Entrepreneurship and SME Management (ESME)

Introduction

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The Department of Economics, GC University Lahore has started this programme in Entrepreneurship and SME Management (ESME) under HEC-BC Joint Higher Education Link Programme 2004-07, in collaboration with School of Management, Cranfield University, UK. The Cranfield School of Management provides its expertise to develop and review the course structure and teaching materials. This is a two years Masters degree programme; however; a student can also do the One year postgraduate diploma after successful completion of first year of the study (the student will have to inform in writing whether he/she is enrolled in PGD or MSc in the beginning of the course).

Objectives of the Programme

The programme is designed for those who wish to become owner-managers by starting their own business ventures. It will also cater to the skill-needs of practicing entrepreneurs, business consultants and bank officials dealing with the SMEs.

What are SMEs?

SMEs are not that as small as commonly perceived.

The Prudential Regulations for SMEs Financing (issued by State Bank of Pakistan) define SMEs as:

“Small and Medium Enterprise (SME) means an entity, ideally not a public limited company, which does not employ more than 250 persons (if it is manufacturing / service concern) and 50 persons (if it is trading concern) and also fulfills the following criteria of either ‘a’ and ‘c’ or ‘b’ and ‘c’ as relevant:

(a) A trading / service concern with total assets at cost excluding land and building upto Rs 50 million.

(b) A manufacturing concern with total assets at cost excluding land and building upto Rs 100 million.

(c) Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300 million as per latest financial statements.

An Individual, if he or she meets the above criteria, can also be categorized as an SME.”

(Source: Prudential Regulations for SMEs Financing (Up-to August 31, 2005) pp. 13-14 available at: 

http://www.sbp.org.pk/publications/prudential/index.htm).

Why are SMEs Important?

SMEs play a vital role in the process of economic development of an economy, Pakistan being no exception here. SMEs are strategically important because they help create linkages among various firms, generate employment, and develop new customized products.

SMEs constitute nearly 90% of all the enterprises in Pakistan; employ 80% of the non-agricultural labor force; and their share in the annual GDP is 40%, approximately. Similarly they have a large share in exports of Pakistan and earn valuable foreign exchange.

For detailed information on SMEs, relevant policy documents and banks, please visit:

www.smeda.org

www.smepolicy.net.pk

www.smebank.org

Admission to the Programme

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Admission to this programme starts in end-August of each year, as per University admission policies and procedures. For eligibility, please see the details below.

Eligibility

There will an entry test (Objective type), which will be conducted by the department. An essay will also be a part of entry test to judge the English proficiency of the candidate. The test will be followed by an interview.

Why this New Programme:

Entrepreneurship is about starting one’s own business. Creativity, pragmatism, risk taking, and decision making lie at the heart of entrepreneurship. The courses being taught have been designed specially to equip students with the skills for

(a)   Starting their own business, and

(b)   To play key role in the development of Small and Medium Enterprises (SMEs), and new ventures.

The usual management degrees like MBA or MPA focus on business administration of running concerns, operating usually at larger scales. ESME at GCU is not just another degree in management. The ESME programme, quite differently than the conventional management degrees, focuses on the ability of students and budding entrepreneurs to take strategic risks and venturing on to explore new dimensions of business world.

Similarly, there is now a realisation on the part of the Government and State Bank of Pakistan that SMEs need additional focus. So new specialised banks like SME Bank (www.smebank.org) are being established and other commercial banks are also establishing their own SME Divisions. Hence, the demand for skilled professionals trained to deal with SMEs is rising and this new degree is need of the hour. Moreover, as the Pakistan economy is developing fast and experiencing a structural transformation towards knowledge based production processes, so the new programmes like ESME are needed for educating people for tomorrow.