Why Pakistani startups fail?
There are number of reasons Why Pakistani startups fail? Knowing that there are so many statrtups which were funded by many foreigners and acquired by many other companies.
After failing 2 of my own startups, I have realized following are the reasons why startups fail in Pakistan.
- Proper Teaching/No mentoring
- Low funds
- Trust issues
- Profit focused
- Choosing a business
- Regulatory authorities
- Business Giants
You know mentoring and training is very expensive in Pakistan. Public Speaker is paid lot more than any expert in IT or securities.
Our trainers focus on motivating but fail to do what they motivate about or train about.
Here is this trainer I know of. No experience, no knowledge of marketing, background of engineering but good at speaking earns more than the guy who spent such big amount on his marketing degrees.
In our universities we focus on grades, teaching modules but do not teach how to initiate and run the startup. Pakistani people are blessed with ideas but ideas remain in mind due to other pressures.
Funding is an issue as banking system is not friendly. You go to any bank, you will have 2 minutes task but they will ask you go there, go there, sign here at the end it will eventually waste your 1 hour.
So the banks whose employees are pressured not to maintain quality but to complete targets, how will customer can get easy access to funds for business?
As mentioned in my other articles you must say startup are easier then why need of funds? Sometimes you want to start property business for that you will have to purchase property before selling it no?
There is this great man who once said, if you do not invest in your idea then do not ask others for their money. Most of the startup owner here in Pakistan are afraid to put their money and weep around for funds.
Dear, how can you do business when you have 4 wheeler, smart phones (samsung and iphone) in hands, expensive watches and shoes, branded clothes. Go sell them for your business, once you tell your investor that you invested these all things, he will say yes, the guy has potential.
On the other hand, we as nation have issues with local businesses because some people have ruined markets by providing quality products.
How can you provide when you take any decision based on profits rather than qualitt and what customer wants?
Pakistani startups fail because they think profits 1st and then about customer. In other part of the world they say 1 happy customer is equals to happy customers.
Also they say, word of mouth marketing is top essential and free marketing.
Choosing a business:
Well, think before you name your business. Always try to be simple like APPLE.
Another issue of Pakistani startups is that we make product first then think whether customer will like it or not. We have issues doing survey before starting any business. We take it as waste of time.
Yes, our governments are equally responsible in such failures. They should make things simpler but here in Pakistan if we face any problem, we solve ourselves but afraid to indulge any government authority because we know it is hassle.
Thanks to PTI many things have become digital. but still you need lot of paper work in any department.
These are the cutest people in Pakistan. They just ruin your business by putting sale on their products or they ask you to close the business.