3. Introduction

This chapter analyses the history of SMEs and examines the policies provided previously and now that the institutions provide under current SME legislations. Lastly, the measures taken by the government to promote SMEs in 2014 are stated.

3.1 History of SMEs in Mauritius

Since independence Mauritius has adopted a consistent policy to encourage the creation and promotion of small and medium enterprises (SMEs). SMEs were introduced in Mauritius in 1960s where the former started with an industrialization process with an import-substitution strategy. The forward-looking industrial policy of the Government of the day was promoting the production of manufactured commodities such as blades, electrical bulbs etcetera for the domestic market.

In 1976, the Small Scale Industry Unit (SSIU) was established to provide advice and guidance to small entrepreneurs. The SSIU became the Small Industry Development Organisation (SIDO) in 1983 as an integrated policy approach was needed with a legal framework for the Small Scale Industry (SSI) sector. Then, in 1988, small scale industries Act was enacted as state policy to promote SSI. The small scale industries Act adopted a legal definition if SSI, voluntary registration of SSI, duty exemption on production equipment and the setting up of an advisory board.

Followed by this Act came, the Small and Medium Industry Development Organisation (SMIDO) Act in 1993 which was a part of the Industrial Expansion Act had an important landmark in the promotion of SMEs. SMIDO was established as a parastatal body and had as vision a strong and modern SME sector.