Documente Academic
Documente Profesional
Documente Cultură
Submitted to:
Sir Imran Ali
Submitted by:
Ali Zahid MBE-SP08-003
Kashif Aslam MBE-SP08-028
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Developing a group of diverse and competitive small and medium
enterprises (SMEs) is a central theme towards achieving sustainable economic
growth. SMEs are crucial to the economic growth process and play an
important role in the country͛s overall production network. Some advanced
economies have succeeded because SMEs form a fundamental part of the
economy, comprising over 98% of total establishments and contributing to
over 65% of employment as well as over 50% of the gross domestic product.
Although the numbers might be lower in Pakistan, SMEs have the potential to
contribute substantially to the economy and can provide a strong foundation
for the growth of new industries as well as strengthening existing ones, for
Pakistan͛s future development.
1. SMEDA Definition
Small & Medium Enterprises are defined as follows, as approved
in SME Policy 2007.
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Following are some common characteristics of SMEs.
O ½wner is the manager & few employees
O ½wned & operated independently
O Relatively small investment, production, sales, dealings etc.
O Inadequate efficiency of business operations.
O Vo relationship with other firms or parties for Investment, Management,
finance, tax
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SMEs employing 1-5 Persons 2.85 million (96.6%)
SMEs employing 6-10 Persons 79,000 (2.67%)
SMEs employing 11-50 Persons 26,000(0.87%)
SMEs employing over 50 Persons 1617(0.054%)
Employment 78%
GDP 40%
Value Addition 35%
Exports 25%
è. SMEs Share in Sub-Sector
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SMEs are facing various barriers in the way of their growth and
development. Following are some main barriers SMEs are facing these days.
O Govt. & SME Interaction
O Taxation
O Finance
O Labor Legislation
O Human Resource Development
O Technology
O Market & Industry Information
O Lack of Infrastructure
O Environmental issues & compliance
O Social compliance issues
O Intellectual Property Rights
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Premier institution of the Govt. of Pakistan under Ministry of Industries
and Production, SMEDA was established in ½ctober 1998 to take on the
challenge of developing Small & Medium Enterprises (SMEs) in Pakistan. With
a futuristic approach and professional management structure it has focus on
providing an enabling environment and business development services to
small and medium enterprises. SMEDA is not only an SME policy -advisory body
for the government of Pakistan but also facilitates other stakeholders in
addressing their SME development agendas.
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Growth of globally competitive SME sector through a conducive and
facilitating environment and support services as an engine of growth and
sustainability to national economy.
To function as the promoter & facilitator of SME sector in Pakistan by
creating a conducive and facilitating environment as well as providing and
facilitating service delivery to SMEs for enhancing their capacities and
competitiveness.
1. Formulate Policy to encourage the growth of SMEs in the country and to
advise the Government on fiscal and monetary issues related to SMEs.
2. Facilitation of Business Development Services to SMEs.
3. Facilitate the development and strengthening of SME representative
body͛s associations/chambers.
4. Set up and manage a service provider͛s database including machinery
and supplier for SMEs.
5. ¦onducting sector studies and analysis for sector development
strategies.
6. Facilitation of SMEs in securing financing.
7. Strengthening of SMEs by conducting and facilitating seminars,
workshops and training programs.
8. Donor assistances for SME development of SMEs through programs and
projects.
9. Assist SMEs in getting international certifications (such as UL, ¦E, DIV,
JIS, ASME, KS, etc.) for their products and processes.
10. Identification of service opportunities on the basis of supply/demand
gap.
SMEDA is currently offering following services to promote regulate and
enhance SMEs in Pakistan.
O ¦onsultant Services
O Training Services
O Business Plan Division
O Financial Services
O Information Resource ¦entre (IR¦)
O Intellectual Property for Business Success
O Legal Services
O Policy and planning
1. Training services
SMEDA organizes training programs, seminars, workshops and
conferences of short duration in major cities across the country for raising
awareness and capacity building of SMEs. These need based training programs
are affordable, appropriate and innovative. Th ese programs are aimed at
improving knowledge, skills and competencies in the technical, marketing,
financial, compliance, policy, regulatory, legal, and commercial and other
important functions. These programs help to improve major performance
indicators such as productivity, quality, competitiveness and sustainability etc.
The results include improvement in export potential, investment promotion,
business transparency, human resource development, managerial capacity
building etc. These programs help decreasing the level of SME mortality and
increasing efficiency.
=. Financial services
Financial Services Group (FSG) is one of the support units of
SMEDA. As the name suggests, FSG is responsible for all financial consulting
and advisory services that SMEs may require. As for all the support functions,
FSG caters to both internal sector teams as well as any external walk-in SMEs.
In addition to such consulting services, FSG also acts as coordinator of
government schemes, which involve financial institutions.
r. 0egal services
We add value to the business of Small and Medium Entrepreneurs
(SMEs) through facilitation in:
O Resolving legal problems through service providers.
O ¦reating awareness of legal rights & responsibilities by disseminating
information on existing regulatory/contractual requirements through
sample contract templates, business guides and seminars.
O Enhancing capacities for improved compliance of laws, rules and
regulations through training programs.
O Legal opinions to your business queries, and
O Interaction with regulatory authorities and service providers for
removing legal impediments.
. Consultant services
SMEDA also provide various consultancy services.
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SMEDA is currently facilitating SMEs with the followings services.
1. Pre-feasibility Studies
Pre-feasibility studies are well researched yet generic due
diligence reports that facilitate potential entrepreneurs in project identification
for investment.
The main objective of the pre -feasibility studies prepared by SMEDA is to
provide information about investment opportunities to the small & medium
enterprises (SME͛s). A typical pre-feasibility study provides:
1. ¦omprehensive information for investment o pportunity in a business.
2. Specific information regarding different business areas like, marketing,
technical, industrial information etc. for the existing entrepreneurs to improve
their exiting setup.
3. Project investment information and financial proj ections to support viability
of the business.
ï. Regulatory Procedures
SMEDA Regulatory Procedures have been developed to
disseminate information and to assist Small & Medium Enterprises on existing
regulatory environment, through user-friendly systems, providing detailed
description of laws & regulations, including processes required for compliance
while doing business in Pakistan.
=. Sector briefs
½ne of the objectives of SMEDA is to provide fresh impetus to
Pakistan͛s economy through an aggressive Sect oral Development program. Its
role in this regard will be recommending policy guidelines to the government
for development of small & medium businesses.
M. SMEDA Publications
Small & Medium Enterprise Development Authority, SMEDA, has
initiated a process of articles, books & other publications to create awareness
among the general public on optimal business practices, regulatory issues, G½P
schemes, new business concepts, etc.
M. Cluster Development
¦lusters are geographical concentration of enterprises which
produce and sell a range of related or complementary products and are, thus,
faced with common challenges and opportunities. ¦luster development is
basically supporting and strengthening the clusters by creating networking
among the stakeholders to reduce the cost of doing business, bringing them on
a single platform for more voice among policy makers, create new business
opportunities, reducing risk of doing business and capacity building of the
enterprises. ¦luster development has also proved its contributing in
employment generation and poverty reduction worldwide.
SMEDA is currently working to develop the following main sectors
which are backbone in stimulating SMEs in Pakistan.
O Dairy sector
O Jem & Jewelry sector
O Agri Business services
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Following is glance on SMEDA͛s business opportunities
development.
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It is a fact that SME sector is really at its developing stage in Pakistan.
We need a lot of effort to develop it and make it parallel to the developing
countries. SMEDA is also working very good to enhance the potential of SMEs.