Unleashing the Growth Potential of Smes in Pakistan Through Productivity Enhancement

Introduction This Paper begins with an overview of the SME sector. It argues why SMEs branch Potential for employmentment, income generation, and want reduction remains largely untapped. It also highlights Government of Pakistans policies for SME growth and their effectiveness with specific reference to constraints faced by firms influencing their productivity and competitiveness. A snapshot of present strategies, adopted for SME growth is also a part of this Paper along with a detailed commentary on the possible avenues for intervention in separate to achieve common vision of SME development accruing benefits to the subject field economy. An overview of SME Sector in Pakistan2 What constitutes the complexion of Pakistans economy is the influence reflection of its Small and Medium Enterprise (SME) sector. The Economic count of Pakistan-2005 lists 3.2 million business enterprises nation-wide and SMEs constitute over 99 pctage of all. Their share in industrial employment according to an come close is 78 percent and in value addition approximately 35 percent.

Nearly 53 percent of all SME activeness is in retail trade, wholesale, restaurants and the hotel business whereas the contribution of industrial establishments and those obscure in service provision is 20 percent and 22 percent respectively. Among the SMEs involved in retail, wholesale etc. 98 percent employ less than 5 persons and 99 percent less than 10 persons. Even within the manufacturing sector the switch off is not different and nearly 87 percent employ less than 5 persons and 98 percent less than 10 persons. Similar pattern of employment distribution can be traced among other sectors except for mining where SMEs tend to employ more than people. In the mining sector, it averages around 56 percent employing amidst 6 to 50 persons. On the whole, the percentage of large firms is precise small. Punjab is home to more than 65 percent or 1.9 million businesses in Pakistan. This is... If you want to get a full essay, order it on our website: Ordercustompaper.com

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