INTRODUCTION
Home > SME 2011
The Small and Medium Enterprises (SMEs) are regarded as the single most
effective solution for the robust growth and sustenance of an economy. A vibrant
small-scale sector can boost employment, development and prosperity in any given
country. Healthy progress in the SME sector can be ensured by promoting a
vibrant commercial environment and a pro-active industrial policy.
The current economic indicators in Pakistan demand some urgent reforms that can
encourage fresh investments and support new endeavors in the SME sector, by
enabling and motivating the common man to be a proactive entrepreneur. In
Pakistan, the SMEs employ some 78% of non-agricultural labor force. The vitality
of the small scale entrepreneurs in Pakistan is evident from the fact that,
despite inadequate policy support, this sector has shown impressive growth over
the decades.
According to recent statistics, there were 3.2 million establishments and
household units in the country, which include business categories like;
manufacturing, wholesale and retail traders, hotels, restaurants, community,
social and personal services, handicrafts, agriculture, farming, fishing,
leather and textiles.
The informal sector (Self Employment) accounts for nearly 70% of the employment
outside agriculture. The SME sector data and the ventures taking place in it
deserve closer attention, because a significant portion of activities in this
sector goes unnoticed in the official records. Concrete measures should be taken
for rapid development of small scale ventures, whereby the most pressing need is
to document the commercial and financial activity carried out by SMEs. The
biggest challenge faced by the government is the improvement of Taxation from
the undocumented sectors. This need for expanding the Tax-Net can be achieved
quickly by documenting and identifying the taxable SME ventures.
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