Small and Medium Sized Enterprises (SMEs) Development Initiatives and Their Role on Self Employed
Small and Medium Sized Enterprises (SMEs) Development Initiatives and Their Role on Self Employed
In pursuit of economic growth the economies of the developing countries around the world face a host of challenges. Widespread poverty, infrastructure & institutional deficit are the major task faced by most economies of strong financial environment which also includes equitable income distribution along with employment creation, while every developing economy may experience its own variant of these problems. In this scenario, the small and medium sized enterprises (SMEs) sector contributes towards distribution, employment, exports, greater output and equitable income so its role becomes extremely important. Dynamism is also added to the economy by the help of this sector. Contribution to the world’s leading and emerging economies can also show the importance of the SME sector. India, China, Brazil, Malaysia and Japan are among other countries that have relied heavily on SME development to fuel economic growth. It is done by the private sector development strategies along with the adoption of intensive policies for implementation.
The backbone of economy of Pakistan is SME sector. As clearly indicated by various statistics, the significance of their role is quite clear. The GDP Estimates show that they contribute 40 percent to the manufacturing sector which employs 70.49 percent of the total non-agriculture labor force. It is imperative to support small and medium sized enterprises (SME) development in order to sustain a healthy SME sector, in a well-coordinated manner as the central pillar of growth. For economic revival, poverty alleviation and employment generation the center piece of Government’s strategy is to promote the SMEs sector. The formulation of a comprehensive SME Policy to this end was the logical first step reflecting the viewpoints of multiple stakeholders. By 1970s, Pakistan had substantial capacity in engineering industries which includes cement,
In pursuit of economic growth the economies of the developing countries around the world face a host of challenges. Widespread poverty, infrastructure & institutional deficit are the major task faced by most economies of strong financial environment which also includes equitable income distribution along with employment creation, while every developing economy may experience its own variant of these problems. In this scenario, the small and medium sized enterprises (SMEs) sector contributes towards distribution, employment, exports, greater output and equitable income so its role becomes extremely important. Dynamism is also added to the economy by the help of this sector. Contribution to the world’s leading and emerging economies can also show the importance of the SME sector. India, China, Brazil, Malaysia and Japan are among other countries that have relied heavily on SME development to fuel economic growth. It is done by the private sector development strategies along with the adoption of intensive policies for implementation.
The backbone of economy of Pakistan is SME sector. As clearly indicated by various statistics, the significance of their role is quite clear. The GDP Estimates show that they contribute 40 percent to the manufacturing sector which employs 70.49 percent of the total non-agriculture labor force. It is imperative to support small and medium sized enterprises (SME) development in order to sustain a healthy SME sector, in a well-coordinated manner as the central pillar of growth. For economic revival, poverty alleviation and employment generation the center piece of Government’s strategy is to promote the SMEs sector. The formulation of a comprehensive SME Policy to this end was the logical first step reflecting the viewpoints of multiple stakeholders. By 1970s, Pakistan had substantial capacity in engineering industries which includes cement,