Call to action- do more for small, micro enterprises

Director of the Caribbean Export Development Agency (Caribbean Export) is calling for greater assistance to be provided to micro, small and medium-sized enterprises (MSMEs).

Deodat Maharaj, who took up the top position at the Barbados-based regional agency earlier this year, said MSMEs remained the backbone of Caribbean economies.

He highlighted the fact that on average, these businesses contributed between 60 and 70 per cent to the gross domestic product of regional states, according to Caribbean Development Bank (CDB) statistics.

And importantly, 40 per cent of these businesses are owned by women, with MSMEs providing about half of the jobs in these countries.

According to Maharaj: “Given the fact that we are living in unprecedented times with small and vulnerable Caribbean countries reeling from the coronavirus pandemic, the emphasis must be on fast-tracking recovery and building resilience.”

The Caribbean Export head added: “Given the role of MSMEs in creating opportunity and jobs, it is logical that MSMEs must get priority attention. Policy measures excluding them or providing sub-optimal support will be counterproductive and only ensure a prolonged recovery phase or even worse, job loss and suboptimal growth.”

Maharaj identified a range of required support for MSMEs including financing. However, it was not only about providing financial support and creating an enabling environment for business to flourish, but the Caribbean Export boss also contended that other crucial areas where support was essential for MSMEs to maximum their chances of success, included technology.

“COVID-19 has demonstrated quite clearly the imperative of embracing new ways of working and doing business. Support must be extended to our MSMEs to help them embrace this new era.

Caribbean Export have already scaled up our support in this area and have seen huge interest on the part of businesses across the region,” Maharaj noted. He said technology was also having a “democratising effect”, assisting businesses regardless of size, with an opportunity to grow their businesses and reach new customers at low cost.

“In this COVID-19 era, examples abound. Here in Barbados, small scale farmers have taken to the internet to sell their products. In Trinidad and Tobago, there is a Facebook, group “Trini Farmers” with an estimated membership of 49,500 members which serves as a peer group where members support each other.

These are two good examples where entrepreneurs have taken the initiative. At the same time, we need to be actively supporting those who need assistance.”

Maharaj expressed concern too about the cost of energy in the region, noting Caribbean people were paying some of the highest energy prices in the world.

He added: “This is not only a disincentive to foreign direct investors but also a constraint to our businesses right here in our Caribbean.

High energy costs simply drive up the cost of production making it difficult for us to compete with imports at the national level and to export our products to regional and international markets.

To address this matter, the push to renewables is important both at the national and regional levels.”

(IMC1)