Entrepreneurial startups - the fuel needed by Pakistan to take-off.

• Author: Nisar, Ahsan

Byline: Ahsan Nisar

Currently, Pakistan is one of Asia's fastest growing internet markets, with over one million people going online via mobile phones every month. The e-commerce market has similarly witnessed phenomenal growth recently, driven by the country's large population, rising middle class, and strong digital adoption rates. It is growing at a compound annual growth rate (CAGR) of over 100%, and as per Google's analysis, it will surpass the $1-billion revenue mark by 2020.

Access to capital has remained a big challenge for entrepreneurs. High impact entrepreneurs are the building block of a healthy economy as they can change the world by creating "billion dollar companies" from scratch. Few big success stories can have a big impact on a country's entrepreneurial ecosystem. Successful start-ups require team spirit and getting the right people and creating the right environment is the key to successful scale ups. In addition to this, forging long term partnerships with investors, who also think of themselves as mentors, is also pivotal for young entrepreneurs aiming to scale up their ventures.

Many start-ups believe in playing safe and are reluctant to take any risk, when in fact investors are actually looking to invest in businesses that are willing to start something new. Foreign investment is also necessary for Pakistan just like many other countries, for example Alibaba was funded by Yahoo. If local investors are not investing, foreign investment can work as a catalyst. However, the sustainable way is only the local investment, which will take time, but we have examples of countries like Hong Kong, one of the richest countries, where entrepreneurs found difficulties in attracting investments.

There is a lot of room for home grown start-ups; after all problems of Pakistan have to be solved by Pakistanis, not by someone from Microsoft or Apple. For instance, there are many challenges for low cost housing solutions but a Karachi based start-up, ModulusTech has come up with a one-room, flat-packed housing unit that can be assembled in just three hours! The standard 256 square feet model costs around Rs300, 000. Customized or bigger version will require more cost and time. The company is primarily targeting the affordable housing market: the internally displaced persons, refugees, and low-end housing projects for the poorest of the poor.

Pakistan is currently passing through a demographic transition which has resulted in a "youth...