Small and medium-sized factoriesSuccess for industries takes planning [Archives:2005/814/Business & Economy]

February 7 2005

Planning for the industrialization of the product in Yemen by the government, represented by the ministry of social affairs and labour, still will not guarantee the provision of enough amount of money for administration and investment of small enterprises, especially for industry.

Small and medium industrial projects in Yemen are not being accomplished in accordance with field studies that would help in the following:

– Drawing up a study on economic feasibility for industrial projects;

– Administration of the project according to rules of modern administration. Good administration leads to the success of the industrial project;

– Gaining an income compatible with invested capital,

– Meeting the needs and requirements of modern human life, such as food, clothing, lodging and means of transport,

– Encouraging improvement of living conditions and culture, the prosperity of the public and their needs at working sites and in their various professions.

The building of small and medium projects begins with choosing the project and ends with arrival of the product to the consumer.

There is a need for planning for the product and its industrialization and regarding the costs of direct labour, planning for the detailed dates of the industrialization process and following up the materials necessary for the factory.

One reason for failure of many establishments is because of the lack of a study on economic feasibility for them.

The study should also include the discussion of the state of the market in the coming period of time, and predictions of the volume of the working capital, new equipment and products and programs of advertising, the effort of selling and researches of marketing and qualification and training of producers.

Out of this, experts believe in increasing small and medium factories and deepening the relationship between all sizes of industrial establishments, especially those practicing modern service activities related to production, marketing and those of after sale.