Rs 20,000 Will Be Granted to Starting SMEs

A sum of Rs 20,000 will be granted to those starting a business.

This is to cover their living expenses for the first month, provided that their innovative proposal is approved by the Mauritius Business Growth Scheme (MBGS).

This will be integrated into the assistance offered by the MBGS for its business services and repaid on the same terms.

SMEs contribute 37 per cent of the GDP (gross domestic product), a total of Rs 120 billion worth of output. They also employ 250,000 men and women.

According to Prime Minister Dr Navin Ramgoolam, the long term sustainability of our country can be achieved by ensuring the highest participation in the economy.

Jim Seetaram, minister of Business, Enterprise and Cooperatives explained, “SMEs do form part of the new economic strategy of the government and the start up entrepreneurship scheme announced in the budget is an excellent platform to drive young people and potential entrepreneurs.”

Indranee Seebun, managing director of Small and Medium Enterprises Development Authority (SMEDA) said that the presence of more SMEs will make our economy more resilient. “However,” she added, “there should not be malpractices of the competitive laws.”

It must be noted that borrowing rates for SMEs at the Development Bank of Mauritius have been reduced from 14.5 per cent to 8.5 per cent.

Also, an additional 175 small and medium enterprises units will be constructed in industrial estates at various points in the country.