Small medium enterprise

1. TPOIC:
SMALL MEDIUM
ENTERPRSISES
(SME)

2. CONTENT:
 1) What is 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:
 Medium Enterprise (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?
 SMEs are 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?
 Contribute significantly 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 Medium Enterprises 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 globally competitive 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 BY SME IN PAKISTAN

11. PROBLEMS FACED BY SME 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.

12. THANK YOU