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Small medium enterprise
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- 2. CONTENT: 1) Whatis SME 2) Why SME 3) SMEDA 4) Role of SME 5) Problems faced by SME in Pakistan
- 3. What is SME? Small Enterprises : As defined by State Bank of Pakistan //A small Enterprise (SE) is a business entity which does not employ (including contract employees) more than 50 and annual sales turnover is up to Rs.150 million. Sometimes called a small business, a small-scale enterprise is a business that employs a small number of workers and does not have a high of sales
- 4. Medium Enterprises: MediumEnterprise (ME) is a business entity, ideally not a public limited company which employs (including contract employees) more than 50 employees and less than 100 employees in case of trading establishments. In case of manufacturing & service establishments, employs more than 50 employees (including contract employees) and less than 250 employees. For all MEs annual sales turnover is over Rs.150 million and up to Rs.800 million. Medium Enterprises can be extended finances over Rs.25 Million to Rs.200 Million.
- 5. WHY SME? SMEsare considered the engine of economic growth in both developed and developing countries, as they: Provide low cost employment since the unit cost of persons employed is lower for SMEs than for large-size units. Assist in regional and local development since SMEs accelerate rural industrialization by linking it with the more organized urban sector. Help achieve fair and equitable distribution of wealth by regional dispersion of economic activities.
- 6. WHY SME? Contributesignificantly to export revenues because of the low-cost labour intensive nature of its products. Have a positive effect on the trade balance since SMEs generally use indigenous raw materials. Assist in fostering a self-help and entrepreneurial culture by bringing together skills and capital through various lending and skill enhancement schemes. Impart the resilience to withstand economic upheavals and maintain a reasonable growth rate since being indigenous is the key to sustainability and self-sufficiency.
- 7. SMEDA Small and MediumEnterprises Development Authority - SMEDA, Premier institution of the Government of Pakistan under Ministry of Industries & Production. SMEDA was established in October 1998 to take on the challenge of developing Small & Medium Enterprises (SMEs) in Pakistan. With a futuristic approach and professional management structure it has focus on providing an enabling environment and business development services to small and medium enterprises. SMEDA is not only an SME policy-advisory body for the government of Pakistan but also facilitates other stakeholders in addressing their SME development agendas.
- 8. SMEDA Vision: "Growth of globallycompetitive SME sector, through a conducive environment and support services, serving as an engine of sustainable growth for national economy“ Mission Statement: "To assist in Employment Generation and Value Addition to the National Income, through Development of the SME Sector, by helping Increase the Number, Scale and Competitiveness of SMEs"
- 9. ROLE OF SME 1) Share in industrial output 2) Employment generation 3) Equitable distribution of national income 4) Regional dispersal of industries 5) Contribution to export
- 10. PROBLEMS FACED BYSME IN PAKISTAN
- 11. PROBLEMS FACED BYSME IN PAKISTAN Pakistan ‘s SMEs are still unable to achieve their maximum potential and are in dire need of ‘hand-holding’ and business support services.
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