'Gap in policy and action stalls SME devp'

Kochi, Mar 26: The widening gulf between policy and action and lack of information on markets were the major impediments in the development of small and medium enterprises (SMEs) in the Commonwealth countries, Advisor in Ecocnomic Development in Commonwealth Secretariat Ram Venuprasad said today.

Delivering a lecture on 'Commonwealth Fund for Technical Co-operation's Work' at the ongoing VI Commonwealth-India Small Business Competitiveness Development Peogramme here, Mr Venuprasad said most of the member countries gave priority to policy and not to action resulting in a wide gap between policy and action for the development of SMEs.

He said the countries also had problems in accessing information on markets as policies and regulations were development barriers for the enterprises.

The members also had major constraints in technology and finance and these posed serious threats for the survival of the SMEs, he added.

He said the Secretariat was working in tandem with the governments concerned by forging national partnerships, formulating a mix of policies in liberalisation and micro-level polices.

Mr Venuprasad said the Secretariat with an experience of more than three decades was instrumental in commissioning small projects and to attract partnerships with multilateral institutions in various countries.

EXIM Bank Chief General Manager of south zone K Muthukumaran said the SMEs had a great role to play in the economic development and industrial growth of any country.

He said through international trade the SMEs can enter the global market and be an instrument of distribution of wealth internationally.

Meanwhile, Mr Muthukumaran noted that high leverage, lack of technology and managerial capabilities, low productivity and brand value were plaguing the SME sector.

The programme with the theme 'SMEs-- An engine for Poverty Alleviation, Employment Generation and Export Development' aims to develop competitiveness of small business activities for developing countries in the Commonwealth.

The six-day programme, jointly organised by Commonwealth Secretariat, Coir Board and the Export-Import Bank of India (EXIM Bank), would focus on issues of sustainable pro-poor growth in the agro and rural sectors.

UNI