Transcript CSMEs IN BHUTAN - TANSTIA-FNF

Presentation on SMEs In
Bhutan
Ms. DEKI CHHODEN
Acting Regional Secretary
Bhutan Chamber of Commerce & Industry
Bhutan
Chennai, India (11th- 12th Dec 2009)
SMEs in Bhutan
DEFINITION
In Bhutan the trade and industrial ventures are classified based on
initial capital investment which, by definition , consists of paid- in
capital and long term credit. Following the industrial classification
method, manufacturing and services micro enterprises businesses
with investment of:
 Less than Nu. 1 million (Micro)
 Between Nu. 1 million and 10 million (Small)
 Between Nu. 10 million and Nu. 100 million (Medium)
 More than Nu. 100 million ( Large)
Data Distribution
More than 13,606 (31st December 2008) industrial and
Trade licenses are issued by Ministry of Economic Affairs
so far.
 Large Scale Enterprises – 128 (1%)
 Medium Enterprises – 143 (1%)
 Small Enterprises – 1667 (12%)
 Micro/cottage – 11668 (86%)

About 99% of licenses are registered as CSMEs.
Current Practices of SMEs
development & management
1)
Industrial policies of the government:
a) Privatization
b) Use of indigenous raw materials
c) Industry with a potential to export
d) Capital intensive industries
Contd…
2. Broadening of the Entrepreneurial base
3.
4.
5.
6.
Promotion of CSMI (Cottage, small and
Medium scale Industries)
Promotion of Traditional Handicrafts
Industries.
EDP Loan Scheme
Group Lending Scheme
Problem faced by SMEs in
Bhutan
1. General Problems:
a.
Lack of Comprehensives policy
b.
Data Problems
a.
Definition and classification Issues
Problem Contd…
2. Business Environment:
a.
b.
c.
d.
e.
Lack of enterprise culture
Low productivity
Small Domestic Market
No knowledge of Export Market
Poor Financial Intermediation
Problem Contd…
3.
a.
b.
c.
d.
Weaknesses within SMEs
Lack of skilled labor
Lack of Technical Managerial knowledge
Lack of access to Business Development
Services
Low Product Quality and Diversity
Status of SMEs in Bhutan



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
Priority in numerous RGOB policy statements
and documents.
Five year plans.
Major CSME activities
Enterprise Growth
Employment Generation
Activities initiated by the supporting
institution to promote SMEs
1. Ministry of Agriculture( MOA)
 Extension services and marketing programs
 Provision of subsidized farm machinery and other
inputs
 Agri-business courses in relevant training institutes
 Rural Enterprise Development project
Activities to promote SMEs
Cont…
2. Ministry of Economic Affairs (MOEA)
 Rural
Enterprise Development Project
 Licensing and legislation framework
 Business Promotion Section (BPS)
 Established of MSMEs Division
Activities to promote SMEs
Contd…
3. Ministry of Labor and Human Resources
(MOLHR)
 Entrepreneurship Development Program
 In-country training program on SMEs promotion
 Establishment of vocational training institutes
4. Financial institutions
 Lending through various schemes of financial
institutions the rural credit.
Cont…Non- Governmental organization
(NGOs)
1.
Tarayana Foundation

Training in pottery, paper making, nettle weaving
2. Youth Development Fund

Training in carpentry skills.
3. Respect, Educate, Nurture and Empower Women
(RENEW)
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Training in basic computer skills
Other skills for enterprise development
Contd…
4. Bhutan Chamber of Commerce & Industry (BCCI)
Conducting resource inventory studies for the
promotion of SMEs
 Identification of project ideas for SMEs development
 Delivery of Enterprise Development Support/Advisory
Services
 Conducting basic entrepreneurship promotion
 Hosting of Regional, National & International Trade
fair.
 Business Development services through outreach
programs

Contd….
Planning & Coordination of Capacity Building
Trainings/Workshops and Consultative Meetings (Pvt.
Sector HRD)
 Identifying common SMEs business problems and
addressing them
 Building networking among various SMEs
players/stakeholders
 Conducting Feasibility Studies for Enterprise (SMEs)
Promotion
 Tshongrig – SMEs Tool kit

Trade Opportunities in various
sectors
The following are the trade opportunities in various
sectors for SMEs Between Bhutan & India:
1. Skills and Technology transfer
2. Co-operation among SMEs through IT enabled
services.
3. Assist each other in marketing products
4. Trade Fair or Exhibition
5. Food processing (Agro-based)
6. Contact organization as BCCI
THANK YOU FOR YOUR KIND
ATTENTION!!!