Small and Medium enterprise development Authority

(SMEDA)
Roles and Functions
Premier institution of the Govt. of Pakistan under Ministry of Industries and Production,
SMEDA was established in October 1998 to take on the challenge of developing Small &
Medium Enterprises (SMEs) in Pakistan. With a futuristic approach and professional
management structure it has focus on providing an enabling environment and business
development services to small and medium enterprises. SMEDA is not only an SME policyadvisory body for the government of Pakistan but also facilitates other stakeholders in
addressing their SME development agendas.
SMEDA has a country wide outreach with four main regional offices each headed by a
Provincial Chief for each of the provinces of Pakistan, these are further extended to 23 major
cities of the country with a one-man office housed in prominent Chambers of Commerce &
Industry which are called Regional Business Coordinators. The Outreach Division also
includes Industry Support Cell and Training Services Department which is responsible for
providing training services to SMEs.

SMEDA Vision:
Growth of globally competitive SME sector through a conducive and facilitating
environment and support services as an engine of growth and sustainability to
national economy.

Mission Statement:
To function as the promoter & facilitator of SME sector in Pakistan by creating a
conducive and facilitating environment as well as providing and facilitating service
delivery to SMEs for enhancing their capacities and competitiveness.

Functions of SMEDA:
1. Formulate Policy to encourage the growth of SMEs in the country and to advise
the Government on fiscal and monetary issues related to SMEs.
2. Facilitation of Business Development Services to SMEs.
3. Facilitate the development and strengthening of SME representative body's
associations/chambers.
4. Set up and manage a service provider's database including machinery and
supplier for SMEs.
5. Conducting sector studies and analysis for sector development strategies.
6. Facilitation of SMEs in securing financing.
7. Strengthening of SMEs by conducting and facilitating seminars, workshops and
training programs.
8. Donor assistances for SME development of SMEs through programs and projects.
9. Assist SMEs in getting international certifications (such as ASME, KS, etc.) for
their products and processes.
10. Identification of service opportunities on the basis of supply/demand gap.

What is SME?
According to the criterion worked out by SMEDA, all those business enterprises
having 10 to 40 employees and having productive assets (excluding land and
building) worth Rs 2 to Rs 20 million are small business establishments. Those
having more than 40 employees up to 99 with productive assets worth over Rs 40
million have been classified as medium size business establishments.

SME Sector in Pakistan:

3.2 million business units in Pakistan

Over 99% business units employ less than 99 persons.

Generate 78% of non-agri sector employment

Direct Contribution to GDP over 30%
Generate 25% of Manufacturing Export Earnings
Contribute 35% in Manufacturing Value addition

SMEDA Services:
SMEDA is currently offering following services to promote regulate and enhance
SMEs in Pakistan.
* Consultant Services
* Training Services
* Business Plan Division
* Financial Services
* Information Resource Centre (IRC)
* Intellectual Property for Business Success
* Legal Services
* Policy and planning

1. Training services:
SMEDA organizes training programs, seminars, workshops and conferences of short
duration in major cities across the country for raising awareness and capacity
building of SMEs. These need based training programs are affordable, appropriate
and innovative. These programs are aimed at improving knowledge, skills and
competencies in the technical, marketing, financial, compliance, policy, regulatory,
legal, and commercial and other important functions. These programs help to
improve major performance indicators such as productivity, quality,
competitiveness and sustainability etc. The results include improvement in export
potential, investment promotion, business transparency, human resource
development, managerial capacity building etc. These programs help decreasing
the level of SME mortality and increasing efficiency.

2. Business Plan Division:

Business Plan development services is one of the key services provided to enable
existing as well as potential investors to make well researched and informed
investment decisions.

3. Financial services:
Financial Services Group (FSG) is one of the support units of SMEDA. As the name
suggests, FSG is responsible for all financial consulting and advisory services that
SMEs may require. As for all the support functions, FSG caters to both internal
sector teams as well as any external walk-in SMEs. In addition to such consulting
services, FSG also acts as coordinator of government schemes, which involve
financial institutions.

4. Information Resource Centre (IRC):

SMEDA Information Resource Centre (IRC) has been established to cater to the
information needs of SMEs and stakeholders from both the public and private
sectors. IRC maintains a collection of more than 3400 books and CD-ROMs/DVDs
besides subscribing leading newspapers and more than 20 journals of international
repute on diverse business sections and related fields. A number of full text online
journals are also available for SMEs and researchers on different fields of
knowledge. IRC collection consists of databases, directories, reports, yearbooks,
annual reports, and loose-leaf material that are available for easy retrieval through
latest library management tools. Hard format of training programs conducted by
SMEDA are also available in IRC. SMEDA IRC collection is increasing by an aggregate

10 % every year.

5. Policy and planning:

Policy & Planning Division of SMEDA has dual focus internal & external. It plays a
key role in devising and coordinating policies, action plans and strategies for SMEDA
operations. On the other hand it has a mandate to carry out research, communicate
with stakeholders and advocate policies with different tiers of the government with
an ultimate objective of creating a conductive business environment for SMEs in
Pakistan. P&P is the hub of policy and regulatory research that provides SME specific
policy input to all tiers of government, government agencies and institutions, SME
associations, industrial clusters and individual entrepreneurs.

6. Intellectual Property for Business Success:

Intellectual Properties (IPs) are intellectual assets that are intangible such as
knowledge, creativity and inventiveness. Intellectual property in its essence is that
information which has economic value when put into use in the marketplace. The
rationale of protection also rests on the premise that both forms of assets (tangible
& intangible) have potential of wealth creation. IPs generally falls into two
categories; industrial property and copyrights. The rights of inventions, industrial
designs, trademarks, integrated circuits and geographical indication are protected
under industrial property while the copyrights include literary work such as novels,
poems, plays, films and also artistic works etc.

7. Legal services:

We add value to the business of Small and Medium Entrepreneurs (SMEs) through
facilitation in:
Resolving legal problems through service providers.
Creating awareness of legal rights & responsibilities by disseminating
information on existing regulatory/contractual requirements through sample
contract templates, business guides and seminars.
Enhancing capacities for improved compliance of laws, rules and regulations
through training programs.

Legal opinions to your business queries, and interaction with regulatory

authorities and service providers for removing legal impediments.

8. Consultant services:

SMEDA also provide various consultancy services.