Develop SME sector to strengthen industries

Small and Medium Enterprise sector development is one of the key issues facing any industry today. Development of the SME sector is an important first to strengthening all industries.

It is with the assistance of the SME sector playing a support role that industrial growth has been facilitated. SME development is the essential future candidate of leading industries because every leading enterprise has to start as a SME.

The future of any industry is dependent on the development of the SME sector because it employs a large percentage of the labour force and offers employment opportunities on a regional basis.

In those terms, development of the SME sector could not only be the key issue affecting industry development but also of socio-economic development for every country.

Basically, the SME sector is of a complex nature and it is the reason why this sector should be sustained. This is a phenomenon that is globally accepted.

SMEs play a key role in providing additional employment and facilitating transformation of economies of low income groups to middle income groups. Their allocative efficiencies in resource utilisation such as labour, capital and technology will synergise the economic development in a socially equitable manner.

The characteristics of the SME sector suggest that most of the businesses are in a low growth trap, dealing in a traditional manner and unable to climb the technology ladder.

This view gets credence from the fact that most SMEs are unable to survive in the long term. The Sri Lankan construction industry reflects strengths, scepticism and constraints that impede SME sector growth.

More than 90% of the construction sector of Sri Lanka could be ideally described as Micro, Small and Medium enterprises.

What constitutes the complexion of the Sri Lankan construction industry is a direct reflection of its Micro, Small and Medium enterprises.

Enhancement of construction industry capacities and competitiveness will never be achieved without development of the SME sector. SME development requires the intervention of a Business Development Service (BDS) provider, a role the CCI has endeavoured to provide in an organised manner.