The growth and success of small businesses in Pakistan are vital for fostering a dynamic and inclusive economy, that has faced a fair share of challenges. It ensures sustainable economic development and improves the quality of life for the citizens.
As per Small & Medium Enterprise Development Authority (SMEDA) estimates, there are more than 5 million SMEs in Pakistan. SMEs contribute 40% to the GDP of Pakistan and 25% to overall exports. After the Agriculture sector, the SME sector provides employment to the highest percentage of the working population in the country.
There has been a growing recognition of the importance of supporting SMEs in their digital transformation journey in recent years. Governments, organizations, and technology providers have been stepping up their efforts to offer comprehensive digital support to SMEs to help them harness the power of technology and digital tools. This support comes in various forms, such as providing access to digital infrastructure, offering training and capacity-building programs, marketing and distribution channels, and facilitating access to marketplaces for digital initiatives.
This makes it all the more important for online marketplaces to support and encourage their growth and development. Among the leading enablers of this transformation is Daraz, an online marketplace that has not only paved the way for SMEs’ digital growth but also partnered with Logistics Marketplace (LMP) to extend its reach across the nation.
At the heart of Daraz’s mission to extend its delivery services to every corner of Pakistan lies the LMP (Logistics Marketplace) model. This innovative concept empowers local entrepreneurs interested in starting their logistics businesses. Daraz equips them with the necessary tools, such as Daraz packages for delivery and access to the platform’s advanced technology and expertise to run a successful logistics operation.
The LMP model has proven to be a game-changer, particularly in tier 2 and 3 cities of Pakistan, where economic opportunities are limited. By collaborating with LMPs, Daraz not only enhances its logistics capabilities but also creates business and job opportunities, fostering economic growth within these communities. This decentralized approach to logistics also ensures that Daraz can provide a seamless delivery experience to customers in even the remotest areas of the country.
Ahmed Tanveer, Chief Operating Officer, Daraz, elaborates further on the same phenomenon, “We provide a great digital presence to small businesses, making them more visible to potential customers. Our wide user base gives small businesses access to a broader audience they might not have reached otherwise. When we realized we needed to expand our network to not only be able to deliver to smaller cities but also ensure their experience is in no way different from what we offer our customers in bigger cities such as Karachi, Lahore, and Islamabad. That’s how the concept of Logistics Marketplace Partners was born.”
The growth and success of SMEs in Pakistan are essential for sustainable economic development and improved quality of life for citizens. Daraz’s commitment to supporting SMEs in their digital transformation journey through comprehensive digital support and LMP collaborations has been pivotal in achieving this goal. By empowering local entrepreneurs and uplifting communities, Daraz has extended its reach to every city and area in Pakistan, ensuring a good delivery experience for customers across the nation. Through this partnership-driven approach, SMEs can leverage technology, enhance their competitiveness, and adapt to changing market dynamics, positioning them for sustainable growth and long-term success. As digital enablers continue to foster innovation and inclusivity, the transformational impact on Pakistan’s economy is set to grow exponentially.
Link: https://www.youtube.com/watch?v=k5nIM3sQlyI
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