SMEDA

BY ::RASOOL

HAROON

CMS ID:- 21911

st

CIVIL 1 SEMESTER (FALL

2012)

SMEDA
TABLE OF CONTENTS
TOPIC
Chapter 1 INTRODUCTION
1.1 :SMEDA Vision
1.2 :Mission Statement
1.3 :SMEDA Objectives
1.4 :SMEDA SMEs Definition
1.5 :SME Definitions used by various institutions in Pakistan
1.6 :SMEDA organogram
1.7 :Introduction - Board of Directors

PAGE NO
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4
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5
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Chapter 2 Business Opportunities

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6
6

Chapter 3 Business Development

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2.1 :International Business Opportunities Service

2.2 :Business Matchmaking Service
3.1 :Business Guides
3.2 :Pre-feasibility Studies
3.3 :Regulatory Procedures
3.4 :Sector Briefs
3.5 :SMEDA Publications

Chapter 4 SMEDA Services

4.1 :Training Services

4.2 :Business Plan Development Services
4.3 :Financial Services
4.4 :Policy and Planning: (Role of Policy & Planning
Department)
4.5 :Legal Services: (Legal Services for SMEs)

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Chapter 5 SECTOR DEVELPOMENT

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Chapter 6 SMEDA Projects

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5.1 :Dairy Sector: (Sector Significance)

5.2 :Gems & Jewellery Sector
5.3 :Agribusiness Services at SMEDA (B&SDS)
(Agriculture & Horticulture Sector)
6.1 :Women Business Incubation Center
6.2 :Industry Support Program
6.3 :SME Cluster Development
6.4 :Public Sector Development Programme PSDP

7.1:REFERENCES

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1:INTRODUCTION
SMEDA was establish in October 1998 to take on the challenge
of developing small and 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 advisor body for the government of Pakistan but also facilitates other stockholders in
addressing their SME development agendas.

1.1 :SMEDA Vision:Growth of globally competitive SME sector through a conducive

and facilitating environment and support services as an engine of growth and sustainability to
national economy.

1.2: Mission Statement

To function as the promoter & facilitator of SME sector in
Pakistan by creating a conducive and facilitating environment as well as providing and
facilitating service delivery to SMEs for enhancing their capacities and competitiveness.

1.3: SMEDA Objectives:1. Formulate Policy to encourage the growth of SMEs in the country and to advise the
Government on fiscal and monetary issues related to SMEs.
2. . Facilitation of Business Development Services to SMEs.
3. Facilitate the development and strengthening of SME representative bodies
associations/chambers.
4. Set up and manage a service providers database including machinery and supplier for SMEs.
5. Conducting sector studies and analysis for sector development strategies.
6. Facilitation of SMEs in securing financing.
7. Strengthening of SMEs by conducting and facilitating seminars, workshops and training
programs.
8. Donor assistances for SME development of SMEs through programs and projects.
9. Assist SMEs in getting international certifications (such as UL, CE, DIN, JIS, ASME, KS,
etc.) for their products and processes.
10. Identification of service opportunities on the basis of supply/demand gap.

1.4 :SMEDA SMEs Definition: -

Small &
Medium Enterprises are defined as follows, as approved in SME Policy 2007
Enterprise Category

Employment Size (a) Paid Up Capital (b) Annual Sales (c)

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SMEDA
Small & Medium Enterprise (SME) Up to 250

Up to Rs. 25 Million

Up to Rs. 250 Million

1.5 :SME Definitions used by various institutions in Pakistan:Institution

Small

Medium

SME Bank

Total Assets of Rs. 20 million

Total Assets of Rs. 100

Federal Bureau of
Statistics

Less than 10 employees

N/A

Punjab Small Industries Fixed investment. up to Rs. 20 million

excluding land and building
Corporation

N/A

Punjab Industries
Department

Fixed assets with Rs. 10 million excluding cost of land

Sindh Industries
Department

Entity engaged in handicrafts or manufacturing of consumer or producer

goods with fixed capital investment up to Rs.10 million including land &
building

State Bank of Pakistan

(SME Prudential
Regulations)

An entity , ideally not being a public limited company, which does not
employee more than 250 persons ( manufacturing) and 50 persons (trade /
services) and also fulfills one of the following criteria:
(i) A trade / services concern with total assets at cost excluding land and
buildings up to Rs 50 million.
(ii) A manufacturing concern with total assets at cost excluding land and
building up to Rs 100 million.
(iii) Any concern (trade, services or manufacturing) with net sales not
exceeding Rs 300 million as per latest financial statements.

SME Definitions in selected Asia Pacific Economic Cooperation (APEC) member countries

Enterprises exporting up to US$2.5 Million a year are considered Small by the State Bank of
Pakistan.
Country
Australia
Canada
China

Sector

Employment

Manufacturing

Less than 100 employees

Services

Less than 20 employees

Manufacturing

Less than 500 employees

Services

Less than 50 employees

Varies with
Industry

Usually less than 100 Employees

Indonesia
Japan*

Less than 100 employees

Manufacturing

Less than 300 employees

100 million assets

Wholesaling

Less than 100 employees

30 million assets

Retailing-Services Less than 50 employees

Korea
Malaysia

Other Measures

Manufacturing

Less than 300 employees

Services

Less than 20 employees

Varies (for SMI)

Less than 75 employees (Different for

Bumiputra Enterprises)

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10 million assets

Less than RM 2.5 million

SMEDA
Philippines
Singapore

Less than 200 employees

less than S$12 million

fixed assets

Manufacturing

Services
USA

P 40 million assets

Less than 100 employees

Less than 500 employees

1.6: SMEDA Organogram

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SMEDA

1.7: Introduction - Board of Directors:Minister of Industries, Production & Special Initiatives

Secretary Ministry of Industries, Production & Special Initiatives
Secretary Ministry of Commerce Secretary Ministry of Finance Chairman Central Board of
Revenue Chief Executive Officer SMEDA
Private Sector:
Mr. Almas Hyder Chief Executive Officer Synthetic Products Enterprises (Pvt.) Ltd. Mr.
Mansur Khan President/Zarai Taraqiati Bank Limited.
Mrs. Amna Nasir Proprietor, Arts & Gems Exports
Dr. Fasial Bari Executive Director Mahboobul Haq Human Development Centre
Engr. Squadron Leader (Rtd) Nauman Wazir, Chief Executive Officer, Frontier Foundry
(Pvt) Ltd.
Mr. Kamal-ud-din Ahmed, Chairman/Chief Executive Sika (Pvt) Ltd.

2: Business Opportunities:2.1 :International Business Opportunities Service:SMEDA is providing a unique

service to facilitate SMEs by promoting business-to-business relationships. SMEDA's role is
that of a matchmaker and we provide a platform for SMEs to come together and explore
different areas of cooperation using SMEDA's databases and web-site. Now anyone can look
for joint ventures, buy running business, form equity partnership, look for agents or
distributors franchises and other business investment opportunities through this initiative.
Following is the list of available business opportunities:Business Title / Description
Chemicals
Biodegradable Wound & Burn Healing Dressings,
Chemicals, Chemical Processes & Technologies

Fire and Rescue Equipment

.Fire Equipment
Food
Exporting Food Products
Information Technology
MYSQL AB is looking for new Gold partners
etc..

2.2 :Business Matchmaking Service:-

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Country

Validity

Czech Republic

On Going

China

On Going

Iran

On Going

Japan

On Going

SMEDA
SMEDA is providing a unique service to
facilitate SMEs by promoting business-to- business relationships. SMEDA's role is that of a
matchmaker and we provide a platform for SMEs to come together and explore different areas
of cooperation using SMEDA's databases and web-site. Now anyone can sell their business,
look for joint ventures, buy running business, form equity partnership, look for agents or
distributors through this initiative.

3: BUSINESS DEVELOPMENT:3.1 :Business Guides:Business Guides provide information and web links intended for
entrepreneurs who want to start new businesses or expand the existing ones.
Business Guides like :

Copyrights Registration Procedure .

Custom Clearance Procedure for Export .
Custom Clearance Procedure for Import .
Export to Afghanistan .
Export Process Flow, Procedure & Doc.
Export Processing Zone .
Import Regulations in the EU .
Import Regulations in the USA .
How to Obtain Finance from First Women Bank Limited .
To Obtain Finance from SME Bank .
Obtaining Financing under the Export Finance Scheme .
Company Registration Process .
Legal Guide for Gemstones and Jewelry Sector .

3.2 :Pre-feasibility Studies:Pre-feasibility studies are well researched yet generic

due diligence reports that facilitate potential entrepreneurs in project identification for
investment.
The main objective of the pre-feasibility studies prepared by SMEDA is to provide
information about investment opportunities to the small & medium enterprises (SMEs). A
typical pre-feasibility study provides: Comprehensive information for investment opportunity in a business.
Specific information regarding different business areas like, marketing, technical,
industrial information etc. for the existing entrepreneurs to improve their exiting setup.
Project investment information and financial projections to support viability of the

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business.

3.3 :Regulatory Procedures:SMEDA Regulatory Procedures have been developed to

disseminate information and to assist Small & Medium Enterprises on existing regulatory
environment, through user-friendly systems, providing detailed description of laws &
regulations, including processes required for compliance while doing business in Pakistan.

3.4 :Sector Briefs:One of the objectives of SMEDA is to provide fresh impetus to

Pakistans economy through an aggressive Sectoral Development program. Its role in this
regard will be recommending policy guidelines to the government for development of small
& medium businesses.
The sectors have been selected on the basis of criteria like:
* Growth Rate
* Significant SME Presence
* Labor Intensity
* Sustainable Competitive Advantage
* High Value Addition & Export Potential

3.5 SMEDA Publications:Small & Medium Enterprise Development Authority,

SMEDA, has initiated a process of articles, books & other publications to create awareness
among the general public on optimal business practices, regulatory issues, GOP schemes, new
business concepts, etc.

4: SMEDA SERVICES:4.1 :Training Services:SMEDA organizes training programs, seminars, workshops and
conferences of short duration in major cities across the country for raising awareness and
capacity building of SMEs. These need based training programs are affordable, appropriate
and innovative. These programs are aimed at improving knowledge, skills and competencies
in the technical, marketing, financial, compliance, policy, regulatory, legal, commercial and
other important functions. These programs help to improve major performance
indicators such as productivity, quality, competitiveness and sustainability etc. The results
include improvement in export potential, investment promotion, business transparency,
human resource development, managerial capacity building etc. These programs help
decreasing the level of SME mortality and increasing efficiency.

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SMEDA

4.2 Business Plan Development Services:Business Plan development services is

one of the key services provided to enable existing as well as potential investors to make well
researched and informed investment decisions. A business plan is a plan that enables a
business to look ahead, allocate resources, focus on key points and prepare for problems and
opportunities presented by changing business environment.
Generally people think of business plans, first for starting a new business or applying for
business loans. However, business plans are also vital for managing an existing business,
whether or not the business needs new loans or new investments. Businesses need plans to
optimize growth and development according to plans and priorities.
A business plan acts as a communication tool, which can be used to attract investment
capital, secure loans, and assist in attracting strategic business partners. As a management
tool, a business plan helps in tracking, monitoring and evaluating the progress of a business.
As a planning tool, the business plan guides an entrepreneur through the various phases of the
business, which helps in identifying roadblocks and obstacles that can be avoided.

4.3 :Financial Services:Financial Services Group (FSG) is one of the support units of
SMEDA. As the name suggests, FSG is responsible for all financial consulting and advisory
services that SMEs may require. As for all the support functions, FSG caters to both internal
sector teams as well as any external walk-in SMEs. In addition to such consulting services,
FSG also acts as coordinator of government schemes, which involve financial institutions.

4.4 :Policy and Planning: - (Role of Policy & Planning Department):Policy & Planning Division of SMEDA has dual focus internal & external. It plays
a key role in devising and coordinating policies, action plans and strategies for SMEDA
operations. On the other hand it has a mandate to carry out research, communicate with
stakeholders and advocate policies with different tiers of the government with an ultimate
objective of creating a conductive business environment for SMEs in Pakistan. P&P is the
hub of policy and regulatory research that provides SME specific policy input to all tiers of
government, government agencies and institutions, SME associations, industrial clusters and
individual entrepreneurs.

4.5 :Legal Services:- (Legal Services for SMEs)

Welcome to SMEDA Legal
Services! We add value to the business of Small and Medium Entrepreneurs (SMEs) through
facilitation in: (a) resolving their legal problems (b) creating awareness of legal rights (c)
disseminating information on existing regulatory requirements through training courses,
seminars, self help manuals and guides, (d) frequently asked questions, and (e) interaction

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with regulatory authorities and service providers for removing legal impediments.

5: SECTOR DEVELPOMENT:5.1: Dairy Sector:- (Sector Significance)

Agriculture is the largest sector of the
Pakistani economy, contributing 23 percent to the GDP and involving 42 percent of the total
labor force. Livestock is the largest of the various agriculture sub sectors. Net foreign
exchange earnings from livestock products and by products like meat, skins, hides etc were
more than Rs. 53 billion in 2003-04 (Source: FAO-Economic & Social Department Reports)
that is about
11 percent of the overall export earnings of the country.
Livestock accounts for 46.8 percent of agricultural value added and about 10.8 percent of the
GDP. Milk is the largest commodity from the livestock sector accounting for 51 percent of the
total value of the sector. The farm gate value of milk is estimated to be more than Rs. 390
billion.
Pakistan is the Fifth largest producer of milk in the world with a total production of 28 billion
liter of milk a year, whose value is more than that of the combined value of wheat and cotton,
from a total herd size of 27 million milk animals (buffaloes and cows).
There is a consensus among the stakeholders and the development experts that Pakistans
Dairy Sector has immense potential for growth. The same has not been realized due to various
gaps.
The vital missing link being lack of shared vision and strategy for the development
and lack of effective collaboration among the stakeholders including support institutions and
the government agencies to implement the agreed strategy.

5.2 :Gems & Jewellery Sector:The art & craft of fine quality jewellery manufacturing
are deeply rooted in the traditional heritage and history of Pakistan. It was however in the
Mughal period that the artisan class of goldsmiths arose to attain a distinct status in the
subcontinent. The most famous among the various jewellery types that emerged during the
times of the Mughals include, Minakari, Kundan, Polki, and Nauratan, etc. Presently,
metropolitan cities of Lahore and Karachi are the major hubs of jewellery manufacturing.
There are more than thirty major cities and nearly three hundred smaller cities/mandi towns
where jewellery manufacturing and trading clusters cater to domestic demand. In addition,
there are at least 45,000 villages where jewellers operate as single-shop, manufacturing and
selling units to meet the demand of rural population.

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Pakistan is a country with a population of more than 150 million people and a rich tradition of
craftsmanship in jewellery manufacturing. Skilled/semi-skilled labour force is available at
relatively lower rates, which offers a comparative advantage to the country. Their skill
enhancement through training would lead to greater competitiveness.
Currently, Pakistan imports more than one hundred and twenty tones of gold per
annum, which makes it the eighth largest consumer of gold in the world. In the year 2002,
Pakistan exported gems & jewellery worth US$32 million (which went down to US$28.2
million in 2003). Although, the volume of exports of gems & jewellery from Pakistan is of no
great significance in the total global trade of US$84.4 billion and much lower than India,
which is our biggest regional competitor, but the growth potential of exports in the sector is
huge
Gems & Jewellery Sector Strategy:The strategy is a combined effort of Gems &Jewellery
Industry's stake holders, SMEDA (MOIP&SI) and J.E Austin Inc (USAID). It is for the first
time that a working Strategy from mine-to-market has been developed and is based on first
hand information from the different stakeholders rather than relying on the secondary data
available. The methodology applied was studying the value chain analysis and recommending
solutions to the problems and designing possible pilot projects for immediate implementation.
Recommendations for Geological Survey of the Balochistan and NWFP.
Introduction of Modern Technology and Methods of Mining.
Establishment of Gems Trading House/Bureau at Karachi, Peshawar and Quetta.
Establishment of Cutting Centres in Peshawar, Karachi and Lahore.
Developing Training Facilities in the Cutting, Gemmology, Designing and
Manufacturing.
Quality Control - Hallmarking and Assaying Facilities as well as Gem labs for
Certification.
Marketing and Branding Initiatives, i.e., domestic market trend surveys,
Website development, policy/regulatory changes to improve enabling environment for
exports, seminars and Exhibitions.
Development of Infrastructure i.e. logistics, financial, services, insurance and MIS
system.

5.3 :Agribusiness Services at SMEDA (B&SDS) (Agriculture &

Horticulture Sector):SMEDA is a facilitating body working for the development of

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SMEDA
SMEs in the country. Business and Sector Development Services (B&SDS) department of the
SMEDA is responsible to provide technical assistance to SMEs. Agribusiness Development
Services of B&SDS is providing proactive technical and managerial assistance to agro SMEs
in the country.
Future Initiatives
To improve productivity, competitiveness, market intelligence and to
improve access to financing for small and medium agricultural enterprises (as timely
availability of credit is the main hindrance in the productivity of Agri SMEs).
Increasing access to agribusiness finance available from financial institutions to agroenterprises for new starter or enhancing capability of existing entrepreneurs.
Providing capacity building for horticulture and agriculture (agribusiness); streamlining the
collection and dissemination of market information; strengthening agribusiness technical
training capacity; upgrading institutional linkages (Private Public Partnerships, building
awareness for the need to comply with international agricultural product standards and
practices.
Revising and updating the agribusiness related regulatory policy issues and to formulate a
national agribusiness policy in consultation with all relevant stakeholders.
Stakeholders Involvement Plan
For execution of the initiatives taken by Agribusiness
Development Services SMEDA stakeholders from complete value chain will be involved in
formulating Policy guidelines and future plan of action for enhancement of capabilities of
Agro SMEs in Pakistan. Proposed stakeholders may include Farmers Associations,
researchers at academia and at research stations, different Government departments involved
in policy making or decision making process

6:SMEDA PROJECTS:6.1: Women Business Incubation Center:Women Business Incubation Center

(WBIC) is an initiative of SMEDA being funded by Government of Pakistan to provide
hands-on support to Women Entrepreneurs (WEs) in an exclusive female oriented
environment. It is the first of its kind center in Pakistan wherein, Offices, Exhibition/Display
facility and Business Development Services (including training programs) are being offered
to Women Entrepreneurs (WEs) under one roof. The entire effort is focused at encouraging
new business start-ups and support to existing businesses including the right environment for
nurturing women owned and managed businesses to an extent that these become sustainable;
more specifically, in start-up period (first five years) when they are most vulnerable. WBIC is
a supportive entrepreneurial community designed to help grow small businesses. The center is

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established for providing assistance to home-based businesses or those in earlier stages of
development.

6.2 :Industry Support Program:SMEDA initiated an Industry Support Program in

2003 for technical support of different industrial sectors in Pakistan. SMEDA has
collaborated with different international organizations like Japan International Cooperation
Agency (JICA) and Gesellschaft fr Technische Zusammenarbeit (GTZ). These organizations
provide foreign experts to enhance the capabilities and operational techniques of local
industry in
different ways. For the success of these development initiatives an Industry Support Cell
(ISC) at SMEDA has been established. The main objective of establishing this cell is the
capacity building of SMEDA staff and to ensure the continuity of different initiatives. ISC
consists of professionals who work closely with foreign experts for the development and up
gradation of local industry.

6.3 :SME Cluster Development:Clusters are geographical concentration of enterprises

which produce and sell a range of related or complementary products and are, thus, faced with
common challenges and opportunities. Cluster development is basically supporting and
strengthening the clusters by creating networking among the stakeholders to reduce the cost
of doing business, bringing them on a single platform for more voice among policy makers,
create new business opportunities, reducing risk of doing business and capacity building of
the enterprises. Cluster development has also proved its contributing in employment
generation and poverty reduction worldwide.

6.4 :Public Sector Development

programme PSDP:Sr. No.
Name of the Project
Total Estimated Cost
1
Gujranwala Business Centre (GBC)
98.78
2
Agro Food Processing Facilities (AFP)
135.19
3
Sialkot Business & Commerce Center (SBCC)
341.67
4
Women Business Development Center (WBDC)
Sindh
34.03
Etc.

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RS million
Location
Gujranwala
Multan
Sialkot
Karachi,

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7.1:References:

http://www.smeda.org/index.php
http://www.smeda.org/SMEDA-introduction_1.html
http://www.smeda.org/opportunities/international-businessopportunitiesservice.html
http://www.smeda.org/business-development/businessguides.html
http://www.smeda.org/business-development/pre-feasibilitystudies.html
http://www.smeda.org/services/training-services.html
http://www.smeda.org/services/financial-services.html
http://www.smeda.org/sector-development/dairy-sectorbrief.html
http://www.smeda.org/sector-development/gems-andjewellery-sector.html
http://www.smeda.org/projects/WBIC-women-businessincubation- center.html
http://www.smeda.org/projects/cluster-development.html

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