MSME IS FOR US, NOT A GOVERNMENT SCAM

I have read through many comments in our group and realised that many Papua New Guineans are still confuse about SME. Now let me break down what SME is all about.

HISTORY

The idea of SME was started in Japan after the world war in 1945 to regain the Japanese weak economy. After seeing the success, India Adopted the Policy and eventually by all developing countries. PNG included the SME policy in 2016 and until late last year 2020, funds were injected to SME sector to boost the economy after COVID 19 economic shocks that affected PNG. 

WHAT IS MSME?

M - Micro

S - Small

M - Medium

E - Enterprise 

Micro businesses  are the mini small businesses like the buai table market and street sales etc. Small businesses are the trade stores, small farmings,  poultry businesses etc. Medium businesses are like bus services, hire cars and Wholesale businesses etc. 

So the concept in a nutshell in PNG context would imply that you start small from let's say Buai table, save money and  increase to trade store, further it to wholesales and finally to corporate business. 

IS THE GOVERNMENT OF PNG A STARTING FACTOR IN SME?

The simple answer is NO.!!

SME businesses must be started by individual Papua New Guineans. Government is only  seen as a CATYLIST to increase your business and in PNG context they have already put in K200 million to BSP and NDB for them to lower the interest rates to only 5 and 4% respectively.

ARE PNGeans ELIGIBLE FOR SME BUSINESSES?

YES!!

Infact, we are already in MSME businesses. We have hardworking street sellers who are already braving the Sun and rain, day in, night out doing their small businesses.  WE MUST BE PROUD OF THAT. NEVER SAY DIE!! IS THE PRINCIPLE We use when it comes to SME businesses. We fear NO POLICE AND BREAK every laws to do businesses.  WE ARE FOCUSED . The Spirit of SME businesses is already in our bloods. 

WHAT ARE THE PROBLEMS OF SME BUSINESSES IN PNG?

1. Most importantly we LACK DISCIPLINE in SME business.  We don't save and budget to increase our business.  We only do business to eat, live and survive . Use the extra during weekends on  beer and other non priority areas.

2. We lack basic knowledge on how to formalize our businesses so that we can get assistance from government by means of accessing loans to increase our businesses. That is by registering our small businesses and having business BANK accounts where banks can know that we doing business. Any business that does not have business BANK account even you have personal accounts are labeled as INFORMAL businesses. Hence many of the businesses are in Informal Sector.

3. We see all Banks as threats to our money. Banks are actually there to empower your businesses and not to all the time drain your money as bank fees. Yes, they will get some monthly fees but that will be maybe only K10 or less. Open your business BANK accounts and see the benefits yourself.

4. We believe that the Governments must provide for MSME on golden plate. No one will give you money for FREE and that also includes the Government.  GOVERNMENT WILL NEVER GIVE YOU MONEY TO START YOUR BUSINESS BUT WILL ASSIST YOU IN OTHER SMALL WAYS TO INCREASE YOUR BUSINESS. To be eligible to the Government  assistance such as subsidies,  loans, market opening and trade fairs, YOU MUST Firstly REGISTER YOUR BUSINESS WITH IPA. IT'S ONLY K200. To do the simple things, ITS HARD! To complain it's easy.

5. We all only concentrate in one business. Everyone wants to build trade store only, buai sale only, beer sale only. We are not creative. Create your business depending on the GIFTS you have. Stop building trade stores within every household in a street. Be innovative and start a different business apart from the existing businesses. 

CONCLUSION. 

MSME Businesses are for all of us, For the benefit of your life, your children and your future. Finally it will have positive impact in our country. Let's not discourage ourselves by saying negative things. Encourage and Empower your friends and Wantoks to Engage in MSME businesses. Stop Complaining with the Government. The Government is YOU!

WE WILL SEE POSITIVE OUTCOMES MAYBE NOT NOW BUT IN 5 YEARS TIME.

NB. IF YOU WANT TO KNOW MORE ABOUT SME BUSINESS AND MANY MORE ON SME BUSINESSES,  PLEASE ATTEND TO MY MSME FINANCIAL LITERACY TRAININGS. 

YES ! WE ALL CAN!💪

#PNGSME 

#POWERING_POTENTIALS