Startups in Pakistan: Path to Unicorn Companies,
It’s not long since the term “Unicorn” introduced successful business startups that have achieved the silver lining of over a $1 billion valuation. The mushroom growth of such companies worldwide makes it look easier. To achieve such a status in such a short time.
Information Technology commonly known as IT is such a sector in which a common man in a couple of years’ time can grow by leaps and bounds to own a multi-billion $s company that is called a Unicorn Company. One does not need to belong to a wealthy family, or for that reason not to be inherited by loads of wealth either. The person just needs one good Idea that can click, has to be steadfast and ready to work your fingers to the bone. Google, Apple, Microsoft, Facebook, all these companies were created with very little financial investment by young enthusiasts like you. You can also build a unicorn company simply with startups in pakistan
To be honest at this point Pakistan does not require financial assistance from the IMF but requires Unicorns, if you really want to save Pakistan then make Unicorns.
Young entrepreneurs in India have made around 113 such Unicorn companies till now and counting my question is can our Pakistani youth create only 1 Unicorn company?
The Unicorn companies that are mostly tech-based disrupt industries, develop new markets, and generate huge wealth for their founders and stakeholders. As Unicorns globally are becoming the talk of the town, many Pakistani youth are now aiming to create their own Unicorn companies. Let us discuss what it takes to build a Unicorn company especially in a market like Pakistan, and can Pakistani entrepreneurs achieve this grand goal?
What is a Unicorn Company?
Unicorn company is a rare, privately owned startup that has achieved over a $1 billion valuation, hence the term “Unicorn,” and is widely earmarked for rapid growth, modern business models, and disruptive technologies. The well-versed Examples of Unicorn companies include Uber, Airbnb, and SpaceX.
Disruptive Unicorn
Unicorn companies that not only achieve a high valuation but also disrupt traditional industries or create a whole new market of its kind are called Disruptive Unicorn. These companies often influence technology to showcase innovative yet economical solutions to age-old soaring problems, challenging established players forcing them to reshape the entire industry.
Chinese Unicorn Companies
Alibaba Group: Owned by Jack Ma, this is one of the largest e-commerce companies in the world, that through web portals offers consumer-to-consumer, business-to-consumer, and business-to-business sales services. In short it brings business to your doorstep.
Didi Chuxing: A company that helps its customers to share rides in China, also known as the “Uber of China,” offers transportation services through taxis, private cars, and carpooling.
ByteDance: The household name of this company is Tik Tok.
Xiaomi: An electronics company that develops and sells smartphones, mobile apps, laptops, home appliances, and other consumer electronics.
Meituan-Dianping: A website for local consumer products and retail services mainly entertainment, dining, delivery, travel, and other services.
Pinduoduo: An e-commerce platform that offers products at competitive prices, its social commerce models revolve around providing opportunities to team up and avail discounts.
These companies are enjoying the Unicorn status and also made a substantial influence on their respective industries while becoming household names in China and beyond.
Indian Unicorn Companies
India has boomed in Unicorn companies in the last couple of years, exceptionally in the technology and e-commerce sectors. Unicorns like Flipkart, Paytm, and Ola are now household names that showcase the possibility of the Indian startup biota to make it happen.
India has a noteworthy number of 110 Unicorn companies, in different sectors mainly in the E-commerce, fintech, health tech, and transportation sector. Due to the high growth in the Unicorn sector of India the number of Unicorn companies are growing day by day.
The most famed Indian Unicorn company is Flipkart established in 2007, it revolutionized the norms of Indian E-shopping. The company made international headlines when it was acquired by Walmart in 2018, the deal is classed as one of the largest e-commerce deals in Indian history. Flipkart’s success went absolutely viral and made it a hallmark of India’s flourishing startup ecology and has inspired a new generation of entrepreneurs in the country to hop on to the band wagon.
Pakistani Unicorn Company
Pakistan may not yet have a Unicorn company, as Careem was not a homegrown idea, but the potential is certainly here. The country’s large youth population, coupled with a growing tech ecosystem provided by the incumbent Provincial Government in Punjab, with a special focus to give access to the aspirants to large amounts of capital, with pledges to create 6 new IT cities alone can create fertile ground for the emergence of Unicorn companies. The young Chief Minister Maryam Nawaz has promised a serious of new schemes for the youth including 20,000 E-Bikes, Laptops, and iPhones up for grabs, all these pledges if realized can alone make a fertile ground to create a series of Pakistani Unicorn Companies
Can You Make Millions of $ with a Unicorn Company and How?
To establish a Unicorn company is no small feat. A unique idea, a steadfast team, a sustainable business model, and significant funding are all the prerequisites for it. However, on the other hand if successful, the returns can be colossal, with stakeholders bagging millions, if not billions, of $$.
How Much Investment Does a Unicorn Company Require?
This can vary widely depending on the industry, your business model, and the stage of growth. However, most Unicorn companies raise fundings in batches, summing up to hundreds of millions, if not billions, of $$s, to fuel their growth and expansion.
How Do Unicorn Companies Help the Economy?
Unicorn companies have a decisive role in steering economic growth and economic revolution. They initiate jobs creation, attract talent, and fuel entrepreneurship. Additionally, the success of Unicorn companies inspires other entrepreneurs and investors, that rotates the Business cycles to kick start economic development.
What Do You Need to Create the Best Unicorn Company?
The ingredients required to establish a Unicorn company are simple, a distinctive and scalable idea, a steadfast team, access to funds and a deep analysis of the market. You have to be a born risk taker, work your fingers to bone, and persevere in the face of challenges.
How Can the Government Help in Establishing a Unicorn Company in Pakistan?
The government has to own the idea wholeheartedly then may not leave any stone unturned to support the creation of Unicorn companies in Pakistan. Need to set up a supportive regulatory environment, tangible incentives for entrepreneurship and innovation, then need serious investments in the infrastructure and education to nurture the next generation of entrepreneurs in Pakistan.
Need to run an extensive awareness campaign especially through the social media to attract the youth of Pakistan to opt in for creating Unicorn companies, but firstly need to provide support, and foster a conducive environment for entrepreneurship to make all this happen.
Here are some Food for Thought strategies to kick start the process:
Education and Awareness: Glamorize the idea of entrepreneurship and the potential of Unicorn companies through tailor made educational programs, workshops, seminars and of course the media has to play a role by introducing programs like SHARK TANK. This will highlight success stories of young entrepreneurs to inspire others.
Access to Funding: A Public-Private partnership body should be formed for funding for startups through government grants, venture capital funds, and angel investors. Encourage established Business bodies to Create a network of investors willing to support young entrepreneurs and offer them Tax incentives on their investments.
Supportive Ecosystem: A whole new step by step program needs to be introduced at different levels and tailormade to build a supportive ecosystem for startups with incubators, accelerators, co-working spaces, and mentorship programs. The Government has to provide access to resources, expertise, and networks to the aspirant entrepreneurs and build bridges between them and various national and international NGOs like Akhuwat Foundation, Kashaf Foundation, US Aid, British and Australian Aid etc.
Policy Reforms: Amending laws to promote friendly policies that promote entrepreneurship, such as tax incentives, omitting Red-Tape in regulations, and protection of intellectual property rights.
Education Reform: Overhaul and upgrade the education system to promote entrepreneurship and vocational/practical skills. Inculcate entrepreneurship education into school and college curricula from the primary level.
Technology and Infrastructure: Introduce 5G networks, and digital payment systems, this will enable startups to operate efficiently and will help to curb the undocumented economy.
Collaboration and Networking: Promote inter university exhibitions and competitions to encourage collaboration among startups, universities, research institutions, and industries. Facilitate networking opportunities to share ideas, resources, and best practices.
Recognition and Rewards: Need to recognize and reward entrepreneurial achievements through awards, grants, and tangible incentives. Highlight the impact of Unicorn companies on the economy and society.
If such strategies are implemented in Pakistan, we can create a conducive environment that attracts and nurtures young talented home-grown entrepreneurs, this will not only encourage them to start creating Unicorn companies but will also help to start contributing to the country’s economic growth.
Creating a Unicorn company is a challenging task, but it is not impossible, especially for Pakistani youth with the right idea, team, and Government support. Pakistan could soon see its own Unicorn companies emerge, creating wealth and driving innovation in the country. Good Luck!!!
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- Exploring Business Ideas in Pakistan
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