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Small & Medium Enterprise (SME)
 

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SME in Reviving Economy.... and role of Management Accountants to revivify SME catergory business. (pakistan)

SME in Reviving Economy.... and role of Management Accountants to revivify SME catergory business. (pakistan)

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    Small & Medium Enterprise (SME) Small & Medium Enterprise (SME) Presentation Transcript

    • SMALL & MEDIUM ENTERPRISE (SME) Presenter: Aamir Ali Stage III Institute of Cost & Management Accountants of Pakistan
    • Turning Potential Into Profit . . .
      • Why SME
      • SME In Pakistan
      • Obstacles & Solutions
      • The Step To Future
    • WHY SME ?
      • SME IS NOT A SECTOR OF ECONOMY
      • BUT
      • IT IS A CATEGORY OF ECONOMY
      SME IS THE BEST REVIVER !
    • POTENTIAL OF SME
      • Creates Large Scale, Low Cost Employment Opportunities
      • Uses Locally Available Inputs
      • Mobilizes Small & Scattered Savings
      • Develops Entrepreneurship
    • SME IN PAKISTAN
      • SME POLICY DEFINES SME AS:
      • Business Category With :
      • . EMPLOYMENT SIZE up to 250 PERSONS
      • . CAPITAL `` Rs. 25 MILLION
      • . SALES `` Rs. 250 MILLION
    • SME & EMPLOYMENT
    • SME: GDP & EXPORTS GLOBAL BANGLADESH PAKISTAN COUNTRY 40 - 50 30 40 % OF GDP -- 55 25 % OF EXPORTS
    • OBSTACLES
      • FINANCING
      • INFLATION
      • TARIFF ANOMALIES
      • RISK MANAGEMENT
      • LOW PRODUCTIVITY
    • OBSTACLE: FINANCING
      • COMMERCIAL BANKS GAVE LESS THAN 12% OF TOTAL LOANS!!
      • GRAMEEN BANK’S EXPERIENCE
      • MANAGEMENT ACCOUNTANTS:
      • POINT OUT LESS RISKY BUT MORE PROFITABLE BUSINESS
    • OBSTACLE: INFLATION
      • SHUT DOWN BUSINESS
      • DECREASE PROFIT
      • INCREASE PRICES
      • BUT GLOBAL COMPETITION !!!
      UNDESIRED
    • INFLATION…
      • MANAGEMENT ACCOUNANTS TECHNIQUES:
      • MARKETING STRATEGY
      • PRICING STRATEGY
      • TRANSPORTATION MODELING
      • LINEAR PROGRAMMING
    • OBSTACLE: TARIFF ANOMALIES
      • LACK OF KNOWLEDGE OF:
            • TAXATION LAWS
            • GLOBAL MARKET INFORMATION
      • MANAGEMENT ACCOUNTANTS ROLE:
      • TAX CONSULTANTS
      • MARKETING MANAGERS
      • GLOBAL INFORMATION BUT LOCAL WISDOM
    • OBSTACLE: RISK MANAGEMENT
      • 45% DON’T ALLOCATE BUDGET FOR R&D
      • PHILOSOPHY: PRODUCE, SALE AND EARN
      • DON’T MAINTAIN FINANCIAL DISCIPLINE
      • MANAGEMENT ACCOUNTANTS ROLE:
      • BUSINESS ANALYSTS
      • BUSINESS RISK MANAGERS
    • OBSTACLE: LOW PRODUCTIVITY
        • 36% SME FAIL WITHIN 5 YEARS !!!!!
      • MAJORITY IS NOT GETTING GOOD RETURN….
      WHY? MANAGEMENT ACCOUNTANTS: “ USE OF TRADITIONAL METHODS OF COST REDUCTION”
    • COST REDUCTION APPROACHES MANAGEMENT ACCOUNTANT’S TRADITIONAL Reduce Unnecessary Process from Production Reduce Parts of Production Reduce Inefficiencies Hire Cheap Labor Effective Utilization of Material Use of Sub-standard Material Accounting Fixed Cost and Capacity Determination No Such Concept Effective Pricing Strategy Not as Efficient as Management Accountants can do
    • THE STEP TO FUTURE
      • CHALLENGES CAN BE MET PROFITABLY!!
      • “ IF STRATEGIC LEADERSHIP OF MANAGEMENT
      • ACCOUNTANTS” IS GIVEN THE TASK OF POLICY
      • MAKING AND MANAGING ECONOMIC AFFAIRS… TO
      • REVIVE THE ECONOMY.”