1. Presentation on SMEs In Bhutan
Ms. DEKI CHHODEN
Acting Regional Secretary
Bhutan Chamber of Commerce & Industry
Bhutan
Chennai, India (11th- 12th Dec 2009)

2. 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)

3. 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 – (86%)
About 99% of licenses are registered as CSMEs.

4. Current Practices of SMEs development & management
Industrial policies of the government:
a) Privatization
b) Use of indigenous raw materials
c) Industry with a potential to export
d) Capital intensive industries

5. Contd… Promotion of CSMI (Cottage, small and Medium scale Industries)
2. Broadening of the Entrepreneurial base
Promotion of CSMI (Cottage, small and Medium scale Industries)
Promotion of Traditional Handicrafts Industries.
EDP Loan Scheme
Group Lending Scheme

6. Problem faced by SMEs in Bhutan
1. General Problems:
Lack of Comprehensives policy
Data Problems
Definition and classification Issues

7. Problem Contd… Lack of enterprise culture Low productivity
2. Business Environment:
Lack of enterprise culture
Low productivity
Small Domestic Market
No knowledge of Export Market
Poor Financial Intermediation

8. Problem Contd… Weaknesses within SMEs Lack of skilled labor
Lack of Technical Managerial knowledge
Lack of access to Business Development Services
Low Product Quality and Diversity

9. Status of SMEs in Bhutan
Priority in numerous RGOB policy statements and documents.
Five year plans.
Major CSME activities
Enterprise Growth
Employment Generation

10. 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

11. 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

12. 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.

13. Cont…Non- Governmental organization (NGOs)
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)
Training in basic computer skills
Other skills for enterprise development

14. Contd… Conducting resource inventory studies for the promotion of SMEs
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

15. 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

16. Trade Opportunities in various sectors
The following are the trade opportunities in various
sectors for SMEs Between Bhutan & India:
Skills and Technology transfer
Co-operation among SMEs through IT enabled services.
Assist each other in marketing products
Trade Fair or Exhibition
Food processing (Agro-based)
Contact organization as BCCI

17. THANK YOU FOR YOUR KIND ATTENTION!!!