MGT601 VU GDB Solution Spring 2012

Pakistan’s economy can be called as SMEs economy as there are more than 3.2 million SMEs operating in Pakistan which are contributing 30% share in GDP. Similarly they have employed 78% of non-agricultural labor force as per SMEDA statistics. Still this sector is floating in the phase of analysis and diagnosis of problems and challenges and not many actions have been taken so far from the government officials and concerned institutes. Access to finance, lack or research, lack of training and development and semi-skilled labor are the major issues of SME sector that need deliberate attention of state agencies. Similarly the large manufacturing units can also play an active role in the development, growth and expansion of SME sector. The dynamic role of large manufacturing units in the expansion of SME sector is always underestimated and underplayed so far. All over the world, the closely netted collaborations between large manufacturing units and SME sector is supported by governments and stakeholders.

In your opinion, how the large manufacturing units can play their active role in the expansion of SME sector in Pakistan.


The Large companies can play a vital role for the developement of SME.
It can help small companies by providing Loans for expansion of their business as usually the small
companies creates a bye-products for the large companies.
The Large Companies can help small companis in development of high quality products and providing Skills employees to them.
Large companies usually merge or acquire with the small companies. (Here you can Quote any Merger or Aquisition Example).