According to the “Global Startup Ecosystem Index 2021” released by Startup Blink, Pakistan startup ecosystem has been a positive year, moving 7 places globally to 75th and South Asia to 2nd place.
The improved rating reflects the thriving culture of entrepreneurs who start businesses on the startup model, despite challenges related to COVID-19 epidemics, regulatory complications and lack of funds.
In 2021, most of the ranked Pakistani cities improved their position, and two newcomers joined the rankings, indicating that innovation is spreading in the country.
Pakistan is in an extraordinary situation. Its two top cities are ranked very closely, although this year, the gap between them has widened. Pakistan’s top city, Lahore, ranked 257th out of 14 places globally and fourth in South Asia.
The second-ranked city, Karachi, dropped seven places globally to 286th place and 8th in South Asia. The third-highest city, Islamabad, saw the most significant increase in rankings, jumping 122 places to 437th in the world 500, and 15th in South Asia.
At the fourth level at the national level, Rawalpindi jumped from 21 places to 956th position, while Faisalabad, which came at the 5th position at the national level, jumped 38 places to 960th position. Pakistan is currently ranked 8th overall with two new cities, namely Jhelum, 6th nationally and 988th globally. And Multan is ranked 7th nationally and 990th globally.
According to the 2021 Emerging Venture Markets report, 2020 saw a 97% increase in venture capital funding in Pakistan, which contributed significantly to Pakistan’s development as a startup ecosystem. There are some economic factors that are conducive to the growth of Pakistan’s ecosystem.
The economy has the potential to grow with the rapid growth and disposable income of the middle class. Infrastructure in Pakistan has improved since the introduction of broadband internet coverage, including 4G.
The number of startups in Pakistan increased from 32 to 41, the value of investment increased from 47 47.5 million to .7 65.7 million.
Startup potential in Pakistan
Considering the high number of English-speaking freelancers, Pakistan should focus on its IT sector, which could potentially take it to the next level by becoming a start-up founder. One of the major challenges for Pakistan’s early ecosystem is the multiplicity of old management complications involved in setting up a business.
The report highlights that strengthening the population’s willingness to accept business risks will help the local start-up ecosystem grow.
StartBlink, a think tank, provides two sets of rankings, the first for countries, and the second for individual ecosystems located in cities. It has 100 countries and 1,000 cities.
In some countries, business innovation is centered around one or more cities. In other countries, innovation is widespread in many cities and regions across the country. Often, the latter symbolizes a more robust, mature early ecosystem.
Global Startup Ecosystem
Globally, the ecosystem of startups maintains a positive trend despite the challenges of doing business following the outbreak of the COVID-19 epidemic.
The industry with the most activity and scalability is software and data, with more than 24,000 startups and 255 Unicorns – privately owned startup companies worth more than 1 billion. Is
The next most active industry is social and laser technology, with more than 8,000 startups, but only 26 have a relatively low number of unicorns.
On the other hand, the number of mapped startups in the e-commerce and retail technology industry is low (less than 7,000) but with 119 unicorns is the second most scalable level.
Other highly active industries that have a high scale are Fantec, which includes more than 8,000 startups and 110 Unicorns, and Health Technology, which includes more than 6,000 startups and 40 Unicorns.
Another exciting industry, transportation technology, features only 2,000 startups but is also highly scalable with 55 unicorns.