SMEDA (Small and Medium

enterprises Development Authority)

Introduction
Premier institution of the Govt. of
Pakistan under Ministry of
Industries, Production & Special
initiative, SMEDA was established
in October 1998 to take on the
challenge of developing Small &
Medium Enterprises (SMEs) in
Pakistan.
Continued…..
SMEDA is not only an SME policy-
advisory also fbody for the
government of Pakistan but
acilitates other stakeholders in
addressing their SME development
agendas. Growth of globally
competitive SME sector through a
conducive and facilitating
environment and support services
as an engine of growth and
sustainability to national economy.
SMEDA….

Mission Statement
To function as the promoter &
facilitator of SME sector in Pakistan
by creating a conducive and
facilitating environment as well as
providing and facilitating service
delivery to SMEs for enhancing their
capacities and competitiveness.
SMEDA…..

SMEDA Vision
"Growth of globally competitive SME
sector, through a conducive
environment and support services,
serving as an engine of sustainable
growth for national economy"
SMEDA…..
SMEDA Objectives
1. Policy formulate to encourage the growth
of SMEs in the country and to advise the
Government on fiscal and monetary
issues related to SMEs.
2. Facilitation of Business Development
Services to SMEs.
3. Facilitate the development and
strengthening of SME representative
bodies associations/chambers.
SMEDA…….
4. Set up and manage a service provider’s
database including machinery and
supplier for SMEs.
5. Conducting sector studies and analysis
for sector development strategies.
6. Facilitation of SMEs in securing financing.
7. Strengthening of SMEs by conducting and
facilitating seminars, workshops and
training programs.
 SMEDA…….
8. Donor assistances for SME development of
SMEs through programs and projects.

9. Identification of service opportunities based on

supply/demand gap.
SMEDA…….
 Policy & Planning
Policy & Planning Division of SMEDA
has dual focus internal & external.
It plays a key role in devising and
coordinating policies, action plans
and strategies for SMEDA
operations.
Continued……

On the other hand it has a mandate

to carry out research, communicate
with stakeholders and advocate
policies with different tiers of the
government with an ultimate
objective of creating a conductive
business environment for SMEs in
Pakistan.
Continued…..

Policy and Planning is the hub of

policy and regulatory research that
provides SME specific policy input to
all tiers of government, government
agencies and institutions, SME
associations, industrial clusters and
individual entrepreneurs.
How SMEs Are Important for the Economy of
Pakistan and What Measures the Government
Have Adopted for Their Development
 SMEs in Pakistan constitute 90 per cent of all the
enterprises and employ 80 per cent non-agricultural labour
force and contribute 40 per cent to the GDP (SMEDA,
2018). Due to the significance of SMEs contribution, the
Pakistani government considers the SME sector as a high
priority sector.

 The government has made significant efforts for the

development of SMEs, including the founding SMEDA in
October 1998 as the premier government organization under
Pakistan ministry of industries and production. Its core
objective is to develop SMEs in Pakistan by providing policy-
advisory and training which facilitate SMEs in the
development of their business.
What Is the Role of the HR Function in the
SMEs?

 The HR function of SMEs is not well

organized. Mostly, we have not observed any
proper job description, job specification,
training department, compensation
programme and hiring process.

 SMEs do not focus on the development of

well- mechanized HR department, so it will
be very hard to align their HR department in
line with the level of their revenue generation
What Specific Contributions Has SMEDA Made in
the Development of the SMEs?

 Smeda vision is to ‘to be the leading facilitator in

providing affordable, appropriate and innovative
training services for SMEs in Pakistan’.

 Accordingly, SMEDA has conducted extensive

training for the development of SMEs. So far,
150,000 SMEs owners and their employees have
been trained by SMEDA. Besides, formally
engaging SMEs through training programmes, we
have established help desks at our offices which
provide assistance to SMEs to address their
problems.
 SMEs’ training involves a complex procedure
and requires expertise to properly conduct
training needs analysis (TNA) and converting
these TNAs into meaningful training
programmes.

 SMEDA training services mission is to ‘facilitate

SMEs in their HR capacity building of
entrepreneurs, managers, supervisors and
operational staff for improving their level of
skills, competencies and awareness in technical,
marketing, financial, policy, regulatory, legal,
commercial and other functions through the
provision of direct and indirect training services’.
Who Are the Participants in SMEDA Training Programmes?

 Mostly, SMEs owners and their

employees are the participants in
our training programmes.
 However, we have observed that of
late entrepreneurs and university
students are also participating in
our training programmes.
What Is the Focus of SMEDA Training in
Terms of Soft Skills and Hard Skills?
 SMEDA focuses on both the soft and hard skills in
their training programmes. It depends on the needs
of our SMEs. We also categorize our training
programmes in terms of urban areas training
programmes and rural areas training programmes.
 The urban areas training programmes are mostly
conducted at metropolitan cities and mainly cover
industry-related training. The rural areas training
programmes are mostly conducted in the rural areas
and mainly cover agriculture-related training
programmes such as harvesting, agribusiness and
poultry farming.
How Is SMEDA Associated with the
International Training and Donor Agencies in
Supporting Your Training Programmes?
 SMEDA has partnered with key international
training and donor agencies, such as United
Nations Development Programme (UNDP), United
Nations Industrial Development Organization
(UNIDO),
 Japan International Cooperation Agency (JICA)
and The United States Agency for International
Development (USAID).
 They provide international experts and trainers
for the training of SMEs and also assist us in the
development of unique and innovative training
programmes
What Kind of Training Is Provided
in PSDP Programmes?
 Mostly technical training is being imparted to the
trainees under PSDP.

 In Sindh, we have successfully imparted training in

footwear designing, glass and bangles productions,
processing of red chillies and fruits on advanced
and modern machinery, which also involved the
lab testing of the products.

 Currently, PSDP at Sindh province is focusing on

extending training services for agro-processing and
agriculture entrepreneurship.
the role of NGOs in development of
SMEs in Pakistan.
Defining NGOs
 NGOs stands for Non-government
Organizations.
 The NGOs are working on socio-
economic sector in the development
of SMEs.
 They are privately owned
organization registered under the
social welfare act.
 Defining NGOs…….
 They normally work through grants,
aids or donation based finances.
 They are having a very constructive
role in the SME development.
 The special belonging of this sector is
gender development.
Defining NGOs…..

NGO, a non-for-profit agency not

affiliated with any government or
private sector entity, devoted to
managing resources and
implementing projects with the goal
of addressing social problems.
Defining NGOs…..
NGO is a community based
organization with its own
management structure. The
organization may receive some or
all of its operating funds through a
government department known as
the funder, however it is
accountable or answerable to its
stakeholders - the people who stand
to benefit or lose by its actions.
The Role of NGOs in Development
of SMEs
 NGOs play a vital role in
development of SME.
 NGOs helps to reduce poverty,
 NGOs create awareness in women
of rural areas to develop small
business in their own premises.
Continued…….
The NGO Business
 Non-governmental Organizations (NGOs)
have become involved in international
trade in recent years in two different
ways. The first is to establish fair trade
cooperatives to facilitate the export of
goods from developing to industrialized
countries directly from the producers.
Continued…
Another less well-known NGO
business strategy is for the NGO
itself to take on the role of
designer, marketer and distributor
of specific products and to work
with particularly disadvantaged
groups, primarily women, as sub-
contractors who are taught to
produce the goods that the NGO
sells.
Continued……..

NGOs differ from standard private

sector producers is in their selection
of subcontractors and the fact that
all profits are invested back into the
organization to ensure
organizational sustainability and to
expand their base of sub-
contractors.
Continued…..
 NGOs’ subcontracting role also serves to
empower their sub-contractors as
opposed to setting up an exploitative
piecework arrangement.
 It provides a viable means of poor women
to set up their own home-based
enterprises.
 The key to the success of this particular
strategy is the fact that the NGO takes on
the responsibility for the development of
the international market for the product
produced.
 Thanks you
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