Lynzy Valles
Small and medium-sized enterprises (SMEs) have been playing a significant role in the territory – whether in terms of providing local jobs or providing local retail and gaming operators the option of acquiring products and services that are within their reach.
Thanks to the MSAR’s policies, which include measures to promote the growth of local SMEs and young start-ups, micro-enterprises popping up here and there.
This scheme is not new. In fact, the MSAR introduced this scheme back in 2003; and has revised the legal regime of its ‘SME Aid Scheme’ every three years since 2006. The last revision was made just this year.
With such a move, the local government is aiming to effectively support these enterprises’ development to cope with the economic development in the territory.
Macau Economic Services (DSE) explained that “as the economy of Macau rapidly develops, SMEs are also provided with considerable support and opportunities to develop.”
The scheme grants loans of up to MOP600,000 per applicant for various financial purposes, while the maximum period for repayment of the loan is eight years.
Besides the ‘SME Aid Scheme’, there is also a ‘SME Credit Guarantee Scheme,’ which assists enterprises with a maximum credit guarantee of MOP4.9 million.
Hundreds of entrepreneurs have taken advantage of this attractive offer – but was it enough to keep the business running, or are there enough residents that have the heart to support such enterprises?
The government has done a tremendous job supporting the growth of SMEs and local procurements, yet a number of these SMEs are suffering from a lack of human resources.
As obvious as it seems, it is likely due to a) the lack of professionals or b) the difficulty of acquiring imported labor.
I reckon all these aids and schemes for the benefit of SMEs are a large contributor to the success of local SMEs, but without the human resources needed to fulfill its service provisions, it gives these enterprises more pressure to supply quality goods and services.
The majority of the entrepreneurs I have spoken with would argue that the main challenge SMEs are facing is not the lack of capital – thanks to the government’s policy and the gaming operators’ support of them – but rather the extreme lack of specialists who are also willing to receive a non-competitive salary.
The formation of these enterprises has also created jobs that have attracted local residents. Yet a significant number of entrepreneurs are undergoing the painful and stressful process of applying for quotas to be able to import workers.
Although there may be no current solutions on how to solve the challenge they are facing, I reckon they only hold high hopes of being granted an ease in applying for permits for imported workers.
Getting quota applications approved has always been an issue in the peninsula as it bids to protect jobs for local residents.
But I wonder whether this goes the same for, say, construction workers?
Local construction workers – who mostly earn some MOP1,200 per day –are ageing and with today’s culture, the number of residents wanting to engage in that kind of job is decreasing.
To what extent could the consideration be given for it to not be described as stealing local workers’ jobs?
I suppose that is another difficulty.
Nevertheless, SMEs and young start-ups may be in a good position to receive the utmost support from the government and gaming operators.
A few gaming operators even hold training and development sessions to enhance business knowledge of local entrepreneurs for free, and provide a platform to demonstrate their products.
I mean, where else would you receive such great support from local industries?
No Comments