In the national economic sphere, heavy industries occupy only one percent, with 99 percent occupied by SMEs, it was learnt. So, the SMEs are the major economic forces for national economic development and for improving economic capability.
It is explicitly described in the 12 points of the national economic policy that it needs to support SMEs which help the creation of job opportunities and economic development. The National-Level Central Committee had been formed to effectively support the SMEs in accord with SMEs development policies.
As SMEs have covered nearly the whole national economic sphere, concerted effort must be exerted to give necessary assistance to them so that one day some of them can grow bigger to transform themselves into becoming light industries and eventually become heavy industries. In the past, the SMEs managed to survive in their own way, that is, without any intervention the government. After promulgation of the SMEs Law in 2015, the Union Government has been helping these SMEs.
As SMEs are spreading across the nation, the momentum of the development of SMEs during the period of two years must be said to be still slow. To correct this situation, the Union Government, after studying the actual situation of the SMEs carefully, provided practical ways and means to upgrade SMEs.
It is firmly believed that long-lasting sustainable development will be achieved only if practical approaches can be found in performing the tasks of SMEs development. In this regard, systematic exploitation of our financial resources, human resources, institutional resources and natural resources will be critically important.
In a market economy, sustainable economic development can be achieved by managing to gain reasonable profits for some time, instead of gaining profits to the utmost. In strengthening the economic system, broad expansion of the market as much as possible with reasonable profits is more important than gaining too much profit.
Firstly, the capital resource is very important as the practical approach for SMEs’ development, hence the need to systematically disburse the capital needed for the enterprise. According to the findings, there are more than 200000 SMEs and domestic light industries across the nation, to lend money for their capital needs. Out of them, only a small number of SMEs received capital money at high interest rates, it was learnt. First of all, efforts must be made to increase financial resources from home and abroad so that the initial requirements can be fulfilled. Domestic output will surely increase by providing capital to over 200,000 businessmen at low interest rate and helping in the acquisition of technical assistance and better markets with the cooperation of other friendly countries.
We firmly believe that the development of SMEs will be successfully implemented by helping in the critical areas of capital formation, management training, technical know-how and good markets.