Sme Problems

Topics: Domestic violence, Violence, Poverty Pages: 4 (936 words) Published: January 22, 2013
“SME is an industrial undertaking with fixed investment up to 20 million excluding the cost of land and no limit of people employed.” SME sector in Pakistan comprises mostly of those owner/entrepreneurs who are less literate, knowledgeable, and ignorant of legal systems, taxation and labor laws.

Problems associated with SME sector are very much originated from the problems of owners/entrepreneurs. However SME sector in Pakistan faces following key problems: 1. Skill Enhancement
2. Human Resource Development
3. Technology Transfer and Up-Gradation
4. Market and Industry Information
5. Financial support

We shall discuss these problems briefly one by one and see what AHAN can do to solve these problems potentially:

1. Skill Enhancement

It has become very much essential for the survival of the business in today’s world to come up with modern and innovative products and ideas. To achieve these goals artisans, entrepreneurs have to advance their skills to match with local and international competitors. AHAN is playing a vital role in the skill enhancement of local artisans by continuously engaging the expertise of well known designers to assist artisans and workers in production of high quality products. Thus, this enhances the efficiency and the skill of the artisans.

2. Human Resource Development

Knowledge based economy is the biggest challenged faced by SME. People must do their best to innovate and upgrade. To achieve this goal there is a need of ‘skill development’ for adopting innovative technologies. But the low literacy rate is a barrier in this regard. AHAN is an established organization who is catering this problem in an excellent way. They have given the formula of ‘one...
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