UNISAME URGES NEED TO PROMOTE MICRO ENTERPRISES

The Union of Small and Medium Enterprises (UNISAME) emphasized the need for promotion of micro enterprises (MEs) for income generation and poverty alleviation and urged the micro finance banks to out reach the MEs especially the women MEs.

President UNISAME Zulfikar Thaver said the MEs are earning their livelihood and are self employed and mostly employing less than 10 employees. They are involved in trading, services and have small workshops. They are into home based and cottage industries. Many women are making / stitching dresses, making confectionery, pickles, catering food orders and can increase their businesses but have no access to finance and really are not aware of the MFB and are hesitant to approach the MFB.

The carpenters, lathe machine workshops, auto mechanics, repairing services and food stalls are some of the typical micro entrepreneurs who could be facilitated.

These MEs do not have immovable properties to mortgage with the banks and need finance for short term finance for payment of utility bills, purchase of materials and need hire purchase facilities for purchase of equipments, motor cycles and tools and need to be financed without collateral requirements of properties.

This micro and small sector is the majority sector and even small farmers and post farming commercial activities entrepreneurs by virtue of the parameters fall under the definition of micro enterprises and it is of paramount importance that their issues of finance are considered.

Despite the fact that they are under privileged their contribution is noteworthy.

Thaver complimented the micro finance banks (MFB) for their supportive roles and saving the MEs from the clutches of the harsh money lenders who are merciless.

Thaver suggested promotion of hire purchase finance and issuance of credit cards to micro and small borrowers to facilitate them to buy tools, equipments, two and three wheelers for deliveries and credit cards for payments of utility bills and purchases.

The hawkers who are in a position to provide verifiable residence addresses could be provided loans to buy mobile vans to enable their growth and improve their mobility.

He said the union realizes the difficulties in financing the MEs due to the fact that most of the MEs live in rented premises and few often change their addresses and are not traceable. They even change their businesses but nevertheless the MFB have their risk management skills and have the expertise to deal with all kinds of MEs.

Posted in: Press Releases