Background Of Prime Definers Of Entrepreneurship Commerce Essay

Published:

The Human is prime definer of entrepreneurship, small and medium size enterprises always play a crucial role in economic and social development of any county. There is a huge gap between the entrepreneurship levels in developed and developing countries. Entrepreneurship played a vital role in the development of developed countries so same role is to be played in developing countries, but there are curtain barriers and hurdles which do not allow entrepreneurship to play its role in the growth of developing countries. The most common hurdles are lack of knowledge, lack of government legislations and regulation in favour of private business and lack of basic infrastructure.

Pakistan is one of the unfortunate developing countries where the entrepreneurs very short in number and capability. This is an era of information technology. The world has become a global village. Companies are going international and becoming multinationals. The It sector is hub of growth for businesses and economies. The developing countries are lacking in information technology this could be the main reason that they are not utlising this hub of economic growth. Developing countries are working on this very crucial sector of economy.

Introduction

Lady using a tablet
Lady using a tablet

Professional

Essay Writers

Lady Using Tablet

Get your grade
or your money back

using our Essay Writing Service!

Essay Writing Service

The well of creativity, innovation and change " it is that of all we are can become the saving grace of democratic politics and freeman, the hope of all poor and the obligation of the fortune, the redemption of a depressed and desperate world" ( Gilder, 1971, P.258 )

An entrepreneur is an individual who owns a firm, business, or venture, and is responsible for its development it also includes the starting a new business or reviving an existing business, in order to capitalize on new found opportunities. The Entrepreneurship plays a vital role in the economic growth of any country. The level of entrepreneurship in developing countries is low in Pakistan the activity of entrepreneurship is always been very low.

"Economics is a behavioural science that studies human behaviour with respect to economic activities. Economists for decades have focused on the consumption (and production) aspects of the Economy, thereby putting enormous effort describing human behaviour around these two economic activities. In addition to the above however, there is another very important human element that plays a crucial part in economics i.e. Entrepreneur." ( )

There are different forms of entrepreneurship like rural-urban, charity, civic, community entrepreneurship, public entrepreneurship and there some specific forms of entrepreneurship as well like ( i-e high tech, opportunistic vs. craftsman and staying small vs. rapid growth )

The level and the numbers of hurdles a entrepreneur face are higher as compare to the already established businesses because the entrepreneur introduces new products, new ideas, new invention, new processes and new models of business like Bill Gates.

The entrepreneurship is directly related to type of economy and government policies. In a free economy like Europe and America the level of entrepreneurship is very high as every thing is privatized. The sense of ownership Perivale's in free economies which accelerate the level of entrepreneurship. In 1970's Pakistan there was a major change in Pakistan government policy, Government took over all private businesses which destroyed the potential of entrepreneurship.

In my research I highlight the significance of the role of entrepreneurs in economic growth of developing countries specially Pakistan. Entrepreneurship involves being resourceful and finding ways to obtain the resources required to achieve the set objectives. Capital is one such resource. Entrepreneurs need to think out-of-the-box to improve their chances of obtaining what they need to succeed. According to management experts, vast majority of entrepreneurs desire to be in control of their own life and they can't find this beyond entrepreneurship. Studies have demonstrated that people derive great satisfaction from their entrepreneurial work. The emphasis in Pakistan has been placed on large scale manufacturing as opposed to SMEs. ( (matthieu chemn, 2008).

Small and Medium Enterprise (SME) sector.

"The Economic Census of Pakistan-2005 lists

3.2 million Business enterprises nation-wide and SMEs constitute over 99 percent of all

.Their share in industrial employment according to an estimate is 78 percent and in value

Addition approximately 35 percent. Nearly 53 percent of all SME activity is in retail trade,

wholesale, restaurants and the hotel business whereas the contribution of industrial

Lady using a tablet
Lady using a tablet

Comprehensive

Writing Services

Lady Using Tablet

Plagiarism-free
Always on Time

Marked to Standard

Order Now

establishments and those involved in service provision is 20 percent and 22 percent

respectively". (Unleashing the potential of the SME sector with a focus on Productivity Improvements, shahab khawaja, ).

This is the time of information technology. The world has become a global village. The information technology has brought the revolution in every thing. The computer came to Pakistan in 1960's when second generation computer were installed in Karachi . the computer has influenced the human beings more then any other invention. IT is a strong tool for the development. It offers the services like computational intelligence, neural networks, genetics algorithms, data communication and networks and data base etc. Overall the computers now can solve the problems of businesses which were impossible to solve using the traditional techniques.

The entrepreneurship activities in IT industry in Pakistan have been limited just like any other developing country. The reason of low level of entrepreneurship all over the world is almost same. The government policies, Scio-economics infrastructure, unstable political condition, lack of government support to private business, unemployment, low level of education specially technical education. The number of total IT companies registered with Pakistan Software Export Board till 2010 are 1161 which are less then as compare to other developed or even some developing countries.

Objectives

My aim is to highlight the importance of the entrepreneurship in economic growth by proving the positive relationship between the innovative entrepreneurship and the economic growth of developing countries specially Pakistan. In this research I shall try to answer following questions

How important is entrepreneurship for the economics growth of developing countries

What are the factors which are hurdle in developing the entrepreneurship in developing countries?

Which measures must be taken to increase the entrepreneurship in any economy?

How Governments policies affect the entrepreneurship in the economy?

Why low entrepreneurship level in Pakistan.

Entrepreneurship in IT industry of Pakistan. What is the role of IT industry in Pakistan?

What are the opportunities to increase the entrepreneurship level in IT industry in Pakistan?

Literature review

The consequences of entrepreneurship in terms of economics growth and development have generated a huge literature but this literature is generally divided into two parts of observation, that of establishment or firm or that of region. Noticeably the link between the impact of entrepreneurship on performance and the overall economics growth of the country is missing. The linking of entrepreneurship to growth at the national level, there is still much work to do despite recent efforts of the Global Entrepreneurship Monitor (GEM) research program (Reynolds et al., 2001). The most crucial point is the change in determinants underlying the industry. this change includes technological change, globalization, deregulation, shifts in the labour supply, variety in demand, which results in uncertainty which again is a reason to shift the industry structure from full centralization to centralization and from centralization to decentralization. In 1980s and 1990s a new phenomenon the start of small business and the increase in entrepreneurship was observed. It was approved that entrepreneurship is individual function and entrepreneur has three functions innovator, perceiving profitability opportunity and the risk assessment. Once this individual combines this role with firm and these firms are combined with overall economies gives a direct relationship between entrepreneurship and the economics growth of any country. (The Impact of Entrepreneurship on Economic Growth,M.A. Carreea,b,c, and A.R. Thurika ).

If we believe that entrepreneuship promotes the economics activity and the economics growth and economic activity then the first question arises into our minds is if this is so important for economics development ands GDP then what role can government play to enhance and promote entrepreneurship in the country and economy. Many researchers in recent times have proved that the role of entrepreneurship in economics development is increasing. In the past the market policy was in favour of market concentration to have the benefits of scales of economies and scopes very little intension was given to the entrepreneurial activities. In 1980's many of the firms and also overall countries faced inability to compete for the comparative advantages, a new shape of knowledge base economy was introduces which based on knowledge, innovation and the entrepreneurship in the start it was a small sector but was increasing rapidly.

Lady using a tablet
Lady using a tablet

This Essay is

a Student's Work

Lady Using Tablet

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Examples of our work

(Wagner & Sternberg,2004) say that there is no one rule which can be implemented about the entrepreneurship all over the world or all over the one country to enhance the entrepreneurship in rural area different techniques are needed as compare to high technology area and metropolitan cities where the technologies and knowledge level is very high to compete each other.

Marina Minniti highlights some factors which could be helpful to promote e entrepreneurship in any economy if the governments of concern economies emphasis on these factor they can easily promote the entrepreneurship in the economy. First of all the financial system in any economy is very crucial if a country have good financial system which means the new and young entrepreneurs would have easy access to the finances to convert his innovation and knowledge into the practice which generates a lot of economics activities in the economies. The second important factor is tax system in any economy if the taxation in any economy is in favour of small business and if there is a concession for the newer business this thing encourages the entrepreneurs to step into the market and launch new business which play major role in economics growth and GDP of any country.

Jones (2007) argues that the economies should be open for all international business and trading some countries use different barriers to control international trades and businesses. Some countries have introduced quotas and tariffs on different trading things for different countries which discourages the entrepreneurs in searching the new business opportunities. The globalisation have shown the new ways to promotes this knowledge base economy and the entrepreneurship in forms of chamber of commerce programmes, companies special training programmes and the technological parks all over the world these steps are specially useful for the entrepreneur in the developing countries. ( Role of Government Policy on Entrepreneurial Activity: Productive, Unproductive or Destructive? , Marina Minniti )

Entrepreneurship is a learning path that enables people to turn ideas into defined project to be implemented. In the economic literature the impacts of entrepreneurship have been noted especially at the level of the region ( Audretsch and Fritsch, 2002), that of the industry (e.g., Carree and Thurik, 1999) and that of the firm (e.g., Caves, 1998), even tough there are some studies that investigate the relationship even at the level of the economic growth in general (Carree and Thurik, 2003, 2006). However, one thing is still need to be determine that whether there are some key variables which belongs to the industrial and innovation structure of a country that can effect the level of entrepreneurship in the relevant country. As a matter of fact the concept of National System of Innovation (NSI) (e.g. Lundvall 1992; Nelson 1993) is very important and relevant in this context. Recently, as discussed by Radosevic (2007), the two concepts of entrepreneurship and NSI may well be considered as overlapping each other, as the NSI is part of the many functions that should be performed by the Entrepreneurship in order to enhance the innovation capabilities of a country or economy. In particular, each country may be having different source of different opportunities to be exploited through entrepreneurial activities. (ENTREPRENEURSHIP AND ECONOMIC GROWTH: AN INNOVATION SYSTEM PERSPECTIVE, Chiara Franco ). Ciara franco has established that the role of entrepreneurship in economics growth is not clear yet, this is due to the fact the underlying dimensions of entrepreneurship have not been singled out.

Nathaniel H. Leff says that of course the entrepreneurship and the industrial growth in developing countries are related accordingly. What he points out that in less developed or developing countries there are economic groups like industrial group, by which he means the group which have capital and managers or entrepreneur within the family of that group. This group have the connection with governments and access to the resources. This group have never been given importance in literature but plays a vital role in economics growth. This group some times work on the forward and backward integration and owns market products on one side and investment bank on other side to finance there business. This pattern of economics group exists in all developing countries with different names. (Industrial Organization and Entrepreneurship in the Developing Countries: The Economic Group, Nathaniel H. Leff ).

M. A Caree and A tharik say that the entrepreneurship is not the same thing as the small business obviously the small businesses and small enterprises are the vehicles ti implement their entrepreneurial ideas they insist that entrepreneurship can not be restricted to only the small businesses and enterprises. Entrepreneurs also working in large firms and industries as entrepreneurs and the corporate entrepreneurs etc they undertake entrepreneurial activities as well as there are many terms like businessmen and self employed also used as entrepreneur. The relationship between unemployment and entrepreneurship has been shrouded with ambiguity on one side the refugee effect exist which is lower level entrepreneurship the higher the unemployment on other side the higher the entrepreneurship is the lower the unemployment should be. This is called Schumpeter effect.

Joseph Schumpeter says in Theory of economic development that the entrepreneurship is the prime cause of economics development. In his theory he emphasis how the innovator cope up with the every day challenges to the business with the help of new technologies, this new technology obsolete the old technology this creative destruction process helps the economic development.

Hebert and Link, 1989 say entrepreneur has worn many faces in the history and has played different roles they say that there are different types of entrepreneurs first the innovator, second is the perceiving the profit opportunities and third is to assume the risk with any type of uncertainty. There are three types of economies in the first is market economy, second semi planned economy and third is planned economy. In all three types of economies there are different opportunities for entrepreneurship to flourish. In first market economy there is free entry and exist which encourages new businessman and entrepreneur to step into the market and make there place with their innovation and hardworking. The second type of economy is semi planned economy in this type of economy there is no free entry and exit to the market but firms can control there inputs to meet their profit targets the entry of new businesses is hampered by new rules and regulation in favour of old operating businesses. The third type of market is fully controlled this is the worse condition for entrepreneurship to flourish.

Entrepreneurship is viewed by economists to be a combination of innovation and risk assessment and risk taking. When such activity happens, high growth rates are achieved as well as opportunities offered to all segments of society, including the poor. The latter benefit form growth and employment as well as through opportunities for entrepreneurship. In Pakistan innovation and risk taking is severely inhibited by the controlled role of government in the marketplace. From the early days of planning when protection and subsidy policies determined winners in the market place, entrepreneurship has not been allowed to play its role independently and was diverted to seeking government favours. Government economic policy also seeks to promote growth through a basically 'mercantilist' approach where domestic commerce is heavily regulated. This sector either employs most of the poor or offers them entrepreneurial opportunities. Hence deregulating this sector could be a priority in and anti-poor strategy. this also argued that land distribution, city zoning and management have also played its role to further reinforce the prevalent rent seeking path to success. The result is that cities are by design not allowed to become clusters of commerce that will be entrepreneur friendly. These clusters of dense urban commerce are main sources of employment and opportunity for the poor. To develop an entrepreneurship culture in the country, the system of incentives and favouritism (laws and policies) that promote rent seeking will have to be stopped. This rent seeking and the Government policies which are biased toward the big businesses and landlords are the main hurdle in the promoting the entrepreneurship in Pakistan and all developing countries. This analysis helps us to find the kinds of reforms which are needed to promote entrepreneurship. The poverty in developing countries like Pakistan exists from its birth. The biggest hurdle in increasing the level of entrepreneurship in any economy is perhaps poverty and low economic activity in the country. Economic growth requires institutional prerequisites These prerequisites are those that human civilisation has evolved over the long time, rule of law, strong democratic institutions, fair legal system including an efficient and independent judiciary, The level of governess of markets and trade policies , and a free press and open media. Hoenig (2005) The entrepreneurs should have an easy access to the finances through a active financial system in the country which helps the entrepreneur to bring their ideas into practice. The educational system in any country plays a vital role in enhancing the entrepreneurial activities by giving the people the right education and skill which is need and educational institution should stress upon the need of research and technology. (Entrepreneurship in developing countries, Nadeem ul haque, 2007).

Vacuum of entrepreneurship is not the only problem of Pakistan but it's a common problem of all developing countries for example Bangladesh became independent in 1971. the level of entrepreneurship at that time was horrible in Bangladesh, only a small percentage of local people were involved in private businesses and small medium enterprises. There was a time in history when the this region of the world was doing very well in entrepreneurship the main industries were included textile, paper industry, shipping and gold industry, making of combs and button from the bones. After the seventeenth century the decline of entrepreneurship started. 98% owners of the small business and the small manufacturing industries were at that time west Pakistani once they left Bangladesh they took all their capital and business with them and private sector was its toes in Bangladesh. Until 1990 in Bangladesh the economy was almost controlled or semi- controlled by the Government which one of the reasons that the entrepreneurship was low. After 1990 they started to make market free. And SMEs again started to flourish in the country. When this country came into being it was very poor country with no capital infrastructure to run or enhance the economics activities. Nationalised banks took special initiative to provide capital to the small business and new starter which helped the economy to boost again.

"Government of Bangladesh has undertaken a number of initiatives in terms of monetary and fiscal related policies and approaches, and tries to implement plans to promote small and medium enterprises, so that economics advancement of the country is made". ( Muhammad Mahboob Ali )

To increase the economic growth the strong infrastructure is required but it is not the only thing need new ideas and knowledge is most important according to ([Romer (1994) and Grossman and Helpman (1994)]. It is innovation and ideas that drive growth and not just infrastructure development and investment promotion that most development policy sought to promote in its early period. Economics development is a long time process which starts with thrust to development by any country and this is a continuous process which needs new laws, policies, capitals, innovation and future forecast. The economics think tanks of any country judge the economics needs of any country well before time and give the prerequisites to achieve all those needs. As said by [Barreto (1989), p. 28]. Economic development as a continuum of series of new processes, new markets, new sources, and new organisations all of which are a product of entrepreneurial activity. The entrepreneurial ideas are usually implemented in the small firm and the enterprise if this is the case then the first question which comes into your mind is this that these organisation only spends a small amount on research and development how come they can have these new ideas. The knowledge's and skill institution are the perhaps answer of the question which produces all these ideas and the small enterprises bring them in practice or commercialise this.

The birth of Pakistan which was result of the partition of India inherited the long time enemies, a huge bulk of migration, no government machinery and infrastructure. In the start the Pakistan Government was owned by the landlords, feudal lords and traditional bureaucrats. So the Government control policy on every thing or only Government knows policy on every thing was implemented. Pakistan government had to start development in the country providing the services to the people of Pakistan for all this they rely on the community donors and international funding. The central planning which includes the bureaucrats and the politician had very easy access to state resources which gave them incentives so they were more interested in Government or central control policy rather then private or decentre policy which is always good for entrepreneurship in the country. The planned investment was started businessmen were given the monopoly licenses speacialy the bureaucrats and landlords sitting in the government gave these licenses to their favourite people to earn commission or they were directly or indirectly partner in these businesses. All this process made it hard for small and medium enterprises to come and establish their business and play their role in the development the county. This was the main set back for the entrepreneurs in Pakistan. (Entrepreneurship in Pakistan, Nadeem ul haque ).

For most of the time since Pakistan came into being the 'enterprise' for the government was known a large industry. Various Government polices, such as tariff protection, import licensing schemes and other controls on imports, rather they promote the productivity and the competition among different enterprises, their policies helped the elite and monopolists not entrepreneurs. The track record of our government policies starting from 1947 never been in favour of entrepreneurs they were always biased in favour of elite and the monopolists. Government never promoted the passion and thrust to search for new opportunities most of the businessmen were stick to their old family businesses. The few entrepreneurs that we met had stumbled upon their business, had some way or other information advantages. Either they were directly attached with the business or indirectly like trading or corruption is the most irritating obstacle in enhancing the economics growth through entrepreneurship as it was reported that's almost every department of government which is directly or indirectly dealing with these private firms has set its share in annual sales of the enterprise which is other then annual tax and goes to 0.5 percent to 5 percent Businesses dedicate teams of their employees to deal with all this stuff which increases their business expenses they say if the tax is collected only by the central board of revenue ( CBR ) the total expenditure on it could be reduced. In Pakistan or any developing countries the businesses or usually operated by the owner rather then the professional management the reason behind this is that the growth of their business traditional depend on the nepotism and favouritism instead of professional management strategies and ideas. The business owners always under threat to handover their business to any professional manager or director because of the pure rule of law. They are afraid that managers may misuse their business information and the judicial system may not protect them and their business.

Islamabad chamber of commerce held a youth conference on entrepreneurship and national youth policy of Pakistan. They have focused on three main factors skill development, micro financing and internships and placement (Youth Conference - June 3, 2008 - Islamabad, Pakistan). The Ministry of Youth Affairs must regularly conduct needs assessment surveys on what type of

Practical training youth need to enter the private sector.

The Federal Bureau of Statistics needs to reassess the types of statistics it collects so that the figures can be used to develop programs that raise youth employment; the Government and

Private sector must develop an action plan to use these statistics for creating more jobs and new

Businesses. Significant research and development is needed to create a new curriculum for vocational training centres. Educational programs should shift emphasis from theory to practical application of knowledge. Skills building programs/training institutes should be developed and emphasized for certain sectors, including:

o Health management and first aid

o Hotel management

o Fashion design (institutes are needed)

o Jewellery design

o Furniture design and construction

o Handicrafts

O Forest products

O Cosmetology

(Entrepreneurship Development and the National Youth Policy of Pakistan Youth Conference - June 3, 2008 - Islamabad, Pakistan).

The State Bank of Pakistan should offer low interest rates for young entrepreneurs with a

Sustainable business plans. Business development centres and career centres should be established in all universities; students need guidance in finding appropriate internships and jobs. In this conference they have acknowledge that Pakistan is lacking in entrepreneurship and there should be some measures which have suggested coping up this problem.

The entrepreneurial process drives economic activities in the formal economy; however, little is known theoretically about how the entrepreneurial process works in the informal economy. To address this theoretical gap, we employ a multilevel perspective integrating entrepreneurship theory (micro level) with institutional (macro level) and collective identity (mesolevel) theories to examine the role institutions and collective identity play in the recognition and exploitation of opportunities in the informal economy. Additionally, we explore factors that influence the transition to the formal economy. (You say illegal, I say legitimate, Entrepreneurship informal economy. Jstin W. Webb, Laszlo Tihany, R. Duane Ireland and

David G. Sirmon,Texas A&M University ). In the last few years the entrepreneurial class in Pakistan has been on the rise - for the very first time I'd argue. This trend has been recognized by the media both in Pakistan and abroad as well as by quite a few bloggers. The interesting thing is that the trend of rising entrepreneurship continues inspite of the growing political challenges and unstable business environment. Wall Street Journal recently wrote about it as well. Here we take a look at some of the successes, what is driving them and the existing support structure for these innovative group. There was a time not too long ago when the only three successful career options used to be engineering, medical or civil service. The lure of 'Sarkari Nokri' (Government Jobs) and climbing the grade ladders was overwhelming. There were few multinational companies (MNCs) around. Those who wanted to do something different usually went abroad to try out their luck. Then in the 90s we witnessed soaring IT demand and the shift towards offshore outsourcing for services. Computer science became the new popular field of choice. The telecommunication boom of the recent years has provided many exciting opportunities. ( Emerging Entrepreneurship in Pakistan, babar bhatti ).

"In the industrial development of a country the importance of the SME sector cannot be overemphasized. SMEs constitute nearly 90% of all the enterprises in Pakistan; employ 80% of the non-agricultural labor force; and their share in the annual GDP is 40%, approximately. However, unlike large enterprises in the formal sector, a small and medium enterprise is constrained by financial and other resources. This inherent characteristic of an SME makes it imperative that there should be a mechanism through which it may get support in different functions of business including technical up gradation, marketing, financial and human resource training & development.

SMEDA is the flagship organization of Pakistan which is providing the necessary services to help SMEs overcome the weaknesses that are endogenous to their very nature. It is an autonomous body working under the umbrella of the Ministry of Industries & Production and contributes towards the growth and development of SMEs in Pakistan through:

(i) the creation of a conducive and enabling regulatory environment; 

(ii) development of industrial clusters; 

(iii) and the provision of Business Development Services to SMEs in all areas of business management.

Adhering to a clear mandate and a logical path to achieve quantitatively verifiable targets, SMEDA carries out comprehensive analyses of international trends, national policies and other macroeconomic factors affecting SMEs in Pakistan for a gradual progress towards the creation of a favourable business environment for its key clients - the SMEs of Pakistan. At the same time, we also interact with the SMEs working in industrial sectors such as Agriculture, Fisheries, Textiles, Handloom Weaving, Transport, Leather, Marble & Granite, Carpets and Light Engineering. This interaction takes place at the individual as well as collective level to provide proactive and responsive financial, technical, management and marketing services to SMEs.

At the collective level SMEDA addresses the problems and needs of SMEs in the form of an industrial cluster - a concentration of largely homogenous enterprises within a certain geographical area. SMEDA interacts with the stakeholders operating in such clusters on a regular basis and collects first hand information about their problems and needs. During this interaction, the issues are prioritized and the important problems are selected for detailed working through which the projects/programs are identified. 

SME support through cluster development program is provided on two fronts:

1. Regulations and policy level support

2. Institutional & networking support

In the policy level support, problems related to any Government department or Government policy/regulation are studied and, if found valid, are advocated with the concerned authorities. At the institutional level, SMEDA provides support to SMEs by creating networking amongst the concerned stakeholders or by directly starting development projects in the clusters. Such projects may include establishing a training institute, building a common facility centre, building a model plant with state-of-the-art technology for SMEs to emulate through reverse engineering. These projects also include upgrading technology in a particular industrial sector and starting a program-lending scheme for this purpose in collaboration with the financial institutions.

Up to now, SMEDA has been involved in cluster development projects in the areas of Boat Modification in Marine Fishery Sector, Credit for Auto Vendors, Carpet Weaving, Marble & Granite, Dates & Apples Processing, Wooden Furniture, Leather Garments, Ceramic Kilns, Cotton Ginning, and Glass Bangles Cluster

"We may find the theoretical foundation of Information Technology/Computers in

300B.C but the practical implementation of the modern computing era started when

Alan Turing named the machine as a computer in 1940 which rapidly grew and the

field went into the research of building intelligent machines; resultantly in 1945 two

years before the independence of Pakistan the first Neural Network Machine was

created and was named as perceptron Mark I.

The computers came to Pakistan in mid 60's when second-generation computer was

installed at Karachi. Presently, there are over 1800 mainframe and minicomputers,

about half of which are in the government sector. The growth in the number of

computers during the last ten years was over 35%. This has been possible due the

governments liberal import policy and reduction/removal of duties.

It is estimated that there are roughly 450,000 new computers every year in Pakistan.

While this seems a pitifully the small numbers, it represents a three-fold increase

compared to 1996-1997. Analyst predicts that this number will increase 4-5 times in

the next three years.

"No invention has ever influenced the human beings as computer has. In less than

seven decades of its existence it has managed, materializing the concept of a global

village. Technologies like Computational Intelligence, Neural Networks, Genetic

Algorithms, Data Communication & Networks, Telecommunication, Databases, and

Evolutionary Computing etc; collectively offer the business community a broad set of

tools capable of addressing problems that are much harder or virtually impossible to

solve using the more traditional techniques from statistics to operations research.

Country running and putting it on the track of the development is very complex task

and might requires the decisions making on the basis of the country's past experience

and present situation which is obviously available in the form data.

Today's best technology to manage and process data is the Information Technology.

Information Technology implementation is one of the ways to fulfill and execute the

development factors on the right way, which will help the nation to grow in peace and

prosperity, which will create a momentum that will result the development of

Pakistan"".

The new policies of Government are to promote information technology in Pakistan. Currently, Pakistan exports about $35 million worth of software a year to

the entire world, as compared to $8 billion from India, $5 billion from Ireland and

$1.5 billion from Israel. The total size of the IT services market in the world accounts

for $315 billion, and is projected to reach more than $465 billion by the year 2004.

Information technology is used for storing, protecting, processing, securing, transmitting, receiving and retrieving information. In business establishments, information technology is used for solving mathematical and logical problems. Information technology helps in project management system. Firstly, planning is done, then the data is collected, sorted and processed and finally, results are generated. It helps managers and workers to inquire about a particular problem, conceive its complexity and generate new products and services, thereby improving their productivity and output.

Small scale businesses need to buy software packages that would cater to their specific management, operational, and functional needs. For this purpose, they need to approach firms and IT manufacturers who deal in such software applications. Other IT services include Internet marketing and email marketing, web hosting and promotions, and maintaining client networks. Larger businesses on the other hand have their own operational and functional employees who develop software applications and work on several IT needs of the businesses. They usually purchase ERP softwares to coordinate different processes and functions into a single application, which is actually more convenient.

Manufacturing businesses may make use of servers and databases to store their vast data regarding inventory, B2B, B2C, FMCG (in the retail business sector), etc. Automobile manufacturers use computers to guide manufacturing and designing tools to function in a precise manner, ruling out the possibilities of any human error. Businesses all around the globe have to take the aid of information technology in some way or the other to keep themselves in sync with the market and the world. There are several departments in business organizations such as HR and recruitment, finance and payroll, administration, and security. All these departments utilize IT to carry out their respective operations in a productive manner and efficient manner.

"The information technology role in business sector certainly is of a great importance, which enables businesses to effectively and successfully plan, manage, execute strategies which lead to profit. Moreover, the impact of information technology on business is on the rise, as several advancements are focused on to be implemented in various business processes" by Stephen Rampu, 2009.

The primary importance of information technology in education is that various learning resources can be accessed instantly, by students as well as teachers, at their convenience. Learners can also adopt multimedia approach and collaborative learning. The information is authentic and the latest updated information is available. Multiple communication approaches like chats, forums, e-mails, etc. can be adopted by them. Students can access the on-line libraries and distance learning is also possible. Information technology has proved to be a significant employer. Many people with knowledge of computers have got jobs in the field of information technology and have successfully made it into a career. It has helped in finding cures for many diseases thereby serving mankind in more ways than one. Different kind of software's are provided for hearing and visually impaired people which aids them in their passion for learning new things and gathering information.

As industry and commerce have increased their use of modern technology, including telecommunications and computing, the demand for adaptable problem solvers with knowledge both of organisations and of information technology has grown. Business information technologists are those hybrid managers who can combine their understanding of the business function with a knowledge of the concepts and techniques associated with applications of Information Technology (IT). These courses are ideal for those students attracted to a career where they can apply an up-to-date awareness of IT within the modern business environment.

"The courses aim to produce graduates with a sound background in the concepts, applications and techniques associated with IT, along with specialised knowledge of a chosen business function, Multimedia, Management, Marketing, Human Resource Management or European languages. A holistic approach considering integration within the environment is adopted throughout the degree and students will learn to work effectively as part of a team and to communicate their ideas in various ways. Graduates of these courses will be well qualified to contribute to the identification, introduction and management of IT. Flexibility is a central feature and subject options allow various routes to a Business Information Technology (BIT) degree. An important feature of the teaching is the use of integrative practical studies examining the applications of business IT

The first definition is of "information technology". Information technology is the technology used to store, manipulate, distribute or create information. The type of information or data is not important to this definition. The technology is any mechanism capable of processing this data.

Kathleen Guinee wrote, "By information technology, I mean the tools we use to perform calculations, to store and manipulate text, and to communicate. Some of these twentieth century tools include: the adding machine, slide rule, and calculator for performing calculations, the typewriter and word processor for processing text, and the telephone, radio, and television for communicating."(www.cs.princeton.edu/~kguinee/thesis.html)

The second definition is of "the way we work". The elements of this phrase can be split up into two main considerations, e.g. what we mean by the way and how we define work. The "way" will be defined for the purposes of this report as the processes that are used by individuals or organisations. "Work" shall be defined as when we apply the processes to accomplish some arbitrary task.

The third definition is of "general society". Society can be defined as "a community, nation, or broad grouping of people having common traditions, institutions, and collective activities and interests."(www.m-w.com/cgi-bin/netdict?society) The report will examine how the technological developments which have occurred in information technology have influenced a "broad grouping of people" in their "common traditions, institutions and/or collective activities". This broad grouping of people will primarily be those in the industrialised world of where "information technology" is commonly available.

The fourth and final working definition in this introduction is "technological developments". For the purpose of this report this phrase has been defined with a reference to the previous definition of "information technology". A development in information technology is any improvement to the mechanism used to "store, manipulate, distribute or create information". This report aims to provide a brief summary of these developments. This will be achieved by highlighting only those developments that have influenced "general society".

"I.T Pakistan holds full capabilities to provide Internet and Intranet solutions for Enterprise Networking. We have complete solutions for Machines running on MS Windows environment. IT Pakistan services Provides base on internet services, web development, domain registration (We provide assistance to have individual domains for corporate / individual Internet servers under Top-level Pakistan PK and with out PK Domains), hosting, networking solution. We have complete facilities to host static and Database websites".

The mission of the Information Technology Pakistan team is to ensure that our customers are successful in building, deploying, and migrating to Information Technology needs. We support that mission with a diverse team of business and technical experts ready to help you define your business objectives, design a dynamic Business to Consumer / Business to Business solution and implement it timely and cost-effectively.

Contact us and let us visit you to show the different ways that your company can benefit from Information Technology. Our consultants conduct a detailed evaluation of your current business processes and the systems that support them. We help you leverage what you have to move towards the next generation", Information technology in Pakistan, 2009.

"Needless to mention that we are in groaning need of foreign exchange to cater to our many needs. At the moment our foreign exchange reserves have not yet crossed the limit of even $2 billion and that too, is due to a number of debts and loans extended to us by a number of loan giving agencies, which in their turn would also drain our national resources to a great extent.

The importance of information technology in the present world can not be underestimated as it has dominated almost all the fields of business and industry including the service sector and one having no touch with this technology would not be able to make any progress in the century to come.

Instead of discussing the role of this technology in the economic development of Pakistan, it would be more appropriate to say that there would be no desired economic development of any country without fully adopting this technology. If Pakistan wants to come in line with the progressive nations of the world it would have no alternate except to strive more and more for the development of Information Technology which includes (1) Computer Technology (2) Communication Technology and (.3) Robitics.", Hanif S. Kalia, 1999.

"Through the development of this technology we can well be in a position to earn a lot of foreign exchange which would not only suffice our needs but also add much to our foreign exchange reserves and thereby we would be able to get rid of foreign debts which are to the tune of $30 billion with an annual addition of $1.5 billion as debt service charges and US$2 billion as a result of Balance of Payment deficit.

The scope of earning of foreign exchange can be guessed from the fact thatthe potential global software market at present is estimated around 1000 billion or one trillion US Dollars which is increasing by 25% per annum. India, the only one country of the world exports softwares more than $2 billion peryear and it has a plant to increase this export to $10 billion by the end of 2003 A.D. India would not stop here but would cross the figure of $50 billion by 2010. Now a days India has the honour to be one of the leading exporters of the softwares".

".

Methodology

Questionnaire

what were the motivation to start your own Business

How did you come to know this Idea of this particular business?

How you see contribution of your business toward the economics growth of your country?

What was the support of Government, and private financial institution in establishing your business

What were the hurdles you faced in establishing this business?

What role can Information Technology play in your business?

What do you suggest as a private business man to enhance small and medium enterprises (entrepreneurship) in Pakistan?

I have plan to analyse role of entrepreneurship in developing countries economics growth specially Pakistan through the published data by the Government. What is role and proportion of Small and Medium Enterprises in the economic development of Pakistan. The main sources of this information are

Investment Board of Pakistan (Government of Pakistan)

Security and exchange commission of Pakistan ( companies house )

Small and medium enterprise development Authority

Economic survey of Pakistan etc

I have chosen randomly some small and medium enterprises to ask the question which are my objectives the I shall compare these answer with the information given by the government institutions.