History Of Entrepreneurship In Mauritius Business Essay

History Of Entrepreneurship In Mauritius Business probeSeveral measures and policies ache been implemented since independence regarding SMEs, the priority of the government of maximising social welfare has been considered through the creation and promotion of entrepreneurial result linees. The origins of SMEs in Mauritius begins in the 1960s when Mauritius was experiencing a timid industrialization change-over with the main accusive of supplying the local market with imported goods and helping the country to authorise a certain autonomy. At that time, the government was encouraging the production of distinguishable types of commodities such as manufacturing of blades, electrical bulbs, batteries, soap, welding and steel work for construction, refinement edible oils, plastic industry, food ratning, industrial poultry breeding, yogurt manufacturing, biscuits, shoe and so on for the domestic market. The Ministry of Commerce and labor established the dinky scale leaf exer tion Unit (SSIU) in 1976 which in 1983 became the belittled Industry ontogenesis Organization (SIDO), the primary aim of such company was to show general advice and instruction to sm solely pedigreees and in 1988, the Small Scale Industry (SSI) heard a true change-over through the presentation of the Small Scale Industries Act. This act promoted the development of the SSI by adopting a legal definition of SSI, unpaid registration of SSI, traffic exemption on production equipment and the focaliseting up of an advisory board. The Industrial Expansion Act 1993 consisted of the SMIDO Act which was considered as the conterminous dropmark in promoting entrepreneurship in Mauritius, the idea was to establish a mannikin for consolidating, expanding and enhancing the competitiveness and developing a SME sector. The government implemented a Ministry of SMEs in December 2003 and two twelvemonths after the Small trys and Handicraft Development means (SEHDA) was created following th e union of the SMIDO and the National Handicraft Promotion execution (NHPA). The SEHDA main objective was to promote a much effective and competent use of available resources allocated to the entrepreneurial sector in Mauritius. The SEHDA Act 2010 was replaced by the Small and Medium trys Development (SMEDA) Act and this was the latest development with regards to the SME policy framework in Mauritius. The SMEDA nowadays works under the aegis of the Ministry of Business, Enterprise and conjuncts and represent one of the most well-known organizations promoting entrepreneurship in the Mauritian economy. explanation of entrepreneur and entrepreneurshipWho is an entrepreneur?The term entrepreneur has been specify in assorted forms over the past years based on professional experience of individuals or based on observations and researches made to understand what an entrepreneur is. fit in to the Irish-French economic expert Richard Cantillon (1725), an entrepreneur is someone who accepts to suffer a certain expenditure for a commodity (for instance materials) and to resell it at another legal injury thus deciding about the practical use of resources while thus admitting the risk of enterprise. The French economist Jean-Baptiste Say (1803) stated that a business person is an economic agent who regroups all factors of production- land, labor, and capital and produces a product as such shifting economic resources out of an area of start productivity to a higher one. The American management consultant hawkshaw Drucker (1964) stated that an entrepreneur is one who looks for and respond to change, thus enjoying opportunities by converting a source into resource. Another definition implied that an entrepreneur is an individual starting a youthful business in a new market where no one before has started business, this was stated by W.B. Gartner in 1985. Thus it can be seen that the definition of an entrepreneur varies according to time and according to obser vations and perceptions of mass who considers it as mainly individual making currency by pass judgment to take risks to achieve his/her goal.But in order to understand clear the concept, a simpler but direct definition should be considered and as such, an entrepreneur is an individual who decides to take the risks of managing a business and especially manipulating factors of production such as land, labor and capital for the sake of making profit. The main characteristics that an entrepreneur should possess are enthusiasm, intelligence, creativity, determination, courage to take risks, communication skills, human recounting abilities, business secrecy, administrative ability, ability to manage pressure, leading skills, technical knowledge, problem-solving skills and so on. Entrepreneurs are classified based mainly onFunctional characteristics cosmos innovative, imitative, skeptical, cautious, or resistant to change.Development angle- being eager for expansion, survival, effic ient, or backbreaking only on local trading.Types of entrepreneurial business- manufacturing, wholesaling, retailing, or service business. night club personality types of entrepreneurs- being an improver, advisor, highly qualified, highly imaginative, visionary, analyst, optimistic, leader, determined.Types of motivation- motivated by profit, rewards, and self-fulfillment.Types of area- urban or rural entrepreneursTypes of gender- male or women entrepreneurs.What is entrepreneurship?The term entrepreneurship has also been depositd by some researchers, economist and consultants where different meanings have been developed in order to clarify what it is really. According to the economist Joseph Schumpeter in the 1930s, entrepreneurship employs the concept of gale of creative destruction where past innovations on the market are replaced by new ideas thus implementing new concepts for boosting economic growth. The two American economists Peter Drucker (1970) and wienerwurst H Knight (1921) stated that entrepreneurship deals with taking risks for the sake of making money , the acts of free enterprise is often subjected to no guarantee that the individual pull up stakes be able to challenges the market uncertainties. Entrepreneurship is considered to be a major number one wood of economic growth for a country according to the American economist David B. Audretsch, in Mauritius for instance, SMEs re greatly participating in the development of the country, especially in reducing poverty and unemployment.But for now, let us define what entrepreneurship is really. It is the process of increasing business interests by adopting creativity and innovation in a way to set up an enterprise. It is the action of an individual subscribe in minimizing the use of resources and taking risks in order to generate profits. In Mauritius, free enterprise is usually referred to as Small Medium Enterprises (SMEs) where a small enterprise is define as a business generating an yearl y turnover of around 10 million rupees and medium enterprise is defined as a business having an annual turnover of not more than 50 million rupees. The SMEDA in collaboration with the Ministry of Business, Enterprise and Cooperatives aims at promoting number and competitiveness of SMEs, advising the Ministry regarding how to control the SMEs sector and implementing support programmes.http//www.sbmgroup.mu/images/653_200_sme.gifIncentives for entrepreneurshipFor the past decades, there have been many incentives and supports given to enterprises for the promotion of the SME sector in Mauritius. The Ministry of Business, Enterprise and Cooperative has been on the job(p) with different institutions to be able to provide the most go possible to small and medium enterprises, the budget 2012-2013 has considered financial services which embarrass the release of Rs 3bn of loans from the banking sector to SMEs till 2014 at an interest rate of 3% above the repo rate that is 8.5 % and proce ssing represents and related charges will be renounced. Here is a list of the different institutions and support schemes given to entrepreneurs.Small and Medium Industries Development Organization (SMIDO)Export Credit Guarantee indemnity system of rulesJoint effort of SMIDO and SICOM LtdProtects the exporting SME against failure of buyer to pay all export transactions after shipmentPays 85% of the eyeshade value to the policyholder in cases of defaultExport Assistance Scheme monetary support to enable SMEs forward samples of their products abroad to prospective buyers50% fall on ventfreight subject to a maximum of Rs. 2000 twice a yearStart-Up SchemeFinancial support of up to a maximum of Rs. 100,000 to entrepreneurs to set up their enterpriseProspective recipients have to enter Business devise CompetitionTraining, Consultancy and BenchmarkingImpart new and develop latent Skills, and Knowledge of entrepreneurs in various areas/fields through Training programmes, workshops and seminarsCompany analysis and guidanceBusiness Counseling and InformationInformation and guidance to potential and animated entrepreneursAssist entrepreneurs to prepare or update a comprehensive business planMonitoring of business and adviceFeasibility Study Grant SchemeGrant equivalent to 50% of the be of a feasibility field for a viable formulateMax. amount granted Rs. 75,000Study is to be undertaken by an approved consultant/consultancy firmMauritius Industrial Development allowance (MIDA)Export Business Support SchemeFinancial support for alliance in trade missions organized by MIDA support of up to 75% of cost of stand and 25% repay on the cost of air ticketsFinancial support for participation in other trade shows funding of up to 60% of cost of stand and 25% refund on the cost of air ticketsInternational Credit Checking Service 50% refund on the cost of each search effected, subject to a max. of 5 company checks per annumSME Exhibition Centre Virtual Exhibition Cent re fount and Communicate products of SMEs to both local and foreign buyers.Industrial Buildings/ EstatesRental of industrial buildings tailor-made for SMEsOverseas Market TestingFree testing of products in selected marketsAssistance, Advice and InformationAdvice on Development of Promotional ToolsAdvice on Export sustenanceProduct Information in selected marketsAssistance in Market exploreTrade Information CentreAssistance and guidance for marketing tripsLoans offered by the Development Bank of Mauritius (DBM Ltd)SchemeMax. Quantum AllocatedMax. Loan AmountInterest wander(per annum)Term(years)Start-ups90% of cost of parturiencyRs 200 0008%4Financing of Production Equipment70% of cost of equipmentRs 3 m10 11%5Technology Improvement Scheme60% of cost of projectRs 1 m9%6Working outstanding70% of cost of stockRs 400 000 to Rs 1 m10 12%4Business Sector70% of project costsRs 3 m12%5Construction of Office technical Space70% of project costRs 3 m12%7Construction of Industrial Build ing60% to 90% of project costsRs 3 m11.5% to 12%10Printing make60% of cost of new equipmentRs 3 m10%5 topical anaesthetic Newspaper60% of the cost modernizationRs 2 m8%5General Service70% of cost of projectRs 3 m12%5Freeport Sector75% of working capital requirementsRs 1 m12%5ICT Sector75% of cost of projectRs 1 to 5 m8%5Joint Venture with Overseas PartnersRs 1 m10%6Export Development Fund(for Overseas Market Surveys and Participation in Trade Fairs)70% of project costRs 100 0003%3Selected Investment SchemesScheme/CertificateQualifying ActivitiesKey IncentivesExport Enterprisehttp//smido.intnet.mu/images/bullet.gifManufacture of goods principally for exportsNo usance duty or VAT on raw materials and equipment bodied measure of 15%No tax on dividends and capital gains60% remission of customs duties on buses of 15-25 seats50% exemption on the normal registration fee for the purchase of land and buildings50% relief on personal income tax for 2 deportation staffPioneer Status Enterp risehttp//smido.intnet.mu/images/bullet.gifActivities involving above average engine room and skillshttp//smido.intnet.mu/images/bullet.gifActivities likely to enhance industrial and technological developmentNo customs duty on raw materials and equipment as per schedule list somatic tax of 15%No tax on dividendsStrategic Local Enterprisehttp//smido.intnet.mu/images/bullet.gifManufacture of goods for local markethttp//smido.intnet.mu/images/bullet.gifActivity likely to further economic, industrial and technological developmentCorporate tax of 15%No tax on dividendsSmall and Medium Enterprisehttp//smido.intnet.mu/images/bullet.gifManufacturing activity subject to an investment in production equipment not exceeding Rs 10mNo customs duty on production equipment and raw materials as per schedule listCorporate tax of 15%Freeport Enterprisehttp//smido.intnet.mu/images/bullet.gifOperations in the Freeporthttp//smido.intnet.mu/images/bullet.gifGoods for export onlyhttp//smido.intnet.mu/ima ges/bullet.gifStorage, assembly, redistribution and logisticsNo Corporate taxNo tax on dividendsNo customs duty on raw materials, goods and production equipmentReduced port handling charges for all goods destined for re-exportBarriers to entrepreneurship in MauritiusDevelopment of entrepreneurs in MauritiusList of organizations engaged in promoting entrepreneurshipSmall and Medium Enterprises Development Authority (SMEDA)Mauritius Industrial Development Authority (MIDA)Development Bank of Mauritius ( DBM)Board of Investment (BOI)Mauritius Freeport Authority (MFA)Association Of Mauritian Entrepreneurs ( AME)Human Resource Development Council (HRDC)Conclusion