The small and medium enterprises are considered the backbone of any economy and get heavy funding and attention in Malaysia, China, South Korea and Turkey. Their role in the industrial development as well as in creation of jobs is undeniable and Pakistan is not an exception. The Small and Medium Enterprises Development Authority has announced a plan, under Vision 2025,for the development of this sector in five years, hoping that it will contribute to arrest the falling exports, create jobs and help set up new startups. The volume of investment in the sector remained Rs 1.25 billion last year, but the small and medium enterprises sector needs special attention to enhance its viability. The cottage industry is also part of this sector and it is growing in various parts of the country without the government help. The small entrepreneurs have the capacity to produce industrial surplus, but they need buyers which they are unable to find due to limited resources. Thousands of small units are contributing to the national economy by producing various items which do not need sophisticated technology in the production process. What the government has to do is to create demand for the items produced by the home industry and it will be good help for the development of the economy.
According to the authority, a state-of-the-art Sports Industries Development Centre has started operation in Sialkot which is providing assistance to sports goods manufacturers to adopt new technology to enhance their production. Despite tall claims made by the authority in facilitating the small and medium level entrepreneurs, the private sector will have to help themselves and should put minimum reliance on the government. The government departments always have limited budgets and have limited capacity to work independently. But the private organizations like chambers of commerce and trade and manufacturing bodies can work in coordination with one another for the benefit of all the stakeholders.
The Vision 2025 is good effort under which the government will provide a conducive business environment in the country.Under the plan, the authority will also facilitate businesses through comprehensive product and service portfolio. Japan, Malaysia and the latest entrant in the first world, Turkey, all started their journey from small industry. The small businesses should be strictly protected from certain government authorities given the level of corruption in the country. The harassment of the owners of the small and medium organizations must be stopped and a strict check and balance should be maintained to stop unlawful steps from the corrupt officials.
