Transcript SMEs in the Informal Sector in Pakistan and Sri Lanka SWSB

SMEs in the Informal Sector in
Pakistan and Sri Lanka
SWSB Dasanayaka,University of Moratuwa
Discussion by Derek Blades
Many definitions
Pakistan
• Eight agencies – eight
definitions
• Various combinations of
employment, assets, net
sales, total investment,
equity, turnover
• Federal Bureau of Statistics:
Number of employees
Sri Lanka
• Twelve agencies – twelve
definitions
• Various combinations of
employment, value of
machinery, fixed assets,
capital employed, export
turnover, capital
investments
• Department of Census and
Statistics: Number of
employees.
Poor coverage of SMEs
• Focus on manufacturing. Little information on
SMEs in agriculture and services
• In both countries “SMEs data base is very
fragile and unreliable due to regular changes
in survey units definitions, uneven sector
coverage, data too aggregated, noncontinuity of surveys”
• Conflict zones
What do we know about SMEs?
Pakistan
• 98% of enterprises are
SMEs (less than 100
employees)
• 30% of manufacturing GVA
and 80% of manufacturing
employment
• manufacturing 20%
• trade, restaurants, 53%
• other services 22%
Sri Lanka
• 96% of enterprises are
SMEs
• 36% of total employment
and 20% of GDP
• Within manufacturing GVA:
–
–
–
–
Food etc 38%
Textiles, apparel etc 24%
Chemicals 8%
Wood and products 5%
Conclusions and
Recommendations
• Separate SME data base
• Encourage development of SMEs in rural areas
• Comprehensive data needed on GVA in SMEs
• Poor coordination among agencies set up to
promote SMAs
Research agenda
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Agree on definitions
Review of past studies
Training needs for staff dealing with SMEs
Identify priority sectors
Labour productivity – formal versus informal
Review financial institutions
Scope for ICT
National policy framework
Regional policy
An alternative approach?
• Legislation to promote competition
• Corruption
• Costs of doing business
• Literacy
• Education
• Role of women
Perceived corruption: rank in 180 countries
New Zealand
Singapore
1
4
Malaysia
47
China, People's Rep. of
72
Thailand
80
India
Sri Lanka
85
92
Nepal
121
Viet Nam
121
Indonesia
126
Pakistan
134
Philippines
141
Bangladesh
147
Number of Days Required to Register a New Business, 2008
New Zealand
Australia
Singapore
Afghanistan
Hong Kong, China
Malaysia
Japan
Pakistan
India
Nepal
Thailand
Sri Lanka
China, People's…
Viet Nam
Philippines
Bangladesh
Indonesia
0
20
40
60
80
Percentage of Women in Non-Agricultural Employment,
Latest Year
Mongolia
Kyrgyz…
NZ
Hong Kong,…
Australia
Thailand
Philippines
Korea,
Japan
Viet Nam
Malaysia
Sri Lanka
Indonesia
Bangladesh
India
Pakistan
0
10
20
30
40
50
60
Percentages of Literate 15-24 Year Olds; 1990 and
Latest Year
Singapore
China,
Malaysia
Thailand
Sri Lanka
Indonesia
Philippines
India
Nepal
Bangladesh
Pakistan
0
20
40
60
80
100