Recommendation: Chamber suggests development of SME clusters

Underlines need of following Chinese growth model.

LAHORE: Pak-China Joint Chamber of Commerce and Industry President Shah Faisal Afridi, while showing enthusiasm about small and medium-sized enterprises, has said the country could benefit by developing industrial clusters, which are industrial colonies comprising closely-linked enterprises in specific areas.

“Industrial clusters are considered an important feature of SME development and Pakistan should follow the Chinese SME growth model under which in the first phase it identified the potential sectors, services and supplies,” a statement quoted him as saying.

Afridi said 97% of enterprises belonged to the SME sector in China that accounted for 60% of the country’s gross domestic product and generated 82% of employment opportunities.

“China is involving its youth in social enterprises and SMEs, which are becoming an increasingly popular business model across the country.”



Afridi added these social entrepreneurs would greatly help the society through sustainable public services and other innovative ways.

Explaining further, he said the Chinese government was providing numerous incentives to encourage the SMEs to expand their markets by employing business-friendly policies.

China is also promoting specialisation and coordination among the SMEs so they could collectively pursue technological innovation in material supply, production and sales in a bid to expand the market.

Afridi said the SME sector was, no doubt, an engine of growth and innovation for the economy of Pakistan, but in the absence of easy access to finance, the efforts aimed at developing the sector were not bearing fruit.

Published in The Express Tribune, January 8^th, 2015.

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