Yesterday, Deputy Director of the Macao Economic Service (DSE) Lau Wai Meng said that around 1,726 SMEs are eligible to make the second application for the SME (small and medium sized enterprises) Aid Scheme.
“We estimate that some 1,700 SMEs which had previously applied for the SME Aid Scheme are also qualified to apply for a second round of the aid scheme,” said Lau on the sidelines of the introductory session of the revised SME support schemes.
The second application for the SME Aid Scheme is only applicable to SMEs who have already repaid the previous scheme and for those who have received support and repaid the Young Entrepreneurs Aid Scheme.
The regulations for the revised schemes were introduced on Tuesday.
The SME Aid Scheme, implemented in 2003 and previously updated in 2012, seeks to provide interest-free business loans to a maximum value of MOP600,000 per applicant for different financial purposes, with a repayment period of up to eight years.
According to official data provided by the DSE, the government approved 8,820 applications for the aid as at the end of April since rolling out the scheme in 2003, disbursing some MOP2.47 billion (US$307.49 million).
Meanwhile, 3,719 cases repaid the scheme in the total amount of MOP724.28 million; official data shows that the biggest beneficiary of the aid is the retail industry, receiving some MOP803.93 million.
SME Credit Guarantee Scheme
Meanwhile, the government increased the maximum amount of guarantee of the SME Credit Guarantee Scheme to MOP7 million, providing credit guarantees equal to 70 per cent of the loan approved by participating banks.
The SME Credit Guarantee Scheme supports the development of SMEs in Macau and seeks to assist them to be financed by banks via the offering of credit guarantees.
The revised scheme also included a new criterion for application of any newly established business, together with criteria for transforming businesses, improving products and promoting brands.
Official data reveals that 563 cases of the Credit Guarantee Scheme was approved as at the end of April, disbursing some MOP1 billion for the approved guarantee amount. The Deputy Director also affirmed that one can apply for the three support schemes (SME Aid Scheme, SME Credit Guarantee Scheme and SME Credit Guarantee Scheme Designated for Special Projects) as long as one meets all criteria or requirements of the three schemes.
Young Entrepreneurs Aid Scheme
Given that some 10 per cent of young entrepreneurs had shut down their business while benefiting from the Young Entrepreneurs Aid Scheme, the DSE Deputy Director said they had conducted follow-up work to study and investigate these failed businesses.
“There are many factors [leading to the failure of a business],” Lau indicated. “Some might have their own reason […] some of them didn’t do business full-time […] so they can’t manage their work.”
Others experienced disputes among business partners and there were also cases in which the business person had underestimated the impact of paying tax, revealed the government official.
As such, the DSE Deputy Director disclosed that the government is considering providing courses or training for interested young enterprises prior to them starting up their businesses. According to DSE data, the government has disbursed MOP238.53 million to 1,002 approved cases for the Young Entrepreneurs Aid Scheme.
