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Representational image shows a female worker working at a textile factory in Faisalabad.— AFP/File
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LAHORE: Policy makers should design programs that help micro -entrepreneurs transfer cottage industries to smaller and medium -sized businesses (SMEs). More effective targeting training intervention can increase their overall effect.
Upgrading micro enterprises in Pakistan is very important for comprehensive economic development, poverty reduction, and employment creation-especially for women and youth. In Pakistan, mainly informal and low investors, micro enterprises work in areas such as retail, tailoring, food, livestock and transportation. They face major challenges, including limited access to finance, weak market links, poor infrastructure and low skill levels.
By simplifying the state and offering low interest rates, the state has to improve access to micro -loan through institutions like the Prime Minister’s Youth Program, Akhot and Khushali Bank. The government can guarantee loan loans to reduce the risk for lenders and increase the flow of funds to small businesses.
Planners should also align with the needs of micro enterprises-technical and professional education and training (TVET) institutions-focusing on innovative retail, e-commerce, food safety, accounting and marketing. Digital literacy and mobile -based business tools must be promoted, especially for women.
Micro and small businesses will benefit from one -stop SME centers that provide services like registration, tax aid, training and legal aid under the same roof, which will facilitate their admission to the formal economy. Government support for platforms such as ‘Med in Pakistan’ portals and trade fairs can help micro enterprises connect with large supply chains or directly to consumers. Through joint facilities such as cold storage, transport, and packaging units in rural and Perry urban areas, cluster development should also be preferred. Subsidic internet and mobile data packages are also required for registered micro enterprises.
In order to promote formality, social protection schemes – such as pensions, health insurance and maternity benefits – should be linked to design and enterprise registration.
The neighboring India recognizes the micro enterprises as the backbone of its rural economy. Notable measures include the Madra Scheme (Micro Unit Development and Revenue Agency), which was launched in 2015, which offers micro and small businesses under three degrees in Colliel Free Loans up to Rs 3.3 million (Rs 3.3 million): glasses, teenagers and trunks.
The Standup India Scheme supports SC/ST and women business people in launching small businesses, while the UDIM registration platform facilitates MSME registration, which facilitates access to credit and government schemes.
The Indian Ministry of MSME has also financed joint facility centers and infrastructure in sector clusters such as textile, leather and food processing. Digital platforms such as Government e -Market Place and ONDC Micro Entrepreneur enable them to sell and train online.
Bangladesh has also made significant progress in empowering micro-entrepreneurs through microfinance through microfinance integration. Institutions like Grameen Bank and Burke offer micro -credit for business growth rather than just survival with training, savings and insurance programs.
The Bangladesh government has set up an SME Foundation that supports a cluster -based approach, offering help to adopt grants, training and technology. Under the Central Bank Guidelines, banks need to allocate their portfolio’s part of their portfolio, micro and small businesses (CMSes).
Bangladesh Bank offers privileged loans at 9.0 % or less, which contains quotas dedicated to women -led micro enterprises. ‘One House, One Farm’ Initiative is a rural Income Generation Program that connects micro credit, training, and collective farming or business projects.
Pakistan should learn from the achievements of its neighbors by facilitating the rules and registration processes and registration processes like India’s UDM system. Like Bangladesh, it should use microfinance as a development tool rather than just a survival method. Policy makers have to encourage digital sales channels and micro business will have to integrate into big value chains and public purchase systems. Most importantly, they should invest in women -based measures, as has been successfully demonstrated in both India and Bangladesh. Cooperation for cluster development and joint services will also reduce costs and increase productivity.
More than 50 % of Pakistan’s population is below the poverty line, and half of them are engaged in micro enterprises. These traders rarely employ others, and when they do, they are usually members of a compensation family. With targeted training and support, these micro enterprises can grow and provide jobs to many people when they expand.
