For almost a decade, SME development in Mauritius has been guided by the 2017 SME Master Plan. It set out a bold vision in which SMEs would drive GDP growth, employment, innovation, and exports. By 2026, they were expected to contribute more than half of GDP, generate nearly two-thirds of all jobs, and play a stronger role in exports.
As the plan approaches the end of its cycle, it is fair to ask whether the ecosystem evolved in the way it intended. The answer is not yet. That is not failure. It reflects how much the economic landscape has changed and why Mauritius now needs a refreshed, second-generation strategy.
Where the Master Plan Began
The plan set high targets: raise SME GDP share to 52 percent, lift employment share to 64 percent, expand SME export participation to around 18 percent, and shift a large base of micro and low-value firms into higher-productivity activity. It also prioritized skills, technology, innovation, and ecosystem coordination.
Where We Stand
A review of official studies and diagnostics from 2019 to 2024 shows clear trends:
- SME GDP share has stayed around 34 to 36 percent, far below the 52 percent target.
- SME employment share has slipped from a baseline of 55 percent to roughly 47 to 50 percent.
- SME export participation has increased to around 10 to 12 percent but not at a scale that changes the export structure,
Structural change has also been limited. Most SMEs are still concentrated in retail, small services, and low-margin activities. Technology adoption remains low, managerial gaps persist, and only a small number of firms have moved into higher-productivity sectors.
Where Mauritius Has Progressed
There has been meaningful progress in institutional support, with SME Mauritius consolidating services and expanding schemes. The financing ecosystem is stronger, with equity funds, venture capital instruments and green finance lines. Public and private sector collaboration has improved, with platforms such as the Business Link Platform creating new access to procurement opportunities.
Why Outcomes Are Still Lagging
Research points to fragmented support, overlapping programmes, low uptake among micro-enterprises, weak technology absorption, limited managerial skills, and minimal monitoring of outcomes. Mauritius added more tools but did not build the system-level coherence needed to drive structural change.
The Master Plan Is Not Wrong. It Is Outdated.
The plan could not have anticipated the disruptions of 2020 to 2025. These include COVID-19, accelerated digitalization, global value chain shifts, remote work, and higher sustainability expectations. Competitiveness looks different today, and Mauritius needs a strategy that reflects this new reality.
What Mauritius Needs Now
The next phase of SME development must be more coordinated, data-driven, and future-ready. A national SME competitiveness scorecard should be central to this approach. It would provide an annual benchmark across productivity, digital readiness, innovation capability, export potential, skills, and sustainability. This would give Mauritius a clear, trusted picture of SME strength and help guide targeted interventions.
The Road Ahead
SMEs are a central part of Mauritius’s economic story. The Master Plan provided an important foundation. The next strategy must build on it with a stronger focus on digital transformation, innovation, ecosystem governance and green transition. With a second-generation SME strategy, SMEs can move from supporting growth to shaping Mauritius’s future trajectory.
About the Author
Faaleh M. Sookye writes about AI, digital transformation, digital marketing, and modern SME growth. A doctoral scholar on AI readiness in SMEs, focusing on how organizations adapt to emerging technologies, his work blends psychology, organizational behavior, and more than ten years of hands-on experience working directly with entrepreneurs and small businesses in Mauritius and abroad. He is currently conducting doctoral research