smes in the informal sector in pakistan and sri lanka swsb dasanayaka,university of moratuwa...
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SMEs in the Informal Sector in Pakistan and Sri Lanka
SWSB Dasanayaka,University of Moratuwa
Discussion by Derek Blades
Many definitions
Pakistan• Eight agencies – eight
definitions• Various combinations of
employment, assets, net sales, total investment, equity, turnover
• Federal Bureau of Statistics: Number of employees
Sri Lanka• Twelve agencies – twelve
definitions• Various combinations of
employment, value of machinery, fixed assets, capital employed, export turnover, capital investments
• Department of Census and Statistics: Number of employees.
Poor coverage of SMEs
• Focus on manufacturing. Little information on SMEs in agriculture and services
• In both countries “SMEs data base is very fragile and unreliable due to regular changes in survey units definitions, uneven sector coverage, data too aggregated, non-continuity of surveys”
• Conflict zones
What do we know about SMEs?
Pakistan• 98% of enterprises are
SMEs (less than 100 employees)
• 30% of manufacturing GVA and 80% of manufacturing employment
• manufacturing 20% • trade, restaurants, 53% • other services 22%
Sri Lanka• 96% of enterprises are
SMEs• 36% of total employment
and 20% of GDP• Within manufacturing GVA:
– Food etc 38%– Textiles, apparel etc 24%– Chemicals 8%– Wood and products 5%
Conclusions and Recommendations
• Separate SME data base
• Encourage development of SMEs in rural areas
• Comprehensive data needed on GVA in SMEs• Poor coordination among agencies set up to
promote SMAs
Research agenda• Agree on definitions• Review of past studies• Training needs for staff dealing with SMEs• Identify priority sectors• Labour productivity – formal versus informal• Review financial institutions• Scope for ICT• National policy framework• Regional policy
An alternative approach?
• Legislation to promote competition
• Corruption
• Costs of doing business
• Literacy
• Education
• Role of women
Perceived corruption: rank in 180 countriesNew Zealand 1
Singapore 4
Malaysia 47
China, People's Rep. of 72
Thailand 80
India 85
Sri Lanka 92
Nepal 121
Viet Nam 121
Indonesia 126
Pakistan 134
Philippines 141
Bangladesh 147
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