Small & Medium Enterprises

CHAPTER # 7
Cottage & Small Scale Industry

 One of the important part of the manufacturing sector comprises of cottage and small
scale industry. Its contribution towards the economy of a country like Pakistan is
significant.
 Cottage Industry : The industry that is generally carried on in the home of artisan, where
he is usually assisted in his work by the members of his family. No power is used and the
equipment used are very simple. For e.g. Wood work, hand knotted carpets, toy making
etc.
 Small Scale Industry : Any firm employing less than 10 employees and having fixed
assets not exceeding PRs. 2 Million. For e.g. Poultry Farming, making of silver and gold
ornaments, furniture making, spices industry etc.
Importance of Small & Medium Enterprises
(SMEs)

 Employment Potential
 Employment of Women
 Use of Industrial Waste
 Supply of Indigenous Good
 Source of Foreign Exchange Earnings
 Widens Outlook
 Skill Formation
Problems faced by Small Scale Enterprises in
Pakistan

 Financial Constraints
 Production Cost being high
 Use of Outdated Machinery
 Shortage of trained and technical persons
 Lack of Marketing facility
 Irregular Supply of Electricity
Role of the State in the Development of Small
Scale Industries

 SME Policy 2007

 Establishment of SME Bank
 Role of SMEDA
 Industrial Estates
 Technical services
 Marketing Facilities
Agro based Industries

 Crops
 Non-Crops
 Livestock
 Fishery
 Poultry
 Edible Oil linter