REMEMBER the incumbent Minister of Trade, Commerce and Industry, Richard Maru once vehemently pushing for the localization of the SME (Small Medium Enterprises) industry.
He was eager to introduce a SME reserve policy to drive the concept of localisation.
However, provided a new government is on its way perhaps in August 2017, I would like to propose the idea of introducing a SME Credit Guarantee Scheme.
In Papua New Guinea the informal sector supports around 80 percent of population who are obviously below the poverty line.
According to observations, costs and availability of microcredit poses the biggest barrier to aspiring small businessmen and women, and deters them from setting up.
To encourage SME investment and growth, the Department of Trade, Commerce and Industry can provide concessional microcredit in batches.
This will inevitably provide a credit guarantee scheme to support the SME sector to flourish.
The SME Credit Guarantee Scheme has been trailed in Bangladesh, China and Brazil which off course has bolstered investment and growth of the SME sector.
The success of this idea will be a game changer for the 80 percent population in the informal sector and the aspiring SME entrepreneurs who will gain a better business footing in the SME sector and in turn, it will promote a shared prosperity thus reducing poverty levels and creating the prospects for long term economic growth and success.