Small and Medium Enterprises
SME Development Council
The definition for Micro, Small and Medium Enterprises (MSMEs) in the context of Maldives was determined in the fourth sitting of the Small and Medium Enterprise Development Council held on 24 November 2010.
Definition of what is an SME will enable the government to develop a better system of compiling information about the informal sector, particularly unregistered enterprises operating in different industries, keep track of their performance, and aid the government in making relevant and appropriate policies to facilitate the development of SME.
To enable a more focused approach in implementing the government’s SME policy, in future all SME related government assistance will be channeled to MSMEs registered with the Ministry of Economic Development.
The main objectives of defining SMEs include having a standard reference for recognition of micro, small and medium enterprises in the Maldives which will in-turn enable better targeting of technical and financial aid given by the government and international organizations for the development of SMEs. Furthermore, it will aid selection of small business which require government’s support service and financial assistance based on a pre-defined criteria. The move will enable information collection and research on SMEs in order to monitor their activities to make strategic policy decisions.