Govt’s plan on SME hailed

THE Government’s ambitious focus on raising the economy with a focus on small-medium enterprise (SME) is well appreciated.
Though previous Governments had such plans to boost SMEs; it was not given much attention for reasons only known to those responsible.
The Government’s commitment of K200 million each year over the next 10 years, as reported in The National (Dec 23), will provide direction for the many people to benefit.
The plan will help address youth unemployment in urban and rural settings.
The population of youths including those coming out of schools each year had increased overtime with increasing pressure on goods and services.
With the SME in view, it is critical that obstacles that hinder access to finance and progress needs to be considered and addressed by the facilitating agencies.
Since funds for SME would be taken out as loans, two important strategies need to be considered and taken seriously by the facilitating agencies.
Firstly, provide basic business development skills training to empower the entrepreneurs with necessary skills, knowledge and attitude development required for the existing and aspiring entrepreneurs.
This will mean creating partnership with recognised training providers to add value and sustain business operation.
This approach was adopted by the Microfinance Expansion Project (MEP) and the Centre for Excellence in Financial Inclusion (CEFI) under the Bank of Papua New Guinea over the last couple of years throughout the country.
Secondly, presentation of a certificate of attendance in business development and management skills training needs to be one of the criteria in seeking loan.
Entrepreneurs with necessary skills are likely to survive in their business than those who have not.
As a training provider under CEFI, we have trained and provided certificates to SME participants who are having impacts in the communities. With the overall focus to promoting SME, the two strategies will no doubt promote business growth; which in turn will address all other socio-economic issues that we are faced with today for a better future.

Wesley Lopele, Goroka