Distribute SME funds fairly

THE savings and loans societies and the microfinance companies continue to remain invisible in the discussion of small-medium enterprise (SME) programmes by the Government.
The most talked about drivers of the SMEs seem to be the commercial banks – Bank South Pacific (BSP) Financial Group Ltd, the National Development Bank and others.
The Government should widen its scope by including the savings and loans societies, particularly those based in provinces and microfinance institutions.
The roll out of SME guarantee schemes is a very significant programme that can shift the way credit is made available and transform PNG in a big way.
It will be a relieve to many entrepreneurs who are struggling with market competition and those operating on breakeven points just to survive.
It is true that the bigger players should take the lead but the issue is whether they would get right down to the grassroots population that form the bigger component of the SME sector.
By comparison, the big players do not have the outreach capabilities.
They have huge overheads that makes them incapable.
I believe that SMEs can be effectively rolled out by the smaller and more efficient players such as the savings and loans societies and the micro banks.
They are quite innovative, sustainable, have the structural balance and are very effective.
They can drive the SME programmes of the Government which the Government is championing at the moment, with greater outreach.
Unfortunately, the Government and our politicians do not know this.
It is encouraging to note candidates for the general election such as a contestant for Lufa in Eastern Highlands are talking about SME programmes as their campaign platform.
More people in Eastern Highlands should be vocal on this topic.
The only way Eastern Highlands and the rest of the country can develop is by making capital finance available to the people through SME guarantee schemes.

Binn Huletove,
Advocate,
Fair Distribution of SME Funds