The days of businesses not registering or paying their National Insurance contributions are coming to an end, as officials seek to get small businesses in particular to legitimise their operations.
Minister of Energy and Business Development Kerrie Symmonds said officials will be ramping up efforts to create a more enabling environment for businesses to get registered so they can take advantage of concessions and other assistance on offer.
“It is not about a witch hunt,” he said on Friday. “It is about helping people to understand that they have to say ‘here I am, I have some challenges’, and then the Ministry will facilitate.”
Symmonds noted that while several businesses came forward for assistance during the height of the COVID-19 pandemic, many were “not able to demonstrate their authenticity because they had no official record of paying National Insurance, they were not registered officially as a business entity, but hard times hit and they wanted help”.
“We were called upon to provide help but you can’t just play footloose and fancy-free with the public purse, so it is necessary to have that official aspect to it. And we have now as a society to recognise that gone, hopefully, are the days where business people feel that the best route is to go under the radar and not be officially registered. You can’t get benefits that way and we really can’t assist you by way of business intervention either,” he added.
To help bring more businesses into the formal sector, the Ministry has introduced a quarterly business fair and expo, which will afford micro and small business operators the opportunity to showcase and sell their products and services while getting valuable education from various government agencies on making their operations formal.
The expo, which started on Friday on the grounds of the Ministry’s Warrens Office Complex, attracted dozens of micro-firms. They had the opportunity to interact with representatives from the Barbados Revenue Authority (BRA) and the Corporate Affairs and Intellectual Property Office (CAIPO), as well as several funding agencies, commercial banks, and credit unions.
“Effectively, what we want to do is develop a national conversation on the importance of buy-in to understanding what the regulatory requirements are, and participating in an official way in the system. I feel very strongly about this,” said Symmonds.
The Business Development Minister said while the Government and private sector have traditionally made financing options available to the sector, the effort has not been on educating businesses about the avenues to legitimise their operations and the pitfalls to avoid.
“What are some of the things I am talking about? Specifically, National Insurance, for example, and the role that National Insurance plays not only to ensure the ongoing efforts of the business person but to support his employees,” said Symmonds, who also stressed the need for greater education on financial literacy and better understanding of labour relations and labour laws among operators in the sector.
“I am very concerned there are too many businesses, especially black Barbadian businesses, which go out of existence before the second generation. Obviously, we have come to recognise that a lot more people needed to have a close relationship with the Barbados Revenue Authority and that is because of the fact that hardly anybody wants to pay taxes or likes paying taxes, but we have to have that kind of discussion. Beyond that, Corporate Affairs has a role to play because businesses need to be registered. They can’t just be under the radar,” he added.
Symmonds gave the assurance that the effort to get more micro and small businesses registered and paying their NIS contribution was not a witch hunt but merely so they could benefit from services on offer.
“Developmental assistance has to be planned. It has to be budgeted for if it is of a financial nature, but we got to find out where you are to meet you where you are. Financial literacy, for example, costs very little but it is a programme that unless you come forward and get involved then you can’t benefit from it. Unless you are prepared to say ‘I have a business and I have some challenges’, then we can’t treat to those challenges,” he explained.
Symmonds pointed out that the Office of Supervisor of Insolvency provides “free and good sound technical advice” to help people navigate difficulties with debt.
“Dealing with debt is a major issue in Barbados but unless you come forward then we can’t help you. So it is not about a witch hunt, it is about helping people to understand that they have to say ‘here I am, I have some challenges’, and then the Ministry will facilitate,” he said.
Symmonds said officials were already looking at plans to expand the business fair and expo and move to a bigger location given the tremendous response.
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