ALL over the world, there is growing evidence that Small Medium Enterprises (SMEs) play an important role in the national economic development of any country.
SMEs are becoming more and more a subject of high attention in the developing countries, countries in transition but also in the countries with developed economies.
In market economies, SMEs are the engine of economic development.
Thanks to their private ownership, entrepreneurial spirit, their flexibility and adaptability as well as their potential to react to challenges and changing environments, SMEs contribute to sustainable growth and employment generation in a significant manner.
Until latest, the private sectors of many emerging economies were missing the middle level of development.
Investors, policymakers, and professionals dedicated most of their efforts to big companies of more than 500 employees, larger enterprises or multinationals, as havens for creating jobs and driving economic growth.
In the past, SMEs have been considered as not being the key element to drive the economy therefore it was considered as not worthy focusing government attention to.
However, lately there have been many promising initiatives to support the SMEs operating in crucial segments of emerging economies not only by investments but business leaders as well, leaders who clearly recognize the role of the SMEs in building a sustainable economic environment that adds impetus to growth.
The presence of SMEs in developed and developing economies is becoming more and more evident and their role in economics is quickly demanding the deserving attention.
This has been the scenario in Zambia over the years SMEs have emerged and demanding a larger share in forging economic growth.
Several institutions especially in the banking sector have noted the qualities that SMEs have in adding value to national growth through mainly the creation of jobs, which by any measure is a key priority of
the Government.
Standard Chartered Bank is one of the drivers of this revolution regarding placing the SMEs in the right economic perspective, so that they too can play their vital role to the growth of the country.
It is worth noting and applauding that the financial institution has this far, invested more than K300million in the growing and nurturing the SMEs sector.
The Bank has been supporting around 8,000 SMEs over the years, with the chief executive officer, Andrew Okai stating that the motivation behind supporting the growth of the SMEs was anchored on the belief or principle that, “once SMEs succeed, even the country’s economy thrives”.
With the Bank’s vast expertise in empowering SMEs in regions such as Asia, the Middle East and elsewhere in Africa, Mr Okai believes this can be done in Zambia and boost chances for economic emancipation and fight closing the poverty gap levels among citizens.
All these efforts are being tailored under the Bank’s strategic vision which is to bank the people and companies that drive investment, trade and the creation of wealth where it has a footprint.
Kudos to these efforts by Standard Chartered Bank and several other players that have taken keen interest in empowering SMEs around the country.
Some of the challenges facing SMEs are among others a sound source of capital, which understands the business profiles for the sector players.
This is where banks like in Standard Chartered Bank’s footing, can play a significant role of understanding the role of SMEs so that all the economic growth contributors move in unison.
Banks need to understand the important role that SMEs play in economic growth and should not avoid providing assistance but of course laid down regulations should not be compromised in this venture.
The underlying fact is that staff in financial institutions especially those in the banking sector should be educated on this vital contribution that SMEs can play.
For most developed economies, SMEs have been the starting point for their evolution towards industrialization and most of the current larger enterprises have their origin in small and medium enterprises.
This direction should be the mark for economic reshaping in Zambia and drive towards the much desired levels of national growth. OPINION