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Linkage of HRD and SMEs Contribution of SME in India, Pakistan Largest Supplier Of Jobs Introduction Of Globalization SMEs are to face more competitive environment at Domestic and international level Appropriate knowledge and skill development Important to provide assistance to SME to improve working conditions and standard of living of workers The Global Competitiveness Report 2010 ranks South Asian countries at different levels need to undertake a serious regional level initiative to establish a base-line in HRD practices in SAARC
SMEs
One person manufacturing enterprise Ten to thirty five employees with two to twenty million rupees capital intact in equity
Thirty six to ninety nine employees with twenty to forty million capital intact in equity
Opportunity for Local Consultant(s) - Pakistan SME Sector Development Program , SME Sector Development Project
BACKGROUND AND RATIONALE Pakistans poverty reduction strategy has explicitly identified A developed and appropriately supported SME sector can facilitate poverty reduction increasing competitiveness, improving income distribution, broadening the accumulation of wealth, and cushioning business cycle effects It is essential to develop an SME policy to recognize and promote appropriate mechanisms The Ministry of Industries and Production (MOIP) The SME policy will reflect the Governments objective of encouraging SME development and competitiveness
Significance of SMEs:
SMEs are considered the engine of economic growth in both developed and developing countries, as they: Provide low cost employment since the unit cost of persons employed is lower for SMEs than for large-size units. Assist in regional and local development since SMEs accelerate rural industrialization by linking it with the more organized urban sector Help achieve fair and equitable distribution of wealth by regional dispersion of economic activities Contribute significantly to export revenues because of the low-cost labor intensive nature of its products.
Significance of SMEs:
Have a positive effect on the trade balance since SMEs generally use indigenous raw materials Assist in fostering a self-help and entrepreneurial culture by bringing together skills and capital through various lending and skill enhancement schemes Impart the resilience to withstand economic upheavals and maintain a reasonable growth rate since being indigenous is the key to sustainability and self-sufficiency.
Pakistan 's SMEs are still unable to achieve their maximum potential and are in dire need of hand-holding' and business support services.
Throughout the world, SMEs have provided tremendous opportunities to financial institutions to design various tools for the sector's development (e.g. Program Lending Schemes, Credit Scoring, Venture Capital Financing, etc.).
More Technical and Vocational training facilities should be provided. In this way unemployed people will get the chance to enhance their skills and become able to earn reasonable income.
With a view to reduce educate unemployment; self-employment scheme should be encouraged in true manners. Govt. should take proper steps for the development of SMEs in urban and rural areas.