Lae business owner lauds help for SMEs

THE owner of Lae Everclean Ltd has welcomed the recently launched SME financial facility for PNG businesses by World Bank, International Finance Corp and BSP.
“For me it is a positive move that will benefit the Papua New Guinean or indigenous SME sector, which needs to grow,” Sarah Haoda Todd said.
“Accessing credit was complicated and the procedures were rigid.
“Stakeholders must ensure that the facility is user-friendly.
“Such a facility will surely assist SMEs in going into the big league business by giving them a fair opportunity to compete with foreign counterparts.
“However, every aspiring business men and women, who would like to take the next step into the formal sector, have problems in accessing credit.
Todd thanked the government for recognising SMEs as an important sector of the economy and for partnering with World Bank and IFC for the facility.
“If this facility could incorporate training in financial literacy and provide specific industry knowledge and opportunities in agriculture and manufacturing, I do believe that we can see growth of the SME sector by 2050, which is a very important sector as it can drive PNG’s economy,” Todd said.
Todd, who is also the secretary for the PNG Indigenous Bu­­-
siness Council, said there were many nationals who had resources such as land and determination to venture into business but could not get credit.
She said some key challenges faced by SMEs included lack of consistent basic services and problems securing raw material.
 “The constraints are largely due to the result of poor infrastructure such as roads, lack of electricity, lack of knowledge in information communication technology (ICT), and human resources and cultural beliefs.
“So while the facility is timely, it is still difficult for SMEs to deliver an ideal product,” Todd says.