Sessional Paper on Development of Micro and Small Enterprises for Employment Creation and Poverty Reduction

Abstract

In order to enhance the capacity of micro and small enterprises (MSEs) to create jobs and reduce poverty, the Government has reviewed the policies and strategies outlined in Sessional Paper No.2 of 1992, and adopted a new policy framework for the MSE sector that this Sessional Paper embodies. The new policy framework provides a more balanced policy focus, in line with national goals to foster employment creation, poverty alleviation, income distribution and industrialisation. Important strategic objectives underlying the new MSE policy framework include stimulation of economic growth; facilitation of greater equalization of income and economic opportunities; strengthening of inter-firm linkages; levelling of the playing field for all businesses; enhancement of MSEs access to credit and finance; upgrading of the skills level of MSE operators; increasing the use of appropriate modern technologies by MSEs; bolstering the capacity of MSEs to create durable and well paying jobs; and strengthening collaboration and co-ordination of players in the MSE sector. All these are core to the realization of national goals of eradicating poverty and achieving an industrialized country status as stipulated in the PRSP and the Sessional Paper on Industrial Transformation respectively.