Department says new SME policy still in draft stages

 THE small and medium enterprises (SMEs) policy and master plan are still in their draft stages, Department of Trade Commerce and Industry acting deputy secretary Richard Yakam says. 

The policy and master plan aimed to promote development of a competitive and sustainable SME sector by creating a conducive environment for doing business and encourage entrepreneurialism and  an enterprising culture in Papua New Guinea. 

Speaking on the government’s policy and financial support initiatives for the fresh produce sector in Goroka last Thursday Yakam said: “The department has had wide consultations with concerned stakeholders, including the provincial administrators and practitioners. 

“We have identified the constraints like access to finance, market and information and have developed the policy accordingly.  

“We have developed strategies and action plan which come with who is responsible for developing that particular activity.” 

Trade, Commerce and Industry Minister Richard Maru last week told parliament that consultations on the SME policy and master plan were completed. 

The working committee through consultations carried out throughout the country, found that the total number of SMEs in the country stood at 49,000. 

However, according to the draft policy and master plan this figure needs to reach 450,500 by 2030. 

Meanwhile, the Small Business Development Corporation (SBDC) would be replaced by the new SME Corporation.  

This change came about after Parliament passed the new SME Corporation Bill last year. Maru had said SBDC had been replaced as it had failed under its current legal and governance structure to deliver the growth of PNG SME sector in the past ten years.

The new SME policy and master plan now being finalised for launching, will ride on the back of SME Corporation Act as the primary SME sector enabling legislation.