"Growing MSMEs is Growing PNG!"
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Press Release By:
The Ministry of Commerce and Industry on behalf of the Marape-Rosso Government.
“Approval and endorsement of Micro, Small and Medium Enterprises Policy 2022 and Micro, Small and Medium Enterprises Medium
Term Development Plan 2023-2027, as the official Government blueprints for the MSME sector”
On behalf of the Prime Minister of Papua New Guinea, Hon. James Marape and the
Marape - Rosso Government (Government), I, the Portfolio Minister, have the honour
of announcing today of a successful reform of the development framework for the Micro, Small and Medium Enterprises sector by the Ministry of Commerce and Industry
to support the Government’s development agenda on wealth creation and improved
living standards for Papua New Guineans under the “Take Back PNG” vision.
The Government has a constitutional duty to empower citizens to be active participants in and beneficiaries of national developments in all sectors of development. Since taking the helm of the political leadership and governance of the country, the Government has embarked on a number of strategic initiatives to translate its vision into broad development outcomes for PNG. These include reforms on some of the key development frameworks of the country to converge with the evolving business and economic landscapes
MSME POLICY 2022
PNG is endowed with significant natural resources. These resources provide the critical economy base for PNG to thrive developmentally. Yet, their translations into national wealth and prosperity has been inefficient. Unlike many resource rich countries that translate gains from the resource sector into development of other sectors to generate broad-based and inclusive growth and prosperity for everyone, PNG has not yet gone down that track. The extractive sector continues to remain as the epicentre of growth, whereas the growth in the other sectors is still lagging. Due to the lopsided growth, the economy of PNG is unable to absorb PNG’s growing population of more than 10 million into formal employment and entrepreneurship and other socio-economic safety nets.
MSMEs are key enterprise segments known for driving broad and inclusive growth. Empirical evidences show that
stable and prosperous economies have a large-sized private sector with a robust small to medium sized enterprises across key industries that drive these economies and provide the socio-economic safety nets for their citizens.
PNG’s formal sector accommodate less than 53,000 formal enterprises that are in active operations. The active
enterprises are mainly large enterprises. They cater for less than 7 percent of the total formal employment of less
than 1 million. The statistics clearly show that much of the private sector employment and government revenue are
created by less than 10 percent of the total registered enterprises that are presently in active operations. Hence, the
bulk of the citizens are either unemployed or pushed to the subsistence or informal economy.
SME CORPORATION'S WEBSITE
A website is an indispensable asset for SME Corporation, providing a multitude of benefits that contribute to its growth and success. It functions as a digital storefront, enhancing the organization's visibility and reinforcing its credibility by ensuring accessibility to clients and general public at any time and from any location. Unlike traditional physical establishments, a website operates continuously, offering information about the organisation's products and services beyond standard business hours. Furthermore, it serves as a cost-effective marketing tool, enabling the promotion of offerings and updates to a broader audience with significantly lower expenses compared to conventional information dessimination methods.
In addition, a website facilitates meaningful customer engagement through interactive features such as contact forms, live chat, and blogs, while also serving as a valuable platform to collect customer feedback for improvement. Establishing an online presence equips SMEs with a competitive advantage, extending their reach to global markets and overcoming geographical limitations. Moreover, a professionally designed website showcases products and services in a visually appealing and organized manner, incorporating detailed descriptions, images, and customer testimonials. In the contemporary digital landscape, having a well-maintained website is a vital component for SMEs to remain competitive, expand their market reach, and achieve long-term sustainability.
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Frequently Asked Questions
SME Corporation is a government Agency under the Ministry of Commerce and Industry and responsible for the MSME growth and development in Papua New Guinea (PNG) through various programs and projects.
There are two methods SME Entrepreneurship training is delivered.
- Flexible mode,
- Cluster groups;
- out of school to general MSMEs in an organized group.
- in school delivers to TVET and secondary schools.
To take part in the training provided by SME Corporation write to SME Corporation and express interest or enquire for more information.
To take part in the training provided by SME Corporation write to SME Corporation and express interest or enquire for more information
The K200 million SME funds funded by government, K100 million was given to BSP and K80 million was given to NDB.
BSP services its existing SMEs whilst NDB disburse loans to both existing and start-ups. All MSMEs are encouraged to enquire at BSP and NDB for more information.
The difference between Business Name (BN) and Company is that Business Name is a Sole Proprietor (Individual). It is simple to start, less expensive and more suitable for micro businesses. A BN is selected when carrying on a business under a name, no legal entity is created and there is no limitation on liability.
The Company Name is selected upon incorporation and creates a special legal entity, distinct from its owners.
Business Registration is done at Investment Promotion Authority (IPA)
After IPA registration, then register TIN with Internal Revenue Commission (IRC)