The president of Papua New Guinea's Indigenous Business Council says he welcomes efforts to encourage participation of locals in small to medium level enterprises.
This comes as the Minister for Trade, Commerce and Industry, Richard Maru, signalled a parliamentary bill that would require business ventures of under 3.8 million US dollars to be restricted to Papua New Guineans.
Mr Maru said foreigners involved in reserved businesses would be asked to leave the country, with the government to buy their businesses and give them to locals to run.
The council's Sir Nagora Bogan says it's important that indigenous people start to take greater part in economic activity.
"The risk is that if we don't grow the entrepreneurial skill of the majority of Papua New Guineans here to take part in economic activities, then we're planting the seeds of future social anarchy."
Sir Nagora Bogan says he hopes that there can be a transitional process, which also allows foreigners to keep operating in areas where local entrepreneurial capacity is lacking.