One of the major factors impeding development, growth of an entrepreneurial ecosystem is our culture of not sharing.
LAHORE: This is with reference to Muhammad Ali’s piece “Nurturing entrepreneurs” (July 17). One of the major factors impeding the development and growth of an entrepreneurial ecosystem is our culture of not sharing. It seems that we, as a nation, do not believe in sharing our knowledge or our resources. What an aspiring entrepreneur needs most is knowledge-sharing, hand-holding and mentoring. Funding comes second.
Lately, however, there is some activity in this respect. Many universities have now started to support the entrepreneurship culture by holding business plan competitions and in acting as catalysts in providing and arranging mentorship for the aspiring entrepreneur. Moreover, it is all too well to speak of a “regulatory framework” but it is felt that there is an element of “over-regulation” in some areas. An example can be cited of the Private Equity and Venture Capital Rules framed by the Securities and Exchange Commission of Pakistan. It has been over three years that these rules have been notified but not much seems to have changed as far as the establishment of private equity or venture capital funds are concerned. Similarly, the taxation regime is not very conducive to embarking upon high-risk venture funding. Yet, another impediment to the growth of a conducive ecosystem is the culture and pattern of “ownership” and “control” of businesses. There is no concept of divorcing management and ownership. The so-called high net worth individuals are not willing to give due credit to the intellectual capital of an aspiring entrepreneur and want to “own” the business Shylock-like on the basis of their financial clout. Yes, we are a nation of risk-takers. But, unfortunately, we are also a nation that does not forgive failure nor do we have the patience for perseverance, both of which are necessary for an entrepreneurial ecosystem.
Zahoor Motiwala
Published in The Express Tribune, July 18th, 2013.
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