Is SMEDA working for the national destination?

The 2009 SME Baseline survey can provide a working start for the national economy.

If we explore the history of national entrepreneurship and its development, we will find that almost all the companies we know today started as an SME. Europe, the United States, China, and our neighbor India began developing Microsoft industries with little labor in a rented house or a small industrial unit.

Vodafone, as we know it today, was once a small Racal spin-off; 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 automaker in Germany.

Small and Medium Enterprises (SMEs) are believed to be key players in national development and job creation.

World 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.

The contribution of raising the national economy and improving national prosperity, the role of small and medium-sized industries is imperative.

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

They have their own carpenters, blacksmiths, potters, artisans, and cotton weavers. Many families depend on cottage industries for income.

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

Government support for this viable organization with its proven track record of success in both rural settings, cities and towns is crucial. SME BASELINE SURREY-2009 is a tremendous effort by the Smeda Planning and Policy Division team under the dynamic leadership of its boss Shahid Rashid. This survey conducted by Gallup Pakistan with the financial assistance of the Asian Development Bank is an inclusive report and guide for SME policymakers. All chapters of this survey reports capture the attention of the business community as it covers almost all aspects related to the promotion of company culture.
The objective of this survey is;

• Assess the baseline perception of SMEs on various issues and institutions.
• What are the factors hindering the growth of SMEs in Pakistan?
• Why people (entrepreneurs, men and women) are reluctant to move forward to achieve wealth for themselves for the nation as a whole.

Research and development are important factors to improve production and discover 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.

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

The 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 is aware of the obstacles that hinder the task of the small and medium entrepreneurs. Disregard of merit, political interference and the state of law and order are responsible for the current economic condition of Pakistan, he added.

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

Dr. Salman Shah, a former financial adviser and renowned 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 devising 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 million per year alone.

Mr. 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 dedicated efforts in preparing the survey report.

Time 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.

Like the Government of Malaysia, the Government of Pakistan should place SME development as a high priority area and this should be reflected in their national development agendas. With the consultation of the highly qualified staff of SMEDA, policymakers should prepare the key strategies for the development of SMEs in the coming years. I like it
The Government of Malaysia and Pakistan can establish the National SME Development Council.

The constant progress and dedicated work of SMEDA over the last 12 years reveals 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.

If we develop industrial infrastructure, make business-friendly policies, prioritize human resource development and, most importantly, say goodbye to the hassle of short-lived policies, these measures will eventually reduce trade’s dependence on markets. from other countries and will reduce their vulnerability to external pressures or blows.

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

Leave a Reply

Your email address will not be published. Required fields are marked *