74 cottage industries registered-Ministry releases Code of Practice |14 September 2004

According to the Enterprise Facilitation Section (EFS) in the Ministry of Economic Planning, the 74 cottage industries that have been registered represents an estimated overall turn-over of R3.3 million per annum and the creation of 92 jobs.

Meanwhile the Ministry of Economic Planning has launched a 'Code of Practice' which will serve as a guideline for entrepreneurs seeking to start their own cottage industry.

Though satisfied with the initial response, the head of EFS, Mr Franky Choisi, said the ministry was distributing the English and Creole versions of the 'Code of Practice' and registration forms in several key points on Mahe, Praslin and La Digue to bring the information closer to those who would like to register.

Previously interested candidates were asked to come to the ministry's office at ICCS, but with the 'Code of Practice' leaflet now available, entrepreneurs can now get the necessary information at the offices of the district administrations, the Small Enterprise Promotion Agency (SEnPA), at the Seychelles Licensing Authority (SLA), the Association of Seychellois Craftsmen, the Association of Small Businesses, the National Arts Council and at the Youth Health Centre.

The leaflet gives details about what constitutes a cottage industry, the criteria to be met, activities that can be carried out and those not permitted, the working hours, procedures to follow prior to registration, conditions to be respected and the monitoring of cottage industries.

Mr Choisi said that among those registered already are mainly small handicraft and tailoring businesses, and a few entrepreneurs dealing in snack making, computer services such as greeting cards production and website advertising, electronic repairs and horticulture. 

Mr Choisi said though they have listed the different kinds of industries that would be promoted, other innovative ideas – as long as they are not harmful to the environment and meet the necessary criteria for cottage industries – would also be encouraged. For instance, he said, there had been interest in beauty treatment services, like hair braiding, manicure and pedicure.

Art, craft, small scale manufacturing, agro-processing, basic equipment repair and maintenance, laundry activities, food processing, textile, fibre work, wood work, booking are some of the main cottage industries being promoted.

A cottage industry is a small part-time or full-time home-based business employing no more than five Seychellois "who use their in-house skills and ingenuity to generate a product or service which can be sold," and rake in an annual sales revenue that does not exceed R800,000.

The development of such industries is aimed at boosting the country's economic growth by increasing productivity and employment opportunities.

Entrepreneurs running a cottage industry will not need a licence to operate but only a certificate of approval from the Ministry of Economic Planning, once they are registered. Registration is done free of charge and once registered, a cottage industry will be entitled to benefit from any tax concessions given to small businesses and gain speedier access to foreign exchange, allocated under the "small business remark."

Mr Choisi said the cottage industry is also an ideal opportunity for the youth with no capital to invest in a major project to start something small at home which could later be developed into a fully-fledged business.

"Cottage industry will also help to ease the pressure on the demand for industrial land as people can just add the required space for the business to their house, after consulting with the Planning Authority of course," Mr Choisi said.

A fast track system at the Planning Authority has been set up for people wishing to extend their houses for cottage industry purposes whereby they can receive a response for such applications in less than 10 days.

A team of officials from the Health, Environment and Economic Planning ministries will be carrying out site visits to cottage industry sites at least once a month to ensure compliance with the agreed criteria and standards, Mr Choisi said.
 
Food stuff will be tested by the Ministry of Health and the Seychelles Bureau of Standards (SBS).