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Small Business Association in decline

K. C. Soares, Contributor


Soares

THE SMALL Business Association of Jamaica (SBAJ) is a non-profit membership organisation established in 1974 to promote and enhance the growth and development of small businesses throughout the country. The SBAJ has its main office in Kingston with two rural offices in May Pen and Morant Bay. The organisation is managed by a 12-member board of directors (eight elected, four co-opted) and a full time executive director.

In the past the SBAJ had made great strides and assisted in laying the infrastructure for facilitating growth of small businesses. Chief among its achievements are the establishment of the National Development Foundation of Jamaica (NDFJ), and the establishment of various small business windows at the Development Bank of Jamaica (DBJ) and the Ex-Im Bank.

The SBAJ generates its own income to take care of its operating expenses. A staff of seven persons is usually maintained at the Kingston office and salaries here represent the bulk of the expenses.

The main sources of income are family market operations (flea market), membership fees and returns from conventions and training seminars.

In recent times, however, the SBAJ has been plagued with problems. The underlying problem being a drastic reduction in the revenue earned. This has come about as there has been a significant reduction in the number of vendors at the weekly family market and a non-payment of membership fees.

The number of vendors using the facilities at the family market has over the past year been reduced from 140 to a mere 30. Members are not paying fees as, in my opinion, they do not see what they are paying for. Because of the lack of funds the SBAJ cannot effectively carry out activities as it should nor can it have projects meaningful to its members.

It's a chicken and egg situation - without the funds there will not be no projects and only when projects are in place will members be interested in paying fees.

So serious is the lack of funds that the SBAJ has decided to cut its staff from seven to three. This in turn has restricted its ability to perform and it has now become far less efficient. This development has impacted negatively on its membership.

Of its approximately 280 members, only about 30 have been paying fees. Clearly, something has to be done to

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