Small and Medium enterprises are companies whose headcount or turnover falls below certain limits. Small and Medium Industries Development Organization (SMIDO) receives and processes applications from entrepreneurs for a Small and Medium Enterprise (SME) Certificate.
Only manufacturing enterprises, with an investment in production equipment of an aggregate Cost Insurance and Freight (CIF) value not exceeding Rs.10 million, qualify for registration. Holders of an SME certificate benefit from the following incentives:
- Corporate Tax Rate of only 15%
- Exemption of Customs Duty on raw materials as per schedule list
- No Customs Duty on production equipment
Export Assistance Scheme
This scheme is intended to encourage export of SME products. Financial support is offered to SMEs to enable them forward samples of their products abroad to prospective buyers. Fifty percent (50%) refund on airfreight, subject to a maximum of Rs. 2000 twice a year, is provided.
Feasibility Study Grant Scheme
The Feasibility Study Grant Scheme aims at boosting the start up of new Small and Medium Enterprises (SMEs), and encouraging existing ones to expand and/or diversify. A grant, equivalent to fifty percent (50%) of the initial operating costs of a feasibility study for a viable project, is available to SMEs. The maximum amount granted is Rs. 75,000.
The feasibility study should be undertaken by a consultant/consultancy firm registered with SMIDO for the purpose of the Feasibility Study Grant Scheme. Applications are considered by a Technical Committee comprising of representatives of SMIDO, Ministry of Housing and Lands, Small and Medium Enterprises, Handicraft and Informal Sector , Ministry of Finance, DBM Ltd., and, if necessary, a consultant in the appropriate field.
Successful applicants should submit the full feasibility report, together with proof of payment made to the consultant, to SMIDO. Funds would only be disbursed to the successful applicant after registration and implementation of the project within a timeframe of six months.
Skills Development Programmes
Training is regularly conducted at SMIDO for both potential and existing entrepreneurs. It is designed to impart the required skills, attitudes and knowledge to entrepreneurs in relation to the setting-up of an enterprise and efficiently managing existing enterprises. Skills development programmes cover the following areas:
- Entrepreneurship Development Programmes (EDPs)
- Setting-up and Management of SMEs
- Accounting for SMEs
- Costing and Pricing
- Financial Management
- Export Marketing
- Packaging of SME Products
- Inventory Management
- Production and Operations Management
- New Technologies
- Maintenance of production equipment
- Legislation relating to SMEs
- Human Resource Management
- Strategic Management
Information, Documentation and Publications
The Documentation Centre at SMIDO provides an information service and Internet facilities to entrepreneurs. Various books, guides, periodicals and reports are available. SMIDO publishes and circulates a number of guides, reports and brochures for SMEs.
The Small Business Catalogue is published once per year and serves as a guide for the setting up of a new business. In addition, it provides invaluable information to existing entrepreneurs contemplating expansion or diversification of their business. Key issues covered include:
- Starting a small business
- Permits and clearances needed to start a business
- Financial options, incentives and/or expansion schemes available to entrepreneurs
- SME support institutions and services offered
- Other issues pertaining to the running of a small business .Business opportunities for joint venture
The SME Directory is updated and published on an annual basis to facilitate networking among SMEs and with other stakeholders, viz. suppliers, customers and large firms. A Technology Guide and a Textiles Guide have recently been published and made available to entrepreneurs.