#BTColumn – Craftsmen of our Fate

As the nation of Barbados celebrates its 57th year of Independence and progresses as the world’s newest republic, many will reflect on the journey of the country as a sovereign state charged with managing its own affairs.

History will be kind to this Gem of the Caribbean for having made great strides in social development based on the United Nations Human Development Index. The country has done well in some areas, including free nursery to tertiary education, which has contributed to a highly educated and educable workforce; political stability; and unfettered access to social services. Indeed, Barbados is the envy of other countries.

The same level of celebration is not ascribed to our economic performance. Research done by Professor Justin Robinson and cited in this column indicates that since the late 1970s, the country has not realised any significant cumulative economic growth compared to its regional neighbours and other small island developing states.

Nonetheless, Barbadians the world over are justifiably baptised in the feeling of pride and industry at this time of Independence.

An area not generally talked about during our Independence celebrations is the contribution of our entrepreneurs and small business owners. This community of economic actors is deserving of recognition as true nation-builders. Micro, small and medium enterprises can be found operating in all areas of economic activity. They contribute to employment generation with the potential to reduce unemployment levels much more easily than larger businesses.

Not only is the economic contribution easily quantified but the significant support to social development cannot be ignored. These businesses have been a source of enfranchisement for many in society, lifting them from poverty and deprivation to improving their quality of life and social well-being. Arguably, a well-oiled MSME sector can help a country to reduce criminal elements in society by providing lucrative sources of self-employment activity and social engineering.

Small business owners are truly craftsmen of their fate, having to fight in some instances against the odds of bureaucratic government systems, a labyrinth of licences to be procured from various State agencies, the lack of easily accessible financing and an education system that does not cater to entrepreneurship development. Compounded by the above is a regulatory framework that is not enabling to doing business; business facilitation, despite the various policy prescriptions, continues to be a burden to the business owner – the burdensome tax regime which includes high taxes on fuel at the pump, an unjustified sewage tax on water, tax on online transactions in circumstances where e-trade is being promoted, expected increases in electricity rates; penalties for seeking to be compliant with the corporate affairs regulator; annual fees for those professionals who want to legitimately do business on the island; and a Value Added Tax (VAT) regime where your income can be easily garnished to settle outstanding payables but nothing is done in those circumstances where you are owed VAT refunds.

Business owners who operate in this environment every day and are able to sustain their operations are indeed craftsmen for their fate.

Admittedly, Barbados is not seen as an entrepreneurial economy, not by the internationally accepted characteristics. The regulatory environment is onerous; there is not a culture of innovation, risks and rewards; and the ecosystem does not support failure and easy access to financial and other services to develop and grow a business. Disruption is punished more so than celebrated. Yet, for all this, there are those who dare to enter the market with a business idea and work unrelentingly to grow that business.

Some suggest the educational system, which is a carbon copy of old England, needs to be blamed while others believe that policymakers over time have not seen the value of developing an entrepreneurial culture and through their policies have retarded growth. Whatever the reason, the last decade has shown that people are more conscious of the need for change and are more vocal on this issue. Bajans appear no longer tolerant of the influence of monopolies and oligopolies to the detriment of the masses and are quietly forming a resistance to the status quo. Persons are going through three and four iterations of their business idea, accepting that there is success after failure.

The rise of social media, influences from American television, and exogenous shocks on the local economy have contributed to persons being more readily interested in starting businesses and entering the local market. If there was a time, therefore, to review the state of the regulatory and policy environment for business, it is now.

It is said that 3-5 per cent of the population will get involved in entrepreneurship. If this can be believed, having 15 000 formal small businesses and entrepreneurs in a population of 300 000 is laudable. This can be used in a strategic manner to increase employment levels, expand the export agenda, improve the quality of life of citizens, and overall contribute to economic growth through the benefits of business activity.

At this time of Independence, a strategic review is needed on how entrepreneurship and small business development are treated. Cognisant of the potential for significant economic and social gains through a vibrant entrepreneurial economy, it is time to do more to enable this sector. After all, these men and women are epitomised in the National Anthem of Barbados as true craftsmen of their fates.

The Small Business Association of Barbados (www.sba.bb) is the non-profit representative body for micro, small and medium enterprises (MSMEs).