Small and Medium Enterprise

SMEs by Muhammad Iqbal

SMEs Small & Medium Enterprises

M . B . A . M a r ke t i n g & F i n a n c e , M . A . E c o n o m i c s & D . I . T

1

Small 1. 2. 3. 4. 5. 6. Little: of a relatively little size Not much: little in quantity or value Insignificant: unimportant or trivial Limited: operating on a limited scale • small businesses Minor: lacking in power, influence, or status Not yet mature

Medium 1. 2. Neither large nor small: of middling size or dimensions, neither large nor small State between extremes: an intermediate state or condition halfway between two extremes

Enterprises 1. 2. A commercial company or firm Highly motivated industry: organized business activities aimed specifically at growth and profit

Small & Medium Enterprises Define as 1. 2. 3. 4. 5. 6. 7. 8. 9.

Small in size limited in Finance Small Share in Market in which it operates Directly run by its owner limited no of Employees Its Management is personalized rather than formal Its not a part of lager group Marketing & Advertising areas are limited limited in resources

What Are SMEs SME (Small and Medium Enterprise) means an entity, ideally not a public limited company, which does not employee more than 250 persons (if it is manufacturing concern) and 50 persons (if it is trading / service concern) and also fulfills the following criteria of either ‘a’ and ‘c’ or ‘b’ and ‘c’ as relevant: (a) A trading / service concern with total assets at cost excluding land and buildings up to Rs 50 million. (b) A manufacturing concern with total assets at cost excluding land and building up to Rs 100 million. (c) Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300 million as per latest financial statements. SMEDA: SME Definition Employment Small Medium Between 10-35 people Between 36-99 people 2 – 20 20 - 40 Productive Assets (Rs. in millions)

This definition will be revised periodically as SMEs in Pakistan evolve and more data is collected. SMEDA...