GDB
There are approximately 3.4 million business enterprises in Pakistan. SMEs contribute over 30% to the GDP. Establishing and Promoting of SME’s is the prime concern of Government policy for economic revival, poverty alleviation and employment generation. Still, in Pakistan mostly entrepreneurs are imitating, which are depending on advance countries.
Currently enterprises are in Pakistan are facing a lot of problem both locally (Law & order situation, Power cuts, Inconsistency of policies, competition from local vendors etc) and internationally (Technology update, information update, WTO and global policies etc) and one has to survive by tackling the both barriers and hurdles.
In your opinion and being a young entrepreneur in the field of small & Medium Enterprise, how would you see the globalization for your business? Does it an opportunity or a threat for your enterprise?
idea Solution :
First, globalization means greater markets. manufacturers can sell their goods all over the world, so the potential for greater sales and revenues is tremendous, along with the potential to increase economies of scale.
second, manufacturers can take advantage of cheap labor in countries with a low typical wages, lowering their costs.
Threats: Obviously, the first one is competition from foreign firms which, due to that cheap labor I was talking about, can produce cheaper. If manufacturing operations want to keep their operations domestic while competing with multinationals, huge increases in efficiency are necessary to make products cheap enough to be competitive. Conversely, large numbers of manufacturing operations producing overseas can take away enough jobs to reduce domestic demand by forcing people to take lower paying jobs and get tight-fisted with their money. But that's a macroeconomic concern.
second, manufacturers can take advantage of cheap labor in countries with a low typical wages, lowering their costs.
Threats: Obviously, the first one is competition from foreign firms which, due to that cheap labor I was talking about, can produce cheaper. If manufacturing operations want to keep their operations domestic while competing with multinationals, huge increases in efficiency are necessary to make products cheap enough to be competitive. Conversely, large numbers of manufacturing operations producing overseas can take away enough jobs to reduce domestic demand by forcing people to take lower paying jobs and get tight-fisted with their money. But that's a macroeconomic concern.
