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The National Entrepreneurship Development
Does SMEDA work for National Destiny?
The SME Baseline survey 2009 can provide a functional start to the national economy.
If we explore the history of national entrepreneurship and its development, we will find that almost every business we know today began as an SME. Europe, USA, China and our neighbor India started developing Microsoft industries with small manpower in a rented house or in a small industrial unit.
Vodafone as we know it today was once a small spin-off from Racal; Hewlett-Packard started in a small log cabin; Google was started by a couple of young kids who thought they had a great idea; even Volkswagen was at one time just a small car manufacturer in Germany.
It is believed that small and medium-sized enterprises (SMEs) are key players in national development and job creation.
World trade and manufacturing are now moving east. Small and medium-sized enterprises (SMEs) are a very mixed group of companies that usually operate in the service, trade, agriculture and manufacturing sectors.
The contribution to lift the national economy and improve the national prosperity, the role of small and medium industries is imperative.
In Pakistan, small businesses and cottage industries occupy an important position in rural areas. By 2005, infrastructure in remote areas had improved significantly. 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 enormous efforts of Smeda (Small and Medium Enterprises Development Authority), the concept of small industries has also gained immense importance in towns and cities. The government should encourage cottage and small industries
Government support for this useful organization with its proven successes both in rural, urban and urban areas is essential. SME BASELINE SURREY-2009 is a tremendous effort undertaken by the team of the Policy and Planning Department of Smeda under the dynamic leadership of its Chief Shahid Rashid. This survey conducted by Gallup Pakistan with financial assistance from Asian Development Bank is inclusive report and guideline for SME policy makers. All the chapters of this research report capture the attention of the business community as it deals with almost all related aspects associated with the promotion of entrepreneurship.
The purpose of this study is;
• To assess SMEs’ basic perception of various issues and institutions.
• What are the reasons why SMEs in Pakistan are not growing.
• 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 for improving production and knowing new business techniques. The SME Baseline Survey 2009 indicates an alarming picture. It states that 45.2 percent SMEs did not spend any income on R&D. In general, SMEs are content to produce things traditionally. It is a matter of great concern. This study can help the policy maker to devise the future plan for the development of SMEs.
In a symposium held at a local hotel under the auspices of the Small and Medium Enterprises Development Authority (SMEDA) on 18 May 2009, where renowned economists, policy makers, high ups from business and media professionals were invited.
Chief Guest Mr. Sartaj Aziz, former federal finance minister, expressed his concern that concrete steps have not yet been taken to promote the SME sector despite the facts that the government is aware of the obstacles rooting small and medium entrepreneurs. Neglect of merit, political interference and 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 looked after and backed by the government. Vocational training and improved infrastructure can turn the potential into profit in the real sense. Mr. Awais appreciated the valuable role that SMEDA has played with commitment and zeal in limited resources since its inception in 1998.
Dr. Salman Shah, former financial adviser and renowned economist, praised the role of Smeda’s policy and planning department for conducting such a useful study. He was confident that the present study will be useful in devising measures for the necessary support for growing SMEs as well as for the existing SMEs.
SMEDA could not meet the lofty goal of developing the broadest sector of the economy known as the SME sector with its current budget of just Rs 150 million. yearly.
Mr. Shahid Rashid, Managing Director SMEDA acknowledged the financial assistance of the Asian Development Bank to conduct this study. He also admired the efforts of the policy and planning team for their dedicated efforts in the preparation of the survey report.
Time flies by. China, Malaysia, India are emerging economies. China has declared new strategies to conquer the world market under the slogan China’s way of war.
Like the Malaysian government, the government of Pakistan should place the development of SMEs in a high priority area and this should be reflected in its national development agendas. With the consultation of highly qualified staff from SMEDA, policy makers should prepare the most important strategies for SME development in the coming years. Like
Malaysia Pakistan Government may constitute National SME Development Council.
SMEDA’s consistent progress and dedicated work over the past 12 years reveal that SMEDA is a real organization to trust. The Ministry of Industries and Production should give maximum incentive to this viable institution.
If we develop industrial infrastructure, make friendly policies for entrepreneurs, prioritize human resource development and more importantly say goodbye to the nuisance of fleeting policies, these measures will over time reduce trade dependence on other countries’ markets and reduce its vulnerability to external pressures or shock.
(By Muhammad Ahmad Sheikh (International Freelance Broadcaster / Journalist / Incharge R & D, Sheikhupura Chamber of Commerce & Industry
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