International research identified that small medium enterprises (SMEs) are essential agents of inclusive growth. These businesses collectively employ greater people than enterprises of any other size. Mainly in the developing world, small businesses sustain the livelihoods of hundreds of millions of people, offering much-needed career opportunities for low-skilled workers and rural communities. As such, small businesses require and deserve external support, but its effective and efficient delivery is no easy feat.
| SMEDA Over The Counter (OTC) Services | ||
|---|---|---|
| Sr. No. | Initiatives | July-March FY2022 |
| 1. | SME Facilitation | 4,314 |
| 2. | Pre-feasibility Studies Development (New & Updated) | 68 |
| 3. | Investment Facilitation (RS million) | 579.5 |
| 4. | Business Plans | 15 |
| 5. | Training Programs | 203 |
| 6. | Theme Specific Helpdesks | 74 |
| 7. | Cluster / District Profiles (New and Updated), Diagnostic / Value Chain Studies | 16 |
| 8. | SMEDA Web Portal (Download Statistics) | 366,995 |
| 9. | SME Observer | 1 Issue |
| 10. | SMEDA Newsletter | 3 Issues |
| Source: SMEDA | ||
According to the Economic Survey of Pakistan FY 2022, Small and Medium Enterprises Development Authority (SMEDA), the apex SME development organization of the Government of Pakistan, has an all-encompassing mandate of fostering growth of the SME sector. It is recorded that SMEDA’s broad portfolio of services includes; business development services, infrastructure development by organizing common facility centers, industry support for productivity enhancement and energy efficiency, human capital development by its training programs, and SME related projects with international and national development partners.
The present government of Pakistan assigns high priority to SME development and creation of a conducive business environment for SMEs in the country. In order to create a facilitative economic environment where SMEs can exploit emerging opportunities in the local and global market, through SMEDA draft National SME Policy has been developed.
Draft National SME Policy mainly focuses on job creation, export enhancement and increased contribution of SMEs to the economy of Pakistan. The Policy shall address it is also recorded, core SME development problems, including; access to finance, business development services (HR development, technology, marketing, market access, standards and certifications), simplification & rationalization of taxation regime and reduction in cost of doing business. Other areas include IT, e-commerce, women entrepreneurship, dairy and livestock sector, etc. to promote growth by a sectoral approach. A cohesive strategic framework for business facilitation across the public sector institutional infrastructure, both federal & provincial, has also been developed to support holistic implementation of the Policy, under the rule of ease of doing business.
The Draft National SME Policy presently has been submitted to the Ministry of Industries & Production for review and subsequent submission to the Federal Cabinet for approval. Furthermore, NBDP has been developed, for offering SME start-up support & business improvement by practical, on-ground services to SMEs. The Project shall be instrumental in organizing latest enterprises and building the capacity of existing enterprises by provision of Business Development Services (BDS), like; marketing, technology, incubation, research & development and organizational development services.
Statistics showed that the program envisages to facilitate 314,901 SMEs, over a period of 5-year. The total cost of project is Rs 1954.978 million out of which an allocation of Rs 250 million has been made for FY2020. In February 2020, SMEDA introduced its Organizational Development (OD) grants program. OD Grant up to Rs 500,000 will be offered to support 150 SMEs. SMEDA’s largest capacity building initiative comprising of 3,800 training programs during 5 years in Pakistan counting Federal Capital, AJK & GB has also been introduced under NBDP.
A total of 15,000 SMEs will be targeted by this initiative in FY2020. In FY2022, 228 training programs have been conducted with 9,070 participants. Programs include business startup and management, HR, sales, marketing, regulatory / legal requirement and soft skills for effective business operation management. Moreover, 76 theme specific programs / helpdesks with 1,240 participants have also been held and 06 Over the Counter (OTC) documents have been developed. According to the government report, SMEDA was awarded a contract for a project titled ‘Feasibility/ Research Study on Cluster Development Based Mineral Transformation Plan/ Vision 2025’ through the Planning Commission. The Project entails an extensive study of 20 mineral clusters of Pakistan. By the project, the government of Pakistan intends to develop latest mineral clusters besides enhancing the efficiency of existing ones throughout the value chain i.e. supply-chain development, market intelligence, attraction of FDI & enhanced processing. During the period, 05 Value Chain studies, 14 Cluster studies, and project proposals for Gypsum value addition & Advanced Granite Processing Unit, Mansehra were developed.
SMEDA, during Jul-Mar Fy2020 has initiated following PSDP funded projects:
- Product Development Center for Composites Based Sports Goods, Sialkot:
- Fruit Dehydration Unit, Swat:
- SME Business Facilitation Center (SMEBFC), Multan:
- Business Skill Development Centers for Women at Dera Ismail Khan:
Special projects with international development partners
- SMEDA Industrial Support Programme:
- Economic Cooperation & Development Forum (ECDF) under FATA Economic Revitalization Programme (FERP) – UNDP Funded Project