Seed capital grant scheme |27 June 2017
R5 million earmarked each year to help start-ups
A sum of R5 million will be earmarked each year to help at least 100 applicants start their own small business enterprises through the seed capital grant scheme under which a candidate will obtain up to R50,000 as preliminary financial development support.
This is seen as a means to further encourage the development of more competitive and resilient small businesses. Originally, the Ministry of Finance, Trade and Economic Planning had decided to allocate a sum of R25,000 per applicant for the seed capital grant scheme for the next five years beginning this year but moved to double the amount to R50,000 following several consultations at different levels.
“After several public meetings, where more than 200 people attended, the government decided to review the grant amount,” said Pamela Charlette, principal secretary for entrepreneurship development and business innovation.
Mrs Charlette was giving details on the scheme to the press yesterday morning.
She said the scheme was launched on June 20 and submission forms for any applicant wishing to access the money are available at the following offices: Ministry of Finance, Ministry of Employment, Senpa office (on Mahe), Senpa office (on Praslin) and Ministry of Employment (on La Digue). Applicants are advised to fill in the forms correctly and to attach all documents they are being asked to provide. After submission, a committee will consider all the applications received.
Mrs Charlette also noted that “for sure we will receive more than 100 applications per year but it does not prevent someone from re-applying under the scheme if his or her application has not been accepted a first time. After receiving an application, the committee will take approximately one month to come up with a decision.”
During the meeting with the press yesterday the committee set up to review all the applications was officially presented. It is chaired by Brian Nicette and Sheriffa Morel is the vice-chairperson. The other members are Marie-Celine Zialor, Barry Assary, Norman Weber, Michel Naiken and Peter Roselie.
Mr Nicette explained that applications will be evaluated against the following criteria:
General feasibility: The applicant’s business model is based on assumptions that are logical and support the viability of the proposed business;
Innovation: The innovative nature of the project will be assessed in line with Section 3.3 of the above;
Commercially feasible: The project has a potential to develop products and/or services that address a real gap in the market or that can offer a competitive advantage when compared with other alternatives in the market;
Financial feasibility: After considering investment and operational costs the undertaking should, based on any logical assumptions taken, be expected to start generating a return to the promoters after a reasonable timeframe;
Technologically feasible: The project is based on sound technical concepts and uses technology to which the promoters have access;
Knowledge: The promoters have (or have access to) the necessary knowledge and know-how required to take the project forward;
Target clients: The applicant has to identify its market and its business model, locally and international.
“Successful applicants will be notified in writing of the outcome of their applications and applicants will be subject to continuous monitoring to ensure that the project is being or was implemented according to these guidelines. Monitoring will be done by the committee or through various agencies such as Senpa, district administration, entrepreneurship centre, which will then report to the committee,” added Mr Nicette.
As for Ms Morel, she said “once everything is in order, the applicant will receive from the Ministry of Finance, a first instalment of R20,000. After evaluation and monitoring of work done another instalment of R20,000 and a final instalment of R10,000 will be disbursed”.
She added that there can be a one-off payment of R50,000 if the application needs the money as an initial deposit with a bank.
Eligibility for this grant
The main factors determining whether a business is a small start-up are: number of employees which must be less than 10 full-time equivalent (FTE) employees; and a turnover or balance sheet total which does not exceed R2 million. The person should register his company with the Registrar of Companies or Senpa as: a) a limited liability company; or b) registered as self-employed or c) cottage industry, or d) registered partnership. In case of unregistered partnerships, the agreement has to be notarised.
This scheme seeks to help start-ups, engaged in any activity relating to any trade, business, profession or vocation, to part-finance their initial productive investment in either/both tangible and intangible assets, in line with their business plan, to implement their business growth strategies.
Not eligible
Small start-up businesses shall not be eligible to apply for this scheme if it is controlled by: a) fully or partly owned by a non-Seychellois; b) owners of existing businesses or other businesses that are operative or have interests that exceed 25% in other businesses in the same or related sector or where control is shared amongst a number of individuals or other businesses that are or have interests in other businesses operating in the same or related sector; c) owners of an undertaking operative in the same or related sector that had closed down in the of twelve (12) months prior to registering with Registrar again.
Revocation of aid
If an applicant is found to have breached the terms and conditions set in this guideline, any laws of Seychelles and uses the grant for other purposes other than that for which it was granted, the committee reserves the right to revoke, suspend or recover any aid awarded.
The forms can also be downloaded on the following sites: http://www.sib.gov.sc/index.php/info-centre/general-info/news/315-seed-capital-start-up-grant or http://www.finance.gov.sc/resources or www.employment.gov.sc