Assignment No.2
Name: Sudais Sheraz
Enrollment: 01-155241-042
Class: BS DS 4D
Course: Entrepreneurship
Department of Humanities & Social Sciences
(H&SS)
Bahria University Islamabad
Question 1: Sara, a recent business graduate, is passionate about launching her
own eco-friendly clothing brand. However, she is unsure about what it truly
means to be an entrepreneur and what personal qualities she must develop. Based
on this scenario, define entrepreneurship, describe the characteristics of
successful entrepreneurs that Sara could represent in this context.
Answer:
Introduction:
Small and Medium Enterprises (SMEs) are small-scale businesses that operate with limited
employees and moderate investment. They exist in manufacturing, services, retail,
agriculture, IT, and many other sectors. SMEs are flexible, innovative, and quick to respond
to market needs.
Role of SMEs in Pakistan
SMEs play a major role in Pakistan’s economy by:
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Creating almost 80% of non-agricultural jobs
Contributing about 40% to GDP
Supporting exports like textiles, sports goods, and IT services
Reducing poverty through local employment
Encouraging innovation and competition
Promoting balanced regional development across cities and rural areas
Development of SMEs
The government supports SME development through:
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Loan and credit schemes (e.g., SBP refinance, youth loan programs)
Skill development and entrepreneurship training
Business incubation centers and industrial clusters
Simplifying tax and registration procedures
Promoting digitalization and e-commerce
Still, SMEs face challenges such as limited financing, low technology use, and weak market
access.
SMEDA’s Role in SME Development
The Small and Medium Enterprises Development Authority (SMEDA) is Pakistan’s main
institution for SME support. Its contribution includes:
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Policy support: Helps draft SME policies and advises the government on businessfriendly regulations.
Business services: Provides pre-feasibility studies, business plans, and advisory
services.
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Training programs: Offers capacity-building workshops in finance, marketing,
quality control, and digital tools.
Infrastructure support: Develops Common Facility Centers and industrial clusters
to help SMEs access technology and machinery.
Finance facilitation: Works with banks to improve SME financing (though
challenges still remain).
Conclusion
SMEs are essential for Pakistan’s economic growth, job creation, and innovation. SMEDA
plays a helpful role in developing SMEs through training, policy support, and business
services, but it needs wider outreach and stronger financing mechanisms to fully support
SME growth in the country.