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
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
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