180 registered cottage industries to generate R7 million |28 December 2004

This number shot up from only 74 in September, following the publication of the Code of Practice leaflet with guidelines for entrepreneurs seeking to start their own cottage industry.

With the setting up of the cottage industries in which some R4 million will be invested, over 200 new jobs are expected to be created.

The most dominant sector is tailoring with 68 enterprises, followed by handicraft with 45 and professional services and art and craft with 19 businesses to be set up. Sectors with the least cottage businesses are manufacturing, upholstery and horticulture with only 4 enterprises in each.

The districts with most cottage businesses are Mont Buxton with 15, Bel Ombre, Beau Vallon and St Louis with 14, whereas Takamaka and Silhouette have the least with one enterprise registered per district.

A cottage industry is run from home and should employ no more than five Seychellois and generate revenue that does not exceed R800,000.

The development of such industries results from measures promised by President James Michel in his National Day address on June 18 to boost the productivity of small enterprises and increase employment opportunities.

"It will be of particular benefit to families, especially the female members of the household who are not in formal employment. Government will help them set up their small domestic enterprises according to a set of criteria (e.g. hygiene), provide the necessary training or micro-loans. The activities of the cottage industry will contribute to the growth and diversification of our economy, as well as to the reduction of unemployment," President Michel said.

A National Cottage Industry Policy was set up in July to provide the framework for this new economic sector.

Entrepreneurs running a cottage industry do not need a licence but can do so after obtaining a certificate of approval from the Ministry of Economic Planning. Registration is done free off charge and once they are 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."