SME
Development The new
administration recognizes the potential of the Small and Medium Enterprise
(SME) sector in creating a more resilient and diversified economy as well
as creating more employment opportunities, particularly in the outer atolls. It
envisages establishing the requisite institutional and organizational
mechanisms to restructure and consolidate all SME Development activities
in order to achieve economies of scale and efficiency of operations.
Furthermore, it is also exploring the option of pooling all funds allocated for
development of SMEs and related activities under the aegis of a single entity
with responsibilities for providing the various services needed for
SME Development in the country across sectors. Short term goals (1-3 years) Long term goals (1-5 years) SME
Classification
To enable a more focused approach in implementing the government’s
SME policy and with alliance with SME Law, all SME related government
assistance will be channeled to MSMEs classified with the Ministry of Economic
Development.
The main objectives of classifying SMEs include: To have 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 To aid selection of small
business which requires government support service and financial assistance
based on pre-defined criteria. To enable information collection
and research on SMEs in order to monitor their activities to make strategic
policy decisions.
The classification for Micro, Small and Medium Enterprises (MSMEs)
in the context of SME Law is given below:
Category Full time
employees Annual Income/Turnover Micro Enterprise 5 - 0 500,000
– 0 Small Enterprise 30 - 6 5,000,000
– 500,001 Medium Enterprise 100 -
31 20,000,000
– 5,000,001
For SME’s to be classified, it has to be registered with the
ministry in some form; for example, as Sole Proprietorship or as a Partnership
or as a Company.
SME Policy
Government’s SME Policies are summarized below: