The Government is being taken to task for not going far enough with reforms of the National Insurance Scheme (NIS) to benefit micro, small and medium-sized enterprises (MSMEs).
Chairman of the Board of Directors of the Small Business Association (SBA) Charles Carter has questioned whether the Government was serious about the growth of the sector.
“For instance, the development of our MSME sector and the creation of more diverse wealth among our citizens is a vital pillar in our national development. Have we, therefore, missed an opportunity with the revisions made to the National Insurance Scheme? The changes that were announced for self-employed individuals are welcomed and important. However, the changes only offer easier compliance and nothing transformative,” he said.
“In the past few years, we saw the impact of COVID, we saw the impact of the ash fall, we saw the impact of a hurricane on the business sector. Also note that climate change poses a real threat to our livelihood. Certainly, these should have sparked more creative solutions for the sector we say is important to our national development,” Carter argued.
In late July, while delivering a ministerial statement on the Revitalisation of the NIS, Minister of Labour Colin Jordan said it was estimated that less than 15 per cent of self-employed people were contributing to the scheme, and this was also hurting the National Insurance Fund.
He announced that the Government would introduce a simplified process with greater flexibility for self-employed individuals to make contributions and receive benefits, including making payments online and making payments at any time during the year instead of having to complete schedules or specify a period.
“Yes, pension is important, but what happens if another pandemic hits or, God forbid, a severe hurricane? Aren’t the people we charged with the responsibility of developing business and providing employment worth protecting from these disasters? This is nothing to do with political partisanship which seems to dominate the mouths of many today,” said Carter.
He was addressing the launch of Small Business Week 2023, which will be held this year from September 24 to 30, under the theme Facilitating a Transformative Agenda That is Fit For Purpose.
Carter reported that coming out of last year’s Small Business Week, which focused on digitisation, there were lobbying efforts for the monetisation of social media platforms so that small businesses could benefit.
Indicating that he did not expect things to change overnight, Carter said “we urged our decision-makers not to allow it to lay dormant in someone’s drawer”.
“The monetisation of social media is a transformative agenda that is fit for purpose. The reality is that there are a few transformative agenda items such as the Junior Stock Exchange, the collateral registry, and revisions that could be made to the Small Business Development Act. So we eagerly await their fulfilment,” he said.
He said while the “agenda items” were known, there seemed to be a lack of will among the requisite individuals to ensure implementation.
“We must find a way to illustrate and emphasise to those responsible for the execution of these agenda items how important they are to the overall development of the MSME sector and, by extension, the country,” said Carter.
“We continue to miss the big picture by focusing our attention on conformity rather than transforming our business environment to facilitate the growth necessary for our country to survive.”
Carter further expressed disappointment that MSME operators were still complaining about lack of access to affordable financing, the rising costs of doing business, and difficulty surrounding e-commerce, despite those areas being touted as areas for transformation “year after year”.
“To be transformative, we must change the way we think, the way we act and the way we function as a people. Maybe then, we will see the bigger picture,” he said.
Marilyn Sealy, the Senior Director, Head of Communications at Cable & Wireless Communications which is the title sponsor of Small Business Week, opined that the island was well-positioned to leap forward by embracing seamless and efficient connectivity.
Declaring that small businesses are the heart and soul of any economy, driving job creation, innovation and community development, she said Cable & Wireless was keenly aware that these businesses often face challenges that stunt their potential for growth.
However, Sealy said connectivity was a transformative catalyst that can reshape the landscape for small businesses by providing them with tools and resources to thrive in the digital era.
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