Young Entrepreneurs Aid Scheme with new features

Launched for the first time in 2013, the government’s Young Entrepreneurs Aid Scheme has now been updated to be more targeted as a result of several adjustments. Among the most highlighted is the requirement for the applicants to possess and provide certification of their completion of one of the training courses on entrepreneurship (they are offered by all of the local tertiary education institutions,) or by the Macau Productivity and Technology Transfer Centre (CPTTM).

The minimum required length of these training courses is 42 hours. Applicants can only be exempt from this if they possess an academic degree or diploma from a tertiary education institution with a duration of at least one year in the fields of Business Administration or Management Studies.

The new rules were published in the Official Gazette and introduced yesterday in a specially prepared information session at the Economic Services (DSE).

Other changes on the interest-free business start-up loan program have to do with the widening of the scheme to young entrepreneurs who are creating their own business for the first time, as well as the simplification of some bureaucratic procedures that will exempt the candidates from delivering documents such as the M1 form from the Financial Services Bureau (DSF), or the copy of the Commercial Registry Certificate.

Among the improvements designed to ease the burden of bureaucracy is a change to integrate an online portal; the registration, form filling, and booking time for the delivery of documents can be completed online at the DSE website, although a hard copy still needs to be delivered by hand.

The system managing the control of the funds and the expense incurred by beneficiaries has been updated, requiring the submission of reports with supporting documents that prove its use every six months.

Some requirements remain unchanged, such as the need for applicants to be a permanent resident of the MSAR with an age between 21 and 44 years, while also owning the applicant company for a period of not over two years. Additionally,  the maximum loan to be granted (MOP300,000), and the repayment period of eight years remain the same.

During the presentation of the new rules and procedures, carried out by the chief of the Department, Conventions and Exhibitions and Economic Activities Development of the DSE, Walter Yau, it was also explained that in some cases, applicants will need to present a guarantor. This will occur “when the amount to be granted is higher than MOP100,000.”

Yau also clarified that the “Business Plan,” one of the documents needed for the application, is the one that candidates need to pay the highest importance to, since “that is the document that will be analyzed by the Council [that decides on the approval or not of the funding] and needs to convince the Council that the business is a good one and has all conditions to succeed.” Yau further remarked that the training courses fulfil the purpose of giving applicants skills to create this document in addition to several other skills related to the daily business management activities such as the fulfillment of accounting and report duties.

The senior manager of Professional Training & Examination, Quality Management & Enterprise Support, Helena Lei, noted that in general terms, there are two types of courses: those that focus more on basic skills, and as such target younger people with no previous experience in starting or running a business. These courses are  more restrictive and have mandatory subjects. The second type of course is for those that already have some business experience and as such, can choose between several topics and fields in which they consider they need more support so that they can develop their businesses.

Lei also informed that these courses will start immediately and applicants can also pay for them using the government’s subsidy from the Continuing Education Development Plan from the Education and Youth Affairs Bureau.

The program started in 2013 to “encourage young people to fulfill their dreams of starting their own business and thereby foster economic diversification and innovation in Macau.”