Introduction

Small and Medium Enterprises Development Authority SMEDA

SMEDA is a Premier institution of the Government of Pakistan under Ministry of
Industries & 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 policy-advisory body for the government of
Pakistan but also facilitates other stakeholders in addressing their SME development
agendas.
SMEDA is providing the necessary services to help SMEs overcome the weaknesses
that are endogenous to their very nature. It is an autonomous body working under
the umbrella of the Ministry of Industries & Production and contributes towards the
growth and development of SMEs in Pakistan through:
(i) the creation of a conducive and enabling regulatory environment;
(ii) development of industrial clusters;
(iii) and the provision of Business Development Services to SMEs in all areas of
business management.
SMEDA has been involved in cluster development projects in the areas of Boat
Modification in Marine Fishery Sector, Credit for Auto Vendors, Carpet Weaving,
Marble & Granite, Dates & Apples Processing, Wooden Furniture, Leather Garments,
Ceramic Kilns, Cotton Ginning, and Glass Bangles Cluster.
Some of the important cluster development projects undertaken by SMEDA are:
Textile/Apparel
1. Ginning Technology Up-Gradation
2.
3.
4.
5.

Program Lending For Power Looms

Computer Aided Design Centre (Common Facility Centre-Sialkot)
Designing Institute for Garments (Peshawar)
Accessories Sector Study

6. Development of Handloom Cluster

Horticulture/Fruits and Vegetables
7. Establishment of Cool-Chain Agriculture Export Processing Zone

8. Fruit Processing Facility (NWFP in Collaboration with EPB)

9. Assistance to Set up Horticulture Export Board
10. Revitalization of Sunflo Cit-Russ for Citrus Cluster Development.
11. Apple Treatment Plant in Balochistan (Co-Ordination with EPB)
Fisheries
12. Program Lending Boat/Engine Modification, Gwadar District
13. Establishment of Shrimp Farms
14. Fish Processing Facility In Gwadar (Feasibility Study)
Granite & Marble
15. Export Warehouse Marble (Azakhel NWFP)
16. Establishment of Model Quarry and Training Institute Marble
17. Joint Ventures and Technology Transfer Arrangements (NWFP)
Gems
18. Five New Gem Mines To Be Operationalized (NWFP)
19. Lapidaries Program Lending (NWFP)
20. Glass & Ceramics
21. Ceramics Kiln Up-Gradation: Common Facility Centre, Gujrat
22. Sanitary Ware & Pottery Sector Kiln Up-Gradation
23. Bangles Kiln Up-Gradation (Hyderabad)
Agriculture
24. Agri-Mall One Stop Shop for Agriculture Inputs
25. Support Services for Agricultural Credit (SSAC)
26. Establishment of 3 Private Sector Warehousing & Trade Promotion Facilities in
Afghanistan
The third area of SMEDAs functioning is the provision of Business Development
Services to SMEs. For this purpose we have set up Helpdesks in all four of our
regional offices where any SME in need of SMEDAs services can simply walk in and
obtain over the counter products such as Project Briefs, Pre-feasibility Studies and
Regulatory Procedures, along with advice on specific problems.

Operational Services:

Financial services

Industry Support Program

Information Resource Centre IRC

Legal and Contracting services

Technical services

Training services

Operational Strategies:

Building a Conductive Environment

Proposing and facilitating changes in Policy and Regulatory Environment
Reducing the Cost of Doing Business
Facilitating Government-SME Interface Developing Clusters and Sectors
Sector Studies, Strategies and Implementation
Cluster Development with trade association/ Chambers
Common Facility Centers (CFCs) Provision and Facilitation of Services
Investment Facilitation
Technology, Training, Finance, Business Information, Marketing, and Legal
Support
Productivity and Competitiveness Improvement

Standard Operating Procedures:

1) Financial Services:
Financial Services adopts the following mode of reliable information dissemination:
Website
Financial Services collects and compiles information on a periodic basis from various
banks about their products designed for SMEs. This information is then assimilated
as per SME understanding and displayed on SMEDA website in a user friendly format
as a searchable database and can be accessed through Banking Products-Online
Database
Trainings, Seminars & SME Financing Helpdesk:

To increase SME understanding on various finance related issues, we conduct

awareness seminars and trainings to disseminate information on SME financial
services and products available, ways to bridge the gap between SMEs and banks,
accounting and bookkeeping issues, etc. These seminars not only increase SMEDA
outreach into the sector but also highlight problems faced by SMEs while
approaching banks; which are later addressed by SMEDA and discussed on various
forums.
SMEDA, in collaboration with banks periodically conducts Helpdesk for SME
Financing where bank representatives evaluate SME loan requests and SMEDA staff
handholds eligible SMEs through loan processing and documentation processes.

Financial Analysis
Financial analysis is an important section of the comprehensive sector studies
developed internally by SMEDA. Financial Services is responsible for preparing this
section; broad parameters include:
Performance: Historical performance of the sector in terms of its financial viability
Competitive Analysis: Various cost structures and value addition processes
practiced in the sector
Sourcing of Financing: Analyze financing modes available and best suited for the
sector
Financial Modeling
To ascertain financial feasibility of individual SME businesses as per request of
clients approaching SMEDA, Financial Services prepares extensive financial
projections using comprehensive models. These financial models are live models
providing flexibility to the user to evaluate viability of a proposed strategy under
numerous scenarios.
External
Financial Services works very closely with Financial Institutions (FIs) in designing
financing schemes for SMEs. Moreover, the department designs programs and
services, in line with SMEDA objective, to support FIs by promoting their SME
friendly facilities to elevate the capacities of small and medium businesses.

2) Industry Support Program:

SMEDA has initiated an Industry Support Program (ISP) since 2004 with the
objective to transfer technical expertise and knowledge to local industry through
involvement of International and Local Experts.
Industry Support Program operates in collaboration with different international
organizations like Japan International Cooperation Agency (JICA), German
International Cooperation (GIZ), Training & Development Centers of the Bavarian
Employers Association (bfz- Germany), Asian Productivity Organization (APOJapan), Senior Experten Service (SES-Germany), United Nations Industrial
Development Organization (UNIDO) and World Bank for its various initiatives.
Through international organization, ISP is offering different services to member mills
of its local partners like Pakistan Hosiery Manufacturers Association (PHMA),
Pakistan Readymade Garments Manufactures & Exporters Association (PRGMEA), All
Pakistan Textile Mills Association (APTMA), All Pakistan Textile Processing Mills
Association (APTPMA), Pakistan Association of Automotive Parts and Accessories
Manufacturers (PAAPAM) and Pakistan Foundry Association (PFA) and others.
Through ISP, SMEDA has been providing technical guidance and consultancy to
industrial sectors in the areas of Productivity Improvement, Quality Assurance, Cost
Reduction and Energy Efficiency. This Program has been facilitating different
industrial sectors including Textiles, Auto Parts, Foundry, Fan, Furniture, Jute, Leather
Footwear, Food Processing etc.
To ensure the success of Industry Support Program, an Industry Support Cell (ISC) at
SMEDA was established in April 2004. The main objectives of establishing this cell
are the capacity building of SMEDA staff and to ensure the continuity of different
initiatives.
ISC consists of professionals who work closely with foreign experts for the
development and up- gradation of local industry.

3) Information Resource Centre - (IRC) Library:

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. SMEDA-IRC serves as an information repository for entrepreneurs, research
students, academicians and other business stakeholders. IRC is information
resource sharing partner with a number of public & private organizations. It acquires
information material from partner organizations in case of non availability of specific
resources.
SMEDA IRC offers
Library Catalogue
Conducive environment for reading and research
Free of cost reference services
Online Public Access Catalogue (available on intranet)

 Facility of photocopies, print outs on subsidized charges

Free web surfing
IRC services for SMEs
provision of list of importers, exporters and traders
provision of Pre-feasibilities Studies and Regulatory Procedures
provision of information regarding custom tariffs for imports & exports
know-how guides for new business start-ups
provision of articles from various journals and newspapers subscribed by
SMEDA IRC.
provision of the contact details of business establishments in selected field
provision of statistical data on various sectors of the economy
provision of up-to-date trade related statistics
availability of SMEDA publications
customized information to SMEs

4) Legal and Contracting 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.

5) Technical Services
Primary Services:

New SME start up technological process selection help.

Once process decided upon then help in selection of brand new/second
machines to stay inside a certain capital investment cost range.
Help in defining job descriptions of technical labor force.
Help in start up of the manufacturing / production process by selection of
helpful consultants.
Inspection of first production batches for achieving proposed quality
standards of manufactured product.

Secondary Services:

Upgradation of existing production lines.

Improvement in quality of Product to achieve customer
requirement/standards.
Help in cutting down electricity and natural gas bills by retraining work force
to think on Conserving Utilities.

Sectoral Services:
Quality standards.
Materials Inspection
Selection of alternate grade materials in steel, brass, aluminum etc.
Materials Testing.
Gauging selection for production line inspection.
Ginning process upgradation
Fishing boat upgradation.
Improving 2 wheeler and 3 wheelers specs.
Improvement in testing and inspection of Surgical Instruments Knives and
Cutlery, Electrical Fans.
Materials selection for Agricultural Implements.
Advice on Heat Treatment/Forging/Casting based on material selected at
hand.
Informational Services:

Advice on how to export engineered goods to African markets.

6) 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, 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.

Functions Brief
Backstopping SMEDA Regional Offices in identifying focused priority training
programs for SMEs in priority areas
Backstopping SMEDA Regional Offices in developing, launching and feedback
of priority training programs for SMEs in priority areas
Establishing a network of Training Service Providers (TSPs) both individuals
and organizations, both in public and private sectors for SME training
Developing and launching SME focused priority training through TSPs
Review of Policy Work and Sectoral Plans in reference to Training
Creating awareness in educational institutions to develop liaison with SME
sector to fulfill their HR and R & D needs
Assessment of existing training service providers
Establishing key performance indicators and feedback systems for review &
evaluation
Special Projects
Training Programs organized by SMEDA Training Services are effective solutions to
improve major performance indicators; productivity, quality, competitiveness,
sustainability and knowledge management of SMEs for easier and faster path to ISO
compliance and WTO requirements. The results include improvements in export
potential, regional investment attractiveness, business transparency, human
resource development, managerial capacity and potential of SMEs. This has
definitely helped decreasing the level of SME mortality in the regions and increasing
efficiency of introduction of innovations and new technologies.

Tasks:

Assistance in Raising Finance.

Financial Advice

Project Identification.

Business Plan Development.

Technical Advice.

Marketing Advice (Branding, Labeling, Packaging, Distribution, Promotion,

etc.)

Company Incorporation, Export Registration, & Regulatory Advice.

Electronic Commerce Support.

Business Matchmaking.

Accounting & Bookkeeping Services.

Formulate Policy to encourage the growth of SMEs in the country and to

advise the Government on fiscal and monetary issues related to SMEs.

Facilitation of Business Development Services to SMEs.

Facilitate the development and strengthening of SME representative bodies

associations/chambers.

Set up and manage a service providers database including machinery and

supplier for SMEs.

Conducting sector studies and analysis for sector development strategies.

Facilitation of SMEs in securing financing.

Strengthening of SMEs by conducting and facilitating seminars, workshops

and training programs.

Donor assistances for SME development of SMEs through programs and

projects.

Assist SMEs in getting international certifications (such as UL, CE, DIN, JIS,
ASME, KS, etc.) for their products and processes.

Identification of service opportunities on the basis of supply/demand gap.

Responsibilities (JD of employee)

1. Coordinate with International Consultant in successfully completing the
primary and secondary research to establish the gap between demand and
supply of various business development and advisory services for SMEs. This
SOW includes the following:
a. Review business development and advisory needs of SMEs based on
research studies carried out in the past, focus groups with SMEs,

b.
c.

d.

e.

Chambers of Commerce, trade associations, and interviews with

SMEDA outreach/help desk staff. The role of the Local Consultant is to
work together with the International Consultant in organizing,
analyzing and compiling the research findings.
Conduct secondary research based on the literature review constitution
of documents/publications.
Review the quality and efficiency of services being offered to SMEs
from public sector organizations such as SMEDA, TUSDEC etc., private
sector service providers, Chambers of Commerce and Trade
Associations. The Local Consultant will work together with the
International Consultant in coordinating the meetings, compiling the
information, analyzing and reporting the research findings.
Analyze the effectiveness of SMEDA and its service delivery to the
SMEs. This will also include review of the World Bank report:
Independent Organizational Evaluation of SMEDA. The Local Consultant
will work closely with the International Consultant to complete the
report review and perform any other activity required to accomplish
the task.
Assist the International Consultant in evaluating the international best
practices and emerging trends in SME development, including the type
of services being offered, working models and delivery systems of
organizations such as US Small Business Administration, Business Link
(UK), SME Corp (Malaysia), Ministry of MSMEs (India), etc. The Local
Consultant will be responsible to compile data and maintain records of
information shared by the International Consultant. Local Consultant
will also ensure that the adoptions of the international best practices
are suitable for the local business environment and helps in addressing
the challenges faced by the Pakistani SMEs.

2. Coordinate with the International Consultant in devising an organization

development strategy for SMEDA, assisting SMEDA in adopting a strategic
framework by providing assistance to the leadership and strategic
management of SMEDA. The activities involved in this task are as follows:
a. Develop a service menu for SMEDA based on the assessments of
demand-supply gaps, international best practices, and emerging trends
in SME development.
b. Develop a strategic plan for SMEDA to better provide/facilitate business
development and advisory services to SMEs, while also strengthening
capacities of private sector service providers. SMEDA should not be
seen as a competitor of the private sector service providers.
c. Offer an organizational structure and detail the infrastructure
requirements of SMEDA for effective service delivery to SMEs.
d. Design action plans, assign responsibilities and timelines (including a
Gantt chart) for successful execution of the new strategic plan. The

Local Consultant will provide support and assistance to SMEDA team in

adoption of the plan.

3. Working with the International Consultant and Firms Project Team, help
SMEDA in adopting a performance management program to achieve its SME
development goals. The activities should include but not limit to the
following:
a. Assist SMEDA in creating and executing the performance scorecard
containing the goals,
actions and key performance indicators. The
scorecard will be created by The Local and International Consultant, working
with the strategic team/department heads of SMEDA.

Duties:
1. To develop and strengthen procedures for results, process, context, compliance,
financial and organizational monitoring and evaluation
2. Suggest strategies to the Management for improving the efficiency and
effectiveness of the Organization
3. To define and implement Result Based Management (RBM)
4. Monitor and evaluate overall progress and impact of PSDP/Donor Funded projects
being implemented by SMEDA
5. To develop and maintain effective mechanism for information gathering, storing,
analyzing and reporting.