SME policy will always be a challenge, says industry exec

LAE chamber of commerce and industry (LCCI) president John Byrne says the delivery of the Governments K200 million budget allocation for small-to-medium enterprises (SMEs) was always going to be a challenge.
Byrne told The National that this was because to many, the first tranche remains unused or unacquitted.
Government allocated K100 million to Bank South Pacific Financial Group Ltd and K80 million to the National Development Bank to offer soft lending for SMEs and micro small medium enterprises (MSMEs).
“I support the Government’s initiative on the SME policy and the need to harness the energy of our country to create new business and opportunities,” Byrne said.
“The announcement and delivery of the K200 million for soft lending was always going to be challenging and testing, with the first tranche still, in many minds, both unused and unacquitted.
“A key concern for me is that we have approximately 85 per cent of our economy as informal or MSMEs, and they were joyous thinking it was manna from heaven when it was not and nor could it be.
“As quality SME and MSME bodies like SMEC and MSME Council develop around the provinces, if they are provided the right funds and channel it into the right areas of business-education for our MSME and SME the funds like the K200 million will not be so unreachable for our real people, the hard working women and men of PNG.”