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Can there be a Prime Minister in a business?

How can Pakistani tech startups benefit from the Prime Minister's youth business loan program?

  • Answer:

    I'm not sure a tech startup would qualify for the loan. Most of the loan applicants and/or process would most likely be based on traditional banking loan models, i.e. for a product (or some tangible services) other than software. I'm making the general assumption here that the tech startup would be in the software business. I have a few reasons to back my case: Most tech startups would have a very difficult time in trying to convince the grant authority of their business model The loan limit is Rs. 2 Million (IIRC), which is pittance for any decent tech startup, you'd have a better chance of raising capital from outside sources The repayment schedule may not be to your liking In the absence of a method for your idea to be copied (remember intellectual property laws in Pakistan are extremely weak), there is no compelling argument that your idea cannot be copied. The loans are geared towards the general masses, essentially a rung or two below the traditional software vertical. Not that I expect business plans to be of any serious consequence here (during the loan application), but most tech startups are horrible in making pragmatic business plans with realistic revenue models. Software / Tech is just not understood well by the banking sector (for loans).

Faisal Khan at Quora Visit the source

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First thing, we are taking startup as software business which is a common term used these days but nor the reality. Startup can be anything. Bahria Town was a startup, many names in fashion startups, TV channels are startups, and they all carry huge physical products like land, factories and buildings etc. Make sense to give them load. When talking about Tech startup, It's not a loan, Technically how the world is dealing with tech startups is that companies fund (not loan) the tech startup by believing the teams after knowing their backgrounds, On that believe they invest in startup, As we all know there are terms for investments but if the business fails the business owner and investor both are in lose. no return of investment. So. ideally the load for tech startup is wrong, This is not do-able. and its more dangerous for entrepreneurs after failure because they have lost the business and efforts and they are literally on road, but now one have to return the loan. That is much like a suicide. So in my opinion: loan is good for a physical business not for internet product.

Shoaib Ahmad

The prime minister wants to provide laptops to the youth so you if have an idea on how to provide income generating jobs for this untapped resource then you can benefit from Pakistani's youth empowerment program.

Herbert Brown

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