The Impact of Class Privilege on Pakistan's Entrepreneurial Landscape

This LinkedIn article aims to explore the influence of "class privilege" on Pakistan's entrepreneurial ecosystem and highlight the systemic barriers that hinder equal opportunities for aspiring entrepreneurs in Pakistan.

While the startup scene in Pakistan has been gaining momentum in recent years, it is crucial to acknowledge the silent role that class privilege plays in determining who gets to participate and succeed in this competitive landscape. I will examine the different ways class privilege manifests and highlight the barriers it creates for aspiring entrepreneurs in Pakistan.

Being directly or indirectly part of the startup ecosystem in Pakistan for two decades, I have witnessed that class privilege is an often undiscussed factor. Class privilege refers to the advantages and benefits that individuals from higher social classes receive simply because of their socioeconomic status. It plays a significant role in perpetuating inequality within society, as those with class privilege often have better access to education, healthcare, job opportunities, and social networks. This leads to a cycle of advantages for the privileged class, while those from lower classes face barriers and limited opportunities.

Understanding class privilege is crucial in addressing systemic inequalities and working towards a more equitable society. For example, individuals from higher social classes may have access to prestigious private schools that offer advanced educational resources and opportunities for networking with influential individuals. This leads to better job prospects and higher salaries, further reinforcing their privileged status. Conversely, individuals from lower social classes may attend underfunded public schools and lack the same access to resources, putting them at a disadvantage in the job market and perpetuating the cycle of inequality. This inequality in access to education and resources contributes to the perpetuation of a socioeconomic divide. I have noticed that class privilege can have a profound impact on an individual's access to resources and opportunities in a subtle way. Those from higher social classes often have access to top-tier educational institutions, which provide them with a quality education and a strong foundation for future success. Additionally, they may have connections within their social networks that can provide them with internships, job opportunities, and mentorship. These advantages can significantly enhance their career prospects and lead to higher salaries. Conversely, individuals from lower social classes often attend underfunded public schools with compromised quality of education and lack the resources and support necessary for academic achievement. As a result, they face greater difficulty in accessing the same level of opportunities and may struggle to compete in the job market, perpetuating the cycle of inequality.

Despite these challenges, the growth potential for startups in Pakistan is immense, but it has converged to a specific class. Without any iota of doubt, the founders of local startups, not to mention anyone, are visionaries who identified a need in the market and took bold steps to address it. However, it is important to note that not all startups in Pakistan have been successful in overcoming these obstacles. In notable startup examples, we often find founders or co-founders who have either foreign educational degrees or international work experience, particularly from incubation or accelerator programs like Y Combinator, Techstars, startupbootcamp, 500Global or similar platforms. This exposure on one side provides them with invaluable knowledge and insights into the global startup ecosystem, giving them a competitive edge over the ones that do not have access to these platforms.

This disparity not only hinders the growth and success of underprivileged entrepreneurs but also perpetuates a cycle of inequality and limited representation in the startup industry. For example, a lower-income entrepreneur with a groundbreaking idea for a tech startup may struggle to secure funding from traditional sources due to their lack of connections and resources. Meanwhile, a privileged individual with access to influential networks and capital may easily attract investors and launch a similar venture. This uneven and concentration of resources for a specific class perpetuates the dominance of startups backed by class privilege, hindering the overall diversity and innovation potential of Pakistan's startup ecosystem.

The important question to address collectively is: What should be done and how should it be executed in a manner that can ensure the diminishing effects of class privilege in our startup ecosystem? I believe that to address class privilege and provide equal opportunities and resources for individuals from all socio-economic backgrounds, the entrepreneurial ecosystem must prioritize inclusivity and diversity. To address it, incubators and accelerators should actively seek out underprivileged entrepreneurs and provide them with mentorship, funding, and networking opportunities in geographical areas that are underrepresented in their bootcamps and other capacity-building activities. On the other hand, this also has to be ensured by our educational institutions, which can play a crucial role by offering entrepreneurship programs specifically tailored for individuals from disadvantaged communities and equipping them with the necessary skills and knowledge to succeed.

Furthermore, policymakers at the national and provincial levels should design and implement entrepreneurship and innovation policies that promote equal access to resources, such as creating tax incentives for investors who support underprivileged entrepreneurs and offer services that cater those communities.

We have seen, however, that LinkedIn, Facebook and TikTok (through its virality) have broken down these barriers by providing platforms for people from different backgrounds to connect and showcase their talents, leveling the playing field in the startup industry. These social media platforms have allowed underprivileged entrepreneurs to bypass traditional gatekeepers, such as venture capitalists or influential networks, and gain visibility for their ideas and businesses. In a positive way, these platforms have democratized the startup industry to some extent in Pakistan. As a result, we are beginning to see a more diverse range of entrepreneurs and ideas gaining traction, challenging the existing power dynamics, and fostering a more inclusive entrepreneurial ecosystem. In addition to providing entrepreneurship programs and implementing supportive policies, it is also essential for organizations and businesses to actively seek out and support diverse entrepreneurs from disadvantaged communities other than metropolitan cities and commercial hubs. This can be achieved through mentorship programs, networking events, and the availability of financial support in adjacent cities and towns.

By taking these corrective measures, the entrepreneurial ecosystem can at least initiate impactful startups that break down barriers and create an equity-based level playing field, allowing all entrepreneurs to thrive regardless of their socio-economic backgrounds. Ultimately, an inclusive entrepreneurial ecosystem benefits everyone as it fosters innovation, job creation, and economic growth, which is a dire need for Pakistan and its dwindling economy in the post-COVID world.

Dr. Bilal Mirza is entrepreneurship educator since 2004, who holds PhD in Innovation and Development (Maastricht University, the Netherlands) and Master's in Management of Technology (EPFL, Switzerland).