Retailers’ conference underlines need for entrepreneurial spirit
Need for training at the grassroots level highlighted.
Need for training at the grassroots level highlighted. PHOTO: FILE
LAHORE:
Retail is where the future of the economy is; unfortunately, only a few multinationals and a handful of local entrepreneurs are reaping the benefits from a huge gap in the sector, said speakers at the Second Retail Conference held here on Friday.
Experts said there is a dire need to promote an entrepreneurial culture at lower levels through the provision of proper training and financing to entrepreneurs whose limitations hold them back from expanding their businesses.
Regrettably, in Pakistan, a ‘job culture’ seems to be dominating the ‘entrepreneurial culture’, which is capping individual growth. A majority of the institutes in Pakistan are still focusing on teaching students how to be good employees, rather than to be good employers. Speakers said this culture needs to change, as the country might not be able to compete with the modern world without entrepreneurs.
“There are more than 3.8 million small and medium enterprises (SMEs) in Pakistan. Unfortunately, the majority of SMEs have not received proper education and training to expand to at least the national level,” SME Business Support Fund CEO Saquib Mohiyudin complained during his speech.
“For a majority of retailers, access to funds is the key hurdle; banks are lending only to the government, which is impeding economic growth,” he said. “It is officially said that SMEs number 3.8 million in Pakistan, but I believe there are more than five million SMEs in the country. The best of these are located between Gujranwala, Gujarat, Sialkot and Faisalabad, an area we call the ‘golden triangle’, and are contributing significantly to the country’s economy.”
“In Pakistan up to 54% of SMEs reject the current taxation system and are out of the tax net. Around a million SMEs contribute 28% to the economy, out of which the retail sector contributes only 1.75% in taxes,” said Irfan Iqbal Sheikh, director of Alfatah stores, a retail chain.
“Pakistan has huge potential in the retail sector, as the country still underperforms in this segment, Ali Shah, president of the Harrods Group of Companies, Canada, said on the occasion. “We are in Pakistan to assist some international brands in setting up franchises,” he said.
Published in The Express Tribune, July 6th, 2013.
Retail is where the future of the economy is; unfortunately, only a few multinationals and a handful of local entrepreneurs are reaping the benefits from a huge gap in the sector, said speakers at the Second Retail Conference held here on Friday.
Experts said there is a dire need to promote an entrepreneurial culture at lower levels through the provision of proper training and financing to entrepreneurs whose limitations hold them back from expanding their businesses.
Regrettably, in Pakistan, a ‘job culture’ seems to be dominating the ‘entrepreneurial culture’, which is capping individual growth. A majority of the institutes in Pakistan are still focusing on teaching students how to be good employees, rather than to be good employers. Speakers said this culture needs to change, as the country might not be able to compete with the modern world without entrepreneurs.
“There are more than 3.8 million small and medium enterprises (SMEs) in Pakistan. Unfortunately, the majority of SMEs have not received proper education and training to expand to at least the national level,” SME Business Support Fund CEO Saquib Mohiyudin complained during his speech.
“For a majority of retailers, access to funds is the key hurdle; banks are lending only to the government, which is impeding economic growth,” he said. “It is officially said that SMEs number 3.8 million in Pakistan, but I believe there are more than five million SMEs in the country. The best of these are located between Gujranwala, Gujarat, Sialkot and Faisalabad, an area we call the ‘golden triangle’, and are contributing significantly to the country’s economy.”
“In Pakistan up to 54% of SMEs reject the current taxation system and are out of the tax net. Around a million SMEs contribute 28% to the economy, out of which the retail sector contributes only 1.75% in taxes,” said Irfan Iqbal Sheikh, director of Alfatah stores, a retail chain.
“Pakistan has huge potential in the retail sector, as the country still underperforms in this segment, Ali Shah, president of the Harrods Group of Companies, Canada, said on the occasion. “We are in Pakistan to assist some international brands in setting up franchises,” he said.
Published in The Express Tribune, July 6th, 2013.