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In order to solve many problems today, there is a need of entrepreneurial activity on a large scale both in the private and the public sectors. There is a great importance of entrepreneurship in the economic practice in Mauritius and the question readily arises: What is its role in the economy and how does it develop?
Entrepreneurship is not for everyone. It is risky and is filled with uncertainty. The entrepreneur should learn to manage the ups and downs, that is, the successes and failures related to any business enterprise. Most of all, one must be passionate and totally committed to a long-term success. A true and career oriented entrepreneur can and will never give up easily.
Entrepreneurship has a wide range of meanings. Before defining this concept it is very important to define what is meant by an entrepreneur and an enterprise.
DEFINITION OF ENTERPRENEUR
The word entrepreneur originates from the French word, entreprendre, which means 'to undertake.' An entrepreneur is a person who owns and operates a business enterprise. He or she takes all the risks involved in the operation of the enterprise. According to the economists, an entrepreneur is considered to be among the factors of production. It is considered as the fourth factor of production. Computers, mobile phones, washing machines, ATMs, Credit cards are all examples of entrepreneurial ideas that got converted into products and services.
Entrepreneur can be defined by different individuals as follows:
David McClleland (1961): An entrepreneur is a person with a high need for achievement. He is energetic and a moderate risk taker.
Peter Drucker (1964): An entrepreneur searches for change, responds to it and exploits opportunities. Innovation is a specific tool of an entrepreneur hence an effective entrepreneur converts a source into a resource.
DEFINIITON OF ENTERPRISE
An enterprise is normally started by an entrepreneur. Entrepreneurship is the process of creation. There is the presence of an actor and an act in the process of entrepreneurship. The actor is the entrepreneur and the act is the entrepreneurship in this process. The result of the actor and the act is called the enterprise.
An enterprise is a business that is set up to realize goals and objectives. The main goals for any types of enterprises are to maximize profits. An enterprise is created to produce goods or to provide services to its potential customers. An enterprise helps an economy to a great extent as it creates employment and helps to improve the economy.
DEFINITION OF ENTREPRENEURSHIP
According to Peter Drucker, entrepreneurship is defined as 'a systematic innovation which consists in the purposeful and organized search for changes, and it is a systematic analysis of opportunities such as changes might offer for economic and social innovation.'
Entrepreneurship is a process of action where an entrepreneur establishes his enterprise. It is considered to be a creative activity to build something from practically nothing. The process of entrepreneurship is applicable both for small and big business and to economic and non-economic activities.
Entrepreneurship is a dynamic and risky process. It is considered as risky because there is a huge amount which has been invested to start up a new business. The entrepreneur does not know whether the business will make a profit or not.
Entrepreneurship can also be defined to calculate risks with confidence to achieve the goals and objectives of the enterprise. The process of entrepreneurship is usually undertaken by an entrepreneur.
THE RISE OF ENTREPRENEURSHIP IN MAURITIUS
Rs 500,000 Grant are being offered for Business Women
The Ministry of Business, Enterprise and Cooperatives is providing a grant of Rs 500,000 to the Mauritius Women Entrepreneurs Cooperatives Federation. This grant is being given so as to empower women entrepreneurs and to increase women participation in doing business. This is an important step that is taken as it will help to improve the quality of the products and services.
Therefore, if the Ministry continues to provide such an initiative then there will be a rise in entrepreneurship. Many women will be encouraged to start up their own businesses.
Rs 3 Billion to Small and Medium Enterprises
There is a big project to grant loans amounting Rs 3 billion which is spread over the next three years to small and medium entrepreneurs. Recently, small and medium enterprises have received Rs 1,292, 915, 639 worth of credit from fourteen banks during the period of 1 December 2011 to 31 July 2012.
One million rupee of loan will be awarded annually. The main elements of this scheme are as follows:
An interest rate of 8.5%
An exemption for all costs
An 'equity fund' amounting to Rs 50 million will be established to cover all risks.
Banks will be allowed to claim deductions on taxes in respect of bad debts without resorting to a court of law. However, regarding the exemption from tax on bad debts, commercial banks in advance have the approval of Mauritius Revenue Authority. The MRA will disqualify any amount which is not proper.
Hence, this will surely encourage more and more people to start their own enterprise as the banks are providing them with loans with a low interest rates. Moreover, the banks are being guaranteed that if the entrepreneurs are not able to repay all their loans then the banks can be exempt from tax.
Small Enterprise to Help Development for All (SEHDA)
Small business development is the backbone of any strong economy. SEHDA helps to promote the development and growth of small business in Mauritius. SEHDA supports new and existing businesses to realize their capacity to operate successfully. The responsibility of SEHDA is to promote and sustain small business development through the provision of all relevant services. These services include business discipline, financial and legal matters as well as sales and marketing consultancy.
As SEHDA is providing such a big help, individuals will not fear to start their own business. They will be confident that with the help of SEHDA, they will be able to operate in an efficient and effective way.
Business activities on the rise
The number of business licenses has been increased by about 4% from 102, 424 in December 2010 to 106, 667 in December 2011. During this period, 6730 new licenses were issued, the majority of which 67% were in industry group such as in wholesale and retail industry, repair of motor vehicles, personal and household goods.
Between December 2011, the number of business activities, computed as the number of licenses and registrations after adjusting for activities that are both registered and licensed, has increased by around 4% from 128, 671 to 133, 723. The district of Plaines Wilhems had the highest number of business activities followed by the district of Port Louis.
Therefore, these facts and figures show that there has been an increased in the number of entrepreneurship in Mauritius.