1. Entrepreneurship in Pakistan
Ms. Yasmin Hyder

2. Some facts Rich in natural and human resources
Reserves of limestone, marble, rock salt, coal etc.
6th largest population in the world

3. Source: Population Research Bureau

4. Ease of Doing Business
Pk ranks 85 out of 183 countries in the Ease of Doing Business Index
Low rank due to
Numerous procedures
Time spent
High cost of conducting business
E.g. Enforcing a contract can take up to 976 days
World Bank Data 2009

5. What is SME in Pk? SMEDA Definition Small Enterprise Medium Enterprise
No. of Employees
10-35
36-99
Productive Assets
2-20 Million PKR
20-40 Million PKR

6. SME in Pakistan 90% enterprises in Pakistan are SME.
Wide range of business activities.
Agriculture focus mainly in rural areas.
Manufacturing, retail & wholesale, services focus in urban areas.

7. SME Major Sectors

8. SME characteristics in Pk
Mostly sole proprietorships or partnerships
Family business run by relatives
Subjective and personal factors play a large role in decision making
Usually no distinction between private and business assets

9. Constraints faced by SMEs
Poor access to institutional finance
Poor access to technology
Shortage of skilled labour
Migration to Gulf countries
Job switching due to higher wages availability
Poor management
Lack of education
Lack of bookkeeping, stock management etc

10. Constraints faced by SMEs
Marketing
Low quality raw materials
Copyright issues
Harassment by tax authorities
Inflation

11. SMEDA
SMEDA was established in October 1998 to take on the challenge of developing Small & Medium Enterprises (SMEs) in Pakistan.
Conducts training seminars
Provides a database of consultants and advisors regarding starting and running an enterprise.
Smeda.org

12. Transforming A Vision Into Reality
The tapal Story

13. Tapal Tea is born Established in 1947 by Adamali Tapal
Started business due to market opportunity and potential growth rather than prior experience
A small shop next to Jodia Bazar
Success to low overhead costs and personal customer service

14. Market Segmentation Adamali Tapal segments market Tea stall consumers
Tea brewed at home— “Family Mixture”

15. 2nd Generation steps in
Faizullah Tapal takes control after Father loses interest in business
Business has grown and management control remains with few employees
Both Father and Son reluctant to manage business

16. Aftab Tapal Joins the Family Business
Trained in Sri Lanka
Looked after warehousing, blending, packaging, shop sales and customer service.
Passionate about the tea business after working in it.

17. Business Strategy Avoiding direct competition with foreign brands
Focus on ignored or overlooked niche
Introduction of colour coded packaging
Appointed distributors rather than vertically integrating as was industry norm
Larger premises built in Korangi, financed by sale of assets one at a time to avoid cash flow problems

18. Introduction of mechanization
Acquisition of building in Jodia Bazar to maintain contacts
Reorganization of job functions such as finance, marketing etc
Employee leaves to open a competing business
Introduction of Danedar, which has a milder taste but strong in flavour

19. Achievements
Pioneered in mechanized soft packaging for tea in Pakistan
1st to introduce Kenyan tea; exporting tea to 5 continents, metal free tea bags; tea plantation in Shinkiari, Northern Areas
Established “Hum Qadam”, an entrepreneurial resource centre for the disadvantaged.