Challenges & Opportunities for Venture Capital Industry in Pakistan

Abstract

Venture capital has played an important role in the development of many sectors of different economies. It is the key driver in innovation, new firm creation, rapid growth of businesses, in promoting entrepreneurship, enhancing competition and job creation. Currently, venture capital industry of Pakistan is in its infancy and facing issues such as risk adverse attitude of entrepreneurs, family owned business mindset, and limited support from the government and listing regulations for SMEs. However, economic development in last 5-6 years has been able to influence many sectors of Pakistan’s economy. This is an ideal time for the venture capital industry to take off, provided both government and industry play their role and make efforts in the right direction. The author has studied the local venture capital industry, its issues, challenges, opportunities and recommendations to realize the potential.