Provide policies for SME funds

WITH the huge amount of money allocated to small and medium enterprises (SMEs) amid the coronavirus pandemic, the Government should come up with a brilliant idea to fund SMEs.
The fund should be utilised elsewhere for service delivery.
The talk of SME is a household topic in Goroka with people gathering in twos or threes talking well into the night.
Sadly, not all these people are well informed on the SME policy and what the Government is doing about the funds parked in the distinguished financial institutions. People need to learn how to integrate themselves with SME before doing anything that could spoil a soup already brewing.
New SME groups are popping up as mushrooms.
Whether they would fail or survive is another matter to consider before funds are provided.
How about those SME’s that have been operating for years through the tough years considering the current recession in the economy?
It will be a waste of money for new SME’s since they have no track record to prove if they’ll survive.
Rather, these money could be invested in tangible investments that could bring investors’ confidence.
That would help revive the economy.
The downturn of economic activities could be supported positively if appropriate channels were employed to optimise growth within the district.
Existing SME’s have weathered all odds to come this far and they deserve to benefit from this policy.
Stringent measures and screening procedures should be employed to ensure new SME’s are eligible to receive these funds.
Otherwise they should start somewhere and operate for 2-3 years which would enable them to make returns.
They can then be allowed to seek funding from the SME funds in the banks concerned.

Observer