SME ,Scope of SME , and management

1. GOVERNMENT COLLEGE CHOWK AZAM
ASSIGNMENT OF ENTERPRENEURSHIP
Topic:
Entrepreneurship and small Median
Enterprise
Submitted to:
Sir Azhar
Submitted by:
Saba Murtaza
Roll No: CHEM -1923
Bs Chemistry
2nd
Semester

2. Table of Content
1. Definition of SME
2. Scope of SME
3. Management of SME
4. Financial problems
5. Marketing problems

3. Definition of SME :
SME stand for small to medium enterprise.
Different countries define SME differently Small –and medium –
sized enterprises (SMES)play an increasingly important role in
the global economy ,with a growing proportion now doing
business internationally .The definition of SMES in Pakistan lies
on the number of employees up to 250 people .paid –up capital
up to Rs .25 million and annual sales up to 250 million .There is
no universally agreed definition of small &medium enterprises
definitions ranges from those based on the number of
employees to those based on business turnover and assests .In
france small business was defined as :“A company with less than
10 employees representing over 90 percent of all businesses
and employing one sixth of the total work force .
SME Sector in Pakistan :

4.  3.2 million business units in Pakistan
 Over 99% business units employee less
than 99 person 3.16million SMES
 Generate 78% of non-agri sector
employment
 Direct contribution to GDP over 30%
 Generate 25% of manufacturing Export
Earnings
 Contribute 35% in manufacture value
addition
SCOPE
A business in which minimum one and
maximum of human resources involved
engaged that is called micro business or
entraprices if in any business 10 to 35
peoples are engaged or employed with 2
to 20 million working capital involved these

5. kind of business is called small scale that
also show if less than 2 million working
capital is involve it count in micro business
at the same time if the business is
employing 36 to 99 HR with 22 to 40
capital that business is called medium
scale business According to the published
definition of smeda march 2008 but here
in Pakistan we have multiply concept of
SMEs some institutions 260 HR count as
SME
Structure of scale of SME
Micro small medium
MANAGEMENT OF SME :
SME sector development ,growth and
competitiveness underpin need for a comprehensive
framework to pave way for a complete
entrepreneurial ecosystem in Pakistan

6. 1. LEGISLATIVE ENVIRONMENT :
Despite the improvement of legislation and general
operational environment for business activity in
Pakistan ,the SME sector still face difficulties in a
number of areas ,which negatively influence their
competitiveness currently ,there is no regulatory
impact assessment system in the country for
creation of conductive and SMEs .oriented
regulatory environment there is need for
development of new policies and regulatory
framework that directly promote SMEs sector
growth and competitiveness however ,importantly
the SMEs sector may be engaged to secure inputs
on new legislation.
2. INSTITUTIONAL FRAMEWORK:
SMEs support institutions play a crucial role in SMEs
growth and development despite the existence of
SMEs support institutions in Pakistan there is still a
need for greater involvement in SMEs promotion
strong SMEs support institution will support the
enhancement of SMEs sector competitiveness in

7. every aspect in order to strengthen SMEs
support institution a comprehensive institutional
review may be conducted .
3. SECTORS DEVELOPMENT
APPROACH
In 2005 Pakistan signed an agreement with
USAID ,Pakistan initiative for strategic development
to develop strategy for a few priority sector in
Pakistan SMEDA being the official counterpart on
behalf of government of Pakistan facilitated the
process and the strategy level process was primarily
led through private sector engagement in the form
of strategy working group (SWOG ) the sector
development process resulted in creation of five
sector development companies
Pakistan stone development company :

8. Furniture development company :

10. Pakistan gems and jewelry development
company :
Pakistan dairy development company :
Pakistan Hunting and Sporting Arms
development company :

11. 4. Access to Finance :
The importance of providing SMES with
access to finance has been a recurring and
unanimous concern of the government and
SME development platforms traditional
source of formal financing commercial
leans and leasing products have reached a
celling in tapping the SME sectors
financing potential the main problems for
SMES in developing countries is not their
small size but their isolation
 Lack of acces to market
 Lack of financial
 Lack of information
 Instituational support
(a) Credit guarantee scheme
(b) Equity participation fund
Financial Problem :

12. The backbone of any economy is the small and
medium enterprise (SMES ) since they are the
primary contribution in the employment sector in
most developing and developed countries .However
access to finances for SMES is often problematic of
challenging compared to the financing possibilities
of the financing scopes that large corporation or
firms .financing is often one of the major problem
of SMES .A study conducted by the international
finance corporation (IFC)in 2011 estimated
that the world credit has to increase approximately
b/w 900 and 1,100 billion U.S dollars to meets
the demand of financing of the formal SMES asound
the world .there are several reasons that have led to
the problems of SMES receiving financing some of
them are
 SMES by nature are informal and young
 They have less credibility in the market
 SMES does not provide much
information about their business in the
public that is readily available
 They operate in unfomiliar sectors

13.  Often not enough assets for collatend
 SMES also find it difficult to list in the
capital market as it is quite costly
Marketing problem :
SMES often find marketing a challenge .We look
at five of the most common challegenes SMES
reports to us when it come to marketing
Challenge #1
 Money :
Very few companies can afford to spend millions
on their marketing but SMES are often faced
with extremely limited budgent for promoting
their products and services direct mail ,digital
marketing and professional websites SEO tools
and social media schedulers etc . pay for all
these resources on top of any advertising spend
can soon eat up any spare cash from the
marketing finds .overcoming the challenge
 Main solution of this challenge .
 Careful planning .

14.  If you have limited money you need to make
sure you are sponding it on activities that
generat returns and this is something you can
only find out through analysis and
testing .there’s lots of cost saving tips enough
to fill another blog piece ,but now here’s two
key one .
For managing social media and SEO etc when it
comes to payperclick (PPC) adavertising . try
tangeting longer tail keywords .for example :Buy
women’s red shoes size 10“ Rather than just
woman’s shoes they ‘ll (procedure )produced
less traffic but are (usually)
Cheaper and someone searching on this term is
likely to be . closer to purchasing so returns can be
much higher
Challenge #2
 Time:
There is never enough time in the day moderns
marketers need to plan do review and use those
findings to influence the next plan if you’re not

15. doing any of these stages you will be missing out on
gaining prospects and sales finding enough time to
markets across all of these’ and do it well ,is an
almost impossible task.
Overcoming the challenge :
As with money the secret is in planning and
prioritising spend your time like money and
concentrate on those things that generate the best
returns , for each new task arising that isn’t in the
plan consider the effort involved ,the value it would
generate and consequences of it not being done ,
before jumping straight into completing it .
Challenge #3
 Knowledge :
Marketing is a very dynamic world .new
technologins and methods are announced daily and
theories are now much more .complex than the ups
that were around in the “good old days “ Having the
knowledge , confidence to use all the online tools
available can be a major challenge .
Overcoming the challenges :

16. There are many free resources and blogs you can
sign up for such as hubspot or smart insights .make
sure you make time each week to actually read
them and learn from them Alternatively , network
with other marketers who ‘d be happy to act as
mentors or just someone to bounce idea off.
Challenge #4
 Measuring returns :
Marketing has traditionally seen as hard to track it
can be difficult to see the returns gained from
money you’ve spent Digital has made this task so
much easier with a wealth of tool to analyso
everything from the where your website visitor live
to your when your twitter followers are most likely
to be looking at their account .
Overcoming the challenge :
When you planning make sure your objectives are
smart so you know exactly what you have to track
and measure to determine if efforts are paying off in
most cases this will be sales revenue and profit but
other measures can include brand engagement on

17. social media .Most online tools have excellent help
guides and forums so use them
 Generating more leads
The ultimate aim for most marketer is to targot and
engage prospects to turn them into actual customer
(usually with the help of sales teams ) all customer
move through a buying cycle
discovery ,research ,somparison and purchase etc.
Overcoming the challenges :
Know your prospects and customers .firstly ,know
who you buy from you .base this on previous sales
information so you target the most profitable and
most convertible prospects and avoid time wasters :
Secondly
 Set target and what gets their interest and
what make them take action these are usually
pains and problems they face and are seeking a
solution for

18. THANKS