KARACHI: The investment prospects in small scale businesses in Pakistan are at best uncertain. Still for those, with Rs0.5-2 million in their kitty, who are ready to take a plunge there are several avenues.

A survey of various shopping centres in Karachi reveal that intense competition in the market has squeezed the margin of profit. Traders also complain of increased utility and rent charges, low business turnout and poor law and order situation.

People who want to do business may test their luck in trades like general store, hotel, computer business, cloth trading, optics & lens, electronics, photography lab, stationery & gifts shops, medical store, bakers & confectionery, etc.

In the table that follows expectant average rate of profit in different trades has been given. These figures are approximations arrived on the basis of what people active in these trades told when interviewed. Individuals and specific trades were selected randomly.

The income may vary from market to market. The profit percentage excludes expenses, including rent, employees' salary, electric and other charges.

Trades Expected monthly income as percentage of return on the principal amount

Hotel 30 to 40pc

Electronic outlet 10 to 12pc

Fabric merchant 20 to 25pc

General store 10 to 15pc

Bakers &

confectionery 30 to 40pc

Medical store 15 to 20pc

Computer store 5 to 10pc

Photo lab 40 to 50pc

Optics & lens shop 30 to 35pc

Stationery & gifts 18 to 20pc