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The National Entrepreneurship Development
Does SMEDA work for national destiny?
The 2009 MSP Baseline Survey can provide a working head start on the national economy.
If we examine the history of the nation’s business and its development, we will find that almost every company we know today started as an SME. Europe, United States, China and our neighbor India have started developing Microsoft industries with a small workforce in a rented house or a small industrial unit.
Vodafone as we know it today was once a small spin-off of Racal; Hewlett-Packard started in a small wooden shack; Google was started by a couple of young kids who thought they had a good idea; even Volkswagen was at one point only a small car manufacturer in Germany.
Small and medium-sized enterprises (SMEs) are believed to be key actors in national development and job creation.
World trade and manufacturing are now shifting east. Small and medium-sized enterprises (SMEs) are a very diverse group of businesses that typically operate in the service, trade, agriculture and manufacturing sectors.
The role of small and medium industries is essential as it contributes to uplifting the national economy and improving national prosperity.
In Pakistan, small business and cottage industries occupy an important position in rural areas. In 2005, infrastructure in remote areas improved significantly. Most villages are self-sufficient in basic life needs.
They have their own carpenters, blacksmiths, potters, artisans and cotton weavers. Many families depend on cottage industries for income.
Thanks to the enormous efforts of Smedy (Office for the Development of Small and Medium-sized Enterprises), the concept of small industry has also gained immense importance in cities and towns. The government should encourage cottage industry and small scale industries
Government support for this functioning organization with proven success both in the countryside and in cities and towns is key. BASIC BASIC CONDITIONS SME SURREY-2009 is a huge effort undertaken by Smeda’s Policy and Planning Division team under the dynamic leadership of its Chief Shahid. Rashid. Conducted by Gallup Pakistan with financial assistance from the Asian Development Bank, this survey is an inclusive report and guide for SME policy makers. All the chapters of this survey will attract the attention of the business community because they deal with almost all the related aspects that are related to the promotion of an entrepreneurial culture.
The aim of this survey is;
• Assess the basic perceptions of SMEs on various issues and institutions.
• What are the factors causing SMEs to not grow in Pakistan?
• Why people (entrepreneurs, men and women) are reluctant to move forward to achieve prosperity for themselves for the nation as a whole.
Research and development are important factors in increasing production and learning new business techniques. The 2009 SME Base Survey shows an alarming picture. It reports that 45.2 percent of SMEs do not spend any revenue on research and development. In general, small and medium-sized enterprises are satisfied with the traditional production of goods. It is a matter of serious concern. This survey can help policy makers to design the future plan for the development of small and medium enterprises.
At a symposium held at a local hotel under the auspices of the Small and Medium Enterprises Development Authority (SMEDA) on 18 May 2009, renowned economists, policy makers, business luminaries and media professionals were invited.
The chief guest Mr. Sartaj Aziz, former Federal Minister of Finance, showed his concern that concrete step to support the SME sector has not yet been taken despite the fact that the government is aware of the hurdles that are making small and medium entrepreneurs uncomfortable. According to him, neglect of merit, political interference and law and order situation are responsible for Pakistan’s current economic situation.
Mr. Awais Mazhar Hussain, a prominent business leader, said that small businesses are the backbone of the nation’s economy if properly cared for and supported by the government. Vocational training and improved infrastructure can turn the potential into real profit. Mr. Awais appreciated the valuable role that SMEDA has been playing with commitment and zeal in limited resources since its inception in 1998.
Dr. Salman Shah, a former financial advisor and renowned economist, praised the role of Smeda’s Policy and Planning Department for conducting such a useful survey. He is convinced that the current survey will help draw up measures for the necessary support of growing SMEs and existing SMEs.
SMEDA could not meet the lofty goal of developing the broadest sector of the economy known as the SME sector with the current budget of only Rs 150 crore per annum.
Mr. Shahid Rashid, Managing Director, SMEDA, acknowledged the financial assistance provided by the Asian Development Bank in conducting this survey. He also admired the efforts put in by the Policy and Planning team for their dedicated efforts in preparing the survey report.
Time is running out. China, Malaysia, India are emerging economies. China has announced new strategies to conquer the world market under the slogan China’s Way of War.
Like the Malaysian government, the Pakistani government should make the development of small and medium enterprises a high priority area, which should be reflected in its national development agendas. In consultation with SMEDA’s highly qualified staff, policy makers should prepare key strategies for SME development in the coming years. Like
The Malaysian Government of Pakistan may establish a National Council for the Development of Small and Medium Enterprises.
The consistent progress and dedicated work of SMEDA over the last 12 years shows that SMEDA is a proper organization to trust. The Ministry of Industry and Production should motivate this viable institution as much as possible.
If we develop industrial infrastructure, create business-friendly policies, prioritize human resource development and, more importantly, say goodbye to the nuisance of ephemeral policies, over time these measures will reduce business dependence on other countries’ markets and reduce its vulnerability to external pressure or shocks.
(By: Muhammad Ahmad Sheikh (International Independent Broadcaster / Journalist / R&D Officer, Sheikhupura Chamber of Commerce & Industry
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