Spring 2012
MGT601
SME management
Assignment 1
Marks: 15
Due date: April, 12, 2012
Lesson: 1 to 8
Topic: SME sector and its potential to solve socio-economic problems
Objective of Assignment
The prime objective of this activity is to generate the discussion on the importance of
SME sector and its potential to solve socio-economic problems.
Underlying issue
The role and participation of Small and Medium size enterprises (SMEs) have proven the
prominence of SME sector in fostering the economic growth in today’s world. Now the government
officials have realized that the economy depends upon the flexible and innovative production patterns
adopted by SMEs along with large manufacturing units. SMEs sector expansion is no doubt critical
for almost every economy around the globe but it is unavoidable for developing countries where
unemployment and unequal distribution of income are the chronic issues. It is believed that SMEs
can solve many socio-economic problems prevailing in the developing countries. Pakistan, no doubt,
is one of those developing countries which are fighting with many chronic socio-economic problems
like poverty, unemployment, education and health. It is very unfortunate that SME sector, which is
the backbone of the economy, is not treated well so far by the policy makers. The vigorous question
that needs special attention is not “what SMEs sector has contributed so far?” but what they are
capable of contributing?”
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