NAME: Varda Shaikh

I.D: 1310-BBA027

SEMESTER: BBA VI

SUBJECT: Small & Medium Enterprises

CASE STUDY ON: SMEs In Pakistan

SUBMITTED TO: Sir Salahuddin

SMEs IN PAKISTAN

Pakistan has emerged as the second rapidly growing economy in Asia after China in 2004 – 2005. In Pakistan SME sector is not only the minor sharer till yet, reality is that Pakistan’s whole economy is highly dependable on the productivity of SMEs.

So let’s just start to discuss the important factors of it.

The following points will be cover in this case study, these are:

1. Introduction of subject & topic.2. Stake holders.3. Context & history.4. Personal profile & traits.5. Process flow of events (evaluation).6. SWOT analysis.7. Conclusion & decision.

1.INTRODUCTION OF SUBJECT & TOPICThe following points defining the role & the current position of SMEs in Pakistan:

1. It is a small scale project.2. It contributes in the economy of Pakistan.3. It plays a vital role in providing employment opportunities.4. It helps in raising standard of living.5. It provides big opportunity for young entrepreneur.6. SMEs Use local resources.7. Provide raw material to large scale manufacturing firms.8. Mobilize local savings.9. Provide low cost production.

10. Big opportunity for those who live in rural areas; they can start their own small business there.

2.STAKE HOLDERS.The following are the stakeholders of SMEs:

1. Owner of SME.2. The employees.3. The other strategic partners.4. The customers.5. The suppliers.6. The investors.7. The government.

3.CONTEXT & HISTORYThe following points will illustrate how & what were the SMEs in the past:

1. More than 90% were working.2. In 1947, since independence the SMEs are working in the

Pakistan.3. No formal rules were applied.4. A regularity authority SMEDA came into existence in 2007.5. SMEDA is continuously providing help & technical support

as well.6. SMEs in Pakistan are following ISO standards.

4.PERSONAL PROFILE & TRAITSThe following points will explain the main attributes possessed by SME owner:

1. Most of the entrepreneur belongs to lower-middle class.

2. Most of them are young & energetic.3. They do not maintain proper records.4. Do not pay taxes.5. Profit oriented.

5.PROCESS FLOW OF EVENTS (EVALUATION)

The following points will help to determine how much the other sectors are contributing in the improvement of SMEs:

1. SMEDA started working to reform by laws for SMEs.2. Government started providing opportunities to SMEs

to introduce their product locally & internationally.3. Government has built expo centers in all big cities for

the SMEs.

6.SWOT ANALYSIS

A. STRENGHTS Provide employment. Use local & cheap resources. Co-operation from the employees. Owner’s management.

Flat management structure.

B. WEAKNESSES Low capital. Political instability. Lack of machinery & equipments. Lack of quality consciousness. Poor financial strength.

C. OPPORTUNITIES Can grow budgeting. Can introduce new technology. Excise relief. Reservation of product items by government.

D. THREATS They have a competition with large

manufacturers. Produce cheap quality products. Technological obsolesces. Negligence towards industrial training.

6.CONCLUSION & DECISIONThe last words about SMEs is that we can’t deny the role they are playing in raising the economy of Pakistan by providing the employment opportunities to the mass.

The government has to accept them as a separate body & should take some steps to improve their current position and should take some steps that will help to overcome their weaknesses & threats in the future.

The End