There is need of urgent attention of the governments of developing countries (like government of pakistan) to the scarcity of jobs for the fresh graduates and to promote the concept of self employment through entrepreneurship support for the youths in various occupations.
There is huge frustration in the youths who are not getting suitable jobs and the parents are unable to support them due to meager means. Small and Medium Enterprises Development Authorities should be directed to enlist youths who have completed their education and are looking for suitable jobs to suggest to them occupations whereby they can carry out their own small businesses of manufacturing and services and employ themselves profitably in commercial ventures.
Looking all the facts there is a need of promoting entrepreneurship culture in the developing countries for creating self employment opportunities among the youth. There are several occupations for cottage industries such as light engineering goods, carpentry, plastic goods, agro based industries, water purification, catering, baking, beauty parlors, tailoring, embroidery, stitching units for bed sheets, linen and dusters and hygienically prepared precooked foodstuffs and technological services in various fields.
Small and Medium Enterprises (SMEs) should be financed through vocational support fund under the public sector development programmes to be managed by Small and Medium Enterprises Development Authorities under a sound system ensuring repayment on pay as you earn schemes. Small and Medium Enterprises Development Authorities need to immediately take up the matter with the government that the commercial banks are not financing the SMEs as they are not trained in SMEs financing nor do they have the will to finance the small entrepreneur. SME sector demand banking, insurance and leasing facilities for SMEs to enable them borrow and repay loans on easy installments.
In the developing countries SMEs are facing difficulties in terms of failure of the government to supply energy, water, law and order, finance at affordable mark up and infrastructure. Governments of the developing countries should take serious notice of the failure to provide these basic necessities to the sector and immediately take action for restoration of proper system and save the SME sector from collapse.
SMEs promotion is no charity but it is the right of the SMEs and Small and Medium Enterprises Development Authorities must not fail in inviting the attention of the government to the needs of the SMEs sector which is in the majority and is surely the back bone of the economy.
Developing countries can accelerate economic growth through the SME sector to overcome the recessionary trend of the economy, Governments of developing countries need to adopt aggressive methods to promote and develop the sector on priority basis as it is in the majority and deserves the best attention of the policy makers to promote trade, services and industry and to enhance the scope of entrepreneurship and self employment.