Call for small businesses to get bigger portion of Gov’t contracts

Senator Dr Lynette Holder has made a strong case for Government to give a firm commitment to provide vulnerable groups with a fair percentage of its procurement of goods and services from the business sector.

During Monday’s debate on the Procurement Bill 2021, the Government Senator noted that while the legislation provides for a transparent, improved regulatory framework that governs the process, it does not propose any percentage of business for small and medium-sized enterprises (SMEs).

“I still feel that there should be a commitment, even if it is in the regulations to follow, that Government will set aside a percentage to vulnerable groups – and I say vulnerable groups because I am going now beyond SMEs.

“I am suggesting there should be a commitment that includes women-owned businesses, there should be a commitment that includes youth-owned businesses. Even the differently-able, who would consider entrepreneurship and business ownership for their own self-sufficiency, should be included,” Senator Holder said.

She especially cited the need for special consideration to be given to women-owned businesses, pointing out that between 33 and 35 per cent of SMEs in Barbados are owned and managed by females.

Not only did the Senator propose a percentage share of Government procurement but she also stressed that the value of the contribution should be significant.

Senator Holder noted that the country would not lose from any preference shown to vulnerable groups, pointing out that SMEs were major contributors to the creation of jobs and the wider economy.

She had the support of Independent Senator Reverend Dr John Rogers who expressed concern that large companies he described as “one-stop shops” were the main beneficiaries of Government contracts.

“For example, you get a contract [and] the electrical contract and every other contract, down to the gardening, go to some subsidiary of some large company. Nothing gets spread around and everything stays in the same place.

“And, therefore, the little pie that we have here in Barbados is not being equally spread around. And so, some of these small and medium enterprises do not even get a look into the window, far less a welcome through the door, and I would like us to do something about that,” Senator Rogers said.

“I do not know how we will structure the legislation to do it but, certainly,  I believe it is an area that we certainly need to look at in this country, he added.
(SD)