National Business Development

Website design By BotEap.comIs SMEDA working for the national destination?

Website design By BotEap.comThe 2009 SME Baseline survey can provide a functional start for the national economy.

Website design By BotEap.comIf we explore the history of national entrepreneurship and its development, we will find that almost every company we know today started as an SME. Europe, the United States, China and our neighbor India began to develop Microsoft industries with little labor in a rented house or a small industrial unit.

Website design By BotEap.comVodafone, as we know it today, was once a small spin-off of Racal; Hewlett-Packard started out in a small wooden shack; Google was started by a couple of little kids who thought they had a good idea; even Volkswagen at one point was just a small car manufacturer in Germany.

Website design By BotEap.comSmall and Medium Enterprises (SMEs) are believed to be key players in national development and job creation.

Website design By BotEap.comWorld trade and manufacturing are now shifting east. Small and medium-sized enterprises (SMEs) are a highly diverse group of companies that typically operate in the service, trade, agribusiness, and manufacturing sectors.

Website design By BotEap.comThe contribution of raising the national economy and improving national prosperity, the role of small and medium-sized industries is imperative.

Website design By BotEap.comIn Pakistan, small businesses and cottage industries occupy an important position in rural areas. In 2005, the infrastructure in remote areas had improved considerably. Most of the towns are self-sufficient in the basic necessities of life.

Website design By BotEap.comThey have their own carpenters, blacksmiths, potters, craftsmen, and cotton weavers. Many families depend on cottage industries for income.

Website design By BotEap.comDue to the tremendous effort of Smeda (Small and Medium Enterprises Development Authority), the concept of small industries has also gained immense importance in the cities and towns. The government should encourage cottage and small-scale industries

Website design By BotEap.comGovernment support for this functional organization with its proven track record of success in both rural, city and town settings is crucial. SME BASELINE SURREY-2009 is a tremendous effort by the Smeda Policy and Planning Division team under the dynamic leadership of its Chief Shahid Rashid. This survey conducted by Gallup Pakistan with financial assistance from the Asian Development Bank is an inclusive report and guide for SME policy makers. All chapters of this survey report capture the attention of the business community as it covers almost all aspects of promoting business culture.

The objective of this survey is;

Website design By BotEap.com• Assess the baseline perception of SMEs on various issues and institutions.

• What are the factors that impede the growth of SMEs in Pakistan?

• Why people (businessmen, men and women) are reluctant to move forward to achieve wealth for themselves for the nation as a whole.

Website design By BotEap.comResearch and development are important factors in improving production and discovering new business techniques. SME Baseline Survey 2009 paints an alarming picture. It states that 45.2 percent of SMEs do not spend any income on R&D. In general, SMEs are satisfied with traditional production. It is a matter of serious concern. This survey can help the policy maker to design the future plan for SME development.

Website design By BotEap.comAt a Symposium held at a local hotel under the auspices of the Small and Medium Enterprise Development Authority (SMEDA) on May 18, 2009, which invited renowned economists, legislators, senior executives from the business community, and professionals of the media.

Website design By BotEap.comThe main guest, Mr. Sartaj Aziz, former Federal Minister of Finance, expressed his fear that concrete measures are still not taken to promote the SME sector, despite the fact that the government knows the obstacles that hinder the task of the small and medium businesses. Neglect of merit, political interference and the law and order situation are responsible for Pakistan’s current economic condition, he added.

Website design By BotEap.comMr. Awais Mazhar Hussain, a prominent business leader, said that small businesses are the backbone of the national economy if they are properly cared for and supported by the government. Vocational training and improved infrastructure can turn potential into profit in a real sense. Mr. Awais appreciated the valuable role that SMEDA has been playing with commitment and zeal in limited resources since its establishment in 1998.

Website design By BotEap.comDr. Salman Shah, a renowned former financial adviser and economist, praised the role of Smeda’s policy and planning division in conducting such a useful survey. He was confident that the current survey will be useful in drawing up measures for the necessary support for growing SMEs as well as for existing SMEs.

SMEDA was unable to meet the lofty goal of developing the broader sector of the economy known as the SME sector with its current budget of Rs 150 crore a year alone.

Website design By BotEap.comMr. Shahid Rashid, Executive Director of SMEDA, appreciated the financial assistance provided by the Asian Development Bank to conduct this survey. He also admired the efforts made by the policy and planning team for their efforts in preparing the survey report.

Website design By BotEap.comTime is slipping away. China, Malaysia, India are emerging economies. China has declared New Strategies to capture the world market under the slogan China’s way of war.

Website design By BotEap.comLike the Government of Malaysia, the Government of Pakistan should place SME development in a high priority area and this should be reflected in their national development agendas. With the consultation of the highly qualified staff of SMEDA, the policy makers should prepare the key strategies for the development of SMEs in the coming years. What

The Government of Malaysia and Pakistan may establish the National SME Development Council.

Website design By BotEap.comSMEDA’s steady progress and dedicated work over the past 12 years reveal that SMEDA is a proper organization that can be trusted. The Ministry of Industries and Production must give the maximum incentive to this viable institution.

Website design By BotEap.comIf we develop industrial infrastructure, make business-friendly policies, prioritize human resource development, and most importantly, say goodbye to the hassles of ephemeral policies, these measures will eventually reduce trade dependency on markets. from other countries and will reduce their vulnerability to external pressures or blows.

Website design By BotEap.com(By Muhammad Ahmad Sheikh (International Freelance Broadcaster/Journalist/Incharge R & D, the Sheikhupura Chamber of Commerce & Industry)