Idea Solution :
What is SMEs
Small and medium enterprise (SME)
Business segment term used differently in different countries, sometimes differently in different industries in the same country. In the US, any firm from a small-office home-office (SOHO) to a large corporation may be called a SME. More specifically, firms included in Russel indices such as Russel 2500 index and Russel Midcap index are classified as SMEs. In European Union, a firm with (1) 50 to 250 employees, (2) annual turnover of Euro 7 to 40 million, (3) total assets less than Euro 27 million, and (4) not more than 25 percent ownership by a large corporation, may be classified as a SME. The International Chamber Of Commerce (ICC) defines a SME as having 100 to 2000
Critical factors which prove hindrance in the way of Small and Medium Enterprises to grow in Pakistan
Fiscal and monetary issues
Business Development Services
Development and strengthening for SME representative bodies associations/chambers
Lack of service provider’s database including machinery and supplier for SMEs.
securing financing
Donor assistances for SME development______________________________________________
One More Solution
SMEs can contribute to the economic development of Pakistan by following steps
Complete picture - an holistic, constructively critical attitude is developed, providing fresh insights into company practices
Productivity
areas of bad practice and poor performance are identified
sources for improvement are found by looking at the performance of other companies, without trying to reinvent the wheel
change is accelerated by using tried and tested methods
Competitiveness
reference points for measuring performance are developed, which provide early warning signals and rectify inaccurate perceptions about competitors
the company's true position in relation to competitors is established
Growth - the case for change is promoted through the development of clear strategic action plans
Opens minds to new opportunities
an active learning process is initiated
better performers are identified as a source of improvement ideas
'outside the box' thinking is promoted by looking for ways for improvement outside the industry
External parties - relations are improved by reporting strengths and weaknesse
