n.m. shaheid chairman/director general 13 th october 2014 creating an enabling environment for...
TRANSCRIPT
N.M. Shaheid Chairman/Director General
13th October 2014
Creating an Enabling Environment for SME’s in Sri Lanka- The Role of the Public Sector
SME Forum - Plenary Session 1
“My aim is to establish the Small and Medium scale Entrepreneurs (SME’s) as the
backbone of our national economy. I will therefore take measures to bring them to a
national level and to compete in international markets.”
His Excellency President
Mahinda Rajapaksa
National Enterprise Development Authority was established under National
Enterprise Development Authority Act under 17 of 2006 to promote, support ,
encourage and facilitate Enterprise Development within Sri Lanka with special
emphasis to the Small and Medium Enterprise Sector of the country
WHAT IS NEDA?
WHAT IS AN SME?
1. There is no universal definition of a SME.
2. How a ‘SME’ is defined in a particular country depends on many factors, such as business cultures in that country; the size of the country’s population; and even the political will of the government.
3. Different organizations and countries set their own guidelines for defining SME’s. Various parameters such as invested capital, total assets, number of employees or annual sales are frequently used in definition.
4. SME generally refers to a business entity with a small number of people and a business turnover that is below a prescribed unit.
5. SMEs dominate the corporate community in many countries and they are a major contributor of a country’s GDP.
Sectors/Size PrimaryAgriculture
Manufacturing Service
MicroNo. of EmployeesAnnual TurnoverAsset Value(Excluding Landand Building
Less than 5Less than Rs.200,000/-Less than 5 Million
Less than 5Less than Rs.250,000/=Less than 10 Million
Less than 5Less than Rs.200,000/=Less than 5 Million
SmallNo. of EmployeesAnnual TurnoverAsset Value(Excluding Landand Building)
5-19Rs.200,000-1,000,000/-Less than 10 Million
5-50Rs.250,000-10 MillionLess than 20 Million
5-19Rs.200,000/-=Rs. 1,000,000/=Less than 10 Million
MediumNo.of employeesAnnual turnoverAsset Value
20- 501 Million – 5 MillionLess than 20 Million
51-15010 Million- 25 Million
20-501 Million – 5 Million
A DEFINITION FOR SMALL AND MEDIUM BUSINESSES IN SRI LANKA
ROLE OF GOVERNMENT IN SME DEVELOPMENT
1. The role of the government is to enhance the survival rate of the SMEs and to help them make the great leap so that today's SMEs will be turned into tomorrows businesses.
2. Government generally provides financial and non-financial support.
3. The government recognizes the contribution of SMEs to the economy and allocate funds to meet their specific needs, and upgrade their management skills.
Internationalization of Local BusinessesInternationalization of Local Businesses
NEDA facilitates the participation of regional SMEs in NEDA facilitates the participation of regional SMEs in International technology fairs – Organize business International technology fairs – Organize business delegations.delegations.