Govt urged to allocate funds to organisations supporting SMEs

By DALE LUMA
THE Government should consider investing a portion of the SME (small to medium enterprise) funding allocation with established organisations that are already supporting SMEs and MSMEs (micro small to medium enterprises).
This is according to Pacifika Women Network and Trade Centre finance manager Norman Mange in a recent interview with The National.
The Pacifika Women Network and Trade Centre is an SME incubation hub in Port Moresby that caters for over 100 SMEs most of which are run by women.
“This Government and the previous Government have been saying that they will put money into NDB (National Development Bank) but in reality, the process in accessing those funds is very hard,” he said.
“They may put K200 million into NDB for SMEs but then, they (NDB) have a very stringent eligibility criteria to select the SMEs. The best way is to assess the current organisations that are promoting SMEs and put money into those organisations.
“As a result, these organisations will then directly get the money and put it to the SMEs and will expand the sector.
“SMEs will create employment, money and try to reduce the unemployment and crime (rates).
These are the next form of businesses that reduce social problems in the country so put money where it will grow SMEs.
“The Government is trying to target 500,000 SMEs by 2030. In 2019, we only have less than 5,000 SMEs which is a long way to go.”
Mange said the Government’s initiative was good but there needed to be more action and less talk.