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Lack of finance.
Poor record keeping by SMEs, particularly
accounting information and other business.
Documentation.
Low productivity and their inability to
improve quality of products over time.
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Discourages banks.
High turnaround time owing to lack of timely
and quality information from SMEs.
Lack of skills in banks for identifying needs
and structuring the delivery of financial
assistance to SMEs.
Poor operational performance.
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inflexible security requirements and other
banking regulations.
General risk distaste by banks.
Financing for setting up, or the expansion of
the business.
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Limited knowledge of financing options for
SMEs.
Lengthy and awkward applicationprocedures, which discourage both SMEs and
Banks.
Problems with covering bankable loan
requests by SMEs.
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Small BusinessFinance Corporation(SBFC)
RegionalDevelopmentFinance Corporation
Youth InvestmentPromotion Scheme
IndustrialDevelopment Bankof Pakistan
Small and MediumEnterprisesDevelopmentAuthority(SMEDA)
World Bank
Ordinance 2002
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Financing Program
Cottage industry textile industry and morbal
industry get much advantage from it.
63 branches are working all over the Pakistan.
It was established with the purpose of setting up
cottage industry and assist entrepreneur for selfemployment
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The mark up was kept lower; the majority
lending was towards self-employment leaving
only 2% for small industries.
In October 1992, a self-employment scheme was
also started for locally manufactured machinery
with the help of it.
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It was established in 1985.
14 branches are working all over the
Pakistan.
Head office is in Islamabad.
It participate in money market capital
market and micro credit.
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RDFC is a multi-product financial institution.
The main objective are to promote the
industrialization of the less developed areas ofthe country.
Besides financing of medium to large sized
industrial concerns RDFC has been involved indisbursing micro and small sized loans.
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It gave loan only women.
167 million loan target has been set.
86 million loan it has given.
The YIPS also launched a credit scheme in
88,/89.
It has also launched RuralIndustrialization Program to controlunemployment and strengthen themarginal household income.
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SMEDA is stand for small and medium
enterprises development authority it was
established in October 1998.
SMEDA was established with the objective to
provide fresh movement to the economy
through the launch of an aggressive SME
development strategy.
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SMEDA provides businessguidance through itshelp desk services aswell as development ofproject specific
documents.
SMEDA provide us wholefeasibility about newbusiness in a particulararea.
It is not providing loannow a days.
You can
get the
high
profit
by this
way
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Building a beneficial EnvironmentProposing and facilitating changes in Policy and
Regulatory Environment
Reducing the Cost of Doing Business
Facilitating Government-SME Interface
Developing Sectors and Clusters
Sector Studies, Strategies and Implementation
Cluster Development
Common Facility Centers (CFCs)
Provision and Facilitation of Services
Investment Facilitation
Technology, Training, Finance, Business
Information, Marketing, and legal support
Productivity and Competitiveness Improvement
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Assistance in raising finance
Financial advice
Project identification
Business plan development
Technical advice
Marketing advice (branding, labeling,
packaging, distribution, promotion, etc)
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Company incorporation, export registration
& regulatory advice.
(sales tax, custom duty, excise duty, etc)
Electronic commerce support. Business matchmaking.
Accounting & bookkeeping services.
Information services .
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Gems & Jewelry
Marble & Granite
Dairy Sports Goods
Furniture
Fisheries Light Engineering
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Pakistan Horticulture Development & Export
Board (PHDEB)
Pakistan Dairy Development Company (PDDC)
Pakistan Stone Development Company(PASDEC)
Pakistan Gems & Jewellery Development
Company (PGJDC)
Technical Up gradation & skills Development
Company (TUSDEC)
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IDBP is Pakistans one of the oldestdevelopment financing institution.
Its primary objective is to extend termfinance for investment in themanufacturing sectors in the economy.
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As a part of its services the bank offers
business development assistance through
providing information on potential small-
scale investment projects.
In this regard numerous pre-feasibility
studies have been developed for
identification of value able sub sectors.
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IssuesIdentified Percentage
Lack of finance 55%
Shortage of skilled labour 39%
Getting business site 38%
Bribes 21% Orders/Marketing of Product 28%
Lack of Knowledge 12%
Government interference 12%
Raw Material 10% License for work 8%
New Technology 8%
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Sectors SMEsyears 1990-88 1999-98 010-2009
Textiles 11.16% 13.19% 14.12%
Food &
Beverages
6.96% 5.11% 5.91%
Electrical
Machinery
5.95% 7.65% 9.64%
Chemicals 6.18% 5.96% 4.01%
MineralProducts
3.65% 4.11% 5.21%
Tobacco 5.08% 3.26% 3.24%
Total 38.98% 39.00% 42.13%
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09012120-055
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After 1960 development of smes has been
started.
Provincial level institution was established in 1972.
Indian Model was introduced & copied.
Renew infrastructure of Industry.
Industrial Estate
Facility Centers
Vocational Institution
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Punjab Small IndustriesCorporation (PSIC)
Sindh Small IndustryCorporation (SSIC)
Small IndustriesDevelopment Board
(SIDB)
Directorate OFIndustries Baluchistan
(DIB)
SMES
Development
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Promotion and Development of smes in
Punjab.
Investment Promotion. Promotion of Credit.
Common Facility Center.
Hand Craft Development.
Design Facility.
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It invest 1768.537 million to 6339 unites in 8
different regions.
14 industrial estates has been developedwith the help of it.
Metal industry, Engineering & Service center
and many other are best achievements ofPSIC.
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It gave financial assistance and education to
craftsmen.
Procurement and Distribution of rawmaterial.
Prime minister self employment Scheme.
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Industrial Estate & Financial Estate was
established with the help of SSIC.
1717
IndustrialEstate
2121
FinancialEstate
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Purposes
Development of small industry.
Focusing on man power training.
Model project.
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Training centers was established with the
help of SIDB and it trained 1372 trainees.
Development Project & Model project wasmade.
9 different industrial estates,162 plots &
4405 Jobs were created.
Financial assistance was made.
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The directorate of industries was formed
in 1976.
It looks after all the promotional schemesfor SMEs.
Further more, the directorate is also
involved in providing various kinds ofadvisory and consultancy services.
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It gives federal credit scheme (small loan scheme)
for micro & small business.
Defined their target group in year 1972-1973as enterprise with assets of less than rupees
one million.
It was redefined in 1992 and increased 20
million.