Measures announced by President James Michel

Cottage industry can boost economy  

Small home-based businesses can create employment, supplement familial income and play a part in the overall national economy, government officials said on July 1 as they launched a national Cottage Industry Policy.

The new policy, first announced by President James Michel in his June 18 National Day speech, should allow easier entry onto the business scene for small, home-based enterprises operating either part time or full time.

Guidelines for the new cottage industry policy were developed the Ministry of Industries and International Business leading up to its dissolution on Thursday.

The policy defines a cottage industry as a small home-based business consisting of no more than five Seychellois “who use their in-house skills and ingenuity to generate a product or service which can be sold.”

Joseph Nourrice, the former principal secretary in the MIIB, told reporters last Thursday that officials had so far identified around 125 businesses that could qualify as cottage industries, but said that figure could be much larger.

Mr Nourrice said that cottage industries could be set up easily by registering through the Cottage Industry Facilitation Unit in the newly formed Ministry of Economic Planning, as opposed to applying for a business licence from the Seychelles Licensing Authority (SLA). Cottage industries will however be subject to the normal tax rates for businesses.

The policy is encouraging craft, light and non-polluting industrial manufacturing, agro-processing and basic equipment repair and maintenance as potential activities for cottage industries.

A team of officials from the Health, Environment and Economic Planning ministries will conduct site visits to cottage industry sites to ensure compliance with the policy’s standards, and food products will be tested by the Ministry of Health and the Seychelles Bureau of Standards.

Total annual sales revenue of a cottage industry cannot exceed R800,000 before the business must be licensed by the SLA, but that could very well be the end goal, Mr Nourrice said, as cottage industries would hopefully set themselves up in a way that would allow them to grow and expand from originally tiny ventures into full-fledged companies.

Tapping into special niche markets overseas could also provide an opportunity to export local products and services to spring from cottage industries, he said.

The recently formed Small Enterprise Promotion Agency will provide support and counselling to cottage industries for bookkeeping and other business services, and the government will also provide financial support through small loans, Mr Nourrice added.

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