THE MICRO, SMALL and medium enterprises sector is very critical to the social and economic development of Barbados. Purely on the basis of jobs in the sector, number of companies and income levels, one is very appreciative of this sector.
However, I have become increasingly concerned over the fragmentation in the macro policy space and in the administration of programmes targeting this sector. Furthermore, there has been too much ambiguity over the years as to what really constitutes the micro, small and medium enterprise (MSME) sector.
We really needed to bring greater clarity to the definition of the sector, its challenges, opportunities and a measurement tool for its contribution to our GDP.
We have been able to prepare a policy framework for the MSME sector that will guide its development over the next ten years.
Some of the challenges to the sector include lack of integration, collaboration and cohesiveness of business support agencies; lack of participation of private enterprises in the business support framework in the areas of training, technical assistance, and finance; low penetration rate of business development services; the existence of an expanding informal business sector; lack of simplified registration and classification process for businesses; insufficient foreign-exchange generation; lack of MSME category in national accounts; and a culture of mistrust among agencies and constituents.
Our vision of the MSME sector is to be a globally competitive, technology driven MSME sector, contributing to the sustainable socio-economic development of Barbados.
Our mission is to facilitate an enhanced and effective enabling environment for potential and existing micro, small and medium enterprises within Barbados that will accelerate entrepreneurship, increased profitability and employment, and foster innovation, competitiveness and sustainable development of the MSME sector.
There are approximately 9 700 formal MSME in Barbados and accounting for 47 per cent of total national employment. This is no small contribution and hence we must pay much more attention to the small business sector. The guiding principles for MSME development in Barbados requires MSMEs to be entrepreneurial in all undertakings, catalysts for human, social and economic development, key drivers of economic growth, and enablers of social stability.
It is therefore envisaged that this policy framework will greatly assist in facilitating the attainment of the five major national goals for the MSME sector which are increased export development, internationalisation of MSMEs; the development of a cadre of innovative MSMEs; increased employment generation; and increased efficiency and productivity among MSMEs.
The new policy guide therefore lays the foundation for facilitating MSME development by enabling MSMEs to contribute towards the attainment of an enabling business environment, a stable macro-economy, international competitiveness, a transformational culture that promotes entrepreneurship, energy security and efficiency, a technology-enabled society and a sustainable growth and development.
The policy prescriptions are therefore pitched towards the following thematic pillars to facilitate the attainment of intended outcomes and the achievement of the identified development goals: legislative, regulatory and business support framework; access to finance; market access, competiveness and productivity; and, development of entrepreneurial skills, knowledge and competencies through education and training.
The Government has great faith in the micro, small and medium enterprise sectors in Barbados. It has saved our economy in the past and with its resilience and creativity will continue to do so. We are duly bound to be bold and imaginative as we week to protect and grow the ideas and investments of so many ordinary Barbadians for generations to come.
Minister of Small Business Donville Inniss made these remarks at a Small Business Association members meeting last week.