Location: Karachi, Pakistan
SEED Ventures in partnership with UNDP, BRAC, USAID, Agriculture University of Faisal-
Operated by: abad, and Balochistan University of Information Technology, Engineering and Manage-
ment Sciences
How are they SEED Ventures operates as a social impact organization focused on fostering entrepre-
contributing to the neurship and supporting startups in Pakistan. They provide a range of programs, includ-
entrepreneurial ing incubation, acceleration, investment readiness, and mentorship, to empower entre-
ecosystem in preneurs and help their ventures grow. SEED Ventures also invests in promising startups,
Pakistan? aiding them in securing funding to scale their operations.
Nestle needs YOUth

Programme
Founded in: 2013
Location: Nationwide
Operated by: Nestlé Pakistan
How are they
Nestlé needs YOUth is an initiative by Nestlé Pakistan aimed at providing skill
contributing to the
development and employability opportunities to the country's youth. The pro-
entrepreneurial
gram focuses on empowering young individuals through training, mentorship,
ecosystem in
and collaboration with the aim of enhancing their career prospects.
Pakistan?
Prime Minister’s
Youth Programme
Founded in: 2013
Location: Nationwide
Operated by: Government of Pakistan
How are they

The Prime Minister's Youth Program is an initiative launched by the Government of Pa-
contributing to the
kistan to address various challenges faced by the country's youth, including education,
entrepreneurial
employment, and entrepreneurship. The program includes multiple components, such
ecosystem in
as training, skill development, interest-free loans, and business support services.
Pakistan?

Annex 2
Identification of Priority Sectors for
Youth Entrepreneurship aligned to
National Development Priorities and the
Sustainable Development Goals
The 2030 Agenda for Sustainable Devel- to find innovative business ideas to solve
opment, adopted by the UN in 2015 en- pressing problems related to Sustainable
tails 17 Sustainable Development Goals Development Goals (SDG)87. Priority areas
(SDGs) consisting of very critical areas like for the country are updated by the state
reducing poverty and hunger, the right to bank and relevant ministries of the gov-
good health and well-being, quality edu- ernment of Pakistan whenever the need
cation, and gender equality among oth- arises88. The Prime Minister Innovation
ers85. Pakistan is committed to meeting its Award 2023 has also identified priority
SDG goals by 2030 and entrepreneurship sectors for which the youth can present
through public-private partnership can their innovative ideas89. Some of the pri-
play a key role in meeting these goals in ority sectors for Pakistan as opportunities
new and innovative ways. Multiple SDGs for youth entrepreneurship, based on Sus-
can be covered by entrepreneurial activ- tainable Development Goals and study of
ities and entrepreneurship is advocated the government’s policies, are discussed
as the vehicle for empowerment and is below.
considered an enabling element of eco-
nomic development, alleviation of poverty,
and enhancement of social values in the Women entrepreneurship
agenda for sustainable development86. A development
relatively new concept of “social entrepre-
neurship”, which measures the success of Women’s contribution to entrepreneurial
a business venture not only by the money activity not only boosts the economy by
generated but also by its social impact, is job creation but also adds diversity and
changing lives and helping in meeting the value to the economic landscape. Given
SDGs globally. Some of the areas of social this importance, the national SME policy
entrepreneurship are health, hygiene, nu- proposes targeted interventions for wom-
trition, education, climate change, and the en-led businesses to address the higher
environment, microfinance low-cost hous- barriers they face including simplified
ing, job creation, and small-medium en- taxation rules and reduced taxes on wom-
terprises for women. The Center for Social en-owned SMEs, establishing specialized
Entrepreneurship working under the Plan- women business facilitation plans, and
ning Commission has the mandate to sup- providing women-friendly working envi-
port students and young entrepreneurs ronments through establishing women
85
UN (2023). Sustainable Development Goals. 87
Saleem (2020). Analyzing the Social Entrepreneurship Ecosystem
86
Khatani & Hamid (2021). Analyzing the Impact of Youth in Pakistan and its Effects on Society.
Entrepreneurial Perspective on Sustainable Socio-Economic 88
The Daily Times (2021). State of SMEs in Pakistan.
Growth of Karachi. 89
GoP (2023). Prime Minister’s Youth Programme.

Annex 2
business centres, display facilities, empori- Healthcare

ums etc among other measures.
Various digital healthcare platforms
cropped up in Pakistan during the
Information and COVID-19 pandemic, paving the way for
Communication similar innovative ideas to digitize and
Technology make quality healthcare more accessible
in the country. With a vast majority of the
ICT and digital space for entrepreneurship population with no access to good health-
is increasing, which can be leveraged by care opportunities, healthcare in Pakistan
young people. This includes technologies is in dire need of innovative solutions by
such as artificial intelligence (AI), advanced social entrepreneurs. Social entrepreneur-
materials, cloud technology (including ship in this sector would assist the govern-
big data), autonomous vehicles (including ment to meet e-health targets setup in the
drones), synthetic biology, virtual and aug- government policies and meet the SDG-3
mented reality, robotics, blockchain, and related to health and wellbeing.
the Internet of Things (IoT).90 These can be
a gateway for increased provision of ser-
vices (at national, regional, and global lev- Agriculture
els), and increased innovation in other ar-
eas including social, health, education, and To meet SDGs 1 and 2 regarding reducing
green growth. poverty and hunger, the government of
Pakistan has promised in its Digital Paki-
stan Policy to make available agricultural
Education extension services by empowering and
equipping farm extension workers with IT
Social entrepreneurship can have a huge skills, to support farmers through the use
impact in the education sector by filling of IT in relevant areas and to build ICT ca-
the gaps left by the government, reaching pacity in agricultural institutions, farmer
different strata of societies, bridging gaps organizations and groups based on “train
between education quality and bringing the trainer” concept. This provides a good
international standards of education to opportunity for tech savvy youth entrepre-
the masses through innovation and the neurs of Pakistan to engage in agriculture
use of technology. Digital Pakistan Policy and its extension sectors. In Pakistan, ag-
Promises to “Actively collaborate with HEC, riculture is ripe for entrepreneurship, and
IT industry, and other relevant institutions young people can play a significant role in
to modernize the education curriculum to this field by starting innovative agribusi-
be in sync with the emerging technologies nesses that can create jobs, generate in-
and align to the requirements of the income, and contribute to the country’s eco-
dustry”, which makes this sector one of the nomic development.
priorities sectors in need of innovation and
entrepreneurship.
90
UN (2020). Leveraging New Technologies for Youth Social Entrepreneurship.

Annex 2
Clean Energy and Blue/ of access and convenience that the plat-
form provided. More than 10 market play-
Green Technologies
ers eventually entered the digital finance
The economic development of a country space, out of which two players (Easyapai-
relies on energy production. Pakistan has sa and JazzCash) currently serve almost 70
been blessed with resources for clean and percent of the branchless banking users92.
renewable energy like water passages, un- There is a space for innovation in the fin-
limited solar radiation, and wind energy tech scenario of Pakistan in the sectors of
corridors. Additionally, Pakistan has a short- payments, saving, insurance, lending, and
fall of energy and governments have been infrastructure and software development
trying to bridge the gap between energy for fin-tech services.
production and consumption through var-
ious initiatives. Youth Entrepreneurs have The government of Pakistan aims to “Es-
a huge potential to play their role in the tablish specialized innovation centres for
energy sector through innovations in clean FinTech, Artificial Intelligence (AI), Internet
energy processes including solar, hydro, of Things (IoT) and Robotics in major cities
biomass, geothermal, and wind energy as of Pakistan, promote home grown players
well as energy conservation mechanisms in IoT, FinTech, AI, and Robotics by encour-
for industrial and domestic consumers. aging a highly integrated startup ecosys-
tem through collaboration with national
EcoEnergy, JaanPAkistan, Breath IO, and and international incubation centres, fi-
Aabshar are some of the startups focused nancial institutions, universities, relevant
on sustainability and clean energy technol- government departments, industry con-
ogy in Pakistan91. With rising fuel prices and sultants and associations”, making these
increasing energy demands in the country, areas favorable future sectors for youth en-
this sector can be the focus of innovation trepreneurship.
for youth startups.
Tourism/ Hospitality
Finance/Fin-tech
Pakistan is a country with a rich cultur-
Financial Technology (Fintechs) compa- al heritage and scenic beauty, making
nies are revolutionizing the financial ser- it an ideal destination for tourists from
vices industry throughout the world. By all over the world. Despite the immense
unlocking innovation, Fintechs are allow- potential of the tourism industry in Pa-
ing the financial industry to serve custom- kistan, it has remained largely untapped
ers in novel ways, enabling them to provide due to various challenges that limit its
higher quality services at lower prices. De- growth. These challenges include a lack
spite the large population and a signifi- of infrastructure, limited access to fi-
cant youth bulge, Pakistan has developed nancing, security concerns, and insuffi-
slowly in the domain of digital finance. Ea- cient marketing efforts, among others93.
syPaisa was the first mover in the branch- However, amidst these challenges, there
less banking space and swiftly captured a are significant entrepreneurial opportuni-
significant market share, given the ease ties that exist within the sector.
91
Katalyst Labs Pakistan (2023). 10 Sustainability Startups in Pakistan.
92
Karandaaz (2021). Fintech Ecosystem of Pakistan.
93
Shahzady (2023). Entrepreneurial Opportunities in Pakistan.

Annex 2
Pakistan has the

potential of growing
the tourism and
hospitality industry
many folds but the
government needs the
support of entrepreneurs
in achieving this mission,
making this sector
a hotspot for future
entrepreneurship
opportunities.
Young Entrepreneurs are venturing into tion to ensure that an active role of the
this sector in the domains of travel organiz- private sector is played in the planning,
ers, establishing guesthouses and hotels, designing, and delivery of technical and
and adventure tourism, such as mountain- vocational education and training by the
eering, trekking, and skiing. Additionally, government of Pakistan in collaboration
entrepreneurs can invest in cultural and with the private partners94. Pakistan has
heritage tourism by developing unique the potential of growing the tourism and
experiences, such as homestays, culinary hospitality industry many folds but the
tours, and traditional handicrafts. government needs the support of entre-
preneurs in achieving this mission, mak-
Skills Council in Hospitality Sector (SSCH) ing this sector a hotspot for future entre-
has been set up as a national organiza- preneurship opportunities.
94
National Vocational Education and Technical Training Commission (2018). Sectoral Profile of Hospitality & Tourism.

Annex 3
Best practices of integrated and
robust ecosystems that support
youth-led enterprises and
entrepreneurs
A key aspect for improving the robustness and re-shaping the youth entrepre-
neurship ecosystem to ensure efficacy, it is vital to explore the best practices
in all the key domains. The following table provides critical entry-points for fill-
ing existing gaps and overcoming challenges identified, alongside practical
regional/global examples of implementation.
Domain Best Practices and Benchmarks Supporting Youth-led Enterprises and Entrepreneurs
▶ To provide an inclusive policy and regulatory framework:
▶ Promote policy and legislative frameworks that encourage youth entrepreneurial
growth and cater to the needs of all entrepreneurs
▶ Creation of effective regulatory mechanisms for consistent monitoring and evaluation
of implementation of policies and laws.
Examples of Best Practices for Supportive Policy Frameworks and Ease in Registration/Reg-
Policy and ulation of Enterprises:
Regulatory (1) SME Policy Index (Singapore, 2018) is an excellent example of creating favorable con-
Framework ditions for enterprises to flourish through targeted policy mechanisms. This includes
policies that enhance productivity, technology and innovation, access to market and
internationalization, ease of access to finance, legislation, regulation, and tax formula-
tion to support the growth of SMEs and focus on entrepreneurial education and skills.
(2) EasyGov (Switzerland, 2018) is a singular platform that centralizes, facilitates, and ex-
pedites the mandatory administrative procedures for companies. Established com-
panies can also perform many administrative procedures, such as business creation;
commercial registration, and operations related to VAT registration, declaration, etc.

Annex 3
To hone the skills of young people and enhance their knowledge on how to start and grow a
business enterprise, policies and programs should include the provision of:
▶ Accessible opportunities for education and skill development relevant to entrepre-
neurship for youth, both within formal and informal education systems.
▶ Behavioral change interventions to mainstream entrepreneurship culture amongst all
key stakeholders.
Examples of programs providing platforms for young people to gain skills and knowledge
relevant to entrepreneurship:
(1) Skills Development Programme for Young Entrepreneurs in Dublin (Ireland, 2023):
a programme that offers an opportunity for young people to gain valuable personal
Human development skills as well as practical business advice on how to set up and run a
Capital and business. The program is run by the academic institute in partnership with local cor-
Entrepreneurship
porations.
Culture
(2) Cambridge Centre for Entrepreneurial Learning (UK, 2023): Provides support to entre-
preneurial talent development and the translation of new ideas into practice, whilst
also developing thought-leadership for entrepreneurship, and enhancing the devel-
opment of management capacity within the Cambridge entrepreneurial ecosystem
and beyond.
(3) The Aga Khan Foundation and Om Habibeh Foundation (Egypt, 2019): Through its
Head Start for Youth Entrepreneurship and Employment Program, the organization
provides vocational training for youth aimed at supporting entrepreneurship and en-
hancing youth employability. It incorporates innovative elements such as internships
and mentorships, job counseling and placement services, e-learning, employability/
soft skills training, and entrepreneurship support services.
Enhance access to dedicated financial resources by providing a regulatory framework and
dedicated support systems and tools to help finance start-up ventures. Through the provi-
sion of:
▶ Seed capital at economic costs.
▶ Financial assistance in the form of loans, subsidies, and debt refinancing options.
▶ Unbiased regulatory environment or incentives for youth entrepreneurship.
▶ Relevant infrastructure, capital, technical, logistical, and human capacities.
Access to Finance Examples of programs providing platforms for young people to enhance access to finance
and Incentives and incentives
(1) Pioneer Status (Malaysia, 2018): gives investors tax exemptions to provide entrepre-
neurs seeking financing for innovation. This is mainstreamed through their income
and investment tax exemptions given to entrepreneurs meeting clearly defined per-
formance criteria in targeted industries such as ICT and bio-technology. This eases the
cash flow constraints of innovative high-growth firms and frees up extra resources for
re-investment in the company’s growth.
(2) The Invest Programme Young (Portugal, 2022): through this program young entre-
preneurs are provided with financial support/investment in the form of interest-free
loans, long loan repayment periods (over 54 months), and/or as non-payable aid.

Annex 3
Business training and mentoring youth entrepreneurs to climb the learning curve faster
is critical in ensuring the sustainable growth of youth-led businesses. These initiatives can
include:
▶ Mechanisms (single web portal, cross-training) to facilitate communication and coop-
eration among youth entrepreneurs.
▶ Building social capital through exposing entrepreneurs to new networks, mentors,
and peers.
Business ▶ Providing access to physical/technical infrastructure.
Development
Examples of programs providing opportunities for young people to engage in business de-
Support and
Infrastructure velopment support infrastructure:
(1) Youth Entrepreneurship Campaign (South Africa, 2010) brought together relevant
stakeholders and generated awareness of business opportunities among youth. In-
cluding facilitating access to information about business opportunities, access to fi-
nance and procurement, and addressing issues faced by new entrants in the ecosys-
tem, and growth inhibitors of existing youth enterprises.
(2) Microsoft Entrepreneurship: offers training courses to young entrepreneurs on busi-
ness development, access to technology, expertise, visibility and connections.
Innovation and technology can be mainstreamed through infrastructural support for the
implementation of youth entrepreneurial ideas. Including:
▶ Physical workspace, business incubators, knowledge hubs, science and technology
parks, digital infrastructure, access to reliable and internationally competitive electric-
ity, etc.
▶ Diffusion of ICT skills for youth entrepreneurs.
▶ Linkage between public bodies, research institutions, and startups.
Innovation and Examples of programs providing opportunities for young people to engage in innovation
Technology and technology:
▶ The Casablanca Technopark Incubation Center (Morocco, 2018) is an incubation facility
for innovative ICT projects. Providing: office spaces, technical assistance, opportunities
for networking and business, and access to finance with the support of the Moroccan
ICT Professional Association, APEBI, and the IFC. Moreover, it presents an innovation
support fund, encouraging Innovation and R&D through subsidizing part or all of the
R&D undertaken by the enterprises being incubated. Provides access to international
and regional markets.
Strengthen ease of doing business/access to markets for services/products by youth entre-
preneurs through:
▶ Ease of access to physical infrastructure and creation of spaces and points-of-entry for
youth-led products and services.
▶ Youth-friendly labor market policies.
▶ Import and export policy favoring youth-led enterprises.
Access to Market Example of a program that supports the access of markets, and creates points of entry into
established networks for youth-led enterprises.
▶ Enterprise without Borders (UNCTAD,2015): Junior Achievement–Young Enterprise
(JA-YE), through its online initiative, provides opportunities for young entrepreneurs
to create cross-border partnerships (trade), promote, market, and export their prod-
ucts and services via networks connected to the “enterprise without borders” initiative,
globally.

Annex 4
Survey Questionnaire – Primary
Stakeholder (Young Entrepreneurs)
CATEGORY QUESTIONS RESPONSE TYPES

Introduction 1. How old is your enterprise? Numeric
Introduction 2. What type of business is it? Select all that apply: Solo
Enterprise/ Social Enterprise/
Mixed Enterprise/ For-PrOfit
Model/ Gig Economy/ Pop
Shop/ Subscription-based/
Freemium/ Pay-what-you-
want/ Direct-to-Consumer/
Franchise / Platform-based /
Asset Light/ Other
Introduction 3. How is your business registered? Not Registered/ Sole
Proprietorship/ Partnership/
Limited Liability Partnerships
with SECP/ Limited Company/
Not for profit entity/ Trust/
Welfare Society/ Other.
Introduction 4. In what sector is your enterprise Sector Options
operating?
Introduction 5. What is your level of experience as an 1st time, 2nd time, 3rd time or
entrepreneur more
Introduction 6. What is your team size? Numeric
Introduction 7. Did you/ Do you have access to a mentor Yes/No

for your enterprise?
Introduction 8. Please select the kind of support you Select all that apply (Seed
received for your enterprise? Money/ Loan / Capacity-
Building/ Training/
Mentorship/ Networking/
Introduction 9. Did you receive any of the above- Cross-Grid of support with
mentioned support from any of these organizations (PM Youth
organizations. Entrepreneurship / Loan
Scheme, UN, national/
Akhuwat, Kashaf Foundation,
Hashoo Foundation, AKRSP
network, RSPN, provincial
initiatives BRSP (Balochistan
Rural Support Programme),
SRSO (Sindh Rural Support
Organization), PRSP, SRSP,
SMEDA, National Incubation
Centres, NIC/BIC, ORIC, other)

Annex 4

Introduction 10. For how long have these organizations Number of Months
supported you?
Introduction 11. How did this support help you? Select relevant option: I could
start a new business/ I could
scale up my business/ I could
improve my business/ It did
not help me/ other
Introduction 12. What was the reason you chose this open-ended response
sector/ business?
Introduction 13. What has been your usual source of Select all that apply
information regarding any business, (Educational Institutions/
market, finance, tech support for your Workplaces/ Newspapers /
enterprise Social Media/ Govt Websites /
Govt Text
Introduction 14. In your opinion, what is the biggest open-ended response
challenge confronting young
Introduction 15. Can you rank this challenge's difficulty Very easy / Somewhat easy
level for young entrepreneurs because / Neither easy nor difficult
of gender/ socioeconomic status / / Somewhat difficult / Very
ethnicity/ religion/ cast / education level difficult
/ disability / rural or remote background
etc.?
Introduction 16. If chose the first 2 or last 2 options, for Select all that apply: gender
what basis did your choice differ socioeconomic status /
ethnicity/ religion/ cast /
education level / disability /
rural or remote background
Introduction 17. How strongly do you agree or dis-agree Strongly disagree/disagree/
with the statement ' My business is neutral/ agree/ strongly agree
doing well'
Introduction 18. If your business is doing well or unwell, Open-ended
what do you think are the top three
reasons for its current state?
Social Stratifiers 19. What gender do you identify yourself Men, Women, 3rd, Prefer not
as? to say
Social Stratifiers 20. What socioeconomic status bracket Top Tertile, Mid Tertile, Bottom
what you consider yourself in? Tertile
Social Stratifiers 21. Please select your religion/ sect ( * we Sunni Muslim, Shia Muslim,
are only recording this information to Christian, Hindu, Sikh,
capture experiences of minority groups. Buddhist, Ismaili, Ahmadi,
This information will not be used in any Other, Prefer not to say
way to identify you. The information will
be anonymised)
Social Stratifiers 22. What is the most common language open-ended response
that you speak

Annex 4

Social Stratifiers 23. What is the 2nd more common open-ended response
language that you speak
Social Stratifiers 24. Do you easily understand Urdu? Yes/No
Social Stratifiers 25. Do you consider yourself to have a

disability? If yes, which one?
Social Stratifiers 26. Which province do you reside in? Punjab, Sindh, Balochistan,
Khyber Pakhtunkhwa, Gilgit
Baltistan, Azad Jammu and
Kashmir, Islamabad Capital
Territory
Social Stratifiers 27. Which district do you reside in? open-ended response
Social Stratifiers 28. Do you live in an urban area or a rural Urban/ Rural
area?
Social Stratifiers 29. What is your highest level of education? Middle/ Matriculate/
Intermediate/ Bachelors/
Masters/ More than Masters
Social Stratifiers 30. Do you have any international Yes/No
qualification
Social Stratifiers 31. Have you participated in any business Yes/No
incubation/ start up competition?
Social Stratifiers 32. Do you have access to internet 24/7 Yes/No
Social Stratifiers 33. Is anyone else in your family also a Yes/No

businessperson/ entrepreneur?
Social Stratifiers 34. Please select if you think your enterprise Select all that apply: Digital,
is any of these? Green, Social
Access to finance 35. Do you have a good understanding Select all that apply: Venture
and incentives: about financing options that you can Capital, Angel Investment,
access for your business in Pakistan? IPO, Convertible Notes, Loans,
Bonds, Impact Investment,
Results-based financing,
Blended finance, Catalytic
funding etc.
Access to finance 36. Have you been able to access financing Yes/No
and incentives: for your business?
Access to finance 37. What types of financing have you used Select all that apply: Venture
and incentives: for your business? Capital, Angel Investment,
IPO, Convertible Notes, Loans,
Bonds, Impact Investment,
Results-based financing,
Blended finance, Catalytic
funding, Family Support,
Personal Saving

Annex 4

Access to finance 38. If you received a loan, can you select the PM Youth Entrepreneurship
and incentives: organization you received it from? / Loan Scheme, UN, national/
Akhuwat, Kashaf Foundation,
Hashoo Foundation, AKRSP
network, RSPN, provincial
initiatives BRSP (Balochistan
Rural Support Programme),
SRSO (Sindh Rural Support
Organization), PRSP, SRSP,
SMEDA, National Incubation
Centres, NIC/BIC, ORIC,
Direct applications to banks,
Other.
Access to finance 39. In case you selected option 1 in above <PKR 100,000
and incentives: question, can you indicate the size of PKR 100,000 to PKR 500,000
loan received? PKR 500,000 to PKR 1000,000
PKR 1000,000 to PKR
5000,000
>PKR 5000,000
Access to finance 40. If you have not used any financing open-ended response
and incentives: outside of family or personal savings,
what is the reason?
Access to finance 41. What are the financing-related open-ended response
and incentives: challenges specific to your sector that
you have experienced?
Access to finance 42. How important is access to affordable scale from 1 to 5
and incentives: credit for young entrepreneurs in
Pakistan?
Access to finance 43. How important are financial incentives scale from 1 to 5
and incentives: ;such as tax breaks or grants; for
promoting entrepreneurship in
Pakistan?
Access to finance 44. Are there any particular financial open-ended response
and incentives: incentives you think would be helpful
for young entrepreneurs in Pakistan?
Access to finance 45. Can you rank the difficulty level for Very easy / Somewhat easy
and incentives: young and upcoming entrepreneurs / Neither easy nor difficult
in seeking financial support for / Somewhat difficult / Very
their business because of gender/ difficult
socioeconomic status / ethnicity/
religion/ cast / education level / disability
/ rural or remote background etc.?
Access to finance 46. Can you rank if you faced less or more Fewer Challenges / No
and incentives: challenges in seeking this support Difference / More Challenges
because of your gender/ socioeconomic
status / ethnicity/ religion/ cast /
education level / disability / rural or
remote background etc.?

Annex 4

Access to finance 47. If you chose the first 2 or last 2 options, Select all that apply: gender/
and incentives: for what basis did your choice differ socioeconomic status /
Access to Market 48. What types of markets have you Select all that apply : local/
targeted for your business? provincial/ national/ regional/
international/ etc.
Access to Market 49. How do you currently reach out to Select all that apply Social
potential customers or clients for your media / Online marketplaces
venture? / Personal networks / Physical
stores / Other
Access to Market 50. What kind of challenges have you faced Select all that apply Lack
in accessing local and national markets of infrastructure / Limited
for your entrepreneurial venture? access to buyers / Inadequate
marketing and promotion /
Competition from established
businesses / HR retention /
Other
Access to Market 51. Have you been able to access Yes/No
international markets for your products
or services?
Access to Market 52. If yes, which international markets have Select all that apply Asia
you explored? / Europe / North America
/ South America / Africa /
Australia/Oceania
Access to Market 53. What are the main barriers that Select all that apply Lack
you have faced when try to reach to of infrastructure / Limited
international market? access to buyers / Inadequate
marketing and promotion /
Competition from established
businesses / Other
Access to Market 54. What do you think can be done Select all that apply More
to improve the access of young government support for
entrepreneurs in Pakistan to both market access / More
domestic and international markets? collaboration between young
entrepreneurs and established
businesses / More networking
opportunities for young
entrepreneurs / Other
Access to Market 55. Can you rank the difficulty level for Very easy / Somewhat easy
young and upcoming entrepreneurs / Neither easy nor difficult
in seeking access to market for their / Somewhat difficult / Very
business in Pakistan because of gender/ difficult

Annex 4

Access to Market 56. If you chose the first 2 or last 2 options, Select all that apply gender/
for what basis did your choice differ socioeconomic status /
Access to Market 57. Can you rank if you faced less or more Fewer Challenges / No
challenges in getting access to market Difference / More Challenges
because of your gender/ socioeconomic
Business develop- 58. Are you aware of any support services Yes/ No - Open ended
ment support and available for young entrepreneurs in
infrastructure Pakistan? If Yes, List.
Business develop- 59. Were you interested in seeking support Yes/No/ Don’t know
ment support and of incubation or accelerator programs
infrastructure for your business
Business develop- 60. If yes, why? Select all that apply: Access
ment support and to mentors/ Networking with
infrastructure investors/ Financing / Office
setup / Enterprising synergy /
Business acumen / technology
support / marketing support
/ media support / competitor
awareness / exposure to
similar events/ networking/
other.
Business develop- 61. Please rank how easy or difficult it was Very easy / Somewhat easy
ment support and for you to access business development / Neither easy nor difficult
infrastructure support for your business? / Somewhat difficult / Very
difficult
Business develop- 62. Have you received any business Yes/No
ment support and development support ;such as
infrastructure incubation or acceleration programs; for
your business?
Business develop- 63. What kind of support services do you open-ended response
ment support and think should be definitely available for
infrastructure young entrepreneurs such as yourself
Business develop- 64. Can you rank the difficulty level for Very easy / Somewhat easy
ment support and young and upcoming entrepreneurs / Neither easy nor difficult
infrastructure in seeking business development / Somewhat difficult / Very
support in Pakistan because of gender/ difficult
Business develop- 65. If you chose the first 2 or last 2 options, Select all that apply: gender/
ment support and for what basis did your choice differ socioeconomic status /
infrastructure ethnicity/ religion/ cast /

Annex 4

Business develop- 66. Can you rank if you faced less or more Fewer Challenges / No
ment support and challenges in seeking this support Difference / More Challenges
infrastructure because of your gender/ socioeconomic
Human capital and 67. How early in your life did you start Open-ended
entrepreneurship thinking of starting your own
Select all that apply Family/
culture: enterprise? Who/ What inspired you/
Friends/ Educational
played a a substantial role in shaping
Institution / Work Environment
your entrepreneurial journey during the
/ Other
idea stages
Human capital and 68. How aware are young people in Pakistan scale from 1 to 5
entrepreneurship about entrepreneurship as a career
culture: option?
Human capital and 69. Have you received any formal training or Yes/No
entrepreneurship education related to entrepreneurship?
culture:
Human capital and 70. What types of skills do you think are open-ended response
entrepreneurship important for entrepreneurs to succeed
culture: in Pakistan?
Human capital and 71. Do you think the education system in scale from 1 to 5
entrepreneurship Pakistan encourages or discourages
culture: entrepreneurship?
Human capital and 72. Have you received any mentorship or Yes/No
entrepreneurship networking opportunities as a young
culture: entrepreneur in Pakistan?
Human capital and 73. What do you think are the key Select all that apply: Family
entrepreneurship challenges for young people to embark expectations, Marriage, career
culture: upon entrepreneurial journeys paths, higher education, lack
of past experience, logistic
issues, skills mismatch,
socioeconomic background,
cultural or societal norms,
Other
Human capital and 74. Can you rank the difficulty level for Very easy / Somewhat easy
entrepreneurship youth to become entrepreneurs / Neither easy nor difficult
culture: in Pakistan because of gender/ / Somewhat difficult / Very
socioeconomic status / ethnicity/ difficult
Human capital and 75. If you chose the first 2 or last 2 options, Select all that apply: gender/
entrepreneurship for what basis did your choice differ socioeconomic status /
culture: ethnicity/ religion/ cast /

Annex 4

Human capital and 76. Can you rank if you faced less or Fewer Challenges / No
entrepreneurship more challenges in becoming an Difference / More Challenges
culture: entrepreneur because of your /
Innovation and Tech- 77. Have you been able to access Yes/No
nology: technological support for your business?
Innovation and Tech- 78. Have you faced any barriers to accessing Yes/No
nology: technology for your business?
79. Have you faced any barriers to utilising Yes/No
technology for your business?
Innovation and Tech- 80. Which of the following technological Select all that apply Social
nology: tools have you used? media / Website development
/ Mobile applications /
Cloud computing / Google
Ads/ Facebook Ads/ Digital
Payments / Technological
Services / E-Commerce/
Business Data / No technology
in my business
Innovation and Tech- 81. In your opinion, what are the most Select all that apply Artificial
nology: important technological advancements intelligence / Blockchain
that young entrepreneurs in Pakistan / Internet of things /
should be aware of? Augmented/virtual reality /
Other
Innovation and Tech- 82. How important do you think innovation Not important at all / Slightly
nology: and technology are for the success of a important / Moderately
young entrepreneur in Pakistan? important / Very important /
Extremely important
Innovation and Tech- 83. How easy or difficult is it for young Very easy / Somewhat easy
nology: entrepreneurs in Pakistan to access and / Neither easy nor difficult
adopt new and emerging technologies? / Somewhat difficult / Very
difficult
Innovation and Tech- 84. Do you think there are sufficient Strongly disagree / Disagree
nology: opportunities and resources available / Neither agree nor disagree /
for young entrepreneurs in Pakistan Agree / Strongly agree
to develop and implement innovative
solutions?
Innovation and Tech- 85. Can you rank the difficulty level for young and upcoming entrepreneurs
nology: in accessing and utilising technology and innovation in their business in
Pakistan because of gender / socioeconomic status / ethnicity/ religion/
cast / education level / disability / rural or remote background etc.?
Innovation and Tech- 86. If you chose the first 2 or last 2 options, Select all that apply: gender
nology: for what basis did your choice differ / socioeconomic status /

Annex 4

Innovation and Tech- 87. Can you rank if you faced less or more
nology: challenges in accessing and utilising
technology and innovation in your
start up because of your gender /
Policy and regulatory 88. How aware are you of government scale from 1 to 5
frameworks: policies and regulations related to
entrepreneurship in Pakistan?
Policy and regulatory 89. How easy is it to register and set up a Very easy / Somewhat easy
frameworks: business in Pakistan? / Neither easy nor difficult
/ Somewhat difficult / Very
difficult
Policy and regulatory 90. Have you faced any challenges related Yes/No
frameworks: to compliance with government policies
and regulations?
Policy and regulatory 91. What changes would you like to see in open-ended response
frameworks: government policies and regulations to
support entrepreneurship in Pakistan?
Policy and regulatory 92. How supportive do you think Supportive/ Neutral/ Not
frameworks: government policies and regulations are Supportive
of entrepreneurship in Pakistan?
Policy and regulatory 93. Can you rank the difficulty level of policy Very easy / Somewhat easy
frameworks: and regulatory environment for young / Neither easy nor difficult
and upcoming entrepreneurs because / Somewhat difficult / Very
of gender / socioeconomic status / difficult
ethnicity/ religion/ cast / education level
/ disability / rural or remote background
etc.?
Policy and regulatory 94. If you chose the first 2 or last 2 options, Select all that apply: gender
frameworks: for what basis did your choice differ / socioeconomic status /
Policy and regulatory 95. Can you rank if you face less or more Fewer Challenges / No
frameworks: policy and regulatory challenges Difference / More Challenges
because of your gender / socioeconomic

Annex 4
Key Informant Interview Guide –

Diverse stakeholder groups
Domain Category Question/ Probe
Overall Promising Sectors and 1. What do you think the future of young entre-
Avenues preneurship will look like globally and in Paki-
stan?
Overall Promising Sectors and 2. What do you think are some of the promising
Avenues avenues for youth entrepreneurs in social sec-
tor? In eco / green sector? Why?
Overall Background Information 3. Can you update on latest data around enterpris-
es supported under national and provincial ini-
tiatives at nano, micro, meso levels/ small and
medium/ mid-scale etc?
Overall Overall 4. In your experience, why do you think some
youth-led enterprises succeed and some donts?
What are the top few reasons?
Access to Finance Attitude and Trust 5. What is your perception of youth-led startups/
and Incentives enterprises? as investment opportunities? For
sectoral growth? For national development?
Access to Finance Investment Potential 6. What qualities do you look for in a young entre-
and Incentives preneur to determine their potential as a suc-
cessful founder and leader?
Access to Finance Promising Sectors and 7. What do you think the future of young entre-
and Incentives Avenues preneurship will look like, and what implications
might this have for investors and financiers?
Access to Finance Barriers 8. What are some common barriers that young
and Incentives entrepreneurs face when trying to access cap-
ital, and how can these barriers be overcome?
Especially if they are from socially marginalized
groups?
Human Capital and Promising Sectors and 9. Are there any upcoming sectors or industries
Entrepreneurship Avenues that you believe offer promising opportunities
Culture for young entrepreneurship? If so, which ones
and why?
Access to Finance Sectoral Barriers 10. Are there any particular sectors or industries
and Incentives where young entrepreneurs face more signifi-
cant barriers to accessing financing, and if so,
what are those barriers?
Access to Finance Financial Awareness 11. How important is it for young entrepreneurs to
and Incentives have a strong understanding of financial man-
agement and planning when seeking financ-
ing?

Annex 4
Access to Market Sectoral Growth 12. Are there any specific programs or initiatives
that are particularly well-suited to helping
young entrepreneurs access national and inter-
national markets, such as trade fairs or export
promotion programs?
Access to Market Supporting Access 13. In your experience, what are some of the most
innovative and effective strategies for support-
ing young entrepreneurs in accessing national
and international markets and achieving their
goals?
Access to Market Competition 14. How does the presence of international enter-
prises affect the sustainability of youth-led en-
terprises in urban/rural areas?
Access to Market Global Trends 15. What types of business models and strategies
should young entrepreneurs adopt to succeed
in today's global economy?
Business Entrepreneurial Culture 16. Are there any particular policy or programmatic
development support interventions that have been particularly effec-
and infrastructure tive in promoting a culture of entrepreneurship,
either in your country or in other countries?
Business Availability of Tools 17. What resources or tools are currently available
development support to young people who are interested in starting
and infrastructure their own businesses in this country or region?
Business National Priorities Vis-à-vis 18. Are there any particular skills or competencies
development support HCD that are currently in high demand among em-
and infrastructure ployers in priority sectors, and if so, how can
these skills be better developed among the
workforce?
Business Future sectoral overviews 19. What are some of the challenges and risks asso-
development support ciated with these emerging sectors and indus-
and infrastructure tries, and how can young entrepreneurs miti-
gate them?
Human Capital and Entrepreneurial Culture 20. How would you describe the current entrepre-
Entrepreneurship neurship culture in your country or region, and
Culture what are some of its strengths and weaknesses?
Human Capital and Entrepreneurial Culture 21. How easy is it to hire people willing to work in
Entrepreneurship new enterprises set up by young people? What
Culture kind of challenges are seen.
Human Capital and Entrepreneurial Culture 22. What role do educational institutions, such as
Entrepreneurship universities and vocational schools, play in fos-
Culture tering an entrepreneurship culture, and how
can they be better leveraged to support young
entrepreneurs?
Human Capital and Social Inclusion 23. How can young entrepreneurs from diverse
Entrepreneurship backgrounds, including women, minorities, and
Culture those from lower socioeconomic backgrounds,
be better supported in developing and scaling
their businesses?

Annex 4
Human Capital and Education System 24. What types of courses, programs, and initiatives
Entrepreneurship are in place to develop the entrepreneurial skills
Culture and mindset of students, and how effective
have these been?
Human Capital and Preparedness 25. What advice would you give to students who
Entrepreneurship are interested in entrepreneurship, and how
Culture can they best prepare themselves for a career
in this field?
Innovation and Tech Awareness 26. In your experience, to what extent do young
technology entrepreneurs have a good understanding of
the various technological support and tools
available to them, such as cloud computing,
software development, or digital marketing? IP
support etc.
Innovation and Barriers 27. What are some common barriers that young
technology entrepreneurs face when trying to access tech-
nology, and how can these barriers be over-
come? Especially if they are from socially mar-
ginalized groups?
Innovation and Youth-Responsiveness 28. Are there any specific technological products or
technology services that are particularly well-suited to the
needs of young entrepreneurs, such as online
collaboration tools or social media platforms?
Innovation and Youth-Responsiveness 29. How can business mentoring and incubation
technology programs work to better support young entre-
preneurs in accessing and utilising technology
and overcoming barriers to entry?
Innovation and Supporting Access 30. In your experience, what are some of the most
technology innovative and effective strategies for support-
ing young entrepreneurs in accessing and util-
ising technology and achieving their goals?
Innovation and Social Inclusion 31. How can young entrepreneurs from diverse
technology backgrounds, including women, minorities, and
those from lower socioeconomic backgrounds,
be better supported in accessing entrepreneur-
ship tools and resources?
Policy and Regulatory National Priorities Vis-à-vis 32. In your view, what are the most pressing hu-
Framework HCD man capital development challenges facing
this country or region, and what can be done to
address them?
Policy and Regulatory Policy Awareness 33. Are the youth entrepreneurs aware/familiar
Framework with the current policies catering to the start-
ups/ enterprises/SMEs?
Policy and Regulatory Future sectoral overviews 34. How do you see the entrepreneurship ecosys-
Framework tem in Pakistan evolving in the future, and what
changes would you like to see in terms of policy,
support, and resources?

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ABOUT ABOUT CITI ABOUT

UNITED NATIONS FOUNDATION YOUTH CO:LAB

State of Youth Entrepreneurship Ecosystem in Pakistan 1

The Commonwealth is an asso-

2 State of Youth Entrepreneurship Ecosystem in Pakistan

GYI Global Youth Index

NAVTCC National Vocational and Technical Training Commission

PBS Pakistan Bureau of Statistics

PKR Pakistani Rupee

SME Small and Medium Enterprise

SMEDA Small and Medium Enterprise Development Authority

TEVTA Technical Education and Vocational Training Authority

SECP Securities and Exchange Commission of Pakistan

AJK Azad and Jammu Kashmir

ICT Islamabad Capital Territory

State of Youth Entrepreneurship Ecosystem in Pakistan 3

4 State of Youth Entrepreneurship Ecosystem in Pakistan

UNDP is grateful for the co-leadership and

State of Youth Entrepreneurship Ecosystem in Pakistan 5

40 Domain 1: Policy and Regulatory Frameworks

8 State of Youth Entrepreneurship Ecosystem in Pakistan

State of Youth Entrepreneurship Ecosystem in Pakistan 9

10 State of Youth Entrepreneurship Ecosystem in Pakistan

12 State of Youth Entrepreneurship Ecosystem in Pakistan

Government as Enablers and Facilita- DOMAIN 2: HUMAN CAPITAL AND

State of Youth Entrepreneurship Ecosystem in Pakistan 13

which is key to unlocking the potential of to financial institutions, lack of mentorship,

14 State of Youth Entrepreneurship Ecosystem in Pakistan

DOMAIN 4: BUSINESS of on-ground realities. It also aids in cre-

Importance of Mentorship and

State of Youth Entrepreneurship Ecosystem in Pakistan 15

provide valuable market insights. Foster- Youth-led Technology Entrepreneur-

16 State of Youth Entrepreneurship Ecosystem in Pakistan

State of Youth Entrepreneurship Ecosystem in Pakistan 17

al Incubation Centres in Islamabad, Kara-

To bridge the gap, the United Nations De- ▶ Development of a mechanism to

18 State of Youth Entrepreneurship Ecosystem in Pakistan

USD 361.64 million

State of Youth Entrepreneurship Ecosystem in Pakistan 19

Youth Potential in concerning disparities, indicating that out of

20 State of Youth Entrepreneurship Ecosystem in Pakistan

ing and fishing claiming the largest portion

All in all, disparities in education, limited ac-

State of Youth Entrepreneurship Ecosystem in Pakistan 21

Youth Entrepreneurship skills. The top 20 most in-demand technol-

22 State of Youth Entrepreneurship Ecosystem in Pakistan

The government’s flagship Youth Devel-

State of Youth Entrepreneurship Ecosystem in Pakistan 23

24 State of Youth Entrepreneurship Ecosystem in Pakistan

Small and Medium

a) It has been in existence for not more

*This definition is used by the Securities

State of Youth Entrepreneurship Ecosystem in Pakistan 25

Sampling Plan ments with respect to these strata cannot

26 State of Youth Entrepreneurship Ecosystem in Pakistan

Table 1 : Key informant interviews and focus groups conducted

Study Population Target

State of Youth Entrepreneurship Ecosystem in Pakistan 27

Definitions of the Domains