S TA R T U P S M E

Workshop

Prepare PREPARE

Small & Medium Enterprises

Development Authority An adaptation from SBA training on
small business startup
1
Small & Medium Enterprises Development Authority

Welcome Message
SMEDA is a Federal organization created in
1998 to assist SME business growth by
creating conducive policies and provision of
Business Development Services.

The SMEDA helps Pakistani Entrepreneurs

start, establish and expand businesses
through its regional offices and
development partners across the country.

Visit us: www.smeda.org.pk

2
Prepare Group Work

What are your expectations

from this workshop?

What are your strengths

What should be workshop

rules?

Is anybody from your family

involved in business? If yes
what is that business?

3
Startup SME Workshop Overview

This workshop will help YOU:

Develop basic concepts Learn what banks are

to start your business looking for, when
lending money

Understand financing Know about the local

options for your resources available for
business advice and support

4
 Business Startup Workshop

3 Stages

Prepare Aim Start

5
Prepare

Prepare

The key steps to start a

business

6
Prepare
SMEs are Backbone of Pakistan’s Economy

Small & medium businesses:

• Make up 97% of total economic

3.2 M Small and Medium
Businesses establishments in Pakistan
Over 95%
have no
• Contribute 40% of the manufacturing
employees
Over 90% businesses in Pakistan
sector Gross Domestic Product (GDP)
are Small and Medium
Businesses
• Make up 46% of total export earnings

7
 Prepare
Entrepreneurship In Pakistan

The Total early stage Entrepreneurial
1 Activity (TEA) rate for Pakistan is 12%
which is higher than the average for the
Middle East and Africa region (8%) and
that of Asia Pacific Region (10%).
25% are latent entrepreneurs, who intend
4
to start a business within three years
31% indicate that fear of failure would
5
prevent them from setting up a business

46% individuals see good opportunities

2 Over 95%
to start a business in the area where
they live have no
employees
3 46% believe they have the required skills
and knowledge to start a business

Source: Global Entrepreneurship Monitor (GEM) 2012 8

Prepare

What can impact small business success?

Lack of planning Poor management skills

Poor credit system Lack of finances

Failure to seek outside help Lack of resources

Lack of support Ignoring the customer

Lack of experience Poor cash management

9
Prepare
Characteristic that drive
entrepreneurial success
Business Focus 1 6 Independence

Confidence 2 7 Knowledge-Seeker

Creative Thinking 3 8 Promoter

Delegator 4 9 Relationship-Builder

Determination 5 10 Risk-Taker

based on Gallup Assessment of 2,500 entrepreneurs

10
Prepare

What do I want from this business?

11
Prepare
Group Work

What do I want from this business?

• Profit

• Independence

• Satisfaction

• Good Name

• Solve the problems

• Innovation

• Social Services

12
Prepare Are you ready to be an entrepreneur?

Are you determined to realize your long term goals?

Do you have the personal discipline?

How will you handle disappointments?

Do you have the support network?

Are you comfortable with uncertainty and being

uncomfortable?

Are you financially prepared?

13
Prepare

Steps to Starting a Small Business

Determine offering 1
and demand in market 2
Understand business
3
Determine competition
4
marketing strategy
Determine start up costs
5
Meet legal requirements 6
Prepare yourself
7
financially
Develop business plan 8
Get help

14
Prepare

Group Work

• Write down the business name you want to start

• When will you start?

• How much Finances are required for the selected business?

• Is technical Human Resource available for your business?

• Presentation

15
Aim

AIM

This module will help you

prepare to become credit
ready.

Sometimes receiving
“financing” (borrowed money)
is called “getting credit” and a
bank is said to “extend credit”
to a loan recipient

16
Aim

From Where can we get money to Start a Business?

17
Aim

Where to Get Money to Start a Business

Money that you have saved

Money from an investor who gets a share in your business

Money given your family or friends

Money that you borrow from banks

18
 Aim
What Matters Most to Lenders

No matter who you ask to lend you money, the lender

will be looking for--

A business owner who knows the business

Ability to make enough money to pay its bills

An investment from the business owner

19
Aim

What Lenders Are Looking For

In short: Lenders look for an applicant that

thoroughly addresses what are commonly known
as the five C’s of Credit

C C

CREDIT
C C

C
20
Aim Setting the Aim:
Understand 5 C’s of Credit

C Character

C Capacity / Cash Flow

C Collateral (Guarantees)

C Capital / Contribution

C Condition
21
Aim Setting the Aim
Prepare to Ask for a Loan

of business owners and other key managers

22
Aim

The Basics of Your Loan Request

How much money do you need?

How will you use the money?

23
Aim

The Basics of Your Loan Request

What type of loan are you seeking –
• A term loan = A fixed amount of money that you will pay back
during a specified period of time
• A line of credit = Allows you to borrow up to a maximum
amount of money, repay some of it and borrow more up to
the maximum loan amount

24
Aim

The Basics of Your Loan Request

• How much can you afford to pay each month?

(loan payment)
• How many months or years will you need to pay
the loan back? (loan maturity)
• Do you own anything of value such as real estate,
(collateral)

25
Aim
Your Business Plan

Define your target market

Anticipate future capital needs

Show how you will make money

Tells the story of your business to others including

potential lenders

Business plan templates are available from a variety of sources

including SMEDA website

26
Aim Find Help to Prepare
Your Business Plan

SMEDA ’s Resources / Partners –

• SMEDA Help-desks
• SMEDA website
• SMEDA’s Projects closer to you

Local chambers of commerce

Local colleges and universities
Accountants
Business consultants
27
Start
Shoot

SMEDA provides critical support and assistance to help

Running your business will require you to have well thought out
small business
action plangrow youraspects
for different business.
of your business operations.

SMEDA’s support services are :

• Information: SMEDA provides free of cost information

• Planning: SMEDA provides business ideas in the from of prefeasibility .

• Handholding: SMEDA’s provide counseling and training to entrepreneurs

28
 Stay in touch
Contact Information for SMEDA

You can find us on

For any questions @smedaquetta @smedaofficial

smedabalochistan@gmail.com 081-2831623-702

29
Thank You!