"Growing MSMEs Is Growing PNG!"
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SME Corporation, an Agency under the Ministry of Commerce & Industry.
SME Corporation's Mandate
SMEs plays a critical role in the social and economic development of any economy. SME development in Papua New Guinea (PNG) has been without proper planning and support in the last 46 years. SME Corporation is mandated by Parliament through the SME Corporation Act 2014 to develop key interventions for targeted, systemic, holistic and sustainable SME development in PNG. SME Corporation ensures that key programs and projects are designed to formalize the informal sector to develop a thriving , competitive and sustainable private sector.Â
The Small and Medium Enterprises Corporation was formerly known as the Small Business Development Corporation (SBDC) until 2014 when the SBDC Act 1990 was replaced by the SME Corporation Act 2014.
Unlike SBDC, the SME Corporation has broader Functional Responsibilities to drive the sector through implementation of the SME Policy 2016 and SME Master Plan 2016-2030.
Functional Responsibility
SME Corporation is the government agency under the Ministry of Commerce and Industry established by SME Corporation Act 2014. Its core function is to lead and coordinate the implementation of the SME Policy 2016 and SME Master Plan 2016-2030 through strategic partnerships with key stakeholders at the National, District, Local Government and, Ward level.
The Corporation’s core function is to research and design innovation projects, programs, products and services targeted at addressing seven (7) main MSME development constrains identified in the SME Policy 2016.
The seven (7) MSME development constraints are outlined below:
- Business illiteracy and lack of entrepreneurship knowledge and capacities
- Lack of access to physical and business infrastructures
- Lack of access to affordable Credit Finance
- Lack of enabling policy, legal and regulatory frameworksÂ
- Lack of access to markets and market information
- Lack of access to Information and Communication Technology or e-commerce
- Lack of access to business and commercial land
SME Corporation coordinates with key policy implementing partners to monitor and evaluate policy implementing and measure the achievements consistent with addressing the seven main SME development constraints.
SME Corporation performs its powers and functions through 3 functional Divisions
including Business Advisory and Capacity Building, SME Growth and Development, and
Policy Coordination and two project units including Small Industry Centre and Garment
and Textile Training Center. They are supported by the Corporate Affairs Division. The
Managing Director’s Office provides overall leadership and oversights.
Key Legislation and Policy Reforms
With changing development priorities and economic conditions, SME Corporation in response to the Marape government’s vision and priorities on developing the MSME and Agriculture sectors undertook key legislative and policy reforms in the last two years.
Key legislative and policy reforms were review of the SME Policy 2016, SME Master Plan 2016-2030, SME Corporation Act 2014. The results of this review were the development of the MSME Policy 2022, MSME Medium Term Development Plan 2022-2026, MSME Development Authority Bill 2022.
Key Impact projects and programs planned and implemented from 2019-202 include:
- MSME Training and Capacity BuildingÂ
- Development of MSME Incubation Centers
- Development of MEME Database and Baseline Survey andÂ
- Establishing of SME Development Fund
The Corporation has undergone an organizational restructure and completed reviewing the SME Policy 2016 and SME Master Plan 2016-2030. The SME Corporation Act 2014 was concurrently reviewed to create the MSME Development Authority Act 2021.
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Vision
Growing MSMEs is Growing Papu`a New Guinea (PNG)
Mision
To make the MSME sector to be the growth driver to increase national revenue, create employment, empower local entrepreneurs, and contribute to improving quality of lives of the citizens.
Objectives
The Objectives of the MSME policy are to: (a) support and facilitate the growth and development of MSMEs across all sectors of the economy (b) increase employment opportunities to cater for the burgeoning young population (c) to enhance fair participation in the formal economy by the citizens alongside FDIs and (d) create wealth and prosperity for the benefit and betterment of every citizen
THE EXECUTIVE MANAGEMENT
THE FUNCTIONS OF EACH DIVISION
The Executive Unit
The Office of the Managing Director is supported by the legal Unit, the Internal Audit, Public Relations and Marketing, and Executive Secretary. The Executive team manages SME Corporation’s external affairs, corporate image, legal matters, strategic planning and secretarial function for the CEO and the Board.
The Corporate Affairs (CAD)
The Corporate Affairs Division’s key functions are Human Resource Management and Development; Finance and Accounts; general administration and operations; and ICT services. It supports the functional divisions in undertaking and ensuring effective delivery of our key programs, projects, and activities that support and contribute to the development of the MSME sector and the overall development.
Program Coordination, Monitoring & Evaluation (PCME)
The Policy Coordination Division is responsible for program research and development, Monitoring & Evaluation, MSME data management, strategic planning, sector policy and legislative review and development, documentation for statutory compliance, and external stakeholder policy dialogue, advocacy and engagements.
SME Growth & Development (SMEGD)
SME Growth and Development Division is responsible for developing the ecosystems for MSMEs to thrive and grow. Its initial role used to center around the Financial Incentive Scheme program or Small Business Credit Guarantee Scheme which was aimed at addressing access to finance constraint faced by SMEs. The Division is now mainly responsible for the business incubation program in PNG.
Business Advisory & Capacity Building
Business Advisory and Capacity Building Division is responsible for Entrepreneurial Training and Capacity Building for MSMEs in PNG. It conducts the administration, coordination, management and facilitation of entrepreneurship training programs including specialized business skills development training including garment and textile development trainings. The Division carries out the foregoing functions in collaboration and partnership with other key stakeholders and partners.
Program Coordination, Monitoring & Evaluation (PCME)
SIC became a division of Small Business Development Corporation in 2008 after internal restructuring within the Ministry of Commerce and Industry. It was initially established to provide Life Skills Training through Hands-On Skills Training in Leather Craft, Procurement, Sales and Marketing, Accounting and Book-Keeping and Office Administration, among other project specific hands-on skills training. SIC focuses on contributing to artisanal and small-scale production of leather goods.
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Client results
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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)
