Rapporteur Report
Plenary Session 6
1.0
Title
of Discussion
Institutional Support for
the Development of SMEs
2.0
Presenter
Hj
Abd Rahman Hj Chucu (
3.0
Chairperson
/ Moderator
Dr Kachesa
Bbenkele
4.0
Rapporteurs
4.1
Hjh
Rose Hj Karim
4.2
Muhammad Saifullah
DP Hj Mustajab
5.0
Presentation
and Discussion
5.1
Abstract
/Overview.
The
role of SMEs in the socio-economic development of many countries especially in
the ear of globalisation is well recognised. They provide employment, more
income and assist in poverty alleviation. Thus, government and NGOs have made
considerable efforts to nurture SMEs. The presentation intends to encourage
discussion with regards to the institutional SME support programs in some
countries that stresses the need for a development plan, present some insights
on formulating a SME Development plan and offers a suggestion on a way forward
for NAM SME Development.
5.2
Main
Points and Issues Discussed.
5.2.1
The Challenges faced by SMEs
The
challenges faced by SMEs mainly in the form of availability of financing,
market information technology and business skills. Institutions must be able to
address these issues in its role to support the development of SMEs and provide
the right environment and relevant infrastructure for the growth of
entrepreneurs.
5.2.2
The needs to have integrated
approach in identifying the role of institutions.
5.2.3
Issues in formulating SMEs
Development Plan
There are
several issues in formulating SME Development Plan:
· Standard
definition of SMEs
· Assessment
of Contribution to socio-economy
· Identification
of issues and Challenges.
· A
Clear vision, strategic goals and target for SME Development.
5.2.4
The experience of Negara Brunei
Darussalam as an Oil producing country in developing entrepreneurs.
·
98% of estimated 6000 business
establishment are SMEs (59% services including 27% trading and wholesales, 33%
manufacturing & construction and 8% in primary resources sector)
·
Small Local market of
approximately 330,000 population.
·
Government Driven Economy.
·
The bureaucracy and red-tapes
within various agencies.
·
Government’s effort in enabling an
entrepreneurial environment through establishing policies that bridge the gap
between government and business sectors while maintaining the needs of the
authorities.
·
The issues of complacency among
its citizens and residents.
·
The problems of getting the
financing support from banks.
6.0
Suggestions
and Conclusions
6.1.1
Strengthening the role of
government in supporting the development of SMEs
6.1.2
Strengthening the role of
government in supporting the development of SMEs
6.1.3
It is crucial to identify
priorities in developing entrepreneurs. The problems which are known must be
dealt immediately and settled once and for all.
6.1.4
The government must identify the
right mechanism in the SMEs development. However, the issue is what mechanism
is right to ensure success?
6.1.5
Development plan must cover six
important areas;
· Business policy & Administrativee Environment
· Human Resource Development (
· Financing
· Technology
· Market Access
· Access to information
6.1.6
It is also crucial to identify who
are the stakeholders and their roles. The role and interest of stakeholders
must be addressed clearly to ensure continuous support.
6.1.7
Nature of Institutions’
involvement in SMEs must be clearly identified. Therefore, institutions must
provide the right recommendation on what areas such as mining, agriculture,
Information Technology and handicrafts to venture to the government.
6.1.8
Institutions must identify the
right road map to manage challenges in developing SMEs.
6.1.9
It is important to identify the
mechanism to rekindle entrepreneurship spirit such as the EU Model or other
model that deem applicable.
6.1.10
The role of NAMM-CSSTC in
developing entrepreneurs must be identified particularly in the trade and
investment promotion in