The background of the Mauritius Economic Problem Essay

This chapter introduces the topic in which the writer of the thesis has chosen to concentrate this research. This Introduction will get down with depicting the background to the job, purposes and aims and concluded with research inquiries and thesis construction.

Historically, Mauritius has been depending to a great extent on sugar exports to the European Union for its economic development. However, with the rebellion of the many-sided trading system and the outgrowth of the World Trade Organisation, which has as authorization the publicity of free trade, sugar exports to the European Union was being challenged by big graduated table sugar manufacturers like Brazil, India and Australia. Under this legal force per unit area, the EU Sugar Protocol finally dismantled and Mauritius had to vie in the universe market for the exports of sugar. Mauritius being a little sugar manufacturer does non hold the capacity to vie with big graduated table manufacturers.

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From the position of industrial development in Mauritius, Small and medium endeavors play an of import function in the growing of the overall economic system by making employment, supplying desirable sustainability and invention and poorness relief. In add-on to that, a big figure of people rely on the little and average endeavors straight or indirectly. The significance of their function is clearly indicated by assorted statistics. Promotion of SMEs has hence been the halfway piece of Government ‘s scheme. Furthermore, no economic system can be reliant on big organisations entirely. Besides, today ‘s little concerns are tomorrow ‘s multi-national giants, so it indispensable they are given the aid and support when it is needed most.

With a position to hiking up the Mauritanian economic system, the SME sector was identified to go one of the major pillars of the economic system and led to the debut of the Business Facilitation Act in October 2006. The development of the SME sector was to travel in analogue with the publicity of the touristry sector as another major pillar of the Mauritanian economic system. Government ‘s vision in the touristry sector was to achieve a mark of two million sing tourers by the terminal of twelvemonth 2015 and this vision has deductions sing the creative activity of little and average endeavors that would help the enlargement of the touristry industry.

The Business facilitation Act was a radical jurisprudence which had as a chief aim to streamline processs sing concern set up and concern facilitation as processs for establishing new ventures were cumbrous and overloaded with administrative ruddy tape. Together with this act went the development of an institutional support model to help enterprisers in guidance, preparation, fiscal support and other follow up and mentoring activities that would help the entrepreneurial growing of houses.

The whole support construction was successful in conveying an entrepreneurial spirit within the local population. Massive entrepreneurship publicity runs of the SEHDA ( now SMEDA ) by manner of its Caravane de l’Entrepreneuriat with the aid of stakeholders had been successful in bring forthing entrepreneurial consciousness. Many possible enterprisers started registering their new concerns at the Registrar of Companies and Businesss while support establishments like AREU, SMEDA, Enterprise Mauritius amongst others were having a immense response from possible enterprisers for the creative activity of new ventures. However, these enterprisers were get downing their concerns under the premise that stakeholder organisations will be supplying all the necessary support and logistic installations.

Potential enterprisers were blinded by the thought that stakeholder organisations would move as manus keeping agents and would besides rede on marketing mercantile establishments. Some nave enterprisers even thought that support establishments would place markets for their concerns. Entrepreneurs finally realized that they had embarked into little ventures without proper planning and many little houses failed as they could non happen markets for their products/services. These enterprisers did non travel through the procedure of carry oning feasibleness surveies, development of selling program and selling schemes etc. Government finally started presenting developing programmes to help enterprisers in selling. Institutions like NICE, HRDC and Enterprise Mauritius started supplying some signifier of marketing aid and seminars/workshops/training Sessionss in marketing to entrepreneurs with a position to increasing their endurance. The way for the development of the SME sector is now good underway.

A proper selling program and scheme is critical to the endurance of a SME. All houses must be involved in some facet of selling, as all houses need clients. Selling may be inborn or self-generated but merely when a house adopts certain facets of marketing maps they will go on to be and turn. But the inquiry is why little and average houses are non really understanding of their selling maps, why do n’t they give it the same degree ( if non more ) of importance as other maps like finance and accounting.

The selling jobs presently being encountered by SMEs have inspired me to travel for a survey and measure to what extent SMEs are doing usage of marketing schemes in their ventures.

Limited informations is available sing the SME sector in Mauritius. There is small research in the field in SME sector in Mauritius. It is anticipated that the part of such work will be utile for single endeavors every bit good as for policy degree recommendations for effectual authorities intercessions in the SME sector.

1.2 Problem Statement

In the ever-changing environment as clip evolves, consumer behaviour, tendencies and issues have put SMEs on considerable emphasis. Sustainability of a house depends mostly on its public presentation in the selling. Unfortunately, many endeavors are confronting jobs of marketing due to hapless quality of merchandises, hapless packaging, unequal selling accomplishments and stiff competition. Inadequate selling services have been forbiding SMEs to go competitory in local and international markets. Changes and selling attacks need to be altered consequently. Thus SMEs are challenged to explicate selling schemes that will guarantee them of accomplishing competitory advantage over other companies.

1.3 Study Aims

The results of this research will be to assist SMEs to understand the importance of selling schemes, how to utilize them to derive competitory advantage, making new clients and spread outing their market portion. Many SMEs after establishing a successful merchandise or service, have failed to keep their place due to a deficiency of Marketing Strategies. Entering a new market is non every bit hard as keeping it and taking the extreme advantage of it.

1.4 Research Objectives and Questions


From this research work, it is expected that it will supply utile penetrations to motivate analysis and findings in the rating of the selling schemes of SMEs in Mauritius so as to better their fight and to enable them to beef up their presence in the market so as to forestall them from shuting down wholly and everlastingly. This paper besides aims to do part to the research field of SMEs.

The aims have been defined as follows:

To look into selling tactics SMEs adopt for entrepreneurial growing.

To place factors that motivates and inhibits the usage of marketing schemes in SMEs

To depict the assorted Marketing Strategies for enterprisers.

To look into to what extent Mauritanian SMEs are presently utilizing marketing schemes for entrepreneurial growing.

To explicate appropriate recommendations and schemes to advance selling in SMEs.

1.4.2 Hereby the research inquiries identified for this survey is:

Hydrogen: “ SMEs proprietors are weak at utilizing selling schemes which are as a consequence impeding the development of their houses and seting in danger their success and endurance ”

1.5 Structure of the Dissertation

The Structure of this thesis is as follows.

Chapter 1: Introduction

This chapter states the research job and gives the purposes and aims of the survey. It besides provides a chapter overview of the thesis.

Chapter 2: Literature Reappraisal

Part One contains the reappraisal of assorted writers in the field, covering diverse literature in the country of SMEs including selling and SMEs approach to selling and how SMEs specify selling.

Part Two comprises the background of SMEs worldwide and in Mauritius. It includes the features, importance and support in the Mauritanian context.

Chapter 3: Research Methodology

This chapter describes the methodological analysis employed in this research in footings of research design, sampling, informations aggregation, questionnaire design and method of questionnaire administered which guides the analysis.

Chapter 4: Research Analysis

This Chapter analyses the consequences of the study and submits the findings.

Chapter 5: Swot and PEST Analysis

This chapter provides a SWOT and PEST analysis of the SME sector in Mauritius

Chapter 6: Decision and Recommendation

This chapter concludes the full undertaking and based on findings, proposed recommendation to the little and average endeavors in Mauritius have been included. This chapter besides summarizes the analyzed informations by supplying decisions and replies to the research inquiries and warranting the research intent. This is done with the purpose of seeing whether the intent of the thesis is fulfilled.


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