Government and SMEs in the Maldives and Mauritius

Pratima Sambajee, Mehdi Zulficar Azad Dhomun

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

The purpose of this paper is to compare and contrast the role of government in the development of SMEs in the Maldives and Mauritius. Using tourism SMEs, it seeks to identify, analyse and compare strategies deployed by SMEs operating in an “enabling” and a “constrained” business environment.  An inductive approach to qualitative research is undertaken using seventeen semi-structured interviews with key stakeholders identified though a stakeholder analysis. Using multiple sources (six government officials, eight SME owner/managers, one private bank owner, one academic and one resort owner), variations and consensus in the data were identified through thematic analysis.  The Maldivian Government is less proactive in supporting its SMEs compared to the Mauritian Government. Its failure to facilitate access to finance and provide business support services has led the Maldivian SMEs to use multiple methods of bootstrapping to sustain existing businesses and/or start new ones. In contrast, despite operating in a more enabling business environment, Mauritian SMEs were found to engage in similar strategies due to lack of trust in government-led initiatives. Practical implications – Policy-makers in island economies can use the findings to inform decision making in SME development planning.  While this research adds to the sparse literature on government and SME development in island economies, it also highlights the relevance of bootstrapping for SMEs operating in economically constrained environments.

LanguageEnglish
Pages778-795
Number of pages18
JournalInternational Journal of Entrepreneurial Behaviour and Research
Volume21
Issue number6
DOIs
Publication statusPublished - 7 Sep 2015

Fingerprint

Small and medium-sized enterprises
Government
Mauritius
Owners
Business environment
Bootstrapping
Access to finance
Thematic analysis
Tourism
Structured interview
Development planning
Resorts
Owner-managers
Qualitative research
Multiple use
Business support services
Trust in government
Stakeholders
Role of government
Decision making

Keywords

  • bootstrapping
  • government
  • island economies
  • Mauritius
  • SME development
  • Maldives

Cite this

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Government and SMEs in the Maldives and Mauritius. / Sambajee, Pratima; Dhomun, Mehdi Zulficar Azad.

In: International Journal of Entrepreneurial Behaviour and Research, Vol. 21, No. 6, 07.09.2015, p. 778-795.

Research output: Contribution to journalArticle

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