The document discusses small and medium-sized enterprises (SMEs) in Pakistan. It defines SMEs in Pakistan as businesses with fewer than 250 employees, paid-up capital of less than 25 million Pakistani rupees, and annual sales of less than 250 million Pakistani rupees. SMEs make up over 3 million businesses in Pakistan and employ around 80% of the workforce, contributing significantly to Pakistan's GDP and exports. However, Pakistani SMEs face barriers such as inadequate access to financing, a shortage of skilled labor, lack of technological know-how, minimal quality standards, and insufficient government support for promoting products overseas.

1. Small & Medium Sized Enterprises: A Pakistani Perspective
SME's Defined: SME stands for 'Small and Medium Sized Enterprises'. The main criterion for
assessing, whether a business is an SME, include;
No. of employees working in the organization; and
Annual turnover or actual worth of the business
Different countries have set up different definitions and criterion for the SME's. Pakistan's SME
Policy Document of 2007 on page 14 defines SME as having following characteristics;
Enterprise Category Employment Size Paid up Capital Annual Sales
Small & Medium Up to 250 Up to 25 million Up to 250 million PKR
Enterprise (SME) PKR
SME's in Pakistan:
Pakistan is home to nearly 3.2 million SME's (Kureshi et al., 2010) but the basic problem
facing researchers in this area is the shortage or complete non existence of data. This problem
majorly stems from the undeveloped SME sector of Pakistan. It is eminent realized that in
those 3.2 million SME's, only some hundred employ modern management techniques. Past
researchers in developing or emerging economies lay a lot of focus on SMEs as they tend to
play a crucial role in economic development. SME's are now considered one of the leading
economic drivers for developing countries (Schlogl, 2004).
As described earlier, due to non existence of up to date information, most of the data is taken
Pakistani SMEs: Business Sectors and Percentage Share
Percentage Share
Others Wood & Jewelery Grain Milling Art Silk Carpets Metal Other Cotton
Furniture Products Textiles Weaving
Source: Economic Survey of Pakistan, 2003 - 2004

2. from previous researches. The chart above shows the percentage share of SMEs with their
respective business sectors in Pakistan's economy. This data was made available in 2003-
2004 and condition of SMEs has been turned increasingly well during the recent times.
Other important statistics available regarding SMEs in Pakistan include following;
Employment GDP Export Earning
80% 30% 25%
Source: Economic Survey of Pakistan, 2003 - 2004
With SMEs providing employment to almost 80% of the workforce, their importance can be
easily understood for Pakistan. However, SMEs sector suffer in Pakistan due to inadequate
resources and insufficient technical knowhow. A detailed description of which is given
below;
Barriers to Entry for SMEs & Real Life Problems for Entrepreneurs in Pakistan
SMEs in Pakistan have struggled since its very inception in 1947. From the very start,
Pakistan faced economic issues in the form of insufficient financial resources. There wasn't
any banking sector to support the businesses and due to the unequal distribution of income,
money remained within selected families who then were interested in setting up larger
manufacturing units but lacked skilled manpower. The SME sector developed in Pakistan in
1980's when entrepreneurs in districts like Lahore, Gujrat, Gujranwala and Sialkot started
manufacturing sports equipment, fans, surgical equipment and handicrafts. The principle
issues to SMEs include;
1. Unavailability of adequate financing
2. Shortage of skilled labor force
Example: I belong from District Gujrat which is home to SMEs engaged in fan manufacturing and
pottery. One of the biggest fan manufacturers in Pakistan named 'Royal Fans' is also in the same city.
With an estimated production of 1.5-2 million fans every year, the owners were looking to employ a
sales director who could increase sales by 20-25% in order to reduce idle capacity losses. Organization
kept on looking for individuals but for the last 13 months they are unable to find a suitable and
competent professional. According to them a person with a high profile experience prefers to stay in
big cities and likes working in multi nationals with a higher salary. Moreover, while my visit to the
factory in November 2011, the Production Manager told me about the difficulties regarding the
shortage of technical and operational level staff.

3. 3. Inefficiencies in production due to lack of technological knowhow
4. No or very minimal quality standards
5. Inadequate government support to promote products overseas
Just write some details under these headings. If you write 100 words in
each that will be 500 and the word count will go to 1000. Just make up
some examples if you can. Its easy. I made up one as u can notice.