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The National Entrepreneurship Development
Is SMEDA Working for National Destiny?
The 2009 SME baseline survey could give the National Economy a practical start.
If we examine the history of National entrepreneurship and its development we will see that almost every company we know today started as an SME. Europe, the United States, China and our neighbor India started developing Microsoft industries with little man power in a rented house or in a small industrial unit.
Vodafone as we know it today was once a small subsidiary of Racal; Hewlett-Packard started in a small wooden hut; Google was started by a couple of young kids who thought they had a good idea; even Volkswagen was once a small car manufacturer in Germany.
Small and medium-sized businesses (SMEs) are believed to be key actors in national development and employment creation.
Global trade and manufacturing are now moving east. Small and medium-sized enterprises (SMEs) are a very diverse group of businesses that typically operate in the service, trade, agribusiness and manufacturing sectors.
The uplifting contribution of the National Economy and improving National prosperity the role of small and medium industries is crucial.
In Pakistan small business and cottage industries are important in rural areas. In 2005 infrastructure in remote areas had improved significantly. Most villages are self-sufficient in the basic needs 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 industries
The Government’s support for this practical Institute with its proven track record of success in rural, city and town organizations is crucial. SME SURREY-2009 is a tremendous effort undertaken by a team from Smeda’s policy and planning division under the dynamic leadership of its head Shahid Rashid. This survey conducted by Gallup Pakistan with the financial support of Asian Development Bank is a comprehensive report and guide for SME policy makers. All the chapters of this survey reports draw the attention of the business community as it deals with almost every related aspect related to promoting an entrepreneurial culture.
The objective of this survey is;
• Assess the baseline perception of SMEs on various issues and organisations.
• What are the factors that cause SMEs in Pakistan not to grow.
• Why people (Entrepreneurs, Men and Women) are reluctant to move forward to secure wealth for themselves for the Nation as a whole.
Research and Development are important factors in improving productivity and knowing about new business techniques. The 2009 SME Baseline Survey shows an alarming picture. It states that 45.2 per cent of SMEs do not spend any income on research and development. In general, SMEs are satisfied with the traditional production of the stuff. It is a matter of serious concern. This survey can help the policy maker to devise the future plan for the development of SMEs.
In a symposium held in a local hotel under the auspices of the Small and Medium Enterprises Development Authority (SMEDA) on 18 May, 2009, where famous economists, policy makers, dignitaries from the business community and media professionals were invited.
The Chief Guest Mr. Sartaj Aziz, the former Federal Finance Minister showed his concern that no concrete step has been taken yet to promote the SME sector despite the fact that the government is aware of the obstacles that cause havoc for Small entrepreneurs and Medium. Neglect of merit, political interference and law and order situation are responsible for the current economic condition of Pakistan he added.
Mr. said Awais Mazhar Hussain, a prominent business leader that Small Businesses are the backbone of the National economy if the government takes care of them and supports them properly. Vocational training and better infrastructure can turn the potential into profit in a real sense. Mr. appreciated
He praised Dr. Salman Shah, former Finance Advisor and renowned economist role of Smeda’s policy and planning department for conducting such a useful survey. He was confident that the current survey will be useful in drawing up measures for the support needed for small and medium-sized businesses that are growing as well as for the existing SMEs.
SMEDA could not achieve the high target of developing the widest sector of economy known as SME sector with its current budget of Rs.150 million per annum only.
Thanked Mr. Shahid Rashid, CEO of SMEDA for the financial support provided by Asian Development Bank for conducting this survey. He also admired the efforts of the policy and planning team for their dedicated efforts to prepare a survey report.
Time slips away. China, Malaysia, India are emerging economy. China has declared New Strategies to capture the world Market under the slogan China way of war.
Like the Government of Malaysia, the Government of Pakistan should place the development of small and medium enterprises as a high priority area and this should be reflected in its National development agendas. With consultation with SMEDA’s highly skilled staff the policy makers should prepare the key strategies for the development of SMEs in the coming years. like
Government of Malaysia Pakistan can be National SME Development Council.
The steady progress and dedicated work of SMEDA during the last 12 years reveals that SMEDA is a true organization to trust. The Ministry of industries and production should give maximum incentive to this viable organization.
If we develop industrial infrastructure, make policies friendly to entrepreneurs, give priority to developing human resources and more importantly say goodbye to the nuisance of temporary policies, over time these measures will reduce trade dependence on other countries’ markets and reduce its vulnerability to external pressure or shocks.
(By Muhammad Ahmad Sheikh (International Freelance Broadcaster / Journalist / R & D Incharge, Sheikhupura Chamber of Commerce and Industry
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