The document provides an overview of the social entrepreneurship landscape in Pakistan, including statistics on the country's demographics, economy, and SMEs. It lists major social enterprises, impact investors, microfinance institutions, and incubators supporting entrepreneurs. However, challenges remain around culture, access to finance, lack of support systems, limited markets, education gaps, and policy issues. The ecosystem includes players like Acumen Fund, Akhuwat, Buksh Foundation, and Seed Ventures that provide financing and capacity building. Microfinance and branchless banking also enable entrepreneurs to access capital. Legal structures available include sole proprietorships, trusts, partnerships, private limited and non-profit companies. Overall, the document covers the environment, key players, challenges, and legal considerations for social enterprises in Pakistan.

1. Entrepreneurship

2. Entrepreneurial
Culture
employees
entrepreneurial
spirit
Global
Entrepreneurial
culture
Industry’s
innovation
culture
Country's
culture
Local
market’s
culture
Founder’s
entrepreneurial
spirit
Entrepreneurial
business's
culture

3. Typesof
entrepreneurial
culture

4. Pakistan
countrycontext
Population size 188,924,874
Population under 35 years
old
112,450,667
Labour force 65,361,409 (2014)
GDP $243,600,000,000
GDP growth 4.24% (2014) (4.03% in
2013, 3.5% in 2012)
Investment as percentage
of GDP
15.12% (2014)
unemployment 5.6% (2014)
Poverty headcount ratio (at
national poverty lines , % of
population
29.5% (2013)
Major economic sectors Agriculture:20.9%,
Industry:20.3%,
Services:58.8% (2014)
Micro, small and medium
sized enterprises
30% of GDP, 25% of export
earnings, 80% of non agri
labour force

5. Name of
institute
Organisation
type
Location Social enterprises related activities
Acumen
Fund
Impact
organisation
Global,
offices in
Karachi
Invest in businesses across the globe
to eradicate poverty . Capacity building of leaders of the
companies they invest in so they run their companies
efficiently
Akhuwat
bank
Economic
empowerment
Lahore Borrowers are converted into donors over time by taking a
micro donation from borrowers over the course that they
return their loan ( case study)
Buksh
Foundation
Poverty
alleviation
enterprise
creation,
women
empowerment
Lahore A microfinance institute with the objective of making impact
investments
Insistor
Management
Fund
Impact
investor
Global,
offices in
Karachi
Invest in business across the globe to eradicate poverty
Seed
Ventures
Investor and
incubator
Karachi Incubation space, mentorship, training investment for
enterprises at all stages
Funders, impact and investors in Pakistan

6. 16%
33%
17%
26%
9%
0%
5%
10%
15%
20%
25%
30%
35%
Age
Age of social enterprise leaders
18-24 25-34 35-44 45-64 65+

7. For profit Not for profit
Sole proprietorship
Owned and run by one individual and in which
there in no legal distinction between the owner
and business
Trust
Fiduciary relationship in which one party. Known as a
trustor, gives another party the trustee, the right to
hold title to property or assets for the benefit of a third
party , the beneficiary . In finance , it can also be a type
close-end collective investment fund built as a public
limited company
Association of persons/partnership
2 or more persons engaged in a business
enterprise in which the profits and losses are
shared proportionally
Society
A group of people formed as a separate organisation and
which has a stated purpose some charitable or
benevolent purpose either in regards to the public at-
large or in regards to the common interests of the
members, and which operates as nearly as possible at
cost
Private Limited company
A type of company that offers limited liability, or
legal protection for its shareholders
Section 42 Not for profit company
Organisation formed for the purpose of serving a
purpose of public or mutual benefit other than the
pursuit of profits.
Public limited company
A Public Limited company is a standard legal
Legal forms available to social enterprises

8. GOVERNMENT
•PUBLIC SERVICE
DELIVERY
•ENABLING POLICIES
AND LEGALISATION
ENTERPRISE
BUSINE
SS
•SCALE
•CAPITAL
•INNOVATI
ON
•MARKETS
CIVIL SOCIETY
•COMMUNITY
EMPOWERMENT
•PARTICIPATION
SOCIAL
ENTERPRI
SE
ROLE OF SOCIAL ENTERPRISE ECOSYSTEM

9. Microfinance institutions
3.63 m active borrows in Pakistan accessing loans worth PKR84.9 billion with loan siz
PKR 33.374
Low penetration rate of 13.3% still potential to target not only marginally poor but
very poor
50 corporate entities regulated by SBP
Pakistan Microfinance Network (PMN)
Limitations:
Sustainability issues limiting risk appetite lending to less poor segments
More focus on the promotion of innovation and competitiveness required and
Less on loan repayment

10. Branchless
banking
achievement of
universal financial
inclusion
 Branchless banking regulation in April 2008
 State Bank of Pakistan innovative solutions to the
otherwise ‘unbanked’ lower income groups and rural
population
 Operating outside conventional banks branchless
banking relies on information and communication
technology for transactions that are carried out via
mobile or nearby retail agents
 Services: deposits, withdrawals, inward and outward
remittances, utlity bill payments for products/services
to venders

11. Easypaisa
(Tameers=
microfinance
bank andTelenor)
Omni(UBL)
 Easier to undertake economic activity in untapped
segments of society besides money laundering &
terrorist financing
 Market has potential for SEs to capitalize as per early
user adoption and use rates

12. Angels and venture capitalists
Individuals that usually invest in last stages of technical development or first phase of market entry
And contribute their advice and business experience
Venture capitalists support company through rapid growth and into new markets in Pakistan
Focus on sector specializations
TMT ventures – startups in technology
ImPakt Capital funds innovation in food and agriculture
FMCG, retail , education and digital business

13. Incubatorsand
Accelerators
 Support and business networks & enhancing credibility of small
enterprises
 Lowers overheads and operational costs by sharing infrastructure
costs mentoring, consulting and guidance to attract impact
investors
 28 (approx.) different startup incubators in Pakistan
 Education sector
 IBA centre of entrepreneurial development, LUMS centre for
entrepreneurship , MIT enterprise forum Pakistan
 Microsoft and technology- oriented enterprise
 Platforms for discussing exit strategies and the policy
environment – linkages with private investors and angels
 Social innovation lab (SIL) LUMS
 Social innovators to evaluate sustainability of business practice
 Indigenized program puts socially conscious participants through four
stages
 Idea generation, setting up business prototyping, ,market research,
implementation

14. Challenges
Culture
Finance
Support
Markets
education
Legalization and policy