Results and Discussions – Mauritian SMEs Essay

5.0 RESULTS AND DISCUSSIONS5.1 IntroductionThe survey of Mauritian SMEs was done with peculiar mention to the following 3 sectors:

  1. Leather and Garments
  2. Wood and Furniture
  3. Paper merchandises and Printing

Both face to confront interview and questionnaires were used to obtain the needed information.

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The informations collected were entered into SPSS 20 and the consequences were analysed utilizing the figures and tabular arraies obtained.5.2 COMPANY DATA( a ) Age of enterprisers5.3 Selling( a ) Budget for selling

  • Local trade carnivals
  • 26.1 34.8 13.0 4.

    3 21.7

    1. Regional or International Trade carnivals
    21.7 21.

    7 8.7 13.0 34.8

    1. Professional Marketing Servicess
    8.7 13.0 8.7 13.

    0 56.5

    1. Personal Selling/Direct Selling
    60.9 21.7 4.3 0 13.0
    1. Web Page/ Email/ Facebook/Twitter/ Sms etc.

    34.8 8.7 17.4 4.3 34.8

    ( degree Celsius ) Consequence of marketing budget on degree of gross revenues21 SMEs answered this inquiry. Of these, 15 respondents considered the selling budget have a moderate consequence and 6 respondents as holding a high consequence on degree of gross revenues.( vitamin D ) Product construct v/s Conventional SellingMerchandise construct: The merchandise is developed foremost and so the house searches for market.

    Conventional selling: The customers’ demands and penchants are identified first and the merchandise is developed consequently.Figure 5.5: Concept following for selling8.7 % of SMEs surveyed adopt the merchandise construct compared to 34.

    8 % following the conventional selling and 56.5 % utilizing both of them. It is promoting to observe that 91.

    3 % adopt the conventional selling for at least portion of their production. This is declarative of the consciousness of enterprisers on the necessity to continually introduce and to fulfill the demands and gustatory sensations of clients and to follow the market tendency.

    1. Finance
    1. Finance to get down concern

    41 % of SMEs surveyed reported that they started their concern with either their personal nest eggs or their personal nest eggs plus aid from friends and relations. It is declarative of a strong equity base and hazard takers who do non waver to venture into endeavors with their ain financess.

    Figure 5.6: The beginning of finance of surveyed SMEs

    1. Awareness of loans offered at concessionary rate

    Table 5.2: Awareness of loans offered at concessionary rate

    Sector runing * Awareness of loans offered at concessionary rates by Government bureaus Crosstabulation
    % of Entire
    Awareness of loans offered at concessionary rates by Government bureaus Entire
    Not informed at all Not good informed So/So Reasonably informed Well informed
    Sector runing Leather and Garments 5.

    0 %

    2.5 % 10.0 % 12.5 % 12.5 % 42.5 %
    Wood and Furniture 2.5 % 2.

    5 %

    10.0 % 7.5 % 7.5 % 30.0 %
    Paper merchandises and printing 2.5 % 2.5 % 12.5 % 10.

    0 %

    27.5 %
    Entire 7.5 % 7.

    5 %

    22.5 % 32.5 % 30.0 % 100.0 %

    Table 5.2 indicates the grade of consciousness of loans offered at concessionary rates. It is noted that merely 62.5 % of SMEs surveyed stated that they are either reasonably informed or good informed.

    The activities of Government bureaus should be further advertised through the media and through negotiations in assorted vicinities. Their services should be made known to enterprisers and possible enterprisers.

    1. Access to Finance

    Table 5.3: Entree to Finance

    Sector runing * Rate entree to finance for SMEs Crosstabulation
    % of Entire
    Rate entree to finance for SMEs Entire
    Easy Reasonable So/So Difficult Very hard
    Sector runing Leather and Garments 2.6 % 15.4 % 2.6 % 20.

    5 %

    41.0 %
    Wood and Furniture 10.3 % 10.3 % 10.3 % 30.8 %
    Paper merchandises and printing 5.1 % 5.1 % 5.

    1 %

    10.3 % 2.6 % 28.2 %
    Entire 7.7 % 30.8 % 17.

    9 %

    41.0 % 2.6 % 100.0 %

    It is slightly distressing to observe that 41 % of SMEs surveyed see entree to finance as hard.

    The Leather and Garments sector is peculiarly affected and it is declarative that the fiscal establishments are instead pessimistic about the concern chances in this sector.

    1. Loans from Commercial Banks

  • Different loan strategies offered by DBM Ltd
  • Time required for blessing of loan by DBM Ltd
  • Cost of finance for SMEs
  • Renting as an alternate beginning of finance
  • Table 5.

    4: Leasing as an alternate beginning of finance

    Sector runing * Are you prepared to see renting as an alternate beginning of funding? Crosstabulation
    % of Entire
    Are you prepared to see renting as an alternate beginning of funding? Entire
    No Yes
    Sector runing Leather and Garments 22.5 % 20.0 % 42.5 %
    Wood and Furniture 7.5 % 22.5 % 30.

    0 %

    Paper merchandises and printing 17.5 % 10.0 % 27.5 %
    Entire 47.5 % 52.5 % 100.0 %

    52.

    5 % are prepared to see leasing, peculiarly in the wood and furniture sector.

    1. Summary of fiscal jobs encountered by SMEs

    Although 62.5 % are reasonably or good informed about loans at concessionary rates by Government bureaus, merely 17.9 % turns towards DBM Ltd compared to 38.4 % for Commercial Bankss, although the latters charge higher involvement rates. SMEs view the bureaucratic processs at DBM Ltd as burdensome and the long clip for expense of loans as discouraging. On the other manus, commercial Bankss view SMEs as higher hazard clients and demand comparatively high collateral. Consequently, 43.

    6 % of SMEs surveyed see entree to finance to be hard or really hard.5.5 IT, TECHNOLOGY INNOVATION AND QUALITY IMPROVEMENT( a ) Production procedureFigure 5.11: Production procedure of SMEsThe survey reveals that merely 12.

    5 % of SMEs are utilizing high tech and computerised equipment in their production procedure. The usage of disused machines with inefficient engineering affects productiveness, merchandise quality and end product.Although 90 % of the SMEs surveyed are cognizant of the advantages of IT and engineering invention, merely 62 % are taking advantage of them. As for the remainder, investing in equipment is considered excessively expensive and deficiency of cognition in utilizing IT is an hindrance.( B ) Investing in IT or engineering betterment as a per centum of entire assets5.6 COMPETITIVENESS AND EXPORT

    1. Nature of market

  • Troubles encountered in the export market.
  • Figure 5.

    14: Troubles encountered in the export marketMerely 18 respondents answered this open-ended inquiry and the 6 grounds given are presented in Figure 5.14.Logisticss hurdlings were the most often mentioned followed by uncompetitive monetary values on the export market.The hazard of default in payment is besides an of import factor that SMEs take into consideration in position of their comparatively modest fiscal resources.A figure of SMEs are non interested in export activities. The figure is declarative of the instead low fight of Mauritanian merchandises as a consequence of expensiveness of imported natural stuffs compounded with high transit costs and likely with comparatively higher rewards.

    Some SMEs have stated that even in the SADC and COMESA market, the advantage of the comparative propinquity is nullified by the high charges claimed by the cargo forwarders and transporting lines and the higher cost associated with modest volumes of exports.

    1. Competition

    Figure 5.

    15: CompetitionSMEs position imported goods as the strongest rival in the domestic market as shown in Figure 5.15. Trade liberalization and the lowering of duties as per WTO ordinances have benefited large foreign manufacturers with economic systems of graduated table.

    Lowering of transit and communicating costs in general have besides been good to them.One SME in the wood and furniture sector mentioned that foreign companies established in Mauritius fabrication furniture to mensurate as its strongest rival. The preliminary plants and measurings are done by the local subordinate, the production done abroad and later installing done by the local subordinate. The major drawback is the clip taken to finish the work.

    1. Foreign spouse

    Table 5.5: Working with a foreign spouse

    ( a ) Are you already working with a foreign spouse?
    Frequency Percentage Valid Percentage Accumulative Percentage
    Valid No 38 95.0 95.0 95.

    0

    Yes 2 5.0 5.0 100.0
    Entire 40 100.0 100.

    0

    Table 5.6: Considering to fall in with a foreign spouse

    ( B ) Are you sing to fall in with a foreign spouse?
    Frequency Percentage Valid Percentage Accumulative Percentage
    Valid No 32 80.0 80.

    0

    80.0
    Yes 8 20.0 20.0 100.

    0

    Entire 40 100.0 100.0

    Tables 5.5 and 5.6 are self-explanatory.

    However, during treatments, it is noted that SMEs are cognizant of the advantages of such venture in footings of equity engagement, entree to new markets and acquisition of advanced engineering.A figure of them do non wish to fall in with a foreign spouse because they are satisfied with the current state of affairs, want to retain their independency or are excessively old.

    1. Clustering

    Table 5.

    7: Bunch

    Sector runing * Do you favor the construct of constellating? Crosstabulation
    % of Entire
    Make you favor the construct of constellating? Entire
    No Yes
    Sector runing Leather and Garments 17.9 % 25.6 % 43.6 %
    Wood and Furniture 17.9 % 12.

    8 %

    30.8 %
    Paper merchandises and printing 15.4 % 10.3 % 25.6 %
    Entire 51.3 % 48.

    7 %

    100.0 %

    Table 5.7 shows that 48.7 % favour the construct of constellating. The higher per centum in favor comes from the leather and garments sector.

    From treatments, it is felt that there is a deficiency of trust among Mauritanian SMEs. Some fear that the other SME may go a possible rival if they get a better thought of:

    • Their production procedure
    • Their volume of production
    • Their markets
    • And do familiarity with their work force.

    While admiting that constellating can be good to SMEs, they believe that it will take old ages before Mauritians will set this construct into pattern.However, one of the respondents is already engaged in “International Clustering” whereby the natural stuffs and semi-finished merchandise is from a foreign state and the remainder is completed in Mauritius.

    1. Sub-contracting

    Figure 5.

    16: Sub-contractingMerely 25 % of SMEs benefit sub-contracting plants from big Mauritanian houses.This is unfortunate as SMEs normally have lower operating expenses. They have a greater flexibleness, can specialize in some types of production and be utile in extremum periods to assist big companies to run into tight deadlines.To promote big concerns to stand in contract work to SMEs, the Ministry of Business, Enterprise and Cooperatives will come frontward with a National Inclusive Business Award to honor and acknowledge attempts made by big endeavors in this way.

    1. Export potency

    Figure 5.

    17: Export potencyWhereas some of the SMEs have learnt about export potency through their concern contacts and some through SMEDA, most of them turn to Enterprise Mauritius as shown in Figure 5.17.Although EM caters for both SMEs and big endeavors, the perceptual experience is that EM is more focussed on bigger volumes of export from big companies. Since the volumes of export from SMEs are limited, EM had recourse to groupage of lading from different SMEs for export.

    1. Achieving ISO/Various National Standards

    5.7 MISCELLANEOUS

    1. Industrial infinite

  • Time to get down operations
  • Figure 5.20: Time to get down operationsMerely 42.

    5 % see the clip to get down operation as sensible. It is declarative of the bureaucratic processs and administrative hurdlings encountered by SMEs before puting up a concern. There is a demand to simplify and streamline all the processs so as non to deter the possible enterprisers.

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