Experts urge upgrading of SME Sector

By Azhar Razak

A recent sub regional workshop on Small & Medium Enterprises (SME) value chain has highlighted the need for regional governments to upgrade SME value chains with a view to further penetration of global and regional markets.
Representatives of the three countries (Bangladesh, Nepal and Sri Lanka) who attended the two-day workshop, have proposed to form a sub regional joint programme for sustainable and inclusive industrial development.

From L - A.B.M. Khorshed Alam, Additional Secretary, Ministry of Industry, Bangladesh, Dr. Ravi Ratnayake, Director Trade and Investment Division of UNESCAP, Kosala Wickramanyake, President of FCCISL, Professor Ananda Jayawardena, Dean, Faculty of Engineering at the University of Moratuwa (Pix by Rukshan Abeywansa)

“For upgrading SME value chains, the three countries, in cooperation with ESCAP, have decided to focus on key products with high export potential, such as industrial rubber and electronic goods, plastic products and commercial crops (coffee and ginger),” ESCAP (Economic and Social Commission for Asia and Pacific) Director Trade & Investment, Dr. Ravi Ratnayake told a media conference yesterday.
He highlighted the importance of select product sectors for their contributions to national economies in terms of employment, backward linkages and export.
“The participating countries need to ensure that the proposed national strategies for short, medium and long term growth of selected sectors should be incorporated in their industrial policy frameworks, along with appropriate incentives and support functions,” he said.
He recapitulated that the SME sector had high potential for growth and for alleviating its negative environmental effects through Public-Private partnership, and stressed on the need to strengthen sub regional trade and economic cooperation to maximise their export potentials.
“The sectoral development plans have proposed specific interventions of both Public and Private sectors, addressing the key success factors of export-led SME development”
“Those factors include policy and regulatory frameworks, supporting infrastructure, human resources development, access to finance, technology enhancement and business development services,” he said.
He added that national action plans to also include implementation strategies, agencies responsible and costing aspects.
“The sub regional joint programme is expected to enhance economic cooperation among the three countries, through proper understanding of SME value chains, and finding out the opportunities to enhance them,” he said.
The Workshop was jointly organised by the steering committees of Bangladesh, Nepal and Sri Lanka, along with the University of Moratuwa, and three other Sri Lankan agencies, namely Ministry of Enterprise Development & Investment Promotion, Small & Medium Enterprise Developers (SMED)of Federation of Chambers of Commerce & Industry of Sri Lanka (FCCISL).
The theme of the Workshop was on the topic of ‘Creating an Enabling Environment for South Asian SMEs’ effective penetration in regional and global markets’, and held at the Cinnamon Lakeside Hotel in Colombo. The three South Asian countries, Bangladesh, Nepal and Sri Lanka who shared their sectoral development plans to promote SME participation in global and regional value chains, suggested sub regional measures for sustainable and inclusive industrial development in South Asia.