THE OLD adage that it's never too late for a shower of rain comes to mind with the Prime Minister's latest address to the nation. He issued a strong rallying call for small and medium-sized entrepreneurs to step up to the plate, in these terms: "Small and medium-sized businesses must get into the act now. I urge members of our communities with initiative and drive to take advantage of the real potential that exists for the development of tourist attractions."
The PM pointed to the existing business support services. No doubt it is the PM's euphoric feeling, associated with the commendable high rating that a recent World Bank study gave Jamaica as a destination that was easy to do business with, that ushered in this new appreciative mood of the potential of the small and medium sized enterprises (SMEs).
In fact, it is tempting to hypothesise that, had the PM previously taken the lead in trying to mobilise the SME sector to play a more active role in the economy, it would have sent a psychological signal that could have had tremendous benefit for the sector. Unfortunately, the main problem with the PM's latest conversion to the importance of the SME sector's role in stimulating growth is that this involvement will not come merely from an impassioned plea.
If small and medium-sized entrepreneurs are to be more integrally involved in the economy, it demands a policy framework for the sector. Such a policy would entail government's own earmarking of a certain percentage of government contracts that would be awarded to the sector as obtains in some more developed economies. Additionally, such a policy would address the issue of the costs SMEs face associated with employing accounting services, meeting international standards and general technical assistance. In addition, there is also the absence of venture capital, especially for start-up firms.
Given the current positive mood associated with the country's investment outlook, which the PM proudly underscored in his recent address, it is an opportune time for us to confront these problem areas and to seriously facilitate the development of the SME sector.
THE OPINIONS ON THIS PAGE, EXCEPT FOR THE ABOVE, DO NOT NECESSARILY REFLECT THE VIEWS OF THE GLEANER.
