SME - Real Fate of Prosperous Pakistan

A few days back, I was studying a research report regarding Chinese economic growth. I was surprised to know that in China, from 1998 to 2003 nearly 19 million workers gave up their jobs with public sector (state-owned) enterprises and employed by SMEs (Small & Medium Enterprises) in private sector, thus reducing the expense burden on Chinese national treasury. It is also estimated that there would be about 43 million SMEs in China by 2020. Similarly, in the USA, the SME sector almost covers 99% of all enterprises and employ over 50% of private sector employees.

Being a businessman, I am witness to this reality that all of us always talk a lot about large sized businesses but often ignore the SMEs which are the real engine of any economy either medium or large sized. Certainly, there are some reasons behind this unsatisfactory situation. In Pakistan, some of the reasons behind this gloomy scene are like lack of financing, energy crisis, corruption, slow and complicated government processes, and inadequately trained workforce.

Honestly, the time has come that we shall have to stop looking at the government for each problem. I believe that Pakistan’s private sector is capable enough to address their issues and play a role of torchbearer for the government. Here with due respect, the chambers of commerce and sector-based associations shall have to play their true roles. They will have to come out of a typical labor union mindset. Honestly speaking, these forums are capable enough to generate finance, provide technical support and arrange technical and nontechnical training to produce trained labor by creating Clusters. They also can help these clusters to explore new local and global markets and contributing to their growth directly. When the private sector will start to perform the government will automatically move forward to support them in line with friendly policies and frameworks. I find no other way to move ahead.

It is a wakeup call because the opportunities are popping up and our private sector is not united to grab these prospects. It is my belief that only a successful and flourishing SME sector is the real fate of prosperous Pakistan.