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MGT601 - SME Management - Lecture Handout 45

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The role of government as a facilitator of business and its interaction with business support institutions is imperative for the establishment of a mutually beneficial relationship for the growth of the sector. SME promotion is an important issue for many government departments and central offices. For example, the Ministry of Labour plays an important role in shaping the labour market policy of the state. Similarly, in order to gather information on the health of the SME population the role of Federal Bureau of Statistics, the Ministry of Finance, and planning division is pivotal. Other ministries and divisions such as Ministry of Local Government and Rural Development, and the Ministry of Science & Technology also influence the situation of our SME. Provincial and local governments also take their share in responsibility.

However, there is an existing lack of coordination and regular information exchange mechanism among institutions, which constrains their collective ability to deliver in the SME development process. As a result of the Government’s recent efforts, two institutions Small and Medium Enterprise Development Authority (SMEDA) and SME Bank were created.

The responsibility for facilitating SME policy development now lies with SMEDA, which is attached to the Ministry of Industry and Production (MOPI). SMEDA is responsible for creation and coordination of Government policy for the SME sector. Parliament, naturally, is responsible for monitoring policy and its implementation.

One of the major reasons for the lack of coordination is that SMEDA has not been provided with a formal mechanism to initiate, coordinate, monitor and evaluate initiatives undertaken for SME development, which fall outside of its own scope of activities.

Therefore, cross-departmental and stakeholder consultations, resulting in the preparation of our national SME policy are our key to success. Regular information exchange mechanism and networking needs to be developed amongst our public and private sector institutions. There is a strong need to devise such an information exchange mechanism and redefine the role of institutions, specifying their functions in order to avoid duplication of efforts and allowing the best possible usage of resources.

Under the SME Sector Development Program it is expected that SMEDA

MGT601 - SME Management - Lecture Handout 36

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Measures to Implement

Measures to implement the Programme of Action include the organization of international meetings in the field of appropriate industrial technology, the establishment of a consultative group on appropriate industrial technology and the monitoring and analysis and follow up for appropriate choice of technology presupposes the existence of alternative technologies for production and knowledge and information about them. One of the first tasks is to enlarge the flow of available information. With this in view the evaluation and comparison of alternative industrial technologies will be merged for selection. This information made available should be fed into the Industrial And Technological Information Bank.

Available Information

Available information on technologies could also be enlarged through the systematic identification of technologies including the traditional ones available in developing countries themselves. With this input projects can be initiated through national research institutes, systematic survey of indigenous technologies in selected branches. The surveys are expected to bring out material on the basis of which some of the existing technologies could be upgraded and some others could be transferred for adoption by other countries. It will also provide it methodology for systematic action by the research institutes in the elaboration of their research programs.

Methods of Integrating Science & Technology in Economic & Social Development

The rapid and fruitful application of industrial technology to industrial development could be achieved only if the attempts to promote appropriate industrial technology are part of the main stream of industrial development and not apart from it. To reach this goal by stimulating policy and decision makers, enterprises and research institutes for promoting the application of appropriate industrial technology; stimulating suppliers of technology and equipment in industrialized countries to undertake the necessary adaptation and redesign to suit the needs of developing countries; stimulating government and donor agencies in industrialized countries and in developing countries with sufficient financial resources at their disposal to allocate more funds to co-operative programs on appropriate technology; mobilizing existing research capacity in research organizations, universities, private enterprises and particularly small companies and individual investors so as to promote the adaptation of available technologies and the development of new technologies where necessary.

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