THE SMALL BUSINESS Association (SBA) has been lobbying for various legislative and policy improvements for some time to enable the growth and development of the small business sector in Barbados.
Some success has been realised in this vein namely, the thrust by the ministry responsible for small business development, to review and upgrade the Small Business Development Act to focus on the micro sector with the attendant incentives for this group.
We further welcome the work done on the preparation of a Small Business Development Policy and encourage that this be taken to Cabinet in short order such that the sector can benefit from the fiscal and other development incentives needed at this time to hold the sector together.
There remain several issues affecting the sector that need to be addressed with alacrity. The focus at this time of prolonged recession must be stabilisation and sustainable measures to ensure micro, small and medium enterprises (MSMEs) can survive.
Stabilisation efforts include ensuring access to financing in an efficient manner. We must seek to put rapid response mechanisms in place for the effective operation of any capital being provided to the sector.
The last thing we need is another layer of bureaucracy with our financial instruments. We need a fund that is easily accessible by the average small business and the underwriting systems transparent and user-friendly.
Earlier, we had lobbied Government for a factoring programme for value added tax receivables and now ask that the methodology for this programme be reviewed to ensure the success of this initiative.
Firms that are owed refunds by the Barbados Revenue Authority should not be required to re-register with any other agency to access the factoring scheme. The BRA needs to ensure this process is nimble without adding further cost to Government and frustrating the small business.
The sustainability measures should include access to markets and capacity building. Since 2008, the small business sector has been promised that 40 per cent of Government’s procurement of goods and services would be set aside for the sector.
To date, this has not materialised. Such an initiative requires the policy infrastructure to be put in place and would serve as a fillip to MSMEs that are struggling to find and maintain markets at this time.
Additionally, an earlier set of budgetary proposals referred to some $15 million to be administered by the National Insurance Scheme and earmarked for developing skills for potential self-employed people.
What is the status of this initiative? We view this as imperative to the improvement of the skills and competencies of persons desiring to be entrepreneurs.
We further underscore the use of information communication technology as critical to the sustainable efforts of MSMEs and their ability to access export markets.
Creativity and innovation can be easily spurned by young people for the future development of enterprise. We therefore call for the appropriate legislation to be put in place to facilitate e-commerce activity. This is a catalyst to earn foreign exchange and grow market share.
I firmly believe that the way to turn the Barbados economy around lies in the success of small business. We must encourage more people to become entrepreneurs by starting their own ventures thus providing more employment and opportunities for Barbadians.
Small Business Association (SBA) president, Dean Straker, made these remarks at the SBA’s members meeting last week.