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Smeda 100317212042 Phpapp01
Smeda 100317212042 Phpapp01
Smeda 100317212042 Phpapp01
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Definition of SMEDA
What is meant by smeda? According to the criterion worked out by SMEDA, all those business enterprises having 10 to 40 employees and having productive assets (excluding land and building) worth Rs 2 to Rs 20 million are small business establishments. Those having more than 40 employees upto 99 with productive assets worth over Rs 40 million have been classified as medium size business establishments.
It is established to take on the challenge of developing Small & Medium Enterprises (SMEs) in Pakistan. SMEDA is relatively a new organization with a futuristic structure and focus on providing business development services to small and medium enterprises. SMEDA is not only an SME policy-advisory body for the government of Pakistan but also acts as a one-stop-shop for its SME clients
Policy and Conducive Environment Sector Strategies and Implementation Cluster Development Business Dev. Services
started working on a few priority sectors. The objective was to develop comprehensive strategies followed by implementation with the collaboration of the relevant Government departments. Case in point is the marine fisheries sector where a detailed strategy was developed and implemented through various regulatory authorities. However, the Business Development Services (BDS) during that phase were only limited to the monitoring of the Prime Ministers Self-Employment Scheme.
worked on different sectoral studies including the Textile Vision 2005, Hexpo 2000 & beyond, etc. These assignments of long term strategy development were successfully completed and later on submitted to the Ministry of Commerce for implementation and follow-up.
Even during this phase limited resources were allocated towards the development of BDS. Phase III (Jan 01 - Nov 01): SMEDA was restructured from being a sector driven organisation to a functional support body. Emphasis shifted from macro level strategy formulation towards provision of business development services to SMEs and physical intervention in SME clusters. During this period lending programmes tailored to meet the credit requirements of specific clusters were also formulated. A wide array of Over the Counter (OTC) products were produced to facilitate SMEs through Help-Desks. SMEDA also launched its B2B portal to provide market connect to the SME sector.
SMEDA VISION
Growth of globally competitive SME sector through a favorable and facilitating environment and support services as an engine of growth and sustainability to national economy.
MISSION OF SMEDA
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.
OBJECTIVES OF SMEDA
Formulate Policy to encourage the growth of SMEs in the country and to advise the Government on fiscal and monetary issues related to SMEs. Facilitation of Business Development Services to SMEs. Facilitate the development and strengthening of SME representative bodies associations/chambers. Set up and manage a service providers database including machinery and supplier for SMEs.
BACKGROUND
Army Rule in Pakistan A market economy and encouraged trade liberalization
Over 95% of businesses fall in SME category which have not developed due
obsolete labour laws and skills, wrong taxation system, idle trade capacity, lack of finance and credit availability and market access. The Small and Medium Enterprises Development Authority (SMEDA) was established in 1998 under the Ministry of Industries and Production in order to foster the development of SMEs in the economy.
Emergence of SMEDA
Small and Medium Enterprises Development Authority (SMEDA) Premier institution of the Government of Pakistan under the Federal Ministry of Industries and Production, SMEDA was established in October 1998 to take on the challenge of developing (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.
Functions of SMEDA
SMEDA has a country wide out reach with four main regional offices each headed by a Provincial Chief for each of the four provinces of Pakistan i.e. Punjab, Sindh, Balochistan and North West Frontier Province these are further extended to 23 major cities of the country with a one-man office housed in prominent Chambers of Commerce & Industry which are called Regional Business Coordinators. The Outreach Division also includes Industry Support Cell and Training Services Department which is responsible for providing training services to SMEs. Business & Sector Development Service
SMEDA Achievements
SMEDA has so far successfully formulated strategies for sectors including, dairy & livestock, marble and granite, gems and jewellery, marine fisheries, leather and footwear, textiles, surgical instruments, and transport
SMEDA Achievements
Along with the sectoral focus a broad spectrum of business development services are also offered to the SMEs by SMEDA. These services include identification of viable business opportunities for potential investors. In order to facilitate these investors, SMEDA provides business guidance through its help desk services as well as development of project specific documents. These documents consist of information required to make well-researched investment decisions. Prefeasibility studies and business plan development are some of the services provided to enhance the capacity of individual SMEs to exploit viable business opportunities in a better way.
SMEDA Achievements
Along with the sectoral focus a broad spectrum of business development services are also offered to the SMEs by SMEDA. These services include identification of viable business opportunities for potential investors. In order to facilitate these investors, SMEDA provides business guidance through its help desk services as well as development of project specific documents. These documents consist of information required to make well-researched investment decisions. Prefeasibility studies and business plan development are some of the services provided to enhance the capacity of individual SMEs to exploit viable business opportunities in a better way.
SMEDA Achievements
According to Economic Census of Pakistan, 2005 by Federal Bureau of Statistics, there are 70,658 women owned businesses operating across Pakistan. This represents 3% of total enterprises in Pakistan. It is estimated that most of the women owned businesses fall within the category of SMEs. The level of women participating in enterprise development currently is around 16%, reason being availability of their limited resources topped by lack of confidence to invest in infrastructural facilities. In order to bridge this gap, Government of Pakistan has given SMEDA the task of setting of first Women Business Incubation Center (WBIC) which was
SMEDA Achievements
SME Clusters in Pakistan have huge potential and critical to SME growth. SMEDA has always been fully cognizant of the significance of Cluster Development and has taken several initiatives in this regard. These initiatives include Technological Up-gradation, establishment of Common Facility Centers(CFCs) , access to Formal Finance for SME clusters, Marketing support, Improving HR skills and Awareness on International Certification & Regulations
Source: Gallup Survey of 1000 Industries in 2009 covering 12 cities & 8 sectors
Source: Gallup Survey of 1000 Industries in 2009 covering 12 cities & 8 sectors
strategies of smeda
The Small and Medium Enterprises Authority (SMEDA) is planning to take two major initiatives which will have far reaching effect on the industrial development in the country specially the small and medium scale industry.
The SMEDA has asked the government to carry out a the information that how much small and medium size business working in pakiatan through the Federal Bureau of Statistics.
It also launch a regulatory mapping exercise in coordination with two experts from the International Labour Organization (ILO) to review the entire set of laws, rules and regulations at the federal, provincial and local levels that govern business operations.
SMEDA today
Shahid Rashid, Chief Executive Officer of the Small and Medium Enterprises Development Authority (Smeda) is going to launch the first SME Subcontracting Exchange (SMEX) of the country today (Wednesday), January 27, 2010 at 3:00pm at Gujranwala Business Centre (GBC). The launching ceremony, besides the CEO, will also be addressed by Khalid Mehmood Chadha, President, Gujranwala Chamber of Commerce and Industry.
The present government's emphasis on development of small and medium scale enterprises in the private sector is being duly appreciated by the donor countries. Japan, European Union, Italian government and Asian Development Bank have shown keen interest in the various projects identified by Small and Medium Enterprises Development Authority (SMEDA) of Pakistan
Our Findings
. Recently, in Pakistan hundreds of businesses have been closed due to shortage of Electricity, water, Sui gas (natural gas), or due to law and order situation (like assassination of Ex-Prime Minister of Pakistan Benazir Bhutto in Rawalpindi). every day million of assets are being transferred to Gulf countries by existing business community, in such a scenario no SME can prevail and grow with reasonable level of certainty.
recommendation
Moreover, economically, this policy is viable but not focused for some excellence sectors in future, like a widely acclaimed adopted one village, one product model for microfinance and SMEs, this policy shall be focused on some specific businesses and product lines, instead of forming a mass of unplanned and less cost-effective SMEs, in today world of globalization and specialization
Priority Sectors
Gems & Jewelry Marble & Granite Dairy
Sports Goods
Furniture Fisheries Light Engineering
SMEDA Performance
Number of SMEs facilitated through helpdesks Number of SMEs trained (482 programs 14,500 25,533 1,433,52 7 159 120
in +50 cities )
97
80 9,379
Thank You