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  • Role of Smes in Economic Growth: Presented by

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    Saba Rizwan
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    This document discusses the role of small and medium enterprises (SMEs) in economic growth. It defines SMEs as businesses with less than 50 employees that are privately held and have limited liability. The document notes that SMEs make up the majority of businesses worldwide and are a major driver of economic growth, employment, and exports. Specifically, it provides examples that SMEs contribute 60% of China's GDP and 65% of new US jobs. For Pakistan, the document states that SMEs contribute 40% of economic growth, 25% of exports, and produce 5 times as much employment as large firms. However, it also identifies issues for Pakistani SMEs such as an emphasis on large businesses and deficiencies in

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    Economics-role of small medium enterprises

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    This document discusses the role of small and medium enterprises (SMEs) in economic growth. It defines SMEs as businesses with less than 50 employees that are privately held and have limited liability. The document notes that SMEs make up the majority of businesses worldwide and are a major driver of economic growth, employment, and exports. Specifically, it provides examples that SMEs contribute 60% of China's GDP and 65% of new US jobs. For Pakistan, the document states that SMEs contribute 40% of economic growth, 25% of exports, and produce 5 times as much employment as large firms. However, it also identifies issues for Pakistani SMEs such as an emphasis on large businesses and deficiencies in

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    41 views12 pages

    Role of Smes in Economic Growth: Presented by

    Uploaded by

    Saba Rizwan
    This document discusses the role of small and medium enterprises (SMEs) in economic growth. It defines SMEs as businesses with less than 50 employees that are privately held and have limited liability. The document notes that SMEs make up the majority of businesses worldwide and are a major driver of economic growth, employment, and exports. Specifically, it provides examples that SMEs contribute 60% of China's GDP and 65% of new US jobs. For Pakistan, the document states that SMEs contribute 40% of economic growth, 25% of exports, and produce 5 times as much employment as large firms. However, it also identifies issues for Pakistani SMEs such as an emphasis on large businesses and deficiencies in

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 12

    Presented

    by: Role of SMEs in Economic Growth


    Table of Contents
    • What is SME
    • Characteristic of SME
    • Global Role of SME in Economy
    • SME in Pakistan
    • Benefits of SMEs to Economy
    • Critical Issue with SME in Pakistan
    • Suggestions & Recommendation
    What is SME?

    SMEs make up the majority of the businesses operating around the


    world. Generally, they are independent firms with less than 50
    employees
     the maximum number of employees is different from one country to
    the next. For most companies, the upper range sits around 250.
    Characteristics of SME’s
    • Privately held small business (manage and work by its own)
    • large scale (proprietor and workers)
    • No or few management lawyers
    • Limited liability
    • Independence in decision
    • Scale of operation (limited market share)
    • Few and unskilled labor
    • Can easily adopt the changes (in developing market)
    Global Role of SME in Economy
    • Driving Force behind economic growth as witness in 1980s and
    1990
    • Major economic growth and Employment took place in early 1990s
    which came from SME
    • In Asia- Pacific major economic
    Growth comes form SME
    SME & China SME & USA

    • They make up over 99 % of all • Small businesses are critical to


    enterprises in China today U.S. economic growth. They
    • accounts for at least 60 % of the contribute 65% of all new jobs.
    country's gross domestic Without small businesses, the
    product, economy won't grow.
    • generating more than 82 % of
    employment opportunities
    SME IN Pakistan

    In Pakistan SME’s are consider


    to be the major, contribution
    sector

    40% economic growth

    Share of 25% in Pakistan’s total


    exports

    Produce 5 times as much


    employment
    Benefits of SMEs to Economy
    Increasing the Tax Base
    Support growth of large
    Job Creation Increased Export Industry

    when local residents shop


    at small businesses within
    their communities, their
    tax dollars stay within the
    local economy, helping to
    small businesses Support the growth of improve their community
    . as a result. Likewise, local
    employ locals. The large industries by
    impact is that people SME contribute to providing, small businesses tend to
    get an income that about 25% Pakistan components, buy locally as well,
    enables them to Total Export. accessories and semi pumping more of the
    purchase different finished goods profits from their
    commodities such as required by them economic activity back
    food and clothing. into the community than
    their chain store
    counterparts, sparking
    economic development.
    Critical Issue with SME in Pakistan

    Emphasized Appear
    more on the deficient in
    large sector accounting and Trade restrictions. Currency Exchange
    financial Rate Changes
    information

    A B C D
    Suggestions & Recommendation

    Building a Conducive Environment


     Proposing and facilitating changes in Policy and Regulatory Environment
    Reducing the Cost of Doing Business
    Facilitating Government-SME Interface

    Developing Sectors and Clusters


     Sector Studies, Strategies and Implementation
    Cluster Development
    Common Facility Centers (CFCs)

    Provision and Facilitation of Services


    Investment Facilitation
     Technology, Training, Finance, Business Information, Marketing, and legal support
    Productivity and Competitiveness Improvement
    THANK YOU

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