By KC Soares, ContributorOVER THE past 10 months, I have been writing on the state of the small business sector. I have highlighted many of the problems facing the sector and have put forward what I consider to be workable solutions.
I have been focusing on individual aspects of the small business sector with emphasis on the institutions that deal directly with the sector and business enterprises that present the best investment opportunities. All this is being done in an effort to move the small business sector forward. However, unless there are changes in the infrastructure within which small businesses operate, there will be little or no chance of the sector moving forward.
Firstly, the sector should have a potent individual voice in the corporate world. This was attempted years ago with the establishment of the Small Business Association of Jamaica (SBAJ). Unfortunately, however, the SBAJ is not as strong as it should be and is therefore not prominent in the corporate landscape.
While I do recognise that organisations such as the Private Sector Organisation of Jamaica (PSOJ) and the Jamaica Manufacturers Association (JMA) do encompass small businesses, there appears to be a tendency for these organisations not to be identified with the "little man" and vice versa. In light of this, it is my opinion that the needs of the vast majority of small business operators are not being effectively represented. In my view, it is the SBAJ that should be making representations. Regrettably, this is not the case as the SBAJ, due mainly to poor membership and limited vision, is not performing as it should. As it now stands, each individual small business operator just does his own thing. Unity is strength and the first step in moving forward is for the sector to have its operators grouped together in one body. Through this medium they will be recognised and will have a say in policy making and development strategies.
CABINET RETREAT
Consider for instance the recent cabinet retreat held at the Ritz-Carlton Hotel in Montego Bay. The retreat was held with a view to finding solutions to economic and other national problems. Representatives of many business organisations (PSOJ, JEA, JBA, etc.) were present. Was there a representative from the SBAJ present? As far as I can recall no one from this Association attended, even though the small business sector is considered to be the engine of the economy. Failure to attend this retreat would suggest that all is not well in the SBAJ and the sector is not being properly represented.
One may argue that the interests of the small businessman is represented by organisations such as the PSOJ. But is this really true in all instances? I do not think so. The small businessman needs his own voice as this is the only way he is going to move forward. If the SBAJ cannot overhaul itself and become more attractive to operators in the small business sector, then a new association should be formed. This new association should have underlying policies aimed at reducing the cost of raw materials to its members and at the same time assist with the timely disbursement of credit in adequate amounts and at reasonable costs (interest rates). This association should also make representations to the powers-that-be to have duties on machinery and equipment of necessity to the small business sector reduced or entirely eliminated. Any association formed with these objectives will no doubt stimulate interest in the small business sector. Membership will not be a problem, as is the case with the SBAJ, and a strong organisation is therefore expected to emerge. With a good membership, this new association is expected to command respect and at the same time have a say in the planning and development of the national economy.
BASIC NEEDS
Whatever the case, the new look SBAJ or the newly formed association must have a status on par, with say, the PSOJ. When national policies affecting businesses are being made or when development plans are being constructed, there should be a say from the organisation representing the small businessman. Too often we tend to forget the basic needs of the small business operator and rally more to the desires of the more prominent businesses. It should not be forgotten that there are many more small businesses than large businesses and that there is greater potential for growth in the small businesses.
In the long run, small businesses are expected to grow, thus leading to greater outputs of goods and services. An increase in production levels is the first step in improving the standard of living for all.
K.C. Soares is a former banker and is now a business consultant with Soledad Financial Services Limited. E-mail: soledadnetcomm-jm.com.
