Basically, a small business is owned by individual or partnership but there is no one definition in Pakistan that is used for small business. One of the largest and most important sectors of Pakistan’s economy is small business enterprises. According to a survey, there are approximately 3.2 million business enterprises in Pakistan. Small business entrepreneurs plays a vital role in the economy of any country such as Pakistan. But enterprises faced many problems in Pakistan because our human resource still not provides us the necessary items to accept all the challenges of the globalization. We are surviving in this country where lack of skilled labor, trained entrepreneurs, and unavailability personnel are becoming the issue of the small business. Common problems of both the see and corporations are: –
Access of Financial:
It is one of the major issues for enterprises. Lending money is still a problem to entrepreneurs in Pakistan because banks feel shy to give a loan and think that lending money for a small business is a very expensive task. Sometimes banks also demand financial statement before considering an application for a loan.
Most of the business owners face real time problem of marketing their products to prospects. They try traditional approaches for marketing. The world has turned to global village. Huge numbers of clients no buy online from eCommerce sites, facebook advertisements. It also doesn’t cost much. Standard business website may cost you not more than 22$. hostOsite.com is Webhosting Company in Pakistan, providing complete website solutions to their clients. They offer SSD Shared hosting with Free SSL certificate to increase user trust.
Load shedding issue:
Severe electricity load shedding is another major issue for the small business. Load shedding is the threat for the small business entrepreneurs. Productivity is everything in the world of business but load shedding makes it very difficult to plan ahead. It makes your work more complicated if you have to require good lighting and the chance of burglars are increased at the night time of load shedding.
Masses of Pakistan think that businessmen are looting the country but actually, it is not true and government make the rules, regulation, and policies for the businesses. Small businessmen are neglected by country’s economy who want to make the backbone of this country. In reality, we need to understand how the economy actually works.
Small firms are getting harassment by the local tax authorities. They pay a large amount on taxes. This is also a threaten for the entrepreneurs that are kept away them from the business. Even it makes the causes of revenue loss to the government.
Lack of information:
Most of the time, entrepreneurs are unaware of the market information that create problems for them. Their market status makes them unable to launch the new products.
Economic performance of small businesses in Pakistan is badly affected by the lack of management skills. It plays a vital role in the failure of Small Business Entrepreneurs like lack of technical knowledge about business, lacking in management skills, poor planning for business and lacking in market research. These all reasons make the cause of bad performance of the small business.
Financial investment issue:
It is a very difficult thing for the small business entrepreneurs to invest a large amount of money and start a business at a high level, and afford high resources and unavailability of capital.
Politics can effect on any social level such as individual, families, organization or business. Small Business Entrepreneurs is also included in it. The policies that are set by the government have to effect on everything in the society such as the legal framework and on the market condition. It can affect the consumer behavior and the amount of assistance offered to small business by the government.