Concerns have been raised by a CARICOM specialist over the challenges faced by Small and Medium Enterprises (SME) in the Caribbean.
Private Sector Facilitator of the CARICOM Secretariat Leela Ramoutar told a consultation in Roseau on Wednesday that while the private sector must be considered the engine of growth, its challenges had not been reduced over the years.
“Due to recent developments in the local economy, these constraints have been further compounded. Most regrettable is the fact that challenges faced by the SME’s for well over ten years have remained exactly what they are – challenges”.
“We have not dealt with these challenges in any significant ways,” she said.
According to Ramoutar, the identified constraints are by themselves powerful enough to bring the private sector to its knees.
“It is not unreasonable to ask why after years of hard work and millions of dollars we have not achieved the desired results and why after all these constraints are still a nightmare for the SME sector,” she said.’
Meantime Executive Director of the Employment Small Business Agency Alexander Stephenson said Wednesday’s forum was timely.
“Persons have complained that the environment required for the establishment of the sector is challenging. The non existence of a documented policy and associated legislation has not made this challenge any easier”.
”There are policies and legislation in place which pertain to enterprise development however the evidence is that those do not adequately address the needs of micro and small businesses,” he said.
The event was being held under the theme “Towards an Agenda for improved Performance for the Small Business Sector”.
The ‘challenge’ is that there are people like this getting a nice fat CARICOM salary while telling us CARICOM’s not doing it’s job.
It would be interesting to know what were the challenges facing the regional Micro, Small and Medium Enterprises (MSME) Sector identified by the CARICOM SPeialist.
I am wondering whether the following are some of the issues raised:
1. The need for improved Legislation that must clearly articulate the importance and role of the MSME Sector with regards to the level of contribution MSMEs must make to economic development. This should address Local Economic Development in economically deprived areas of the City of Roseau and environs and the Town of Portsmouth and environs and at the village level as well. In terms of local economic development there is need to consider employment creation, poverty alleviation, business inovation. The Policy must impact single parents (particularly single mothers), volnerable youth especially young males, marginalized groups including the Kalinago/Carib people, school leavers.
2. The need to make adequate financing available at concessionary rates.
3. The need for concessions and to reduce the threshold for qualifying for fiscal incentives including duty free, tax breaks, etc
4. Need for proper monitoring and evaluation of the MSME Sector
5. Need for development of business incubation centres around the island
6. Need for investment in areas of demand such as tourism, agriculturem, services (health and wellness), renewable energy, creative industries (arts and entertainment), Education, and traditional cottage industries among others.
7. Need to identify traditional and non traditional sources of funding
8. Need to enhance the institutional and regulatory capacity of government institutions in particular to become more adaptive to the needs of the MSME sector.
9… other may wish to add to the list.
But in closing I just want to note that there is already an established MSME Sector in Dominica. The Sector just needs to be enhanced through injection of adequate financing and other required incentives. There is already documentation and legislation supporting the MSME Sector these just need to be improved through stronger legislation and policy guidelines, etc…
Just my two cents…
All that is what is taking place padna.
I was there on Wednesday and it was a very good session.
I was impressed with Dominica’s presentation. The new man in Small Business did well. Hope he gets that policy and legislation through.
All the best to all who made the event what it was – a great experience. Doctor D you too did well.
I have no idea about the rest of the Caribbean but in the case of my sweet Dominica, we import too much and produce too little to get what we need for any firm of business on the island. In fishing and agriculture, if one intends to sell on a mass scale, there is either too little supplies nowadays or too many hurdles. Everything else is import and clearance is an arm and a leg. How can you open a business when free ports and discounts on importation is being given to well established businesses while SMEs have to pay the full fee? I say tax larger organisations more and open the ports for SMEs, and while we at it, we need to open several meat rearing and fisheries complex around the island to rejuvenate our agriculture. Dominica needs to feed itself, and that alone is big business.
Dominica has large businesses to tax any higher? It seems to me you are pitting one size of business against another. We need to increase the number of small business and make it easier for them to operate. We do not need to cause harm to one to help the other.
Are you stupid? Dno doesn’t like name calling for businesses because obviously that’s where they make their money so I cannot mention names. But what happen to all the large grocery stores in dominica? Companies that bring all the new technilogical products that Dominicans indulge in? You have millionaires who have law practices. Are those not businesses? That is exactly how tax should work. The higher earners pay more to ensure a balance. Look at your country and tell me again if Dominica dont have huge, huge businesses companies and other corporatations. U must be blind
What to you is a huge business? $1m a year in revenue? $10m? 20m?
You have no iead of what you are saying. If businesses are not paying duty on imports, they should be made to do so. Taxes on income is an entirely different subject. Before you open your mouth and make a fool of yourself, you should try listening to people who know something about the subject.
Whenever I hear about these regional institutions I buss out laughing. They are a real joke. Talk, talk and more talk. That is all we do well.
Caricom;
it is not only the SME that is dyfunct, it is the whole organ.
I dont need to be harsh but the truth is that Caricom is not effective because since rehtoric and advocacy is mostly what you get sponsored for, you have lost touch with the everyday people and now you dont even make sense to yourself.
There is a chance for you but only if you take the people’s cause with more genuine and drop all the unnecessary sophistication and create programs of endeavour and not programs for more conferences and waste of finances.
Caricom get real