EDITORIAL - Kudos to the MSME sector

 

Over the last few years we have been hearing more about the importance of Micro, Small and Medium Enterprises (MSME) to the economy, and increasingly there have been calls for greater efforts to be made to help such businesses excel, especially in these tough economic times.
 
But there are some who have argued that the sector was not as important as it was purported to be and did not deserve or require any special treatment. However, that argument was tossed out the window yesterday when the Small Business Association released the findings of the National Survey of the Micro, Small and Medium Enterprise Sector. That survey was truly an eye opener, as it showed that the MSMEs are the backbone of the Barbados economy.
 
According to the survey conducted by The Sir Arthur Lewis Institute of Social and Economic Studies of the University of the West Indies, Cave Hill Campus, not only does the sector account for 96.3 per cent of formal enterprises operating in Barbados, but it employs close to half of the country’s workforce, accounting for 47.6 per cent of employees. Moreover, it was revealed that 64.1 per cent of the value-added generated in Barbados comes from that sector.
 
These statistics should certainly strengthen the resolve of the players in the sector and their representative body to promote their work even more, and to let their voice be heard as it relates to having a better and more facilitating framework in place, to not only allow for the creation of such businesses, but to ensure their long-term sustainability.
 
Over the years there have been numerous calls for the financial sector to take a look at these small businesses and assist them. Some commercial banks and lending agencies have heeded the calls, while others have been less than accommodating. This reality has not escaped the Government, as just yesterday Minister of Small Business Development, Donville Inniss appealed to the financial institutions to be more understanding and lenient when lending to the MSME sector. He said while it is appreciated that they have to make a profit, the sector’s viability is also 
important. It is hoped that given the hard facts now available about local MSMEs, that the financial institutions will follow the example set by Government and make even more financing available to such businesses.
 
Government must be commended for leading the efforts to provide financing for the sector, having just allocated an additional $50 million to it. Indeed, successive governments have played their part in creating the requisite environment for the advancement of this aspect of the private sector, but while opportunities have been afforded them, some businesspersons have not taken advantage of them – be it financing, business support services or mentorship. Therefore, we believe more needs to be done to ensure they grab the opportunities with both hands.
 
For gone must be the days where Barbadians think only about becoming lawyers and doctors, their focus must be on becoming business owners – selling goods and services to the wider society, the wider region and the wider world. If we do not nurture this way of thinking, the country and our economy stand to lose.
 
It is therefore important that as these businesses come on stream, they have access to a wealth of resources that can help guarantee their survival in this very challenging economic environment, and certainly beyond the lives of the persons who establish them. Perhaps this is an area that the much touted MSME policy, which Minister Inniss said will be launched soon, can address.

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