Small and Medium Enterprises have been given differing definitions around the Earth. Some states refer to the figure of employees as their typical standards, some to the sum of invested capital in the concern, and others a combine the sum of one-year turnover, capital employed and type of industry.

The definition of SMEs in Mauritius has evolved throughout the past old ages. Harmonizing to the Small Scale Industry Act of 1988, a Small Enterprise is ‘one which is engaged in ‘manufacturing’1 and which uses ‘production equipment’2, the sum CIF3 value of which does non transcend Rs 500,000 ‘ .

The Industrial Expansion Act 1993 defines SMEs as endeavors which:

are engaged in fabrication

usage production equipment, the CIF value of which does non transcend Rs 10 m

With clip, came the Small and Medium Industry and Development Authority Act ( SMIDO Act 1993 ) harmonizing to which SMEs are defined in footings of the size of capital employed and was an extension to the SSI Act 1988 definition. ‘SMEs are defined as endeavors engaged in fabrication and utilizing production equipment in their fabrication procedure which includes transformation/conversion of natural stuffs, fix, wadding, assembly of semi-finished parts into finished goods. The production equipment refers to equipment straight related to production. Such value of production should non transcend Rs 5 million ‘ ( SMIDO Act 1993 ) . A alteration of this definition by the SMIDO Act 1998 altered the value of production of Rs 5m to Rs 10m.

Worth indicating out in those definitions quoted above that they consider merely the fabrication sector. Therefore for this survey, the most appropriate definition found was that of the SMEDA Act, which includes endeavors in all economic sectors, and so as to avoid sector specific standards, turnover standards is being used across sectors. Furthermore,

SMEs which are registered with the SMEDA4 and which will be under examination in this survey are categorised into 12 sectors as at 2010, viz. , Food and Beverages, Leather and Garments, Wood and Furniture, Paper merchandises and Printing, Chemical, Rubber and plastic, Handicrafts, Pottery and Ceramic, Jewellery and Related Items, Fabricated Metal Products, Profession/Vocation/Occupation, Trade and Commerce, Business Support Service Sector, Others.5

Contribution of SMEs

Harmonizing to the Organisation for Economic Coorperation and Development ( OECD ) , factors such as a state ‘s economic forms, societal and cultural dimensions are reflected though their SMEs. Storey ( 1994 ) points out that little houses, no affair how they are defined, do up the majority of endeavors in all economic systems around the universe. The latter half of the last century has witnessed widespread functions SMEs and this can non, in any manner, be understated ( Bygrave, 1994 ; Timmons,1994 ) .

To the layperson, it is clear that creative activity of a Small and Medium endeavor is synonymous to occupation creative activity and economic growing. This fact is so non false. The positive nexus between SMEs and employment creative activity, poorness relief, and economic growing is universally acknowledged ( Beyenne, 2000 ) . In several states, peculiarly in East Asia, they are the driving force of the economic system. For case, in Hong-Kong, SMEs history for over 98 % of the entire constitutions and supply occupation chances to about 1.3 million individuals, approximately 60 % of entire employment.6

Harmonizing to the Strategic Industrial and SMEs Plan 2010-2013, the outgrowth of SMEs in the Mauritius has contributed significantly to employment, end product and entrepreneurship development within the industrial sector. The last nose count of the Central Statistical Office carried in 2007 reveals that there are around 91 980 little endeavors runing in Mauritius, ‘wholesale, and retail trade ; fix ‘ being the

Aims of the survey

Having explained the assorted definitions of Small and Medium Enterprises and pointed out their importance and part to the Mauritanian economic system, it is now clear that these establishments play a cardinal function in our state. Enterprises in developing states, including Mauritius are confronting far more competitory environments in this fast traveling technological universe ( World Bank,1999 ) . They are offered assorted installations to get down their concern every bit good as to go on and besides expand. Among those installations we find funding, preparation, concern guidance, preparation, selling, information engineering and export inducements. These are available with a position of better public presentation from these endeavors and besides to do them more cost effectual, bring forth better merchandises in footings of design, quality and dependability. to therefore be able to vie with non merely larger companies on the local market but besides on the foreign market. Now, with the creative activity of many support establishments such as the SMEDA, EPZDA, Human Resources Development Council, Enterprise Mauritius, Development Bank of Mauritius which see to it that SMEs lack in nil to run, the latter have to take full advantage of these comfortss and besides do the best usage of them and therefore besides cut down waste of resources. The chief purpose of this survey is to analyze whether these installations are being given in the right sum, excessively much, or excessively small in aid of SMEs. Other aims are as follows:

Assess whether SMEs are taking full advantage of these installations.

See whether proper usage is being made of assistance and there is minimal waste of resources



Importance of finance

Financing is one of the most of import success factors of any concern, and Small and Medium Enterprises are no exclusion. Finance being the anchor of all concerns, it should be accorded much attending. SMEs are today considered by many states to be of a cardinal importance to the growing of their economic system in footings of GDP part and besides occupation creative activity. It hence follows that these establishments should be holding no troubles in happening financess to non merely get down their endeavor, but besides for nutriment and growing. However, harmonizing to the United Nations, the deficiency of fiscal aid is a relentless job and it is the most serious barrier to SME growing and enlargement.

Now, entree to support can come from two chief beginnings, viz. , ain funding, and one which is widely being used, through Bankss.

Beginnings of finance

Types of funding: installations given by Bankss and other fiscal establishments for illustration bank loans, overdrafts, recognition installations, leasing, warrant strategies Financing of Small and Medium Enterprises in Mauritius

Financing strategies in Mauritius

Development Bank of Mauritius Financing strategy – installations offered:

Business Development Loan Scheme

Booster ( Micro Credit ) Loan Scheme

Small Business Development-Related Scheme

Micro Credit Financing Scheme ( through Trust Fund for the Social Integration of Vulnerable Groups )

Quasi Equity Financing Scheme

Loan Scheme for Taxi Owners runing at Hotels under redevelopment

Normal Scheme for the Agricultural Sector

Particular Loan Scheme for the Agricultural Sector

Transitional Support Scheme to finance Small Companies in trouble or which are fixing for the recovery

Other Financing strategies

Renting Schemes for Acquisition and Modernisation of Equipment by SMEs

Transitional Support Scheme for SMEs with a turnover between Rs5m and Rs 50m under MTSP

2.2.2 Training

Literature on preparation of SMEs

Training of SMEs in Mauritius

2.2.3 Selling

Literature of selling

Selling in Mauritius

2.2.4 ICT and SMEs