New program from MBSL to empower Small and Medium Scale Enterprises

The Merchant Bank of Sri Lanka and Finance PLC (MBSL) has introduced a special program to empower Sri Lankan Small and Medium Scale Entrepreneurs. Following is an interview with MBSL Chief Manager Sanjaya Ranathunga about that program and the financial facilities the organisation is providing for Small and Medium Scale Enterprises.

Q: How important are Small and Medium Scale Enterprises in the task of economic development?

 Small and Medium Scale Enterprises are the lifeblood of the economy of our country. In other words, the maximum contribution to the Gross Domestic Product (GDP) of Sri Lanka comes from this sector. Because of this, a long-term economic development is difficult to expect without developing Small and Medium Scale Enterprises. 

Q:  What is meant by Small and Medium Scale Enterprises?

 Various countries of the world have given different definitions to this, depending on the scope and the economic growth of the country. According to the economy of our country, enterprises with less than 50 employees fall into the Small Scale Category while those with less than 200 employees fall in to the Medium Scale Category. There are millions of such enterprises in the country.

Q:  What are the business spheres represented by Small and Medium Scale Enterprises?   

There are Small and Medium Scale Enterprises in all business spheres. Such as fisheries industry, tourism industry, agro-industry, estate cultivation, export crop cultivation, construction industry, garment industry and the information technology industry.  In any business sphere, there are only a limited number of Large Scale Enterprises. The majority are Small and Medium Scale Enterprises.

Q:  What is the program launched by MBSL to empower Small and Medium Scale Enterprises?  

 The present Government has understood the importance of Small and Medium Scale Enterprises in the process of economic development. Accordingly, a number of concessionary loan schemes have been launched. Parallel to these, we personally visit Small and Medium Scale Entrepreneurs and identify the problems they are facing through long and comprehensive discussions.  

Then, we call them by groups and activate edification programs and guidance programs pertaining to those problems. In this way, they are provided with opportunities to obtain business advice and share each other’s experiences. Especially we propose facilities for paying monthly instalments suiting their income.

Q:  According to your observations, what are the problems faced by Small and Medium Scale Entrepreneurs?

 Basic knowledge of several major spheres is necessary to manage any business enterprise successfully. At least a basic knowledge of business management, marketing, financing, human resource management, information technology, new technology, new trends in the relevant sphere, project management, market competition, standards of goods and services, finding investment capital, perseverance, dedication and ability to overcome challenges is necessary to successfully manage a business enterprise today.  

A major problem is faced by Small and Medium Scale Entrepreneurs is the lack of sufficient knowledge about these spheres. This has become a main reason for many business enterprises to be unsuccessful.

Q:  Lack of capital to start a new business enterprise or develop the existing business enterprise is a problem faced by many Small and Medium Scale Entrepreneurs. How is MBSL contributing to solve this problem?

 As a principle, our organisation treats this business sector giving it a special importance. Accordingly, MBSL has introduced a special loan scheme for Small and Medium Scale Enterprises. We are holding awareness programs and professional guidance programs parallel to those. We don’t just give the loan and stay in office and work to get that loan repaid. 

We provide a large number of services such as field studies, supervision, retrospective inspection, professional guidance, pointing out risks and warning of danger.  Our objective is not just giving a loan and, acquiring or auctioning the debtor’s effects when problems arise in repaying the loan.  Our objective is giving suitable loans to proper entrepreneurs and giving them the fullest support to make his business enterprise successful. 

Q:  What are the special benefits for Small and Medium Scale Entrepreneurs obtaining loans from MBSL?

 We give them loans with minimum documentation within the shortest possible time under a competitive rate of interest. Furthermore we give them reasonable time to repay their loans. We give them professional guidance free-of-charge. Including our head office, we have 49 branches and Business Service Centres islandwide.  

Further details and loans under this program could be obtained from any such place. All those activities are carried out under the supervision of the head office. MBSL has over 1,000 experienced employees.  Small and Medium Scale Entrepreneurs could get cordial and efficient services from them.