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kabul
September 26, 2018
The Kabul Times

How to prepare groundwork and increase entrepreneurship in Afghanistan?

Entrepreneurship Overview
Entrepreneurship is a logical technic which is derived from the ideological and technological concept of the people.
If we see the developed countries economical system, we could find a dramatically changes between services and products they are providing.
1Entrepreneurship has become increasingly important to developed countries as a source of economic growth and employment creation. As public policy has turned to entrepreneurship to generate employment and economic growth, policy makers have turned to the scholarly literature for guidance about the appropriate approach and context. However, while seeking guidance about the appropriate role for entrepreneurship policy, policy makers have been befuddled with ambiguous results at best.
1 The relationship between entrepreneurship and unemployment has posed a complex puzzle to scholars. One view, which has been called the unemployment push, or refugee effect, suggests that the decision to become an entrepreneur is a response to either being unemployed or else the perception of dismal future employment prospects. An alternative view suggests that entrepreneurship, by virtue of creating a new venture, contributes to the reduction of unemployment. While the first view suggests a positive relationship between entrepreneurship and unemployment, the second view suggests a negative relation. Further, in each view, the causal link between entrepreneurship and employment are reversed. While the first view has high unemployment rates inducing more people to choose to become entrepreneurs, the second view suggests that the decision people make in becoming entrepreneurs will reduce unemployment at the macroeconomic level.
1 Which of these two polar views concerning the relationship between entrepreneurship and unemployment is correct? There is both considerable theoretical and empirical support for both views and scholars have had trouble unraveling the relationship between entrepreneurship and unemployment. Unraveling it matters because understanding the true relationship can guide policy makers as they decide if, and how, to promote entrepreneurship as they strive to reduce unemployment. Using an econometric approach to disentangle the relationships, this paper attempts to reconcile the ambiguities.
1 The results of this study have important implications for public policy. In particular, they unequivocally suggest that public policy to generate jobs and reduce unemployment is well served by focusing on entrepreneurship but that it takes considerable time (eight years or more) for the results to become visible.
Commentary views on Economic Situation of the Country
The Afghanistan government imports many products inside the country, but still expertise and other government agencies doesn’t have a proper plan and policy to support the public needs and wants by an efficient alternative products that could cover all requirements.
The government should develop trilateral MoUs among leading agencies, government and private sectors to ensure political support of the policies and procedures to produce efficient and cost effective products which are regularly importing by private sectors and Limited companies.
The government should list fully demanded goods that can be produced inside the country based on market research. The list should be published and shared with private sector and potential investors should be encouraged by political and economic support of the government.
Hence, the government should consult with the World Trade Organization (WTO), ministry of economic and ministry of commerce and industries with the rest of the stakeholders to first restrict the import of those products inside the country or increase barriers like, Quotas and Tarrifs on those products for which substitute is available in the market.
Objectives on assessing the business opportunities;
· Import barriers; Economical Support of the economic activities; Increase Foreign direct investment (FDI);Strengthen entrepreneurship; Prevention of raw material and resources exportation; Enhance export; and(small medium enterprises) SME development .
Benefits of the business opportunities assessment
· Increase in Growth Domestic Products (GDPs);Create Employment opportunity; Import decreases; Usage of resources; and Raw material circulation.
Methodology to encourage entrepreneurship
Before investing time and money on any new innovation and business, we should do a preliminary research on market situation based on the aggregate demand and supply. We are supposed to bring technologically changes or and formation of new idea.
1) By supporting domestic products and services; and
2) To offer technological changes through services and products.
By supporting Domestic Production
According to the findings, the Afghanistan government is importing its preliminary goods/products from the foreign countries like: Pakistan, India, Iran and China.
We are importing too much, Beverages, Snacks, packed, construction materials, Furniture and so on. Now it would be necessary to find the problem and solution and opportunity on how to support domestic production and what are the benefits?
· Problem; high rate of import rather than export; Solution; Approaching entrepreneurship and increase domestic production; Opportunity; government’s patronage toward private sectors;
· Benefits to consumers; availability of the products and services and cost effective; and The government is interested to protect private sector by trade secrets and patents.
Products/ Services
List of the products and services:
· Beverages; Snacks; Furniture; Technologies; Oil and Fuel and Lubricants and Gaz; Medicine; Chemical Codes; Bath Goods; Plastic Goods; Jewelries; Clothing; Services; Meal, Tea, Milk, Cheese; Meats; Cereal; Rice; Flour; Hospitals (Medical services);Foreign Labor recruitment; and Other finished goods not listed here.
The samples of these products/services are available, these are the highly demanded goods through the local market of Afghanistan and regularly the customer and consumers are paying for the current products and services, because this is the overall sore demand of the market.
The current statutes of the products/services , there should be a strong coordination between Government and Private Sector to support them for investment on substitute products and services.
As an Instance
We have the same experiences with the Alokozay Company where they substitute the Beverages now and the importers of the substitute and international suppliers are paying high tariffs to couldn’t compete with the local market.
Business Model
Once the government politically supports the Enterprises to do such kind of Business, hereby the Policy should be applied to those business holders to not export Money outside the country.
· Pricing should be based on the market force These are the current market need so the consumers will pay. A committee should be developed to monitor and evaluate the cost and other financial purposes. The marketing cost is related to those enterprises which are offered to supply those products.
Enabling Environment
There are no foreign competitors except local competition; the government should priorities all afghan traders to invest at any of the products and services.
Safety, product liability environmental and regulatory issues depend on the government policy.
Technological Change | Background
Our country Afghanistan, needs too much expertise and tangible resources that could fulfill the requirements of all private sectors, here I just introduce only one sector as of the following:
Hospitals
Afghan residence are going to India and Pakistan and other countries for treatment purposes, these overseas travels will directly affect the country Economic and overall GDPs, however we have medium and large active hospital all over the country but due to lack of technology and expertise the patients are traveling outside.
Problem
Public side: the people are traveling outside the country to solving their treatment issues.
Government side: couldn’t afford to engage investors, and promote private sectors and the education scholarships are not based on market demand
Solution
Public side: to do public awareness, on behalf of government to persuade them “we should grow our country economic”,
Government side: to first create solution for investors to invest money, and provide them facilities to establish health care services.
What is the Technological Change here?
If we bring medical machinery (Technology) and professional doctors inside the country so hereby it will decrease overseas medical purposes and job creation.

Shaheen Waqibeen

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