Small and medium enterprise is a term refers to any investment that entrepreneurs do invest in establishing a venture. The choice of these ventures most of the time depends on the capability of an entrepreneur in terms of art, craft, skill or talent and that is the core reason for its existence. Such initiatives are usually taken by lower and lower-middle classes to take a chance to get the economic and financial gain, small businesses become a cause for economic emancipation of not only the businessman but of many who work for him. Other returns acquired through such ventures have even deeper effect, it may include the up level of productivity at vendor level, generate healthy competition, enhance craftsmanship, and the ability to drive innovation.
Large economies have merged the SME’s into a greater part of their GDP, like USA has 39 per cent of its share coming from SME sector. Likewise China is attaining almost 60 per cent from SME. Even small countries like Bangladesh’s SME sector have a contribution of more than 25% to its total GDP. Being the backbone of economic development have always been the core agenda of government’s economic policy initiatives.
In spite of the fact that SME create most of the jobs as compared to large firms, the government had paid less attention as a result this sector is at par. The consequences are huge un employment, extincting financial resources, deteriorating economic & social life and at the end extreme poverty.
In the light of above scenario and being a student of SME Management, what would you suggest (workable steps) to government for uplifting the SME sector? Enlist any five established institutes that extend facilitation to entrepreneurs.
there are major steps which government should take to uplift the SME sector.
- Encouraging productivity and innovation.
- Encouraging industry collaboration for productivity improvements.
- Nurturing talent for the SME sector.
- Provide Conducive Business Environment.
- Providing Proper Assistance.
Established Institutes that Extend Facilitation to Entrepreneurs:
1. SMEDA (Small and Medium Enterprises Development Authority)
2. SBFC (Small Business Finance Corporation)
3. RDFC (Regional Development Finance Corporation)
4. IDBP (Industrial Development Bank of Pakistan)
5. PSIC (Punjab Small Industries Corporation)
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